Singapore and Hong Kong are two of the leading international financial centers in Asia and worldwide. Both countries have achieved significant success in developing their financial markets, not only due to their favorable geographical locations but also because of their open policies and active participation in the global financial system. The development models of Singapore and Hong Kong can be considered as role models for other countries seeking to enhance their role in the global economy.

1. Singapore: Financial Center With Open Policies and Innovation

Singapore has developed into a leading financial center in Asia thanks to its open policies and favorable business environment. Key factors contributing to Singapore’s success in the financial industry include:

a. Open Financial Policies

Singapore has adopted open policies towards global financial markets, facilitating the operation of international financial companies. The Singapore government not only maintains a free business environment but also encourages foreign companies to invest in financial sectors such as banking, securities, insurance, and asset management.

Favorable tax policies: The Singapore government provides tax incentives, such as tax exemptions for international financial companies during their initial period of operation. They also have established a reasonable and transparent tax system, enhancing attractiveness to investors.

Stable legal environment: Singapore has a solid legal system, with transparent and fair regulations for both domestic and foreign businesses. This provides confidence and stability for international investors.

b. Developed Financial Infrastructure

Singapore boasts modern financial infrastructure, with a top-notch banking and financial services system. Stock exchanges like the Singapore Exchange (SGX) are major securities trading hubs in Southeast Asia. Furthermore, the country has strongly developed financial services such as e-banking, fintech, and international payment services.

c. Strategic Geographic Location

Singapore is strategically located between major markets such as China, India, and Southeast Asian countries. This helps the country become an important transit point in international financial transactions and connects businesses and investors to regional financial markets.

d. Promoting Innovation and Fintech

Singapore has not only developed strongly in traditional finance but is also a hub for innovation and fintech. The Singapore government has invested heavily in financial technologies such as blockchain, e-payments, and digital financial services, helping the country become a leader in the digital finance trend.

2. Hong Kong: Financial Center With the "One Country, Two Systems" Policy

Hong Kong has been a major global financial center for decades, especially in the fields of banking, securities, and insurance. The "One Country, Two Systems" policy and active participation in the international financial market have helped Hong Kong maintain its position as a global financial center.

a. Open Financial Policies

Similar to Singapore, Hong Kong also adopts open financial policies, encouraging international financial companies to participate in the market. The Hong Kong government does not impose major barriers to international capital flows and maintains an attractive tax system for financial companies.

Flexible tax policy: Hong Kong stands out with a simple and low tax system, especially with a corporate income tax rate of only 16.5%. This helps attract international financial companies and large investment funds.

Stable legal environment: Hong Kong maintains an independent and transparent legal system, creating a stable and reliable business environment for international investors. This has helped Hong Kong become one of the most reliable financial centers in the world.

b. Hong Kong Stock Exchange

The Hong Kong Stock Exchange (HKEX) is one of the largest and most important stock exchanges in Asia. It provides a solid platform for large companies from mainland China and other countries to list shares, raise capital, and conduct international financial transactions. HKEX has maintained close connections between international financial markets, especially with China.

c. Geographic Location and Relationship With China

Hong Kong has a favorable geographic location and is an important financial gateway between China and the rest of the world. Hong Kong maintains a separate financial and legal system, according to the "One Country, Two Systems" policy. This policy has helped Hong Kong develop strongly in international finance, while acting as a bridge between international investors and Chinese companies.

d. Hong Kong Is a Fintech Hub

Hong Kong is also becoming a fintech development hub in Asia, with many startups and innovations in the field of financial technology. The Hong Kong government has implemented policies to support fintech, including programs to increase investment in e-financial services, blockchain, and mobile payments, aimed at attracting investment from global companies.

3. Comparison: Singapore vs. Hong Kong

Both Singapore and Hong Kong have their own strengths in developing into international financial centers:

Stable and open policies: Both countries have open financial policies and are constantly innovating to attract international investors. However, Singapore places more emphasis on innovation and fintech, while Hong Kong still maintains a major role in banking and securities.

Geographic location: Singapore has an advantage in connecting Southeast Asian and Indian markets, while Hong Kong is an important gateway to mainland China and the Asian market.

Legal and tax environment: Hong Kong and Singapore both have strong legal systems and attractive tax policies, but Singapore focuses more on policies that support innovation and high technology.

4. Conclusion

Both Singapore and Hong Kong have succeeded in becoming international financial centers thanks to open policies, a stable legal environment, and active participation in the global financial market. With strong support policies for financial companies, investment in modern infrastructure, and long-term development strategies, Singapore and Hong Kong are continuing to maintain and enhance their positions on the global financial map.