Comparing Singapore & Hong Kong

Convergence since 1980s?

• Singapore reconsidered its development strategy
• economy diversified from manufacturing to financial and professional services
• aims to surpass Hong Kong as an international center of finance & business HQ
• government relaxed intervention in economy
• free capital flows and foreign investment even after Asian Financial Crisis of 1997

Convergence since 1980s?

• Hong Kong government moved in the opposite direction
• became more interventionist
• to cope with the political uncertainty during the negotiations between PRC and UK
• intervened in stock and currency market
• has linked HK$ to US$ since 1983

Income Inequality in East Asia

Rank	Country/Region	Gini index
9	Hong Kong	53.9
29	China	46.5
35	Singapore	45.9
39	United States	45
78	Japan	37.9
93	South Korea	35.7
111	Taiwan	33.6