Should I Stay or Should I Go? A Temperature Testing Survey of Expats in Hong Kong May 2021 Foreword

People ask me every day whether expats are leaving Hong Kong following the stress of the 2019 violent protests, the passing of the National Security Law, recent electoral reform, and strict COVID-19 quarantine measures. In this latest flash survey our membership anonymously answered questions and gave comments showing the anxieties they feel, both personally and professionally after a tough few years. While people share their love for living in this dynamic city, they also reveal growing underlying tensions and nagging fears. AmCham is dedicated to remaining in Hong Kong for the long haul. We believe many businesses will have strong opportunities Tara Joseph to thrive in the future. Right now though, it’s easy to worry about AmCham President a brain drain of top talent and skills in a gateway city that is fuelled by trade, international capital flows and global connectivity. Background

• Hong Kong, with its historic reputation as a diverse business hub highly favoured by expatriates, has seen an unprecedented number of expatriates leaving or planning to leave the city over the past few years. • The international business community in Hong Kong has recently been caught at a crossroads, with rising concerns about issues such as US-China tensions and high living costs being at odds with the many benefits of Hong Kong’s key business offerings. • In light of this, the Chamber surveyed its wide collective of members to anonymously capture sentiment. • 325 responses (24% of membership) were recorded between May 5 and May 9. • Please note that further breakdown of data is unavailable. Comments may have been edited for brevity and clarity. Key points

• The survey shows 58% of respondents have no plans to leave Hong Kong, while 42 % of those surveyed say they are considering or planning to move away. • The most widely shared concern was discomfort due to the National Security Law, although other key issues were prevalent in members’ minds. • Based on the survey results, AmCham strongly suggests that the government pay close heed to the sentiment of expatriates in Hong Kong and work towards allaying major concerns through stronger understanding of Hong Kong’s international talent, lest the city lose competitiveness versus other business hubs. Demographic Information

1. Where are you from? 2. How long have you lived in Hong Kong? (for those who answered “outside Hong Kong” to Q1)

Less than 1 year The majority of 4% respondents hail from Hong outside Hong Kong. A Kong 20 years or large majority, 95.6% 22% more of those who come 24% 1 to 5 years from outside Hong 27% Kong, have lived in Hong Kong for a year Outside 11 to 19 or more. Hong Kong years 6 to 10 78% 23% years 22%

Hong Kong Outside of Hong Kong Less than 1 year 1 to 5 years 6 to 10 years 11 to 19 years 20 years or more 3. If you are residing in 4. I am making plans to leave because… Hong Kong, are you (for those who answered ’yes’ to question 3) considering or planning to My employment contract is going to end soon 3.85% leave the city? COVID-19 quarantine and other measures affect my business opportunities 13.85%

Other / comments (please specify) 19.23%

Opportunities are opening up in my home country or other locations 19.23%

Yes Hong Kong is expensive to live in 23.85% 42% I never planned to stay in Hong Kong for the No 29.23% 58% long term Concerns about quality of education for my children after the NSL 36.15% COVID-19 quarantine and other measures make it more difficult for my family to live in… 36.15% Yes No I am pessimistic about Hong Kong’s future competitiveness 41.54% COVID-19 quarantines make it more difficult 49.23% A slight majority of respondents (58%) said for me to travel and visit my family and/or… they are not planning to leave, although a The National Security Law (NSL) makes me very significant percentage (42%) said they 62.31% uncomfortable are considering leaving. 0% 10% 20% 30% 40% 50% 60% 70% 4. (Continued) I am making plans to leave because… (for those who answered ’yes’ to question 3)

“We are moving to the US next “People here are unhappy...[there “My social circle has mostly summer (2022) after 17 years in are] no indications there is a departed. Irrespective of COVID-19 • Respondents gave a myriad HK… we will put our kids in private plan…for changing things for the and the NSL, we do not intend to of reasons which culminated high school, be closer to family and better. All that means a higher risk of have our children educated in HK in their ultimate decision to live in a more cost-effective city as I instability - and continued and so we did not plan to stay in HK leave. plan for retirement. COVID-19 unhappiness.” long term.” restrictions and NSL are secondary • Key reasons that appeared considerations which are not really “The way and culture of working “Spouse is uncomfortable here. driving the decision to relocate frequently were concerns seems not to be as international as Increase in anti-foreigner sentiment next year. We deferred this decision before. I would like to go where the about the National Security in the media and government by one year as we wanted one professional workforce is more open- statements. Reduced long-term Law, generally declining more year in this remarkable city.” minded and where there is more career opportunities for foreigners.” mood across the community access to opportunities.” and increase in anti- “I think the tolerance towards non- “I’m not in property or financial foreigner sentiment and ethnic Chinese and Caucasians in “I am fearful for foreigners in Hong services so there are no career messaging. particular, which was a hallmark of Kong as the geopolitical situation opportunities for me here.” post-colonial Hong Kong, is waning. becomes very tense, especially • On the other hand, some As to the NSL, it's not just that, but around Taiwan and the South China “The NSL is destroying Hong Kong's noted that COVID-19 and also the rise of illiberal values as Sea. Also recent government actions international appeal.” show that we no longer have HK's NSL are secondary Hong Kong becomes more closely integrated into China.” historical freedoms.” “It seems that expats are being considerations. There are pushed out as employment other practical drivers to “I am actively planning to change “The fabric of HK is rapidly changing. opportunities are more and more relocate, such as retirement careers. This would be best served We are in no hurry to leave as a going to mainlanders.” planning and career by moving elsewhere. I would family unit, however we are keeping opportunities elsewhere. consider returning to Hong Kong in a keen eye on other markets for the future, whether or not appropriate opportunities.” circumstances change.” 5. I plan or hope to leave Hong Kong within the following time frame: (for those who answered ’yes’ to question 3)

Immediately Before the end 3% of the summer 10% “Still determining based on a “Subject to on-going As soon as I range of variables - local job developments (could be • 47.69% of respondents for can relocate prospects, international sooner/later than 3-5 years).” this question said they plan my job and/or travel opening up, etc.” to leave within 3 to 5 years family At the end of “No immediate/definitive 24% the year “Already left on what was timetable, however if/when • The other 52.31%, however, 15% planned as an extended trip another opportunity presents all said they aim to leave on purpose. And now, after itself we'll consider leaving within a very short time reflection, may not return.” Hong Kong.” frame; some will be leaving Within the next immediately, while others will “Depends on quarantine 3-5 years “I am essentially hedging leave as soon as they can requirements being 48% bets and taking a wait and competitive with other hubs relocate. see approach over the next in Asia, including Tokyo, few years, rather than Bangkok, Seoul and Taipei.” making immediate plans to leave.” “My family and I are still Immediately bullish about being in HK. Before the end of the summer However, geopolitical dynamics continue to be a At the end of the year concern.” Within the next 3-5 years As soon as I can relocate my job and/or family 6. I plan to stay in Hong Kong because: (choose all that apply) (for those who answered “No” to Q3) “I am unclear as to how this will “Even if I relocate to other change over the medium-term, but countries, there’s no way we can Quality of life is good 76.76% for now, job opportunities in HK are avoid questions like COVID, housing still quite strong.” and education. National security is a norm in today’s world - US also “As a Chinese-Australian family, we has its own homeland security want our child to receive a good department. To be honest, HK is Excellent business environment 55.14% bilingual education.” much more safer than US…Hong Kong is still a conduit of the east and west and it has so much more “I am required by my company to to offer to businesses.” reside in HK for the corporate tax I believe Hong Kong offers a promising benefits.” future for both living and working 49.73% “I believe Hong Kong will return to ‘normal’ once the pandemic is “My long-time communities over.” (academic, professional, family, etc.) remain here.” Proximity to China market 47.57% “Easy access to vaccines, low number of COVID-19 cases, safe to “Whilst we plan to stay for now, we move around for kids and family.” are not sure about the long term in light of the political changes that “Personal safety and security is My home country or other locations have been taking place recently important to my family especially don’t offer the same job opportunities 36.76% which make HK a less attractive place to be.” with young children.”

“Proximity to Asia markets and opportunities.” Other / comments (please specify) 29.73%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 6. (Continued) More comments:

“Job and partner are in HK and “I'd much rather raise my children “The business I am involved with is “I have a hard time agreeing with situations in the US aren't much here than in the US, and the way growing rapidly in Asia. This will those who feel there has been better for now.” things are going in the US, I'll continue for the next decade I permanent damage done to Hong probably retire out here rather than expect.” Kong. Our resilience has been ever go back.” tested many times and we always “I am an owner of my business and come out just fine.” I run a number of our Asia offices “Hong Kong is efficient and things from Hong Kong which is our “As an expat, so far, my family and I get done in a timely manner. headquarters. Also my clients & have not been severely impacted Hongkongers are hard working.” “Despite the protests, HK is still consultants are in part located by the last two years events. The comparatively safer than here.” riots of 2019 are history, COVID-19 is “ It is much safer than other elsewhere. Hong Kong, for the most basically everywhere in the world, countries (low crime!)” part, is also more tolerant of races. “This is my home and I love it. If I so it’s no different elsewhere, and Through the pandemic, the city likely BETTER here in Hong Kong for also showed that it is slightly resilient leave I cannot be a positive force “Good location for regional for continuing the good that is the moment during this pandemic than many other places because oversight at the moment.. could its citizens will cooperate with masks here.” crisis.” change in the future.” and gathering limitations for the greater good (for the most part).” “Easy access to vaccines, low “Asia is shining!” “A great and dynamic regional number of COVID-19 cases, safe to hub! Best place to get things done move around for kids and family.” in Asia! 5 hours flight to the worlds largest markets.” 7. If I leave Hong Kong now or in the future, I will likely: (all respondents)

“Perhaps Thailand.” “The city is no longer being “Singapore is looking more managed for the benefit of and more like the right the Hong Kong citizens…I place to be for families.” “Tokyo, Taipei, Singapore.” fear Hong Kong will be fighting COVID-19 for the Return to my “Maybe Singapore? Quite “Headed to Singapore, just next 18+ months with Stay in the home unsure.” like everyone else.” restrictive quarantines. Asia region country There are better places to 43% 39% “Options in Singapore for live and work in Asia. I will “Want to start again in a tech and finance look miss Hong Kong, but life new environment which is attractive. While an here has changed for the different from my current expensive city, it has done worse and I have no one. Bring some freshness Move to a new relatively well on COVID-19 confidence it will improve.” to my life.” country outside measures and shows long of Asia term vision and plans to “I have no plan to leave.” “If I were to leave Hong 18% make it more liveable and Kong I would stay in the more business attractive “Perhaps to UK, not Greater China and APAC and ability to because of its latest policy region.” communicate to its Return to my home country supporting HK people, but population and an overall quality of life / Move to a new country outside of Asia internationally.” medical system / Stay in the Asia region education system / culture…” 8. Final Comments: (optional)

“Previously, I never had a “HK is changing faster than “I'm not ‘actively’ considering “Hong Kong remains the premier “For expats, HK offers a great worry about what I said or ever and losing its unique leaving HK. That said, there will business city in Asia as long as balance between professional wrote when I was in Hong status, security, character and become a point at which the we have a solid, independent opportunities and personal life. Kong. With the NSL, that has heritage.” COVID-19 regulations judiciary and law and order is COVID and politics aside, changed. The red lines are become too oppressive - the maintained.” western nations don’t fully realise vague and seem to be “This past year has government needs to quickly the value and benefit of the arbitrary. I don't want to demonstrated that HK can come to a sensible position “COVID-19 in HK is not an issue - quality of life offered in HK and continue to fear saying or offer much more than my own around reduced local and it is being handled successfully the economic viability here.” writing something that could home in the US regarding arrival quarantine for (albeit aggressively). I feel unknowingly cause me to be COVID, equality, and safety.” vaccinated people.” depressed every day when “Hong Kong will always be a arrested.” someone new gets thrown in jail, wonderful special place but it “Although I do not condone “Inconsistent policy arbitrarily a media outlet is banned, art will never be the HK of the past, “We have seen very little from the violence of the protests, enforced and at times exhibitions cancelled, and other if people cannot understand the government in terms of the Government seemed to targeting specific groups is a tell-tale signs of Beijing's and appreciate that my guess is making housing more have gone from a stance of real hazard to HK’s ability to playbook being applied in HK. I they will leave. I also feel a new affordable. The international inaction during/before the retain expatriates.” have lived in China, so I know wave of people will come in school in which my child protests of dissenting views to where we are headed. But I hate once the dust settles.” attends was poor in its the other extreme of overly “Hong Kong has problems to to watch the transition.” handling of COVID-19 and clamoring on opinions deal with, so do other places “There is so little visibility how the took longer than other schools different from its own.” around the world. If the “There are many benefits still HK government will allow to re-open. The offers for government would like to see living and working primarily travelling for fully vaccinated better education long term is HK continue to be an “It's very hard to tease out the around the professional people overseas without hotel still better outside of Hong international talent hub, it has reasons why people are opportunities. I have little quarantine. This is very Kong.” to address fundamental leaving or not coming to Hong children and will get back to the depressing after the US and problems like cost of housing Kong while the pandemic is USA in 3-4 years as the quality of Europe will reopen over the next “I remain bullish on Greater and education. Companies happening. When the public living here is not what I want for 3-4 months.” China and see no better no longer offer CEO health situation improves, we teenagers.” place to raise my family and packages and we see more will have a clearer view. I grow my business.” young entrepreneurs wanting believe Hong Kong will take to start a business in Hong “Strict quarantine measures are steps to encourage travel and making Hong Kong less “I'm now more optimistic Kong but end up moving to investment and will be well appealing as it has become about the future of Hong Shenzhen because they can’t positioned.” extremely challenging to see our Kong than in 2019.” afford housing or education for their families and children.” family and friends back in the U.S.”