21-2-2024 (SINGAPORE) Finance and technology professionals in Hong Kong out earn their counterparts in Singapore, with investment-banking analysts enjoying a substantial 46% higher salary in the former, according to a recent report from Bloomberg Intelligence (BI).
The report, published on February 21, reveals that analysts in Hong Kong rake in an average of US$92,149 annually, in stark contrast to their Singaporean counterparts earning US$63,305. This trend extends to associates, who earn nearly US$123,000, marking a 36% increase compared to their peers in Singapore, as per data from recruiting firm Michael Page. Executive directors in investment banks also enjoy a 13% higher income in Hong Kong.
Despite Singapore’s flourishing wealth-management sector, private bankers in the city-state generally earn less than those in Hong Kong. Relationship managers in Hong Kong make almost $128,000, a 13% increase over their Singaporean counterparts. Furthermore, professionals in the tech industry, spanning AI developers to data and application architects, command higher salaries in Hong Kong, partly due to a talent shortage, notes BI, citing a survey by Hay Asia.
This wage differential could potentially give Hong Kong an advantage in its ongoing competition with its long-time rival. The dynamics between the two cities have shifted in recent years due to their divergent economic performances. Hong Kong grapples with challenges such as capital and talent outflows, coupled with a slow recovery in mainland China. In contrast, Singapore’s economy exceeded expectations last year, attracting more regional headquarters and family offices, as highlighted by BI.
The tightening control Beijing exercises over Hong Kong has diminished its attractiveness. In 2023, the city lost its position as the world’s freest economy to Singapore for the first time in over 51 years, according to a Canadian think tank, citing the erosion of Hong Kong’s judicial independence by Chinese authorities.
Both cities employ attractive income tax rates to attract talent. While comparable for low-income earners, middle-income workers in Hong Kong may face higher effective tax rates, ranging from 6.7% to 14.4%, in contrast to Singapore’s 3.9% to 12.8%.
