A few days ago, I became a permanent resident of Hong Kong. That means I can reside in the city without an employment visa. You need to live in Hong Kong at least seven years to qualify – I’ve been here more than eight. When I first arrived I expected to be here for two or three years, but Hong Kong is that kind of place, where expatriates end up staying a lot longer than they ever imagined. It’s a great base for exploring or conducting business in the region. Hong Kong boasts the best airport in the world, in my opinion. Add in the great food and that still-scenic harbor, and it is easy to get comfortable here.
But perhaps the most impressive aspect of Hong Kong is its remarkably efficient and professional civil service. I think every government in the world should send a team here to study how the administration conducts itself with the public. They’d definitely learn a thing or two.
It’s no secret that Hong Kong is one of the best cities for businessmen. The World Bank ranks Hong Kong the 3rd easiest place in the world to do business. But let me give you an idea of what that means in real life.
The process of getting my permanent residency was amazingly simple. In mid-August, I submitted a handful of forms and documents to the immigration department just before departing for a two-week vacation in the United States. While I was traveling, a letter arrived in my office requesting that I appear at the immigration office to confirm some documentation. It gave a set date and time, which I had to change – but that was easy. You can schedule, alter and cancel appointments entirely through an automated phone system. When I appeared at the appointment time, I waited some five minutes to see an official, who glanced through my documents for a couple minutes, then printed out a statement approving my application. That’s all it took.
My new status required me to replace my Hong Kong identification card. (Yes, everyone has an ID card here.) I have mixed feelings about these ID cards. They require a thumbprint, something I’d prefer the government not to have. But on the positive side, the ID cards here are fantastically useful. It doubles as a library card, and you can use it in automated machines to pass through immigration at the airport. No need to stand in line and get your passport stamped. Just insert your card, which checks your thumbprint and opens a gate to let you pass.
Replacing my ID card was equally painless. I set up an appointment, again using the automated phone system. I waited no more than 10 minutes to see an immigration officer. She took an updated digital photo, confirmed some personal details, and passed me to a second officer, who issued me a temporary ID until my new card was processed. Total time: less then 30 minutes. My card was completed two weeks later. It took only five minutes to pick up the card…
Hong Kong taxes are no more complicated. Unlike the hefty volume that shows up from the IRS in the United States, the form I use to file my income taxes in Hong Kong is very manageable four pages. I only spend about ten minutes completing it. The tax code itself is straightforward. On your salary, for example, you get taxed at a set rate that increases the more you earn. The revenue department here in Hong Kong then calculates what you owe. No need to even do the math yourself. Compare that to the arduous nightmare of filing U.S. taxes. My wife and I are both financial journalists, but we find doing our U.S. taxes so convoluted and time consuming, and we’re so fearful of making a mistake, that we hired an accountant to do it for us. That’s an extra expense of $1,000 each year. Completing my Hong Kong taxes costs me zero.
Now I’m not saying the Hong Kong government is perfect. The administration of Chief Executive Donald Tsang excels at side-stepping badly needed reforms. The income gap in the city is an embarrassment and not enough is being done to help the poor. Pollution is becoming a meaningful health concern. The contorted property market soaks the middle class to the benefit of a handful of property barons…
But those issues are a matter of policy. In administration, the civil service of Hong Kong is a model for the rest of the world. Their efficiency brings down the costs of doing business and makes Hong Kong especially attractive to investors. That’s one reason why tiny Hong Kong (population: 7 million) was the fourth largest recipient of foreign direct investment in the world in 2009, according to UNCTAD. Is there any reason why other governments, especially in the developed world, can’t be as efficient as Hong Kong’s? Not any good reasons, at least.