Singapore vs Hong Kong: Which Is Best for Running a Business?
- Published: 11 September 2025
- 16 min read
- Starting a Company
Rodney Wong
Author
Rodney helps customers in Hong Kong navigate the details and benefits of our products and services, showing how technology can be a game changer for their business. A strong advocate for the power of the written word, he makes tech topics accessible, relevant, and, above all, practical—empowering entrepreneurs to pursue their big ideas.
Iris Kwong
Reviewer
Iris Kwong is our Corporate Secretary Manager based in the Hong Kong office. With more than 10 years of experience navigating Hong Kong's Companies Ordinance and regulatory requirements, she is our go-to expert on everything from company formation and annual returns to board meetings and shareholder resolutions. She knows the secrets to ensuring smooth business operations and carefully reviews our Hong Kong-focused content, ensuring it's accurate, up-to-date, and packed with useful tips.
Choosing between Singapore vs Hong Kong for your business can be challenging. This article offers a detailed comparison of these two major business hubs, covering aspects like business opportunities, cost of living, infrastructure, and more to help you decide which city aligns with your business goals.
Key Takeaways
- Singapore excels in global competitiveness and offers streamlined business processes, while Hong Kong benefits from its proximity to mainland China and a low tax regime.
- Both Hong Kong and Singapore have robust transportation systems and high living costs, but Singapore offers more affordable dining options and diverse housing solutions compared to Hong Kong.
- Cultural integration can be easier in Singapore due to its higher English proficiency, making it a favourable option for expatriates focusing on effective communication in business.
A Brief Comparison of Hong Kong and Singapore
Both Singapore and Hong Kong are powerhouses in the business world, with unique strengths and competitive advantages. Singapore, ranked 1st in global competitiveness, boasts the highest GDP per capita in Southeast Asia at US$ 92,930 as of 2024.
Hong Kong, holding the 5th position globally, offers a low tax structure and strong ties to mainland China, providing a favourable environment for foreign investors. While Singapore focuses on long-term business strategies and intellectual property protection, Hong Kong offers integration with the Chinese market and low startup costs, making it a prime choice for investors.
Whether you choose Singapore or Hong Kong, Osome’s company registration services can help you incorporate quickly and compliantly in either jurisdiction. Our experts guide you through every step, ensuring your business is set up smoothly and in line with local regulations.
This initial glimpse gives us a taste of what both former British colonies Hong Kong and Singapore bring to the table.
- 🇸🇬 Singapore: Pro-business environment, modern infrastructure, strong English proficiency, and stable, family-oriented lifestyle.
- 🇭🇰 Hong Kong: Strategic advantages for accessing the Chinese market, thanks to its low taxes and close proximity to mainland China. Your ideal choice depends on your business objectives, target market, and lifestyle priorities.
Location, Size, and Population
Singapore and Hong Kong are approximately 2,600 kilometres apart, each strategically positioned in Asia to serve as major business hubs. Singapore, a member of ASEAN, has direct access to a market of 673 million people, while Hong Kong serves as a gateway to mainland China, enhancing its role as a business hub.
Both Hong Kong and Singapore are renowned for their strategic locations in East Asia and Southeast Asia, favourable policies, and competitive tax rates. We will now explore the specifics of each city’s location, size, and population in more detail.
Singapore
The "Lion City" city-state of Singapore spans a compact 734 square kilometres, housing a population of around 5.9 million. Despite its small size, Singapore boasts a highly efficient urban layout, with its dense population supporting a vibrant, multicultural society, including areas like Little India.
This city-state’s strategic location in Southeast Asia and its membership in ASEAN provide significant business advantages, making it an attractive option for international businesses looking to tap into the broader Asian market.
Hong Kong
In comparison, Hong Kong:
- Covers a larger area of 1,115 square kilometres
- Is home to over 7.5 million people
- Is characterised by a dense urban environment with a population density of 6,770 people per square kilometre.
Situated on China’s southern coast, Hong Kong boasts a mix of bustling urban life and serene natural landscapes, offering more varied spaces for urban development. Its integration with mainland China further bolsters its appeal as a key business hub in East Asia.
What to choose?
When business needs are the priority, comparing Singapore vs. Hong Kong reveals key distinctions, especially when you Singapore compare infrastructure, capital gains tax, and lifestyle. Both cities are densely populated and attract a large community of expats. However, Hong Kong’s larger size provides more varied landscapes and urban development opportunities, while Singapore’s compact and efficient layout offers ease of navigation and connectivity. Consider whether your business would benefit more from the expansive options in Hong Kong or the streamlined efficiency of Singapore.
- 🏙️ Hong Kong: space and regional access.
- 🚄Singapore: efficiency and smart city planning.
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Cityscapes and Infrastructure
Both Hong Kong and Singapore are renowned for their impressive skylines and robust urban infrastructure. The cityscapes support their high population densities and dynamic business activities. While Hong Kong’s vibrant skyscrapers are often surrounded by natural beauty, Singapore’s futuristic architecture is seamlessly integrated with green spaces.
Singapore’s MRT and green spaces offer a more integrated urban experience, while Hong Kong’s MTR and iconic trams cater to those who appreciate a blend of modern efficiency and nostalgic charm.
Transportation costs are high in both cities, contributing to the overall cost of living. We will examine the unique cityscape and infrastructure of each city in detail.
Singapore
Singapore’s cityscape is a testament to its commitment to modern architecture and green living. Iconic landmarks in Marina Bay Sands and Gardens by the Bay, highlight Singapore’s futuristic design and commitment to livability.
The city’s Mass Rapid Transit (MRT) system ensures efficient connectivity across the island, a key factor that supports Singapore’s history and role as a gateway city-state for global commerce. Despite its smaller land area, Singapore maximises space efficiently, offering a well-planned urban environment.
Hong Kong
Hong Kong’s cityscape is a blend of towering skyscrapers, vibrant neon lights, and ancient temples nestled amidst stunning natural beauty. The Mass Transit Railway (MTR) system is celebrated for its punctuality, making daily commutes smooth and reliable. Additionally, the nostalgic Ding Ding trams add a unique charm to the city’s streets.
Hong Kong’s transportation network is anchored by the globally connected Hong Kong International Airport, making it one of the busiest and most efficient globally and supporting its high-density urban environment. Its routes connect everything from Victoria Harbour to neon-lit streets in Kowloon.
What to choose?
Both cities excel in public transportation, with clean, reliable, and efficient systems catering to different commuting preferences. Singapore’s MRT and green spaces offer a more integrated urban experience, while Hong Kong’s MTR and iconic trams cater to those who appreciate a blend of modern efficiency and nostalgic charm.
- 🌳 Singapore: greenery and urban calm.
- ✨ Hong Kong: energy, height, and heritage.
Cost of Living
The cost of living in both Singapore and Hong Kong is notoriously high, driven by expensive housing, transportation, and dining. While both cities offer luxury shopping and accommodations, the overall living expenses can vary significantly. Understanding the nuances of each city’s cost structure is crucial for businesses and expats alike.
We will break down the cost of living in each city to help you make an informed decision.
Singapore
Singapore offers a range of accommodation options, from affordable HDB flats to luxury condominiums, catering to diverse needs. Dining in Singapore is generally more affordable than in Hong Kong, with hawker staples like Hainanese chicken rice and chilli crab offering excellent value for money. The Singapore offer includes various dining experiences that suit different budgets.
The city’s extensive public transport system further ensures accessibility and convenience, contributing to a balanced cost for residents.
Hong Kong
In Hong Kong, rental prices are significantly higher due to high demand and limited housing availability. The city boasts a range of housing options, from luxury apartments to more modest accommodations near popular areas on Hong Kong Island, but the overall cost of living remains steep.
Despite the high living costs, it is still possible to live on a budget if one is mindful of their spending choices. The city’s dynamic culinary scene also offers diverse dining experiences.
What to choose?
Both cities offer a high standard of living, with luxury shopping and accommodations available. However, Singapore’s more affordable dining options and variety in the rental market might appeal to budget-conscious individuals more than Hong Kong.
Your choice should reflect your financial priorities and lifestyle preferences, whether you seek luxury or balance in your living expenses.
- 💸 Singapore: balance and flexibility.
- 🥂 Hong Kong: high-end city living.
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Weather and Climate
The weather and climate in Singapore and Hong Kong are markedly different, influencing lifestyle choices and outdoor activities. Singapore’s tropical climate offers consistent warmth year-round, while Hong Kong experiences four distinct seasons. These climatic differences can significantly impact daily life and business operations.
We will explore the specifics of each city’s weather and climate.
Singapore
Singapore’s tropical climate means temperatures hover around 28-30°C throughout the year, providing a stable and warm environment. This consistency allows for year-round outdoor events and activities.
Popular attractions like Sentosa, Marina Bay, and various beaches offer ample opportunities for leisure and recreation.
Hong Kong
Hong Kong’s subtropical climate features hot, humid summers and cool, dry winters. Summers can see temperatures exceeding 33°C, while winters are mild, rarely dropping below 10°C.
This variability allows for a range of seasonal activities, from hiking trails on Victoria Peak to enjoying the vibrant city life in summer.
What to choose?
Deciding between Hong Kong and Singapore based on climate depends on your preferences. Hong Kong’s distinct seasons offer variety, while Singapore’s consistent warmth ensures year-round outdoor activities. If you prefer a stable, warm climate, Singapore might be your top choice.
Conversely, if you enjoy experiencing different seasons, Hong Kong’s varied climate could be more appealing.
- 🌞 Singapore: warm and predictable.
- 🍃 Hong Kong: seasonal changes.
Culture and Lifestyle
The cultural and lifestyle offerings in Hong Kong and Singapore are rich and diverse, with both cities catering to expats and families seeking access to top-tier international schools. Hong Kong offers a vibrant cultural scene influenced by Eastern and Western traditions, while Singapore is known for its harmony and multiculturalism.
Both cities offer robust expat communities and varied recreational options. We will examine the cultural and lifestyle aspects of each city.
Singapore
Singapore’s cultural identity is deeply rooted in its multicultural population, promoting harmony and inclusivity through government policies and community initiatives. The city offers numerous clubs and organisations to support and connect expats, enhancing their social and professional networks.
The blend of standard English and localised forms like Singlish fosters a unique communication style, making integration smoother for non-native speakers.
Hong Kong
Hong Kong’s culture is a melting pot of ancient traditions and modern influences, reflected in everything from Michelin-starred dim sum to the legacy of its British-influenced legal system. This fusion creates a dynamic lifestyle for residents, with a mix of Eastern and Western traditions evident in daily life. The city’s expatriate community benefits from numerous networking opportunities and social clubs, while the variety of regional accents in English can sometimes pose communication challenges. Hong Kong’s integration into the global community further enhances this vibrant cultural landscape.
The vibrant cultural scene includes iconic foods like dim sum and nasi lemak, outdoor activities around Victoria Peak, and a bustling nightlife in the neon-lit streets of Hong Kong Island.
What to choose?
Both Singapore and Hong Kong are excellent choices for expatriates, offering robust support communities, access to international schools, and rich cultural experiences. Singapore’s focus on harmony and inclusivity may appeal to those seeking a stable and welcoming environment, while Hong Kong’s vibrant blend of traditions and modernity offers a unique and dynamic lifestyle.
Your choice will depend on which cultural aspects resonate more with your personal and professional preferences.
- 🤗 Singapore: calm and inclusive.
- 🌀 Hong Kong: cultural fusion and city buzz.
Safety and Quality of Life
Safety and quality of life are paramount considerations when choosing a city for business and residence. Singapore is renowned for its efficient healthcare system and high-quality education, contributing to its high lifestyle rankings.
Hong Kong offers excellent healthcare and remains safe for tourists. Understanding these factors will help you make an informed choice between the two cities.
Singapore
Singapore consistently ranks as one of the safest cities globally, thanks to its strong law enforcement and overall quality of life for international talent. The city provides a structured, family-friendly environment with low crime rates, world-class international schools, and a legal system that prioritizes safety and order.
These factors contribute to the high quality of life in Singapore, making it an attractive destination for families and professionals alike.
Hong Kong
Hong Kong has a high-quality healthcare system. It features both public and private hospitals that provide excellent medical care. Despite occasional unrest, the city remains safe and welcoming for tourists, with dedicated tourist police, a trusted legal system, and easy access to Victoria Harbour and hiking trails.
The high population density can impact living space and quality of life, but the efficient public transport and dedicated tourist police—especially around theme parks and neon lit streets—help maintain safety.
What to choose?
Both Hong Kong and Singapore report low crime rates and offer safe environments for residents and businesses. Singapore’s structured and family-friendly environment may appeal to those seeking a stable life, while Hong Kong’s dynamic atmosphere and excellent healthcare make it suitable for those who thrive in bustling urban settings.
Consider your lifestyle preferences and safety concerns when making your choice.
- 👨👩👧👦 Singapore: calm, order, and family-friendly living.
- 🏥 Hong Kong: lively, dynamic city with top-notch healthcare.
Business Environment
The business environments in Hong Kong and Singapore are distinct, each offering unique advantages in the context of global markets. Both cities serve as hubs for innovation, financial services, and technology, appealing to a wide range of industries.
Singapore’s streamlined business processes and advanced infrastructure contrast with Hong Kong’s proximity to mainland China and low tax regime.
Singapore
Singapore excels in areas such as business entry, construction permits, and international trade, with a corporate tax rate of 17% making it highly attractive for businesses and helping to attract foreign investment. Singapore offers various tax incentives, including a Startup Tax ExemptionScheme and relief for offshore income earned outside Singapore.
Singapore ranks higher in the World Bank’s ease of doing business index, reflecting its transparent regulatory framework and strong innovation focus. Additionally, some banks in Singapore allow non-residents to open bank accounts via video conferencing, aligning with its reputation in the ease of doing business index.
Hong Kong
Hong Kong is known for its low tax regime, particularly the absence of capital gains tax, and straightforward company setup process, providing a competitive edge for businesses. The city operates under a territorial tax system, where only income sourced within the region is taxable, with offshore income generally excluded. Despite recent challenges, Hong Kong remains well-positioned for growth due to its proximity to mainland China and robust legal framework based on English common law.
Osome’s accounting services help you stay compliant with Hong Kong’s tax regulations by managing your bookkeeping, filings, and annual returns. Our experts ensure your accounts are accurate and submitted on time, so you can focus on growing your business with peace of mind.
However, non-residents may face more complex procedures to open bank accounts, often taking two to three weeks.
What to choose?
Both places offer a low corporate tax rate below the world average, making them attractive for businesses. Hong Kong provides advantages for businesses targeting the Chinese market with its proximity and low tax rates for offshore income, while Singapore’s structured tax incentives and ease of doing business appeal to startups and innovative ventures.
Consider your business goals and market focus when choosing between these two dynamic environments.
- 💼 Hong Kong: your choice if eyeing China and offshore tax perks.
- 🚀 Singapore: choose to launch a startup or innovation-driven venture.
English Proficiency and Communication
Effective communication is crucial for business success, and English proficiency plays a key role in this aspect. Singapore and Hong Kong differ significantly in their English usage and proficiency, impacting daily interactions and business operations.
We will compare how each city fares in terms of English proficiency and communication ease.
Singapore
Singapore has a high proficiency in English. It is extensively used in business as one of the official languages, in education, and public services, making it easier for non-native speakers to communicate and integrate. The government’s promotion of English learning has resulted in widespread usage, with public signage and media predominantly in English.
Singapore is ranked third globally in the 2024 EF English Proficiency Index.
Hong Kong
In Hong Kong, English is an official language alongside Chinese (Cantonese), but the proficiency varies more widely compared to Singapore.
Despite a strong emphasis on English education, many residents, especially outside expatriate communities, may struggle with communication due to varied regional accents and lower motivation levels among youth.
Hong Kong ranks 32nd globally in the 2024 EF English Proficiency Index, with a score categorising it as ‘high’ but lower than Singapore.
What to choose?
Expatriates may find it significantly easier to navigate daily life and conduct business in Singapore due to its higher English proficiency and more standardised usage. If effective and consistent communication is a priority, Singapore serves as the preferred choice.
However, if your business requires deeper integration with local markets where Cantonese is widely spoken, Hong Kong could still be a viable option.
- 🗨️ Singapore: smooth communication.
- 🌆 Hong Kong: connect with Cantonese-speaking communities.
Osome's Role in Business Registration
Setting up a business in a new country can be a daunting task, but Osome simplifies the process by guiding entrepreneurs through every step of company formation, from documentation to bank accounts. Osome simplifies the business registration and company formation process in city-states like Singapore, where requirements such as having a local director and understanding that Singapore requires at least one director are essential to compliance.
We will see how Osome can assist you in this journey.
Business setup services
Osome offers a comprehensive suite of services to facilitate company setup in Hong Kong. The typical timeframe for registering a company is around three to four business days, and Singapore requires at least one director and often a local director for compliance with incorporation rules. Osome also assists in opening business bank accounts by connecting users with local banking partners, ensuring a smooth and efficient process.
These services make Osome an invaluable partner for entrepreneurs looking to establish their presence in Hong Kong.
Additional support
Beyond business registration, Osome provides additional support services crucial for navigating the complexities of living and working abroad. These include comprehensive accounting services, compliance support, and business registration assistance in both Hong Kong and Singapore.
By offering these services, Osome helps businesses manage their finances efficiently and ensure timely reporting and compliance with local regulations, allowing entrepreneurs to focus on their core operations.
Summary
In the end,choosing between Hong Kong and Singapore for running a business boils down to your specific needs and preferences. Singapore offers a highly competitive environment with advanced infrastructure, high English proficiency, and a stable, family-friendly atmosphere. These qualities show why Singapore stands out as a top global destination for entrepreneurs. Hong Kong, with its strategic location, low tax regime, and proximity to mainland China, remains a strong contender for businesses targeting the Chinese market.
Both cities have their unique strengths and can provide excellent opportunities for business growth and success. Consider your business goals, market focus, and personal preferences when making this crucial decision.