A general view from Victoria Peak shows Victoria Harbour and the skylines of Hong Kong Island (foreground) and the Kowloon district (background) on Feb 24, 2018. (SHAMIM ASHRAF / CHINA DAILY)

Not a single company’s desire to set up or further expand business in Hong Kong has been affected because of the upcoming local security law or similar legislation, Alpha Lau Hai-suen, Invest Hong Kong’s director-general of investment promotion, said on Friday.

On Jan 30, Hong Kong officially launched a month-long consultation on the Article 23 legislation, which will cover offenses including treason, theft of state secrets, espionage, and external interference.

The local security legislation, which was shelved in 2003 after an attempt to enact it drew mass protests, will coexist with the central government’s national security law enacted in 2020. 

READ MORE: Groundswell backing for enacting new national security bill in HK

Lau said there is some sort of national security legislation in many countries and the new ordinance in Hong Kong will not affect chambers of commerce’s views on the city as a good place for business.

Generally, they (business chambers) are still happy and we have seen continued good growth in the foreign companies coming to Hong Kong.

Alpha Lau, Director-General, Investment Promotion

According to a survey released by the American Chamber of Commerce in Hong Kong on Tuesday, 79 percent of the 136 respondents said they are confident about the city’s rule of law, compared with 73 percent last year and 25 percent in 2022. 

It also reported that 78 percent of the companies have no plan to move their regional headquarters away from Hong Kong in the next three years. 

In the survey, 69 percent of the enterprises’ decision-makers said their operations had not been negatively affected by the National Security Law for Hong Kong. For those that have experienced negative effects, 65 percent said the impact has been indirect, such as staff morale, departure of Hong Kong employees, or diverting resources to seeking guidance and/or compliance.

“Generally, they (business chambers) are still happy and we have seen continued good growth in the foreign companies coming to Hong Kong,” she said. 

Last year, InvestHK — the government agency responsible for attracting foreign direct investment — assisted 382 companies from 45 economies in setting up or expanding their business in the city. In 2019, the year before the COVID-19 pandemic, the number was 487. 

Lau, a veteran banker who took up her role at InvestHK in November last year, said she has talked to many chambers and companies and received overwhelming feedback from European companies that what affected them were COVID-19-related travel restrictions that had already been removed and the wider economic situation. 

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Some European companies have closed offices, not only in Asia but also in other parts of the world, Lau said. 

“But having said that, they are hoping that the situation will improve. They still need to look for growth engines. And Asia is the way to go,” she added. 

The government agency announced it aims to woo a total of 1,130 businesses to set up or expand in Hong Kong between 2023 and 2025.