Hong Kong secures expanded equal treatment and investment guarantees across Asean

Hong Kong companies stand to gain from enhanced non-discriminatory treatment and investment guarantees across 10 Asean countries following the signing of a protocol amendment to an investment agreement, according to a report. The protocol was officially sealed in Manila during a meeting of Asean economic ministers, with Hong Kong's Undersecretary for Commerce and Economic Development, Bernard Chan Pak-li, signing on behalf of Hong Kong.

The participating countries include the Philippines, Indonesia, Malaysia, Singapore, Brunei, Thailand, Vietnam, Cambodia, Laos, and Myanmar.

The agreement, which mainly includes the schedules of reservations, ensures that local businesses receive treatment no less favorable than that given to domestic or foreign businesses within these Asean states. The main objective of the protocol is to incorporate the schedules of reservations into the investment agreement and provide legal certainty, boost investment flows, and enhance the investment environment.

Hong Kong's flourishing investment relations with Asean, worth HK$671.2 billion (US$86 billion) over four consecutive years, stand to benefit from this agreement.

Under the existing free trade agreement, Hong Kong service providers operating in selected sectors, including those with a commercial presence in these states, already enjoy equal treatment. The amended agreement extends this equal treatment, as well as most-favored-nation treatment in non-services sectors, to Hong Kong enterprises and their investments.

In addition to equal treatment, the deal guarantees physical protection for Hong Kong investments and promises fair treatment, including the unrestricted transfer of capital and profits. In the event of seizure or loss of assets due to war or conflict, standard compensation is also promised.

The agreement also covers East Timor, Asean's 11th member, subject to the bloc's internal procedures.