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HK is third preferred seat for arbitration
HONG KONG SUSTAINS DROP IN JOBLESS RATE
The number of jobless in Hong Kong peaked between December and February when the unemployment rate rose to 7.2%. Data showed that the number of unemployed at the time rose to 261,600 from 253,300 in the previous month.
This was linked to the fourth wave of the COVID-19 outbreak that started in November, but it has since receded. This was evident in the downward trend in the unemployment rate that started in March when it eased to 6.8%.
The jobless rate eased further to 6% between March to May, down from 6.4% recorded between February to April. This is a one-year low, according to the OCBC Treasury Research, which added that the May result beat market expectations.
“The labour market improved further in March - May 2021 amid the economic recovery and receding local epidemic,” Secretary of Labour and Welfare Law Chi-kwong said.
“As the economy continues to recover, the pressure on the labour market should gradually ease, especially if the local epidemic remains well contained.”
Total employment has risen by around 8,400 to 3.63 million between March to May, whilst the number of unemployed dropped by 14,200 to 233,300.
The underemployment rate, likewise, improved as it decreased to 2.8%.
Moreover, the unemployment rate across economic sectors dropped over the same period. The jobless rate in consumption and tourism-related sectors slipped by 0.5 percentage point to 9.4%.
The improving economy, coupled with the government’s vaccination drive, will likely boost hiring, the OCBC Treasury Research said, but could still be weighed down by inbound tourism.
On this note, the bank estimated the overall jobless rate may fall 5% or below in the second half of the year.
HK is third preferred seat for arbitration
Hong Kong’s reputation as an international arbitration hub has been put to the test amidst the political unrest in the city. Despite this however, it has remained resilient. Indeed, it has now emerged as one of the most preferred seats in settling crossborder disputes.
Hong Kong received a score of 50% in the 2021 International Arbitration Survey, conducted by the Queen Mary University of London and the School of International Arbitration.
This placed Hong Kong third, one place higher from its ranking in 2018, during which it scored 28%. In 2015, Hong Kong also ranked third with a score of 22%
“Our Judiciary is independent and impartial while our common law system provides a degree of certainty and predictability for investors and the international business community,” Secretary for Justice Teresa Cheng said in a statement.
She added Hong Kong’s strength in arbitration is founded on its infrastructure, business opportunities and pool of talents.
Hong Kong followed London, which for the first time, was joined by Singapore. Both states garnered a score of 54% this year. In 2018, Singapore came in third with 39% and fourth in 2015 with 19%.
Also among the top arbitration hubs were Paris (35%), Geneva (13%), New York (12%), Beijing (12%), Shanghai (8%), Stockholm (6%) and Dubai (5%).
The survey noted the significant gains in Hong Kong and Singapore reflected the growing popularity of Asian arbitral hubs.
“While the ‘global powerhouse’ seats continue to be popular, there are many regional seats which are growing in reputation and popularity,” the arbitration survey read in part.
Hong Kong, along with Singapore and Paris, were all among the top-five most preferred seats in all regions. In Asia-Pacific, particularly, Hong Kong (71%) and Singapore (74%) both surpassed London by 20%.
Amongst arbitral institutions, the most preferred is the International Court of Arbitration of the International Chamber of Commerce (ICC).
Some 57% of the respondents preferred ICC, whilst 49% favored the Singapore International Arbitration Centre. The Hong Kong International Arbitration Centre (44%), London Court of International Arbitration (39%) and China International Economic and Trade Arbitration Commission (17%) also made it in the top five.
Further, the survey suggested other arbitral hubs to adapt certain policies that would make arbitral seats more attractive. This includes providing greater support for arbitration by local courts and the judiciary.
There should also be an increased neutrality and impartiality of the local and legal system as well as ensuring there is a better track record in enforcing agreements to arbitrate and arbitral awards.
An arbitral seat’s ability to enforce decisions of emergency arbitrators, the local court’s ability to remotely address arbitral matters and political stability of the jurisdiction are also amongst the considerations.
Hong Kong’s reputation in arbitration remained resilient despite political unrest in the city.
