NZ, Hong Kong Lead Asia-Pacific in Business Ease, China Now in Top 10 Most Complex

New Zealand and Hong Kong are still regarded as the easiest countries in the Asia-Pacific region to do business, ranking third and fourth, respectively, in the world behind the Cayman Islands and Denmark.

That’s the result of this year’s Global Business Complexity Index (GBCI), which analyses the business environment of 79 jurisdictions, accounting for 94 percent of the world’s GDP. It also ranks them based on over 250 indicators of business complexity.

The report said Hong Kong still maintained a “favourable business environment, characterised by a straightforward and low tax regime,” despite its takeover by the Chinese Communist Party (CCP).

New Zealand maintained a reputation for being a “straightforward place for business operations. This is largely due to the government’s proactive approach in welcoming foreign investments and streamlined administrative processes.”

However, it warned that “high cost of living continues to be a significant barrier, affecting operational costs and expansion efforts.”

New Zealand’s government remains focused on supporting SMEs, as they continue to dominate the market, resulting in minimal policy changes for multinational companies, and while upcoming legislation to attract wealthy investors by offering a “gold visa” may “slightly impact the business landscape,” the report predicts that “significant reforms are not expected.”

In comparison, Hong Kong maintained an environment that was “conducive for new ventures, as establishing a corporate entity is straightforward, and local employment laws are easy to navigate.”

The report warned, however, that “the geopolitical landscape, particularly the trade tensions between the U.S. and the mainland of China, affects Hong Kong’s position as an intermediary in global trade.”

China itself, meanwhile, has taken a step in the opposite direction, moving into top 10 most difficult countries with which to trade, at number 10 from 11th place last year.

“Chinese laws ... are updated frequently to adapt to economic and social changes,” the Global Complexity Report notes. “This requires companies to constantly align their compliance efforts with new requirements. Additionally, regional regulations vary across the numerous provinces, adding another layer of complexity.

“The implementation of new policies also often occurs swiftly, without extended consultation periods, adding to the unpredictable landscape.”

Australia is rated as being midway between the two extremes at position 47, well behind countries like the UK (68) and US (64). Higher numbers indicate less complexity.

The most complex place in the world to do business is Greece, which also took the number one spot last year, followed by France, Mexico, and Turkey.

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