Minimum Wage To Lead To Job Losses

BMI View: We believe the passage of Hong Kong's first-ever minimum wage bill on July 17 is a step in the wrong direction that may partially erode Hong Kong's advantage of being a leading free market economy - a status that has enabled the economy to become one of the wealthiest in the region. Upward pressure on the unemployment rate is likely to be the major negative side effect, which supports our view that Hong Kong's economy will underperform that of Singapore over the medium term.

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