Hong Kong and Singapore will maintain their ties as both “complementors” and “competitors” as they navigate their way through an increasingly complex geopolitical environment, a veteran businessman with cross-market experience in both places said on Wednesday.

The remarks came as the Lion City ushered in a new era, with finance minister Lawrence Wong becoming the city-state’s first new prime minister in 20 years, taking over from Lee Hsien Loong who becomes senior minister of the cabinet.

“I think it's very positive,” said Dennis Chiu, chairman of the Hong Kong Singapore Business Association (HSBA).

“He [Wong] really reflects the meritocracy system of Singapore, because he came from the very bottom of the ladder and then worked his way all up. He is very much a student of the Singapore system to show that.. in Singapore, anybody has a chance to reach the very top,” Chiu said.

When asked how the new leadership might impact the business ties between the Lion City and the SAR, Chiu, who is also the executive director of Far East Consortium International and has straddled Hong Kong and Singapore for three decades, said he expects there will be “continuity” in terms of trade and business cooperation between the two places.

“Singapore and Hong Kong have always played a complementary and competing role. And when you compete, you actually pick up good points from the other, so I think we are mutually learning from each other, but we also compete for the same dollar of investments,” Chiu said.

“I really don’t see there will be huge changes, but I think we will perhaps see how changes in the world will affect Hong Kong and Singapore,” he added, warning that geopolitics has become the most challenging factor affecting all economies, especially open economies like the two cities.

“You have to be neutral and to not choose a side,” he said.

The real estate veteran also said Hong Kong and Singapore could continue to cooperate in areas such as technology and digitisation, adoption of artificial intelligence, and green transition.

“Hong Kong, frankly speaking, has the huge market of China and the Greater Bay Area, [but] Singapore has Southeast Asia as its very important market. Those will always be the strengths of both of the cities’ finances,” Chiu added.

“I think he [Wong] will be able to continue to carry on Lee's systems with him, we do not expect any new changes for the time being, but we want to see how he will be tested when new issues, such as Covid and international crises, come up,” he said. "This is something we all do not know."