"You hear pretty often that young people with young families are reluctant to come to Hong Kong because of the quality of the air," Ronald Arculli said in an interview with the Financial Times.

"We need to have quality people servicing the market from all walks of life," he was quoted as saying, adding his two young grandsons had moved to the Philippines on doctors' advice on pollution-related medical grounds.

Arculli may be the most powerful business and political figure to weigh in on Hong Kong's chronic pollution problem.

International chambers of commerce have also issued warnings that their member businesses are pulling out of the city or deciding not to locate here because of the health implications for their families and staff.

Pollution has become a key political issue in Hong Kong as smog levels have risen to often dangerous levels. Poor air quality reduced visibility to less than one kilometer (about half a mile) on more than 50 days last year.

While the problem is mostly due to factories across southern China's booming manufacturing centre in Guangdong province, local coal-burning power stations and diesel-powered buses are also major contributors.

The local government had launched an "Action Blue Sky" campaign to persuade citizens to cut down on air conditioner use and slash energy consumption, but critics said it was not doing enough and more drastic action was needed.

Business leaders in Hong Kong have called on the government to act against rising pollution or risk losing the territory's status as a major finance hub.

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