Suggesting that Hong Kong is the freest state in the region is kind of ridiculous when you compare it to japan or taiwan (post martial law). Last time I had looked (3 or 4 years ago) both were higher on the UN Human Freedom Index (unfortunately I couldn't find a list online). Also I wouldn't agree that Hong Kong should be held up as an example of a start up state. I love Hong Kong, it is definitely one of the greatest cities in the world. But it produces very little in the way of innovation outside of finance. There isn't a booming start up community in Hong Kong for the same reason there isn't one in Singapore. Because to do business on any worthwhile scale, you have to know which wheels to grease and know the right people to grease them. There was a really great article on this a while ago about why a key reason there weren't any Walmart types in Hong Kong was because it was more profitable to the Triads to keep all the mom and pop shops in business than to work with larger corporations (unfortunately I can't seem to Google anything).
But honestly, those points aren't really what bothered me about your comment as to some extent they are based on perception. What was more perplexing to me was the assertion that Confucianism played a key role in the lack of democracy in Singapore. Certainly Confucianism has played a key role in shaping Singaporean society, but no more than it has in Hong Kong, and almost certainly to a lesser extent than it has in Taiwan. One would be hard pressed to find a nation with a large Chinese population in the subcontinent that doesn't have strong Confucian influences.
Ultimately Hong Kong and Singapore ( and more and more Taipei) are basically the same cities filling the same roles for different populations. The only real difference is Hong Kong is a much more fun city to live in. I agree that Singapore has a glaring issue in the freedoms they allow their people, but really there are a lot of country that do a lot of business that have similar problems (as an American I wouldn't exclude China or the US from that list).