Policy Address Focuses on Economy

In the first Policy Address of his second term, the HKSAR Chief Executive, Mr Tung Chee Hwa, gave top priority to revitalizing Hong Kong’s economy.

“The common goal of our community is to achieve long-term prosperity and stability,” said Mr Tung. “The most important task of the Administration is to lead Hong Kong out of the present economic difficulties and restore people’s confidence in the future.”

Mr Tung’s address focused on the major issues of public concern, including the background and causes of the present economic difficulties and plans to boost economic recovery and strengthen economic integration with the Mainland.

Referring to the last point, Mr Tung said, “We must seize these opportunities to elevate Hong Kong from its traditional role as an intermediary, to become a major hub connecting China and the international markets. At the same time, we will enhance our position as the financial and commercial centre of China.”

Mr Tung announced that the Central Government had agreed to accelerate discussions on Hong Kong entering into a Closer Economic Partnership Arrangement with the Mainland.

Other measures to boost co-operation with the Mainland and economic integration with the Pearl River Delta include:
• accelerating construction of the Shenzhen Western Corridor, for completion in latter half of 2005
• implementing 24-hour cross-boundary passenger clearance at Lok Ma Chau/Huanggang
• speedy completion of Sheung Shui to Lok Ma Chau Spur Line to link with Huanggang underground railway
• facilitating a study into the feasibility of a bridge linking Hong Kong to Macao and western part of the PRD

Mr Tung pointed out that Hong Kong still enjoyed enormous advantages as a world city, but that there was an urgent need to reinforce and enhance the main pillars of its economy – financial services, logistics, tourism and producer services.

To achieve this, the Government will:
• promote re-exports and Hong Kong’s development as a multi-modal trade management and operations centre
• improve market structure and corporate governance to meet international standards
• promote the development of the bond market and fund management businesses
• build a modern logistics park on North Lantau
• start a feasibility study for Container Terminal 10 as soon as possible

Mr Tung emphasized his commitment to spending on education, saying, “Our people are our most valuable resource and the key to the development of a knowledge-based economy.”

Mr Tung also expressed his belief that Hong Kong policies were on the right track, citing reduced business costs, increased market competition and growing acceptance of technology.

“All this is compelling evidence that our economy is proceeding vigorously under the new role envisaged for Hong Kong,” said Mr Tung.

The full text of Mr. Tung’s policy address is available at the HKSAR Government website at: http://www.policyaddress.gov.hk.

 

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