News Capsule

Senior Appointments Announced
On January 24, the Central People's Government, on the nomination of the Chief Executive, Mr. Donald Tsang, approved the appointments of:
‧ Mr. Joseph Wong Wing-ping as Secretary for Commerce, Industry and Technology 
‧ Miss Denise Yue Chung-yee as Secretary for the Civil Service 
‧ Mr John Tsang Chun-wah as Director of the Chief Executive's Office

Mr. Tsang expressed his confidence that all three appointees will bring their wealth of experience to the new posts and continue to provide outstanding service.

The Government announced January 25 the following senior appointments:
‧ Mrs Carrie Lam Cheng Yuet-ngor, Director-General, London, will take up the post of Permanent Secretary for Home Affairs
‧ Mr Andrew Wong Ho-yuen, Permanent Secretary, Chief Executive's Office, will assume the post of Permanent Secretary for the Civil Service. He will replace Mrs Rebecca Lai Ko Wing-yee who will be leaving the civil service in July this year
‧ Miss Yvonne Choi Ying-pik, Director of Information Services, will take up the post of Permanent Secretary for Commerce, Industry and Technology (Commerce and Industry)
‧ Ms Chang King-yiu, Director of Administration, will assume the post of Permanent Secretary, Chief Executive's Office. 

The Secretary for the Civil Service, Miss Denise Yue, said of the appointees: "I have every confidence that they will ably lead their respective offices and continue to serve the community with professionalism and dedication in their new capacities." 

2005 a Record-breaking Year for HKIA
Annual traffic figures soared to new heights at Hong Kong International Airport (HKIA) in 2005, breaking 2004 records in all categories.

Fuelled by double-digit growth of transfer/transit passengers and visitors, annual passenger throughput reached 40.74 million, up 9.7% over 2004. About 3.4 million tonnes of cargo were handled in 2005, an increase of 9.9% over 2004. Export and transshipment of air cargo grew 10% and 24% respectively, indicating a continuous and robust demand for intra-regional trade as well as trade between this region and the USA and Europe.
Aircraft movements of 2005 exceeded 263,400, an 11% rise over 2004. Growth of cargo flights outpaced passenger flights with an increment of 20% and 10% over 2004 respectively, showing the increasing importance of cargo growth.
Airport Authority Hong Kong (AA) Commercial Director Mr Hans Bakker said, "2005 was a remarkable year for HKIA. Besides the launch of the world's first cross-boundary check-in service in the fast growing Pearl River Delta, a total of 10 new carriers joined our extensive air network to provide scheduled services at HKIA.”

External Merchandise Trade Up
The values of Hong Kong's total exports and imports of goods continued to show year-on-year increases as 2005 came to a close. In December 2005, the value of total exports of goods (comprising re-exports and domestic exports) increased by 6.7% over a year earlier to HK$188.8 billion, after a year-on-year increase of 11.5% in November. Within this total, the value of re-exports increased by 5.6% to HK$174.8 billion in December, while the value of domestic exports increased by 22.2% to $14.0 billion. Concurrently, the value of imports of goods increased by 10.6% over a year earlier to HK$205.6 billion in December 2005, after a year-on-year increase of 13.6% in November. 

A visible trade deficit of HK$16.9 billion, equivalent to 8.2% of the value of imports of goods, was recorded in December 2005. For 2005 as a whole, the value of total exports of goods rose by 11.4% over 2004. Within this total, the value of re-exports increased by 11.7%, while the value of domestic exports increased by 8.0%. Concurrently, the value of imports of goods increased by 10.3%.

A Government spokesman noted that conditions in the overseas markets should remain generally supportive, but the trade outlook is still beset by a number of uncertainties, such as those stemming from the movements of interest rate, oil prices and exchange rates.

Unemployment and Underemployment Figures Released 
According to the labour force statistics released January 19 by the Census and Statistics Department, the seasonally adjusted unemployment rate stood at 5.3% (provisional figure) in October - December 2005, unchanged from September - November 2005. 

Meanwhile, the underemployment rate edged up from 2.4% to 2.5% (provisional figure). 

Total employment increased by around 13,000, from 3,419,000 in September - November 2005 to an all-time high of 3,432,000 (provisional figure) in October - December 2005. Over the same period, the total labour force increased by around 5,200.

Hong Kong's Latest Foreign Currency Reserve Assets Figures Released
The Hong Kong Monetary Authority (HKMA) announced January 9 that the official foreign currency reserve assets of Hong Kong amounted to US$124.3 billion at the end of December 2005.

Hong Kong is the world's seventh largest holder of foreign currency reserves, after Japan, Mainland China, Taiwan, Korea, Russia and India. The total foreign currency reserve assets of US$124.3 billion represent over six times the currency in circulation or about 41% of Hong Kong dollar M3.

Port Activity Rises in Q3 of 2005
Figures released by the Census and Statistics Department show an increase in total port cargo throughput of 7% over a year earlier to 59.0 million tonnes. Within this total, inward port cargo rose by 7% to 35.8 million tonnes, and outward port cargo increased by 8% to 23.2 million tonnes.

For the first nine months of 2005 as a whole, total port cargo throughput recorded an increase of 3% to 171.0 million tonnes. Within this total, both inward and outward port cargo increased by 3% to 105.1 million tonnes and 65.9 million tones, respectively.

HK Welcomes Record-breaking 23 Million Arrivals in 2005
Strong international demand, coupled with significant rises in short-haul market regions combined to set a new visitor arrival record for Hong Kong. The more than 23 million arrivals equate to an increase of 7.1% over 2004.

Visitor numbers from international markets rose by 13.1% to a record 10.8 million. Arrivals from Mainland China reached a new high of more than 12.5 million in the same period.

All long- and short-haul market regions registered growth in 2005, with most showing double-digit increases over 2004. Record performances were set by Australia, Canada, Mainland China, France, India, Indonesia, the UK and the US, among others.

“The strong growth in arrivals from almost every international market is clear proof that Hong Kong has sustained its appeal as a destination in the face of very tough competition,” said HKTB Executive Director Clara Chong.

In view of the continued largely positive global environment, the openings of several major new tourism attractions and the launch of the 2006 Discover Hong Kong Year global campaign, Ms Chong said that she was cautiously expecting tourism arrivals to further grow in 2006. 

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