New Financial Secretary Outlines Principles, Plans

In his first address since taking up the position of Hong Kong’s Financial Secretary, Mr Henry Tang described his principles and his plans at a luncheon organized by the Federation of Hong Kong Industries on August 22.

Mr Tang discussed his strong belief in greater transparency and responsiveness, saying he will seek the view of a wide range of interests and different sectors before making major decisions. Policy consistency is important in maintaining a stable environment that appeals to long-term investors.

“I am also a firm believer in market forces," said Mr Tang. 'Small government, big market' is definitely the way to go."

Mr Tang expressed his confidence that the current challenges - economic restructuring, high unemployment, fiscal deficit and deflation - will be surmounted, thanks in large part to the resilience of Hong Kong people. “We have faced many serious problems; we have dealt with them; we have emerged stronger than before."

The latest indicators indicate a recovery, said Mr Tang, adding that the recovery is especially evident in inbound tourism, airlines, retail, catering and business services. The average daily passenger flow at the airport, for example, has nearly returned to pre-SARS levels, while the number of visitors for July was up 78% from June.

Unemployment remains a concern, but, said Mr Tang, “the growth of 0.1% shows a clear trend that unemployment is moderating."

Describing the Closer Economic Partnership Arrangement (CEPA) as the HKSAR Government’s major initiative, Mr Tang said that, since the agreement was signed, companies worldwide are proactively seeking new ways to take advantage of this new platform, which of course means more investment in Hong Kong. 

The agreement also “breathes new life into our industrial sector", added Mr Tang. Under CEPA, tariff free treatment and better intellectual property protection will attract manufacturers of high value-added products to establish their plants in Hong Kong. 

Hong Kong’s economic recovery, said Mr Tang, is also underpinned by strong co-operation with Guangdong province. To that end, the bridge linking Hong Kong to Macau and Zhuhai is a top priority. 

Mr Tang said he anticipates seeing the signs of a marked improvement in 6 months to 1 year. “Enhanced co-operation with the Mainland, the signing of CEPA, a surge in Mainland visitors and the gradual return of long-haul travellers will all have positive effects on our economy," he added.

Top