Press Release - January 4, 2005

Hong Kong remains the freest economy in the world for the 11th consecutive year, according to the "2005 Index of Economic Freedom" study released by the Heritage Foundation (HF) today (Tuesday).

Welcoming the study, Hong Kong�s Financial Secretary, Mr Henry Tang, said: �I am pleased that the virtues we have been upholding to keep Hong Kong flourish as a free market economy have once again been reaffirmed by the international community."

According to HF, Hong Kong's virtues lie with its duty-free port with no barriers to trade, low level of government intervention in the economy, very low level of inflation, very low barriers to capital flows and foreign investment, very low level of restrictions in banking and finance, low level of intervention in wages and prices, strong property rights, very low level of regulation, and a low level of informal market activity.

"We see the Government's roles as those of a facilitator which provides a business-friendly environment for all firms to compete on a level-playing field while maintaining an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market. The Government will also take a leading role in government-to-government interactions, for instance, on market access arrangements," Mr Tang said.

Mr Tang said the Government remained firmly committed to maintaining Hong Kong as a free market economy that accords maximum scope to the private sector and would continue to pursue a prudent fiscal strategy and strictly control public sector expenditure.

He added that the Government would spare no efforts in preserving its strengths and in further improving other aspects where there was room for further improvement.

Echoing Mr Tang�s remarks, the Director of the Hong Kong Economic and Trade Office (Canada), Mr Bassanio So, said: �The fact that Hong Kong retains its position as the world�s freest economy illustrates its distinctive advantages and competitiveness and further proves that Hong Kong is the ideal place for doing business, especially for foreign companies. Hong Kong will continue to maintain its openness, rule of law, free flow of information, transparency and a level playing field for investors.� He encouraged more Canadian companies to explore their business opportunities inn Hong Kong.

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