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HK Chief Executive Presents Policy Address, Priorities Set for Economic Restructuring
Hong Kong Chief Executive Tung Chee Hwa started to present his policy address to the Legislative Council Wednesday.
In his report, entitled "building on our strengths and investing in our future," Tung said, "This is my fifth Policy Address and also my last Policy Address as the first Chief Executive of the Hong Kong Special Administrative Region (SAR) Government. I will maintain the steadfast course I first set on 1 July 1997 -- implementing people-oriented policies, embracing change and rising to meet the challenges with our community."
"My aim is to build a more civil, affluent, stable, democratic Hong Kong that is full of vitality," he stressed.
The delivery of the policy address was broadcast live on local television channels. Tung will also hold a press conference on his policy initiatives at the Conference Hall late in the afternoon, according to the Information Services Department.
Tung Spells out five Priority Tasks for Economic RestructuringTung Chee Hwa spelt out the government's five priority tasks for Hong Kong's economic restructuring.
"Taking into account community views, in tandem with our economic philosophy, the government needs to carry out many tasks during this current period of economic hardship," Tung said.
Bearing this in mind, as well as Hong Kong's positioning for the future, the government and local people have five priority tasks, including the expansion of the investment in education and enhancement of soft and hard infrastructure and improvement of the business environment.
Also included are enhancing the quality of living environment, helping relieve the hardships of the socially disadvantaged, and carrying out the necessary structural adjustments and reforms within the government to improve the quality of administration.
"Accomplishing all of these tasks is needed to maintain Hong Kong's long-term prosperity and stability, as well as serve the fundamental interests of the community," he emphasized.
"I want to point out that our direction is clear: using our existing solid foundations, we must move up the value-added ladder," he said.
Together, the government and the people must face the dual challenges of economic restructuring coupled with the cyclical economic downturn, Tung said.
HK Facing More Complicated TransformationTung stressed the issue of Hong Kong's restructuring in his fifth Policy Address.
"In the past few decades, Hong Kong has undergone several transformations: from an ordinary entrepot, to a base for light manufacturing, and into our present position as a renowned financial, trading and services center," he said.
"Today's circumstances make it essential for us to yet again reinvent ourselves. This is a new challenge for all of us. This time, the transformation will be more complicated because the restructuring is the result of several different but inter-related factors," he said.
He pointed out that if Hong Kong people are to preserve the economic vitality, create greater prosperity, and maintain living standards, economic restructuring is the only way.
"Hong Kong's operating costs are very high, so we need to move to high value-added activities. Our people, our businesses and the SAR government must have the foresight to see changes coming, to adjust to those changes and to manage them," said the chief executive.
HK to Enhance Cooperation With GuangdongAn economic and trade office will be set up in Guangzhou next year to strengthen business liaison between Hong Kong and Guangdong, and to provide better support services for Hong Kong businesses in the Pearl River Delta, Tung said in his policy addressy.
Hong Kong's future development hinges on the economic growth momentum in China's Mainland, and enhancing co-operation with the Pearl River Delta is of particular importance, Tung said.
According to the World Bank, the economy of China will become the world's second largest by 2020. It is envisaged that Hong Kong will benefit from such strong growth over the next 20 years.
Over the past two decades, Hong Kong and the Delta have complemented each other, and together developed into a highly productive economic region, Tung stressed. With a population of 40 million and many affluent consumers in a number of cities, the Delta is an enormously attractive market, he said.
Following China's accession to the World Trade Organization, co-operation between Hong Kong and Guangdong will rise to new heights, Tung noted. The Hong Kong government is determined to actively promote economic co-operation between Hong Kong and the delta region with a view to achieving a 'win-win' situation, Tung said.
"This is a key element in our efforts to consolidate and enhance Hong Kong's position as an international center for finance, trade, transport and logistics, as well as a premier tourist destination," the Chief Executive said.
Significant Investment in Education The Hong Kong government vowed to make significant investments in education to prepare for the advent of the knowledge-based economy, Chief Executive Tung Chee Hwa said in his fifth Policy Address.
In the course of Hong Kong's economic restructuring, one of the government's most fundamental tasks is to make significant investments in education, Tung said.
"We understand that people care deeply about the development of the younger generation, and hope that their children can receive an education of the best quality," he said.
Despite tight government finances caused by the financial crisis, investment in education has surged from 37.9 billion HK dollars (4.85 billion U.S. dollars) in 1996-1997 to 55.3 billion HK dollars (7.08 billion U.S. dollars) in 2001-2002, a 46-percent increase over five years, according to Tung.
Tung said three targets in the education sector should be achieved, including raising the general standards of primary and secondary students through current education reforms, increasing the number of post-secondary places, and promoting life-long learning.
"We must meet these three targets if our education system is to truly and effectively lend support to successful economic restructuring," Tung added.
HK Govt Sets to Create over 30,000 Job OpportunitiesThe Hong Kong government has the ability to create over 30,000 job opportunities, Chief Executive Tung Chee Hwa announced in his Policy Address.
"Unemployment is the foremost concern of our community, and the creation of job opportunities should rest mainly with the private sector so the government is making great efforts to improve the Hong Kong business environment," Tung said.
In the meantime, he added, the government understands the employment problems facing Hong Kong people. "With due regard for our long-term development needs, the government will seek to create more short-term jobs. After much deliberation within government, we are able to create over 30 000 job opportunities," Tung said.
These may include 8,000 more jobs in educational sector, some 4,000 new jobs in housing, and more than 20,000 new jobs as a result of initiatives in improvement and remedial works on various public facilities.
"While creating job opportunities, we also emphasize the need to maintain a stable and orderly labor market under the present economic circumstances," Tung said adding that to maximize employment opportunities for local workers, the government will take strong action against illegal employment.
HK to Support SMEsThe Chief Executive said that his government would inject more money into the program aimed at supporting the small and medium enterprises (SMEs).
"SMEs played an important role in the process of economic restructuring. We need to think of new ways to support Hong Kong's many small and medium enterprises," he said in his fifth Policy Address Wednesday afternoon.
"In a report I received in June this year, the Small and Medium Enterprises Committee proposed a series of measures to assist SMEs. The thrust of their proposal is to set up four funds amounting to
1.3 billion HK dollars (167 million U.S. dollars) to help boost training, open up markets, implement projects and programs to lift competitiveness, and to purchase business equipment and appliances with credit guarantees from the government," Tung said.
"In view of the present difficulties faced by SMEs, I have decided to inject an additional 500 million HK dollars into the Business Installations and Equipment Loan Guarantee Scheme which the Committee proposes to establish."
"This will raise from 1 million HK dollars to 2 million HK dollars the maximum loan amount for each enterprise. In addition, I will inject a further 100 million HK dollars into the SME Export Marketing Fund to provide support to more enterprises," he added.
With this injection, the total amount in the Fund will be 300 million HK dollars. It will bring the government's total commitment to the four funds to 1.9 billion HK dollars, benefiting more than 100,000 enterprises.
The government will also implement about 30 new proposals put forward by the Committee to actively support SMEs to raise their competitiveness.
HK Govt Decides to Reduce Rates PaymentIn response to the economic downturn, the Hong Kong government has decided to reduce rates payment for all ratepayers for the coming year to ease their burden, Chief Executive Tung Chee Hwa said.
Tung said that the maximum amount to be waived for each rateable tenement is 2,000 HK dollars (256 U.S. dollars). Public housing tenants, occupiers of private domestic property, shops, and small and medium enterprises will all benefit, he said.
"We estimate that 840,000 ratepayers will not pay any rates in 2002, while the remainder will enjoy a full reduction of 2,000 HK dollars. This concession will cost about 5 billion HK dollars (641 million U.S. dollars) in lost revenue," Tung added.
Tung also said to ease the burden of home owners, the government will propose to the Legislative Council to raise the tax-deduction ceiling for housing loan interest to 150,000 HK dollars (19,230 U.S. dollars) per year for this and next year assessment.
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