|
|
|
D.Expanding the Economic Base and
Promoting Employment 22. The SAR Government is deeply concerned about the employment problems faced by our citizens. Ever since the unemployment rate surged as a result of the financial turmoil, we have been working closely with the business and labour sectors in an attempt to increase job opportunities. Supporting Small and Medium-sized Enterprises 23. Most Hong Kong companies are small and medium-sized enterprises (SMEs). They form the most dynamic sector of our economy and provide many job opportunities. They were hit hard by the financial turmoil. Many faced cash flow problems because of the credit squeeze. Last summer, the Government launched the $2.5 billion Special Finance Scheme for Small and Medium Enterprises, to help alleviate their difficulties. This was a special measure taken because of the severe circumstances caused by the financial turmoil. It has helped over 5 000 SMEs, and has enabled them to retain staff or reduce the number of workers having to be laid off. As our economy has only just turned for the better, some SMEs still have to overcome liquidity problems. Although we do not intend to inject more money into the Finance Scheme, we have decided to double the amount of guarantee for loans provided under the Scheme. We will also review the terms and conditions of the Scheme. 24. Loan guarantees by the Government can only be a short-term measure. In the longer term, we must consider more effective means to ensure that supporting services by relevant institutions meet the needs of SMEs. More importantly, a business-friendly environment should be created for new ventures. In particular, we should try to make it easier for these enterprises to secure finance for their business. This needs the banking sector to put more emphasis on the track record and business prospects of the borrowing enterprises in granting loans, instead of following the general practice of taking property as the main form of collateral. 25. Last year, the Labour Department set up the Job Vacancy Processing Centre. The Centre's computerised system has provided information on 12 000 vacancies every month and helped an average of more than 4 000 people per month to secure jobs. 26. Despite our high unemployment rate, some jobs remain vacant. In view of this mismatch between demand and supply in the labour market, the Government has been providing training and retraining opportunities for the labour force. In the year 1998-99, the Employees Retraining Board (ERB) retrained nearly 70 000 people, with their re-employment rate reaching 70%. They were trained as information technology assistants, security guards, property attendants, domestic helpers and health care assistants, etc. 27. Among the unemployed, about 20 000 are young people between the age of 15 and 19. They account for more than 25% of those employed or seeking work in this age group. This is of deep concern to the Government. Under an ideal education system, these young people should be able to continue with their studies. But in the current circumstances, we must take their unemployment problem seriously. The Vocational Training Council has launched two new courses which include English and Information Technology skills to provide about 4 000 new places for Form 3 and Form 5 school leavers. These courses will equip young people for employment or further studies. Recently, the Government has also launched the Youth Pre-employment Training Programme. Many organisations and companies have supported the Programme, which is well received by the trainees. We will conduct a full assessment of the operation of the Programme. If the results are satisfactory and resources are available, we will consider adopting it as a medium or long-term measure. 28. Those who have been badly affected by the economic downturn have my sympathy. I know that many people, though in full employment, have earned less since the financial turmoil began. Despite falling prices and concessions on Government fees and charges, they are still suffering from a reduction in net income. For the unemployed and under-employed, life is even more difficult. I know that Hong Kong people are accustomed to working hard and earning their own living, and do not like to depend on public assistance. But for those who face severe hardship in the economic downturn, their last resort is the safety net provided by the Government. 29. Hong Kong's economy is improving. I believe that the high unemployment rate caused by the Asian financial turmoil will come down gradually in due course. In the long run, however, we need to develop Hong Kong into a knowledge-based economy. If there are more education and training opportunities for people to better equip themselves with knowledge and skills, their ability to find jobs will be enhanced and their living standards improved. I am sure that Hong Kong people, who are adaptable, enterprising and energetic, will be able to scale new heights. 30. During the past two years, we have launched a series of major infrastructural projects. They include the KCR West Rail Phase I, the MTR Tseung Kwan O Extension, and the expansion of boundary crossing facilities at Lok Ma Chau. Projects that will be launched shortly include the KCR East Rail Extensions to Ma On Shan, Tsim Sha Tsui and Lok Ma Chau, and the Science Park at Pak Shek Kok. An estimated total of 46 000 jobs will be created in the next fifteen months as a result of these major infrastructural projects and other Public Works Programme items. Plans are also in hand for the next phase of infrastructural investment. Projects that are expected to commence later include Routes 7, 9 and 10, the Central-Wan Chai Bypass and the South East Kowloon Development Scheme. A total of over $240 billion will be invested in these projects within five years, an amount exceeding the total investment in the Airport Core Programme. In addition, the Second Railway Development Study, which will be completed by the end of this year, will make recommendations on the feasibility and proposed timing of the construction of a fourth cross-harbour rail link, the East Kowloon Line, a second rail connection from Tai Wai to Kowloon, the North Hong Kong Island Line and the West Hong Kong Island Line. These projects will provide Hong Kong with a well planned and environmentally-friendly transport network as well as other basic facilities. 31. The new airport is one of our major infrastructural achievements. Our international air cargo throughput already ranks among the highest in the world. We are in a position to expand the market by taking advantage of the advanced facilities of our new airport to provide diversified freight services for clients from a more extensive area. To this end, we will implement a liberal policy for air cargo services so as to further develop Hong Kong into an international and regional air cargo hub. This, in turn, will create more jobs in the supporting service industries. A number of leading international air cargo carriers have expressed interest in expanding their operations in Hong Kong. 32. Tourism is a major driving force behind Hong Kong's economic development, and can directly or indirectly create a large number of jobs. To strengthen the co-ordination of the tourism industry, the Government has appointed the first Commissioner for Tourism. We are also reviewing our strategy on the development of tourism and encouraging better co-operation among the various parties. We have announced a series of schemes concerning new tourist attractions, which we are now implementing in stages. Regarding the development of an international theme park at Penny's Bay on North Lantau, we continue to make good progress in our negotiations with the Walt Disney Company. Our common target is to complete the negotiations before the end of October. Promoting Innovation and Technology 33. Innovation and technology are the major driving forces of economic growth. The Government is now implementing the recommendations detailed in the two reports submitted by the Commission on Innovation and Technology, chaired by Professor Tien Chang Lin. They include the setting up of the $5 billion Innovation and Technology Fund; an investment of over $2 billion in the coming ten years for establishing the Applied Science and Technology Research Institute which will focus on mid-stream research; the setting up of a high-level co-ordination framework and standing advisory committee; and the admission of people whose technological expertise we need. Local businesses have responded positively by putting forward proposals, such as the Cyberport and other projects involving innovation and technology. Overseas investors have also indicated their strong interest in such endeavours. Before the end of the year, the Hong Kong Stock Exchange will launch the Growth Enterprise Market which will serve as a new capital-raising channel for innovation and technology ventures. 34. People from various sectors have told me that the speculative atmosphere created by the formerly prevalent "bubble economy" had seriously undermined people's work ethics and attitudes towards learning. Today, due to the efforts of the SAR Government and many who care for the future, more and more entrepreneurs and citizens have come to support a view that I have repeatedly emphasised: to put Hong Kong back on the road to prosperity, we must widen our economic base and promote wider application of innovation and technology in order to add value to our products and services. It is now generally realised that economic growth cannot come from excessive reliance on asset inflation. Instead, people have begun to recognise the importance of innovation and technology, and we have witnessed a gratifying change in the community's mindset, which in itself marks a possible turn for the better. I am sure that our economy will scale new heights when learning, pragmatism and creativity prevail. This is the reason for my optimism for the future of Hong Kong. 35. In the past two years, we have faced together the hardships brought about by the Asian financial crisis. The worst is now behind us. The SAR Government has delivered on its pledges. I believe that given the spirit of close co-operation that exists between the Government and the community, we can all look forward to the start of the new century with confidence.
|
|
|
||
|
|
|
 |
