policy address

35. A level playing field that allows enterprising people to start and run their own businesses is important for sustaining the vitality and harmony of society. Hong Kong has long been recognised as the world’s freest economy. The international community has commented very favourably about the upholding of fair competition in Hong Kong. However, as Hong Kong enterprises grow in strength, with some acquiring world-class status, coupled with an increased presence of multinational enterprises, it is possible that forces capable of cornering the market may emerge in Hong Kong.

36. The Government introduced a Statement on Competitive Policy in May 1998. Since then we have gained experience from the implementation of sector-specific competition policies. The results we have achieved in promoting competition in the telecommunications market have been particularly noteworthy. To ensure that our competition policy continues to serve the public interest and provide a business-friendly environment, and in response to the views of Legislative Councillors and the public, we appointed a Competition Policy Review Committee a few months ago. The newly established independent Committee, chaired by a Non-official with members drawn from different sectors, is tasked to review the effectiveness of our existing competition policy. The Committee will consider, among other things, whether the implementation of our policy is in line with the times, and whether available investigative powers are adequate. The Committee will also draw on international experience and discuss the need to introduce in Hong Kong a comprehensive and cross-sector law on fair competition, as well as its scope and application. The Committee expects its review to be completed in mid-2006.

37. We do not seek to intervene in the market. Rather, we want to actively protect market order and fair competition by preventing manipulative practices such as price fixing, bid rigging and market sharing. Any additional measures, including legislation, will aim to facilitate new ventures by individuals and help small and medium enterprises operate and grow. We can take reference from the comprehensive competition laws enacted in scores of jurisdictions so that we can avoid as far as possible any negative impact stemming from legislation or other related measures. Hong Kong enterprises have always embraced competition and thrived in a competitive setting. I believe they will support our effort in maintaining a climate of free and fair competition.