I. The Elements for Recovery
10. Our economy is facing difficulties unprecedented
since World War II. Experience around the world tells
us that economic restructuring usually takes a long
time, but that does not mean we should be pessimistic.
Our traditional advantages and newly opened up opportunities
already provide the basic elements we need to overcome
our problems and revitalise our economy.
Our Advantages
11. Despite the significant changes
in our external environment, we have not lost our fundamental
strengths. Leaders of the Central Government consider
the role of Hong Kong irreplaceable for the future development
of our country. Visiting politicians and foreign investors
are very positive about our future. Let us not forget
that Hong Kong is the most important international financial
centre in the Asia-Pacific region. We are a hub for
trade, shipping, information and services. We still
have the hardware and software required of a world-class
city, including our keen business acumen, a well-developed
infrastructure, a versatile financial system, robust
legal institutions, policies conducive to a free and
open society, a clean and efficient civil service, simple
and low taxation, a large pool of talent and a cosmopolitan
community. As long as we move with the times, give full
play to our strengths, keep on exploring and innovating,
I believe the strategic position and unique role of
Hong Kong will never be replaced.
New Opportunities
12. The Mainland is widely recognised
as one of the world's most dynamic economies with immense
potential. Its adopted strategy for the next 20 years
is to quadruple its Gross Domestic Product (GDP) by
the end of this period. Judging from the present international
trends, I am confident that this is attainable. China
now ranks sixth in the world in terms of the size of
its economy; according to a World Bank forecast, it
will rank even higher by 2020. The Mainland's rapid
economic development and continuing opening up will
provide a historic opportunity for Hong Kong to lift
itself out of the existing difficulties and revitalise
its economy. We must value and make full use of this.
The gradually recovering Asia-Pacific economies will
further broaden the scope for the economic development
of Hong Kong.
A Clear Direction
13. Our direction and position are
very clear. Backed by the Mainland and engaged globally,
we are building Hong Kong as Asia's World City, consolidating
and developing our position as an international financial
centre, a producer services centre, a hub for information
services and logistics and a premier tourist destination.
We will strive to foster further economic growth by
applying new knowledge, new technologies and through
providing high value-added services. To be more specific,
strengthened economic ties with the Mainland, greater
emphasis on investment in human resources and a reinvigorated
services sector will form the main thrusts of our economic
revival.
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