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The following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the opening ceremony of the Third Ministers' Forum
on Infrastructure Development in the Asia-Pacific Region today (Wednesday):
Distinguished Delegates, Honourable Guests, Ladies and Gentlemen,
It gives me great pleasure to be here today to open the Third Ministers' Forum on Infrastructure Development in the Asia-Pacific Region. I am glad to see that over 60 delegates from fourteen member countries and areas have gathered here to participate in the Ministers' meetings. I am sure that we are all determined to make this meaningful event a great success.
The Challenges for the Asia Pacific Region
Asia has seen better times than 1998 and 1999. The Asian financial turmoil first came to the surface in Thailand and soon spread to South East Asia, North Asia and reverberated all around the world. By 1998, almost a quarter of the world economy was in recession.
Despite economic setback over the last two years, it is my belief that Asia will again emerge as an influential player in the 21st century. Over the last two decades, growth in Asia have been at approximately 7.5% compared to 2% in Europe and the US. Millions have been lifted out of poverty and entered into the life of the middle class. Export and import growth for the region has been between 10% to 15% for 20 years. Before the financial turmoil, Asia accounted for 26% of world exports and 24% of world imports, making it a larger importer than the US. Even after a decade of faltering growth, Japan's economy is still twice the size of Germany. Six Asia economies account for some 37% of non-gold reserves held by governments around the world. Much of Asia today is still recovering from the difficulties. What I want to do is to illustrate how Asia's health remains vital to everybody around the world.
The fact is many of the critical success factors of Asia's past success are still with us. Our success was built on the hard work, the thrift, the skills, the ingenuity, and the determination of people in the region to develop and to reap the benefits of economic growth. And it was built on the work of regional governments in developing the infrastructure and systems necessary to support and nurture that growth. Those qualities, skills and infrastructure remain very much here in the region. And many nations are enormously rich in natural resources. We in Asia should not lose heart because of the current difficulties. There is much potential for us to rebound and rebound very strongly.
Whilst the Asian financial crisis will not stop us in our tracks and indeed as we begin to put ourselves back on the road of recovery, we will still be faced with perennial issues as well as other new challenges. Many cities have to cope with continued population growth and more intensive urbanisation. We need to sustain economic growth so as to improve our standard of living. We aspire to an enhanced quality of life through a better living environment. Demand for infrastructure facilities is never fully satisfied, and we have to prioritize our needs to make best use of our resources.
Another major challenge is that economic activities are more and more internationally oriented, and demand for international transportation and communication links is increasing. The 21st Century will be an era of information technology and we shall live in a knowledge-based society. We must prepare ourselves for the new digitized world and keep us up to the latest world trends through information technology. With globalization of trade, we must increase our competitive edge by developing new niches in our economies. We need to improve productivity and open up new markets through technological transformation and innovative management.
Our Response to the Challenges
In response to these challenges, Hong Kong has in the past years invested substantially in infrastructure development. We continue to find ways to accommodate population growth and relieve urban congestion. We are identifying new strategic growth areas in Hong Kong for more housing development to be undertaken by both the public and the private sectors. We are building new expressways and railways to link up new towns. We are expanding our port facilities to enhance our position as a regional transport hub.
In anticipation of the growth in international transportation demand, Hong Kong has already completed and opened a new airport last year which is linked up with the city centre by a comprehensive and efficient land transportation network including an Airport Express Line. The new airport, which has been named one of the Top ten Construction Achievements of the 20th century at a recent international construction trade show, will enable us to handle passengers and cargoes more than double the volume at the old airport in a more efficient manner. We are very pleased with the recognition it has gained internationally in terms of its economic impact, use of new technology, and overall value to the community.
The underlying strength of our economy and prudent fiscal policy have enabled Hong Kong to ride out the impact of the economic downturn. We are able to maintain government spending programme, particularly on capital projects that are providing the infrastructure and investment necessary for our future development. Over the next five year we will continue to invest in infrastructure development estimated at US$30 billion, which is 50% higher than what we spent on our airport and the associated development.
With the arrival of the digital era, digital technology will open up new possibilities and offers tremendous opportunities. We will position ourselves as a leading city in the world for the development of information technology. In pursuit of this vision, we will embark on the development of a Cyberport in partnership with the private sector. It will provide facilities to attract a strategic cluster of companies engaged in leading-edge information technology and services. We hope that this development will help create the synergies required to turn Hong Kong into an international multi-media and information service centre and link up our vast hinterland with the rest of the Region through state of the art communication networks.
Another response we will make to the challenges of the 21st Century is to make Hong Kong an innovation led, technology-intensive economy. We will broaden and upgrade our economic base by actively encouraging high value-added and high productivity activities. This will be done with the help of technology and through its innovative application in our industrial and service sectors. The realization of this new vision calls for investment in technological infrastructure, which is the technological support given to industrial production and distribution activities through research and the transfer of research results. We will strengthen our capabilities to develop concepts and innovative ideas, and to transform them into marketable products. While there is much that the private sector can do under its thriving entrepreneurial spirit, Government will play the role of a proactive promoter and facilitator.
Regional Co-operation
As we map out our course to enter the new millennium, we are aware that what happens in the Asia Pacific Region will impact on us, and vice versa. Our common aim must be to achieve progress and growth to the benefit of all. Therefore it is important to have more bilateral and multilateral communication and co-operation in the Region. We stand ready to share our experiences with other Asia Pacific economies, to discuss problems, analyse issues and explore options. We would like to encourage and promote co-operation through mutual visits, conferences, and exchange of ideas and data.
Ladies and gentlemen, international occasions such as the Ministers' Forum bring together people and ideas and broaden our perspectives. They provide a friendly environment and congenial atmosphere for the sharing of past experience as well as vision for the future. I sincerely wish the Third Ministers' Forum a great success, and all the participants a rewarding experience.
Thank you very much.
Photo : The Chief Executive, Mr Tung Chee Hwa, officiated at the Opening Ceremony of the Third Ministers' Forum on Infrastructure Development in the Asia-Pacific Region held in Hong Kong Convention and Exhibition Centre. Photograph shows Mr Tung delivering the Opening Address.
End/Wednesday, May 26, 1999
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