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The Financial Secretary, Mr Donald Tsang, said in Singapore today (Monday) that Hong Kong and Singapore were no longer just competing against each other, but with the rest of the world in the increasingly globalised market.

"The globalised market is so big and there are ample opportunities for both economies to benefit" he said.

The Financial Secretary is in Singapore from 18 to 20 October on an official visit at the invitation of the Singaporean Government.

At the breakfast meeting with the Hong Kong Singapore Business Association, Mr Tsang briefed the leading businessmen and bankers on the latest economic situation in Hong Kong, and the reforms undertaken in the banking and financial sectors.

"In Hong Kong we believe that Government should minimise intervention and provide maximum support to the private sector. The process of market adjustment and recovery is entirely market-led." said the Financial Secretary.

Singapore is Hong Kong's 5th largest trading partner in the world. Total trade between the two places amounted to over HK$ 50 billion in the first seven months of 1999. There is also significant investment by Singaporean companies in Hong Kong and vice versa.

Noting that there was an on-going Official Exchange Programme between the civil service in Hong Kong and in Singapore, Mr Tsang believed that there was ample scope of further exchanges and cooperation.

"Singapore has done a marvelous job in protecting its heritage and the environment. The Chief Executive has recently announced a series of vigorous initiatives to improve the environment in Hong Kong. Hong Kong and Singapore can work together to become the greening agents in Asia, spreading the environmental protection gospel and at the same time making money out of it," said Mr Tsang.

In the afternoon, the Financial Secretary had a meeting with leading bankers, during which they exchanged views on the development in the banking sectors in the two economies. They also discussed the consolidation process in the sector to deal with increasing competition.

The Financial Secretary will attend the East Asia Summit of the World Economic Forum tomorrow (Tuesday) to speak on "Facing the Challenge of Good Governance: Acquiring the Software of Globalisation".

End/Monday, October 18, 1999

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