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Following is the opening address by the Chief Executive, Mr Tung Chee Hwa, at the Forum on Hong Kong's Long Term Development Needs and Goals, today (Monday):

Good morning, ladies and gentlemen

I should like to welcome you to this forum on Hong Kong's long term development needs and goals. As you know, our focus today is on how, through the involvement of the community, we can bring to life our vision for Hong Kong. In my view, there is nothing more important to our community than having a shared vision for our future. I am grateful that we are able to gather together in this room leading business and community leaders to work together to turn our vision into reality.

Challenges Facing HKSAR

Perhaps I could start by putting this forum in context. Way back on October 26, 1996 when I declared my candidacy for Chief Executive, I put together a policy agenda - in the context of the future facing the new SAR - I said then the following "As we look ahead, two distinct challenges face us. First, we need to manage the transition. Second, we need to address the issues that shape our long term future." I believe the community shares with me a sense of pride in that over the last two and half years, the transition has proceeded extremely smoothly. On the financial front, we were able to successfully take on the challenges brought upon us by the Asian Financial Turmoil. Indeed, the latest figures point to a strong recovery in the fourth quarter. Steady and sustainable growth is now predicted for the medium term.

Managing change, under any circumstances, is difficult; but to have to manage an unprecedented political transition as well as a full bloom financial crisis all at the same time made our work most challenging indeed. But, together we have done it. Furthermore, while dealing with unprecedented challenges during the last two and a half years, We, as a government, have never lost sight of the importance for us to focus on our long term development. Being proactive, being able to chart our own course is always a better alternative than being reactive to the adverse environment that is forced upon us. This is especially important today because events such the globalisation of our economy, the introduction of information technology, the successful modernisation of China, are moving much faster than we realise.

Commission's Strategic Thinking

For these reasons, some two years ago the Commission on Strategic Development was established. I wanted the Commission to support me and the Government in considering Hong Kong's long term future; to advise me on the drivers that are likely to impact on our development over the next generation or so; to consider what kind of city we might aspire to become over this period and to identify the areas that we need to focus on now and in the future in order to put in place secure foundations for our longer term prosperity. The Commission met regularly, consulted widely and had undertaken extensive research in developing its thinking. I should emphasize that its work has not been central planning by the back door. The Commission has not produced a blueprint for the future, a masterplan or, indeed, detailed implementation plans. That was not its purpose. Rather, Commission members have thought deeply about the key issues affecting our long term future and the areas which we need to focus on as a community if we are to realise our long term vision.

I have already drawn substantially on the Commission's thinking in my last two policy addresses and the Commission's advice has assisted my Administration in identifying areas where more proactive policy work is needed. The advice of the Commission members has been extremely valuable and I would like to take the opportunity to thank each of everyone of you for your ongoing support and wise counsel.

Returning to the work of the Commission, the first step in any successful strategy is to articulate a clear vision. In my policy addresses, I have reflected some of the Commission's thinking in setting out my long term aspiration for Hong Kong to become Asia's World City as well as a major city in China. I am pleased to see that this aspiration has already provoked a great deal of public debate and today is another important opportunity to further discuss this vision.

Asia's World City - Long Term Goals

In trying to become Asia's World City, as New York is for America's and London for Europe's, we are not just trying to pursue a catchy title. The fact is that the per capita income of these cities are amongst the highest in their respective countries, and the objective of the Hong Kong Special Administrative Region Government must be to continue the creation of wealth for all our citizens. But if we genuinely aspire to become Asia's World City, we need to meet a number of long term goals.

First, and perhaps most importantly, we must continue to be outstandingly successful in economic terms, ranking as one of the most prosperous cities in the world. To do this, we must continue to increase our per capita income while at the same time ensuring that all members of our society have the opportunity to benefit.

Second, our goal over the next generation should be widely recognised as the most attractive city in Asia in which to live and work, particularly judged in terms of overall quality of life, and I am fully aware of the degree of change which is implicit in this goal.

Third, our goal must be to maintain a socially cohesive and stable society, increasingly affluent and well educated, proud of our Chinese heritage, and at the same time assimilate the best cultures and values of the East and West. We recognise diversity brings us many advantages and that it strengthens our cosmopolitan outlook.

Fourth, over the past two decades, China's effort in reform has brought about unprecedented prosperity to the nation. We must aim to continue to contribute to this effort, recognising fully well the benefit to our own long term development in China's modernisation.

Fifth, our goal should be to ensure that the process of political development meets the needs and aspirations of our community and is in line with the pace and provisions outlined in the Basic Law.

Sixth, and lastly, we must retain and further enhance those distinctive features which have been critical to Hong Kong's vitality and success, including, for example, a society underpinned by the rule of law; the independence of the judiciary, protection of freedom of the press and rights of individuals, all of which, is institutionalised in the basic law. Furthermore, we must continue to move forward with free market economy with level playing field, clear, unobstrusive and transparent business regulation, a clean and effective civil service and an outward looking society.

I hope that spelling out these goals gives a clear sense of the level of ambition and challenge which is implicit in our vision of Hong Kong as Asia's World City. If we as a community really aspire to become one of the world's great international cities as well as a major city in China, then make no mistake, this will require fundamental changes to be introduced across a broad canvas.

That said, we are not of course starting from scratch. We have some tremendous assets to build on - some are already world class, some we have perhaps taken for granted but are certainly the envy of many others. I have already mentioned our legal system, our freedoms as individuals, the quality of our public institutions and our international outlook. I could add our outstanding physical infrastructure, the tremendous links and networks which we have with the overseas Chinese community, an adaptable and entrepreneurial workforce with an incredible work ethic and, critically, our unique relationship with the rest of China. We are also fortunate that the China's economy continues to expand rapidly and with the accession to WTO which hopefully will be finalised in the not too distant future, Hong Kong will stand to benefit as no other Asian cities would.

Weaknesses to Overcome

But we must also be frank about our weaknesses, and resolute in addressing them. The painful decisions which have to be taken must be taken. The recent Asian Financial Crisis has painfully exposed the narrowness of our economic base. Although we are consistently rated as one of the World's most competitive economies we know that we can and we must do much more, particularly in aligning our high cost base with our productivity levels and ability to continuously "add value". Our "soft" infrastructure, particularly our education system is in urgent need of a major overhaul. We are not yet prepared adequately for the impact of the knowledge-based economy.

I have said many times before that we need to build a great home for all our citizens in Hong Kong. Nowhere is this more urgent than in areas of our physical environment, the quality of air we breath, in the treatment of sewage and waste that we create.

There is also much greater awareness of the importance of how the promotion of innovation and technology will have positive impact on Hong Kong's economic development. Certainly, there has been a sea-change in terms of greater awareness of the importance of information technology. But, Hong Kong still has a long way to go in taking full advantage of information technology and in embracing the knowledge economy as something which will fundamentally change everything we do - the way we do business, the way we live, and the way we interact with each other and indeed to dramatically increase our productivity and our efficiency and thereby improve our competitiveness.

The Commission has spent considerable time assessing these and other Hong Kong assets and challenges. And I will leave my colleagues to discuss with you today the strategic framework which comprises of four key interrelated themes that needs to be pursued in order to achieve our long term vision.

Government Leadership and Community Commitment

My Administration has a major responsibility for co-ordinating and pursuing a wide range of government led or supported initiatives that will be needed to realise the vision. In practice, of course, this has been an evolving process - and a number of important strategic initiatives have already been taken, such as education, environment and the role and importance of innovation and technology. Additionally, the Commission has identified the need for regular policy reviews and I have now asked the Administration to critically review our existing major policies to identify those areas where new or different policies need to be drawn up and implemented to reflect the overall strategic framework.

While Hong Kong approaches its long-term development from a position of strength, and I am confident that we have the potential to be Asia's World City and a major city in China, equally, it is clearly not sufficient for the Government to pursue this goal on its own. Ultimately, we will only realise the vision if the community as a whole - public institutions, the private sector and particularly opinion leaders and formers like those of you in this room today - share this vision and commit to achieving it. What do I mean by commit? I mean each of you asking how you can contribute individually to making Hong Kong truly Asia's World City. That is the challenge I would like to leave with you and I hope that you will all play your part in making this a reality.

Thank you very much.

Photo: The Chief Executive, Mr Tung Chee Hwa, attended the Seminar on "Bringing the Vision to Life" Hong Kong's Long-Term Development Needs and Goals organized by the Central Policy Unit. Picture shows Mr Tung delivering an opening address at the seminar.

End/Monday, February 21, 2000

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