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The following is the speech by the Financial Secretary, Mr Donald Tsang, at the Presentation Ceremony of the Hong Kong Awards for Services Scheme:

Mr Leung, Ladies and Gentlemen,

I'm delighted to be here this evening. This is one of those occasions when we can all 'let our hair down', just a little, to enjoy the moment with the winners and soak up some of the atmosphere. It is an occasion I look forward to every year. It gives us all an opportunity to congratulate the outstanding achievements of our workers and companies who make invaluable contributions to the success of our service economy.

I was encouraged to learn that this year we have set another record in the number of entries received. Again all of them are of particularly high standard - so much so, that I'm glad Mr C Y Leung kindly took on the difficult task of chairing the judging panel. My thanks go to him and the other judges for undertaking this very interesting and challenging job.

As Hong Kong has transformed over the years from a manufacturing centre, the services sector has become the lifeblood of our economy. The success of our service industries has enabled us to position ourselves as the premier international financial and business centre in Asia.

While we have every reason to be proud of that our track record, we should be mindful that past achievements do not guarantee future success. As we emerge from the Asian financial crisis with steady and sustained growth - confirmed by last Friday's encouraging third quarter economic numbers - we have to keep the momentum going. But in so doing we are facing a new set of circumstances.

The New Economy, which has heralded an era of unparalleled creativity and innovation, has also given rise to unprecedented challenges and opportunities. In the New Economy, output is judged by the levels of innovation, as well as by its quality, sustainability and professionalism in delivery.

This is also an era of more liberalised trade in goods and in services. The huge services market in the Mainland alone will open up new and exciting opportunities for Hong Kong after China's accession to the World Trade Organisation. But we cannot afford to wait for things to happen before we act.

We need to position ourselves to grasp the new opportunities before our competitors snap them up. We need to develop new strategies. We have to increase productivity. We must add value. With the international commercial landscape changing so quickly, all of us - businesses, individuals and the government - have to adjust, even though that adjustment can sometimes be painful. The world has moved on. We don't want to be left behind. We have to move with it.

But in our efforts to maintain the momentum, we should not overlook the fundamental strengths of Hong Kong. The principles that make us tick - free and open markets, a level playing field for business, minimum government intervention, the rule of law, low tax rates, the freedom of speech and the free flow of information, a clean and accountable government, and a flexible labour market.

Let me reassure you - we will do everything to safeguard these pillars of our success. We will continue to provide the best possible environment for our businesses to meet the growing competition. Hong Kong must promote a service culture that encourages quality.

As a government, we are committed to working with the community to meet the new challenges and realise our full potential. This underlines the strong government support for this annual event. Our community cherishes one common vision. That is to promote productivity, innovation and quality service in our industries - in short, the quest for excellence.

I would like to congratulate all the entrants in the Hong Kong Awards for Services Scheme. I am particularly pleased to see the enthusiastic participation of SMEs this year. Don't forget, any quality service we render, no matter how small, has a positive impact on our status as a world class services centre.

To the sponsors and judges a big 'thank you' for your generosity in both money and time to help make the scheme such a success. Finally, I extend my warmest congratulations to the winners. You have done a fine job, and set an example for others to follow. The applause is rightly yours.

Thank you.

End/Monday, November 27, 2000

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