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The following are the remarks by the Chief Executive, Mr Tung Chee Wah, at the reception for delegates attending the Hong Kong Forum at Government House today (November 27):

Distinguished guests, friends, ladies and gentlemen,

It is my great pleasure to be able to welcome so many overseas friends of Hong Kong who are here to mark the launch of the Federation of Hong Kong Business Associations Worldwide. Over the years, all of you have been excellent ambassadors of Hong Kong. Under your leadership and management, your business associations have helped Hong Kong strenghen our commercial relations with our major trading partners around the world. I, therefore, warmly welcome the establishment of the Federation of the Hong Kong Business Associations Worldwide. It will provide an excellent base to link up all 28 Hong Kong overseas associations, with a total membership of 7,700, to further expand Hong Kong's network overseas, and for all of you to widen and deepen your business links with Hong Kong, Mainland China and Asia. I would like to extend my warmest congratulations to all of you on your participation in this worthwhile initiative in global networking. My warm congratulations also go to Mr Maxwell Brotman from Canada, Mr Bjorn Larsen from Denmark, and Mr David Chu from Australia, who have been elected Chairman, Vice-Chairman and Honorary Treasurer of the Federation, respectively.

Ladies and Gentlemen, you have come at an auspicious time. Hong Kong's economy has been performing robustly especially since the beginning of this year. Last Friday, we announced that our third quarter GDP had maintained double-digit growth at 10.4% in real terms over a year earlier. This came after the growth of 14.2% in the first quarter and 10.9% in the second quarter. On the back of the average growth of 11.7% attained in the first three quarters of this year, we are pleased to revise our forecast growth rate of our GDP for this year from earlier 8.5% to 10%, one of the highest in Asia.

As we all know, China's WTO membership will bring about enormous trade and investment opportunities to businesses all over the world. The World Bank has already predicted that China's gross national product, which currently ranks 7th in the world, will rise to the 3rd place by 2020, with an enormous cumulative growth in the interim. Hong Kong, with our unique relationship with the Mainland of China, is in the best position to assist foreign companies to participate actively in the growing Mainland market.

The Asia economies are recovering from the impact of the financial turmoil and actively re-emerging in size as large as that of the European Union or NAFTA. Hong Kong, with our prime position within Asia - we are within five hours flying time of more than 50 per cent of the entire world's population - is ideally situated for those who wish to participate actively in this growing economy. No wonder we have the largest number of regional headquarters of multinational companies in Hong Kong.

I am sure that the newly formed Federation will have a key role to play in forging and promoting strategic partnership between HK and overseas businesses to tap new opportunities arisen.

In the face of the challenge of an increasingly globalised economy, we have set for ourselves the goal to become the world city of Asia, like New York for North and South America and London for Europe. To attain this, we will continue to provide the best conducive business environment for local and foreign businesses alike. We are also determined to live up to the recent endorsement of being the world's freest economy bestowed to us by the Heritage Foundation, and that of being the best city for doing business in the Asia Pacific Region by the Fortune Magazine.

Ladies and gentlemen, you are not only Hong Kong's best friends, and as I said earlier, we are proud to have you as our most able and valued ambassadors to promote Hong Kong around the world. I thank you all for your unfailing support for Hong Kong and wish you a very enjoyable evening and very fruitful meeting tomorrow.

Thank you very much.

End/Monday, November 27, 2000

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