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Following is an intervention by the Secretary for Commerce and Industry, Mr CHAU Tak Hay, during the 13th APEC Ministerial Meeting today (October 18) in Shanghai. Mr CHAU was speaking on the 2001 APEC Economic Outlook Report, this year co-ordinated by Hong Kong, China.

The Economic Outlook was finalized in early September. In the light of the repercussions on the global economy of the terrorist attacks on September 11, an addendum to the Outlook has been produced to reflect the latest economic landscape in the APEC region. The aftermath of the September 11 attacks further dampens growth prospects and heightens the possibility of a more prolonged downturn for the global economy. External trade, the main driver of growth, has recently come under even greater pressure.

As many colleagues pointed out yesterday, the present difficult economic environment means that there is a need for all of us to pursue free and open trade with even greater vigour and commitment. APEC members have an important role to play in furthering trade and investment liberalization and in strengthening our macroeconomic structure.

The Asian financial crisis has highlighted for all of us in APEC the importance of financial efficiency, and of reinforcing strong economic fundamentals with a sound legal framework, a strong financial framework, good corporate governance and a high degree of transparency. Indeed, the reforms and restructuring which APEC economies instituted following the financial crisis have put us in a much stronger position to withstand external shocks, and have acted as a crucial stabilizing force in the current slowdown.

HKC is pleased to have taken on the task of coordinator for the 2001 Economic Outlook. We are most grateful for the excellent support and assistance from the Chair and members of the Economic Committee, which enabled us to complete this exercise within a very tight timeframe.

End/Thursday, October 18, 2001

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