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The following is a transcript of remarks by the Information Co-ordinator, Mr Stephen Lam, to reporters today in Shanghai for the 2001 APEC meetings:

Mr Lam: Earlier today the Chief Executive had bilateral meetings with the Singaporean Prime Minster and also the Prime Minister of New Zealand. The discussions focused largely on economic matters.

With the Singaporean side we reviewed the situation in both economies. Both Hong Kong and Singapore are faced with the impact of the economic global downturn. The situation in Singapore is more severe. They have negative growth of 5.6 per cent for the first quarter. In both places, because of a reduction in exports, unemployment is going up. Both Singapore and Hong Kong have to deal with the challenge of economic restructuring and we both are tackling that task vigilantly, focusing on the promotion of services. We also agreed that it's necessary for both Singapore and Hong Kong to continue to promote economic co-operation because there are lots of mutual business investments in Singapore and Hong Kong.

With the New Zealand Prime Minster we reviewed progress in the discussions relating to the bilateral economic co-operation partnership agreements. The officials on both sides have had discussions for several rounds. We have made some progress and we will continue in these efforts in months to come.

The Chief Executive also introduced to the New Zealand Prime Minister the education reforms in Hong Kong. The Prime Minster was very interested in these efforts, particularly because New Zealand has lots of experience in the training of professionals and technical staff. Also, quite a few New Zealanders are already involved in Hong Kong in teaching our children English.

So, in totality, I would say that Singapore, New Zealand and Hong Kong are all three very externally-oriented economies. We place a lot of emphasis, all of us, on international trade. And that is why all three parties are committed to supporting early introduction of a new round of WTO negotiations.

Q: (Jake Lloyd-Smith, SCMP): Does the Chief Executive fear that Hong Kong is being left behind by Singapore? It's been much more aggressive in negotiating FTAs [Free Trade Agreements]. Its economic stimulus package is much bigger. And if it carries on like this Hong Kong risks being left in the slow lane.

Mr Lam: We are not at all concerned that Hong Kong will be left behind by Singapore or by the rest of the world because Hong Kong thrives on competition. So does Singapore. So does Shanghai. The important thing is for Hong Kong to be progressive, to have confidence in the ability of Hong Kong people, Hong Kong businesses to stay ahead of the game. And that is why in the policy address we have made proposals to help promote the Hong Kong professional sector, small and medium enterprises and, in the longer run, to continue to invest in education and also infrastructure. All those efforts will help to raise the quality of human resources in Hong Kong, to provide employment in Hong Kong and also to enhance our competitiveness.

(Please also refer to the Chinese transcript)

End/Friday, October 19, 2001

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