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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the reception he hosted for new investors at Government House this (July 12) afternoon:
Good afternoon, Ladies and Gentlemen.
I am delighted to welcome you to this reception and to Hong Kong. It is really wonderful to see so many of you here today.
You certainly are an active and diverse group, whether involved in technology, telecom, financial services, energy, education, infrastructure development, consumer products, retail, travel and tourism, professional services and in many other fields.
We are here to thank you for contributing so much to Hong Kong's success, both professionally and personally. All of us are especially grateful to you for demonstrating confidence in Hong Kong at a time when it would have a particularly strong positive impact.
Only 12 months ago at this reception, I described the devastating blow dealt to the Hong Kong people and our economy by SARS, just as we were beginning to recover from the lingering effects of the Asian financial crisis and other economic difficulties. What a difference a year makes!
Today, I am pleased to report that our economy is showing signs of a strong rebound - fuelled by robust growth on the Mainland and healthy external demand. In the first quarter of 2004, real GDP growth increased by 6.8% from the same period a year ago, while exports jumped 15%. As I told your Consuls-General last month, I am optimistic about Hong Kong's economic prospects. Forecasts for the remainder of the year are quite favourable; there is a possibility of double-digit growth for the second quarter.
All of you certainly have played a part in Hong Kong's recovery. Our business sectors, including overseas investors, have once again demonstrated their skills, drive and resilience - and ability to take advantage of opportunities. The companies here today have helped inward investment reach record levels during the past 18 months.
2003 was our most successful year ever for investment promotion in Hong Kong. Invest Hong Kong assisted 142 foreign companies to set up or expand operations in Hong Kong -- an increase of 21% compared with 2002. These projects brought in more than $2.5 billion and created over 2,450 jobs for the city. The target for 2004 is 200 completed projects, over 40% more than last year. I understand that the department already has achieved more than half of this target.
Hong Kong remains an unrivalled hub for doing business in Asia and the gateway to expand into the China market. We now have more than 3,200 regional headquarters and regional offices here - and the number is growing each year. On average, one foreign-owned company is setting up one regional headquarters in Hong Kong every week.
One of Hong Kong's main attractions to international companies is as the gateway to the Mainland and, particularly as part of the Pearl River Delta region. Hong Kong provides the capital, management, technology, market knowledge and access to international markets while Mainland cities offer world-class low-cost manufacturing, and access to a new, demanding consumer base.
This region has become even more attractive after China entered the World Trade Organisation (WTO) in 2001, and the implementation of the Closer Economic Partnership Arrangement (CEPA) at the beginning of this year. CEPA opens up new and exciting opportunities for companies based in Hong Kong in the areas of trade in goods; trade in services, and trade and investment facilitation - and for companies to invest in our city.
At the same time, we are working more closely with our colleagues in the Guangdong Provincial Government to ensure greater co-operation and growth in the Pearl River Delta. In fact, we undertook many of our investment promotion activities jointly with our Guangdong counterparts.
And just last month, we took another important step by establishing the Pan-Pearl River Delta (Pan-PRD) Regional Co-operation and Development Forum to work towards a unified and open market in the region. Encompassing nine Southern provinces and two SARs, Hong Kong and Macao, the Pan-PRD region accounts for one-third of China's total population and also one-third of GDP.
Through CEPA and Pan-PRD, we are breaking down obstacles to trade, while attracting more foreign capital, technology, management and talent, to reinforce the status of this region as one of the most dynamic economic centres of China and the world in the 21st century.
At the same time, we are committed to preserving the set of core values that is the foundation of Hong Kong's prosperity and stability. They include our rule of law; free flow of capital, people and information; a level playing field; a cosmopolitan lifestyle; an open, limited and clean government; international standards and practices of doing business; and social and cultural pluralism.
Ladies and Gentlemen, the improvement of the external environment and the foundation work we have done have made me confident about our future. Our position as an international financial centre, a centre for trade and business, a centre for logistics and a premier tourist destination, together with our superb infrastructure and the pool of talents and professionals we possess make us a perfect gateway for multinational companies to enter the Mainland market and for Mainland enterprises to go overseas.
With these promising prospects, we expect that more international firms will want to be close to the action. They will join the thousands of companies involved in China trade, like many of yours, which have established beachheads in Hong Kong.
And you don't have to do this alone. Our Government, represented by Invest Hong Kong, is in business to help you do business. We can supply a step-by-step guide to setting up in Hong Kong, we can help link you with business partners, we can guide you through the government regulations and requirements, we can provide sector-specific expert advice. And once you are up and running, we will always be available to lend a helping hand.
Please let us know if you have any suggestions on how we can do better and I mean this very sincerely. We look forward to the opportunity to assist you in realising your objectives.
Let me conclude by proposing a toast, wishing you all every success in your business ventures, locally, regionally and globally.
Thank you very much.
Ends/Monday, July 12, 2004
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