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Hong Kong has been ranked as the world's freest economy by the Heritage Foundation for the 13th consecutive year in the foundation's 2007 Index of Economic Freedom study released today (January 16).
According to the study report, Hong Kong scores extremely well in almost all areas of economic freedom.
Among the 10 individual areas assessed, Hong Kong ranks first in four - trade freedom, investment freedom, financial freedom and property rights. Hong Kong also ranks in the top 10 in another four areas - fiscal freedom, freedom from government, monetary freedom and labour freedom.
The report said that Hong Kong's income tax and corporate tax rates were extremely low, and overall taxation was relatively small as a percentage of GDP.
It also cited that Hong Kong's business regulation was simple and the labour market was highly flexible, and investment in Hong Kong was wide open, with virtually no restrictions on foreign capital.
The foundation also complimented Hong Kong on being one of the world's leading financial centres, with an extensive banking and services industry that was regulated non-intrusively and transparent; and the judiciary, independent of politics and virtually free of corruption, had an exemplary ability to protect property rights.
Welcoming the news, the Financial Secretary, Mr Henry Tang, said, "We will study the report carefully and will strive to preserve fervently those strong aspects of our economic freedom, whilst enhancing those other aspects where there is room for further improvement."
He said the Government remained firmly committed to maintaining Hong Kong as a free economy, with maximum scope being accorded to private sector.
"We see the role of the Government as that of a facilitator. We provide a business-friendly environment where all firms can compete on a level-playing field and establish an appropriate regulatory regime to ensure integrity and smooth functioning of a free market.
"We also have an irreplaceable role in interactions with other governments, for instance, on market access negotiations," Mr Tang said.
The study measured the degree of economic freedom of 157 economies worldwide by assessing 10 factors. Hong Kong retained its position as the freest economy in the world, followed by Singapore and Australia.
According to the foundation, the methodology for this year's assessment had been substantially changed to reflect a more refined and accurate overall score results.
Ends/Tuesday, January 16, 2007
Issued at HKT 11:49
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