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Following is the speech by the Chief Executive, Mr Donald Tsang, at Malaysian 50th National Day reception at Island Shangri-La Hotel this evening (August 31):
Distinguished guests, ladies and gentlemen
Thank you for the invitation to join you all in celebrating this milestone in Malaysian history. What more can I say except - happy Golden Jubilee! This is indeed an historic occasion and undoubtedly a time of great pride and joy for all Malaysians. We know how you feel, having just celebrated a special 10th anniversary ourselves.
Celebrations are all the more enjoyable when shared with friends, especially when we have so much in common. This is certainly the case when it comes to Hong Kong and Malaysia. Our economies are thriving, and our long-established links grow stronger by the day.
Almost 15,000 Malaysians have made Hong Kong their home away from home. I am pleased - though not too surprised - that they feel so comfortable here. Kuala Lumpur and Hong Kong each have their own certain buzz and energy. Just a stone's throw from the city centre, we offer spectacular beaches and countryside to remind you of home. And, let us also remember, there are few places on the planet that can rival Hong Kong and Malaysia when it comes to food. We have a lot in common.
Last year, Malaysia was Hong Kong's ninth largest trading partner, and we were Malaysia's sixth largest. Average annual growth in merchandise trade over the past five years has been an impressive 10.5%.
We welcome even closer co-operation in the future. Our aviation relationship with Malaysia, in particular, has been developing strongly. In 2004, Malaysia was the first ASEAN country with which we dropped all bilateral capacity limits. Since then, air cargo traffic has grown by 44% to 98,000 tonnes by end-2006. Our latest Air Services Agreement, signed in February this year, saw an increase in fifth freedom cargo rights for both sides.
We look forward to discussing an abolition of double taxation agreement with Malaysia covering air services and shipping. We believe such an agreement would not only enhance bilateral trade, it would also provide investors and businesses with more certainty in regards to taxation rights. Both Hong Kong and Malaysia would benefit.
Financial services is another very important area for both of our economies. In 2006, Malaysia was the first country in the region to establish a link with Hong Kong's US dollar settlement system. This allowed for the seamless, real-time delivery of US Dollars in Hong Kong, and Ringgit in Malaysia, a service that has been well received by Malaysian banks since its inception. Later this year, we will expand this link to provide delivery-versus-payment service for US Dollar securities traded in Malaysia. As the financial markets in the region become more mature and liquid, services such as these will become even more important to both our financial services sectors.
Our relationship goes well beyond that of business. In recent years we have seen a blossoming of cultural exchanges between Hong Kong and Malaysia covering areas such as dance, design and art. This year, a record seven Malaysian films were screened at the Hong Kong International Film Festival. And just last month we welcomed a delegation from Malaysia's Ministry of Culture, Arts and Heritage.
As we in Hong Kong know from recent experience, anniversaries provide a chance not only to reflect on the past, but also to look to the future. Based on the strength of our existing relationship, I am certain that Hong Kong and Malaysia will enjoy even closer and more fruitful ties in the decades to come.
Once again, congratulations on your Golden Jubilee year!
Thank you.
Ends/Friday, August 31, 2007
Issued at HKT 18:59
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