Following is the speech (English only) by the Financial Secretary, Mr John C Tsang, at the Hong Kong Exporters' Association Annual Christmas Luncheon today (December 7):

Tom (Chairman of HKEA), Distinguished Guests, Ladies and Gentlemen,

     Good afternoon.

     It is a great pleasure for me to join you on the occasion of your annual Christmas luncheon.

     First and foremost, I wish you all an early but hearty merry Christmas.  We are still a few weeks away from the holiday, but there is already plenty of seasonal cheer going around.  Santa's sleigh will be as heavy as ever this year after another solid performance by our economy, especially all of you our exporters.

Recent economic performance and outlook

     We recently marked the 16th consecutive quarter of above-trend GDP growth.  In fact, we are experiencing the longest period of above-trend growth since the late 1980s.  You, our exporters have played a big part in this economic success story.  You have remained resilient in the face of adverse changes in the external environment.  Our external trade has held up well, even given a relatively weak US economy and uncertain global conditions.  The situation has confirmed the value of the Hong Kong dollar link to the US dollar, providing a welcome measure of certainty in these rather volatile times.

     Hong Kong has maintained its position as the world's 11th largest trading entity, with total exports amounting to over $2.4 trillion in 2006.  That's a rise of 9.4 per cent from the previous year.  In the first nine months of 2007 the same strong growth was recorded, with merchandise exports growing in real terms by 8.9%.  Exports to the Mainland and other emerging markets have been growing strongly, and those to EU economies also saw further solid expansion.

     I commend the efforts of our exporters, and assure you that the government is working to sharpen our city's edge as a major centre for international trade in the region.  As you know, we are pushing ahead with a series of major infrastructure projects that will make it easier, quicker and cheaper to move people and goods around our neck of the woods in future.

Challenges for Hong Kong exports

     However, we will inevitably face challenges ahead, especially with the intense competition for business from other cities in the region, and in light of the evolving global credit market turmoil.  The apparent weakening of the US economy arising from a prolonged correction in its housing market is a concern among Asian economies, including Hong Kong.  The Chairman of the Federal Reserve, Ben Bernanke, expects US economic growth to slow in this quarter and remain sluggish during early 2008.  With oil prices dropping a bit but still maintaining a fairly high level recently, the cost of fuelling economic growth is adding to the anxiety.

Importance of the Mainland Market  

     These are just a few things on which my colleagues will be keeping a close eye in the weeks and months ahead. When we think of Christmas, we think of gifts and more exports to our traditional as well as new markets. The Mainland has become an increasingly important export market for Hong Kong as well as many other Asian economies, not just at Christmas, but all year round. This reduces our region's dependence on the US economy, and should help Hong Kong and the rest of Asia to better withstand the US slowdown.  The gradual strengthening of the Renminbi has also boosted Mainland's import demand, and helped to diffuse some international tension on the trade front.

     We will continue to explore new ways to boost cross-boundary trade through more efficient infrastructure and the breaking down of trade barriers, especially in the Pearl River Delta Region. We should also make better use of CEPA to generate more business opportunities.

Exploring other emerging market

     The performance of many emerging economies has also been strong this year.  We were all excited to see your Association lead a delegation to Russia for the "Style Hong Kong in Moscow", organised by the Hong Kong Trade Development Council in September.  This was the first exposition in Russia dedicated to Hong Kong companies showcasing their products.  We should build on this spirit of adventure, and more actively explore other emerging markets.  This would ensure that Santa's 'little helpers' are kept busy for another year.

     Ladies and Gentlemen, I thank the Association for its dedication and hard work in promoting the export trade in Hong Kong.  Again, I wish you all a merry Christmas and a prosperous 2008.

     Thank you.

Ends/Friday, December 7, 2007
Issued at HKT 14:55

NNNN

News Archives | Yesterday's News