***********************************************************
Hong Kong has been ranked the world's freest economy for the 15th consecutive year by the Heritage Foundation in its 2009 Index of Economic Freedom released today (January 13).
According to the study, Hong Kong scores 90 this year, 0.3 point better than last year, well above the world average of 59.5.
Among the 10 individual areas assessed, Hong Kong ranks first in trade freedom, investment freedom and financial freedom. Hong Kong also ranks in the top 10 in another three areas - business freedom, monetary freedom and property rights.
The study noted that Hong Kong's institutional strengths had allowed it to achieve high levels of prosperity reinforced by vibrant entrepreneurial activity.
It said the income and corporate tax rates were very competitive, and overall taxation was relatively small as a percentage of GDP. It also noted that Hong Kong's business regulation was straightforward, and the labour market was flexible.
The foundation said Hong Kong was one of the world's leading financial centres, and the regulation of banking and financial services was transparent and efficient. The study noted that property rights were well protected by an independent and corruption-free judiciary.
Compared to Singapore, Hong Kong fares better in trade freedom, fiscal freedom, investment freedom and financial freedom, while Singapore fares better in business freedom, government size, monetary freedom, freedom from corruption and labour freedom.
Welcoming the study, the Financial Secretary, Mr John C Tsang, said, "We are determined to uphold Hong Kong as the freest economy in the world.
"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 the integrity and smooth functioning of a free market," Mr Tsang said.
The study measured the degree of economic freedom of 179 economies worldwide by assessing 10 factors: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom.
Hong Kong retains its position as the freest economy in the world, followed by Singapore and Australia.
Ends/Tuesday, January 13, 2009
Issued at HKT 11:49
NNNN
