*****************************************************
Hong Kong has adopted measured, timely and decisive strategy in dealing with the current economic downturn, and the city is drawing on past experience to lay the groundwork for a recovery, Director of the Hong Kong economic and Trade Office in New York Monica Chen said.
The director was addressing students and faculty members of Moravian College in Pennsylvania on Tuesday (May 12, New York time). Nineteen of them will visit Hong Kong next month on a familiarization visit to learn more about Hong Kong's business environment and financial infrastructure.
Ms Chen said Hong Kong, with an export-led economy, felt the impact of the financial tsunami in the latter part of 2008 despite ending the year with good performance almost in all aspects.
In 2008, Hong Kong's economy grew by 2.5%, visitor arrivals by 4.7%, exports was up by 5.1% and imports by 5.5%, she said, adding that its foreign direct investment also rose 27% during the first half of 2008.
Since the Asian financial crisis in 1997/98, Hong Kong has greatly improved its risk management of banks and created a more transparent regulatory system, making it more prepared to face the current crisis, Ms Chen said.
The Government guaranteed deposits in local banks and made available additional capital to banks to restore confidence in the market.
"We also put in a US$12.8 billion loan scheme as guarantees to our small and medium enterprises (SMEs), which are feeling the full force of the downturn. SMEs account for well over 90% of the enterprises in Hong Kong, and so their performance is the key to preserving employment," Ms Chen said.
"And because jobs are likely to be the most important single factor for our community in the medium term, we are committed to creating some 60,000 jobs this year through infrastructure projects, and an additional 62,000 jobs and internships in the next three year. In total, that is equivalent to about 3% to 4% of our current workforce," she added.
Recently, the Task Force has also identified six areas where Hong Kong has an edge for further developments. They are testing and certification, medical services, innovation and technology, cultural and creative industries, environmental industry, and educational services.
More importantly, Ms Chen said Hong Kong would continue to strengthen its economic and social ties with the Mainland China.
Hong Kong and the Mainland have a currency swap pact of US$29 billion to provide short-term liquidity support to Mainland operations of Hong Kong banks and vice versa. The Central Government is also developing Hong Kong as an off-shore centre for Reminbi-related business.
"Furthermore, the recently signed CEPA supplement VI represents a big step forward in trade and economic cooperation between the two places," Ms Chen said.
Moravian is America's sixth-oldest college. It delivers a values-based liberal arts education in a caring environment, through which it nurtures in students the capacities for leadership, lifelong learning and positive societal contributions.
Ends/Saturday, May 16, 2009
Issued at HKT 08:29
NNNN
