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Following is the speech by the Financial Secretary, Mr John C Tsang, at the 25th anniversary of the Royal Sweden Hong Kong Society in Stockholm today (June 7, Stockholm time):
Your Royal Highness [Princess Birgitta], Bo [Ekander RSHKS Chairman], Ambassador Chen [Mingming], distinguished guests, ladies and gentlemen,
God afton.
It is my great pleasure to be here in Stockholm.
First and foremost, congratulations to the Royal Sweden Hong Kong Society on its 25th anniversary.
I wish to thank you for your support of Hong Kong and confidence in our city over the years. I'm pleased to see so many familiar faces here today. Although Hong Kong and Sweden are half a world apart, we do see eye-to-eye on many issues, and the society has helped to bring our communities closer together.
Even our ballet dancers in Hong Kong are dancing with a Swedish attitude these days. In March, Madeleine Onne became the Artistic Director of the Hong Kong Ballet, following a stellar career with the Royal Swedish Ballet.
I also take this opportunity to congratulate you on Sweden's National Day yesterday. In Hong Kong, we are looking forward to similar celebrations. July 1st will mark the 13th anniversary of the establishment of the Hong Kong Special Administrative Region.
I will talk a little later about the potential for stronger relations between Sweden and Hong Kong - especially during these fragile economic times.
First though, allow me to take you back to 1984 - the year when the Royal Sweden Hong Kong Society was born. That was also the year that China and Britain signed the Joint Declaration on Hong Kong's return to China.
Back then there was a great deal of speculation about Hong Kong's future in the run-up to reunification in 1997. No one knew for sure how things would work out for our city. Some people left Hong Kong and some companies put their arrival plans on hold. There were also those who speculated that our city had no future at all.
You may recall a cover story by Fortune Magazine in 1995 that predicted "The Death of Hong Kong". As you know, Hong Kong has since proved the doubting Thomases wrong. Fortune acknowledged its dire prediction was way off the mark when it ran a story in 2007 saying, and I quote: "Oops, 10 years after the handover, Hong Kong is far from over, and hardly dead." End quote.
Of course, this was not exactly breaking news for us in Hong Kong. Today, some 4,000 overseas firms have their regional offices or headquarters in Hong Kong. That is about 50% more than what we had in 1997. Roughly 200 Swedish enterprises are established in our city. Brands such as Volvo, Ericsson and H&M are popular with Hong Kong people, and there seems to be an endless stream of people visiting our IKEA stores.
I was interested to hear from your Consul General in Hong Kong, Mr Lars Danielsson, that only last month he was talking to two Swedish companies that are relocating their Asian operations to Hong Kong. One of these companies will be moving to Hong Kong from Singapore and the other from Shanghai.
This underscores the potential for closer bilateral ties between Hong Kong and Sweden. It also raises the question - why choose Hong Kong?
First, Hong Kong has a reputation for reliability and high quality services. Firms add value to their products by providing prompt delivery and efficient after-sale services. They also take advantage of our high-standard professional services such as legal, financial and logistics services. Hong Kong is an ideal sourcing centre with convenient connections to the Mainland as well as the rest of Asia.
At the same time, our economy is consistently ranked as the freest in the world. We have the rule of law and an independent judiciary underpins our common law legal system. We also have our own freely convertible currency and we promote a free flow of information and ideas. Speaking from experience, I can assure you that our media is as free and unfettered as it has always been.
In Government, we may not always agree with what our press has to say, but we always appreciate the value of a free media and its role in the community. After all, journalists are among those helping keep us on our toes as we tackle both the worst global financial crisis in a generation and the spread of the H1N1 flu virus.
On both counts, we have learned some important lessons from previous experience. You will recall the devastating SARS outbreak in 2003. Since then our community has been more alert to the threat of communicable diseases. The Government's response to the spread of the H1N1 virus has been prompt and effective. So far, we have managed to identify the cases at an early stage, and prevent the virus from spreading among our community.
On the economic front, coping with the Asian financial crisis a decade ago is helping us to weather the current turmoil. Since the onset of the global financial crisis, none of our banks have failed, our financial sector is sound and our stock market remains the seventh most capitalised in the world and third in Asia.
That said, we are certainly not out of the woods yet.
The first quarter of this year was a difficult period for our economy. Our GDP contracted 7.8% compared to the same period last year. We have since revised our full year GDP forecast downwards to between minus 5.5 and minus 6.5%.
Last month, less than two weeks after the first quarter results were announced, and only three months after my Budget, we announced a new 1.5 billion euro (more than US$2 billion) economic stimulus package.
Including these new measures, we have already provided some 8 billion euros (US$11 billion) to counter the global downturn over the past 16 months. Our main target areas are preserving and creating jobs, supporting companies during this uncertain time and assisting low-income families. We have also guaranteed bank deposits and provided additional capital to our banks should they require it. We have also set aside some 9 billion euros (US$13) in loan guarantees to businesses.
Although we are confident of an early recovery for our city - as well as for our nation - it is impossible to predict what further setbacks may be around the corner. We will remain vigilant to the challenges ahead. There is still plenty of gas in the tank, or more politically correct, plenty of battery power, to pull us through the difficult times and accelerate our recovery.
Above all, Hong Kong remains a staunch supporter of free trade and open markets. This approach has provided a strong foundation for our economic prosperity over the years.
Sweden is equally committed to free trade policies. As Sweden assumes the presidency of the European Union next month, and sets the EU's agenda for the second half of the year, we look forward to the prospect of greater co-operation with Sweden and the rest of Europe. Further opening up our markets and deterring protectionism is the best antidote to the economic crisis. It will also help to sustain global economic development.
Ladies and gentlemen, my final topic is an area of vital importance to our city and great potential for further collaboration between Sweden and Hong Kong - improving the environment. Sweden has a long history and great deal of expertise in protecting the environment. Princess Birgitta was among those who addressed an environmental forum in Hong Kong last year. We can learn a lot from Sweden as we develop a low carbon economy, promote green initiatives and nurture a "green collar" workforce.
Last month, we began testing an electric car in Hong Kong. The tests will help us acquire the knowledge and establish the infrastructure for the early introduction of electric vehicles in the city. Other focus areas include more energy efficient buildings and the adoption of cleaner fuels, as well as cross-boundary co-operation on improving the quality of our air.
We welcome the involvement of Swedish companies and entrepreneurs as we develop a green economy and create a high-quality living environment in our city and our region.
People who have never visited Hong Kong are often surprised to note that some 70% of the area is countryside, and 40% of our city is protected country parks. Now you know why we live in such a dense environment.
These areas are sometimes described as the "green lungs" of our city. They also provide a healthy, outdoor lifestyle for our community and our visitors. You can go for a challenging hike or find a secluded beach. Of course, you can also enjoy a game of golf - which may be of particular interest to Princess Birgitta on her next visit to Hong Kong.
Ladies and gentlemen, whatever your reason for coming to Hong Kong, I hope you get the chance to pay us a visit soon.
Once again, congratulations to the Royal Sweden Hong Kong Society on your silver jubilee year. With the support of the society, I look forward to even closer relations between Hong Kong and Sweden in the next 25 years and beyond.
Thank you very much.
Ends/Monday, June 8, 2009
Issued at HKT 12:34
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