CE's speech at annual reception for new investors (English only)(With photos/video)

CE's speech at annual reception for new investors (English only)(With photos/video)
***********************************************************

    Following is the speech by the Chief Executive, Mr Donald Tsang, at the annual reception for new foreign investors at JW Marriott Hotel, Admiralty this afternoon (June 25):

Ladies and Gentlemen, good afternoon.

     A warm welcome to you all. Thank you for joining our reception for new foreign investors.

     It is always a pleasure to host this annual event and welcome both new investors to our city and existing investors who have expanded their business in Hong Kong. Once again, Invest Hong Kong surpassed its own record by assisting 257 overseas, Mainland and Taiwanese companies to set up or expand in our city last year. Simon (Galpin), tells me that, despite the challenging economic climate, the department is on track to exceed its target of 250 new investment projects this year.

     One of the reasons companies are continuing to invest in Hong Kong when credit flows are squeezed and world markets are depressed is because of our enduring business advantages. These include our common law legal system underpinned by an independent judiciary, zero tolerance of corruption, freely convertible currency, low tax regime, free flow of information and liberal immigration policies.

     We are committed to maintaining these advantages, which together with our international business environment, provide a familiar and secure base for businesses.

     In the face of the current global challenges we are working hard to return to the path of economic growth. We are also taking every opportunity to enhance our overall competitiveness. So far, we have committed $87 billion in economic stimuli to lessen the impact of the economic downturn on Hong Kong. That represents over 5% of our GDP. Perhaps one of the highest in percentage terms among all developed economies. We have also provided more than $100 billion in loan guarantees to businesses to help them through this difficult period. This is in addition to the $80-odd billion we spent on stimulating the economy.

     In addition we are implementing a number of initiatives to create new business opportunities and sustain economic growth in Hong Kong. Earlier this month, we launched CreateHK and set up the CreateSmart Initiative with a budget of $300 million to support creative industries and help Hong Kong become the creative hub of Asia.

     The Hong Kong Science & Technology Park has recently opened the Solar Energy Technology Support Centre and a state-of-the-art Biotech Centre. The Park, together with our Innovation and Technology Commission, has also launched a Life Science Acceleration Programme. The Programme offers financial aid totalling more than $90 million to 10 life science projects.

     Another exciting initiative is a pilot scheme to settle cross-boundary trade using Renminbi. Under the scheme, Hong Kong firms will be able to settle their business transactions in the Mainland in Renminbi. This will help to reduce currency exchange risk and facilitate increased trade between Hong Kong and the Mainland.

     To plan further ahead, we are engaged in a major review of the opportunities for Hong Kong's long-term economic growth. Earlier this week I chaired the last meeting of our Task Force on Economic Challenges. We proposed some specific measures to develop six economic sectors where we believed Hong Kong enjoyed clear advantages. These sectors are educational services, medical services, testing and certification, environmental industry, innovation and technology, and cultural and creative industries. Our new measures will give fresh impetus to economic activities in these areas, and they will bring new business opportunities for overseas and local investors alike.

     The emergence of a huge Mainland market is one of our key advantages as we develop our economy. The Closer Economic Partnership Arrangement (CEPA) is a major facilitator in connecting Hong Kong businesses with Mainland markets. CEPA provides preferential access to Mainland markets and sectors for Hong Kong-registered companies. Under CEPA, all Hong Kong products enjoy zero import tariffs into the Mainland. And service suppliers in 40 areas can receive preferential treatment in the form of lower barriers to entry for their services in the Mainland.

     I encourage you to explore the advantages of CEPA for your business.

     Our free market and international business environment also provide the perfect launch pad for Mainland companies to go global. Only six years ago, Invest Hong Kong had no Mainland clients – not one. Last year, the Mainland was the biggest source of investment projects for the department.

     Today, some 6,600 overseas, Mainland and Taiwanese-owned companies have operations in Hong Kong. In its 2008 report, the United Nations Conference on Trade and Development placed Hong Kong top of its FDI Performance Index.

     We will continue to ensure Hong Kong offers the best possible environment and opportunities for your businesses to succeed. After all, your commitment and contributions will help strengthen our economy for many years to come.

     Ladies and gentlemen, thank you all for your vote of confidence in Hong Kong. We are happy that you have chosen to establish your businesses here in Asia’s world city. You will help to enrich our society with your talent, your drive, your ideas and of course your investment.

     I wish you all a prosperous future in Hong Kong.

     Thank you.

Ends/Thursday, June 25, 2009
Issued at HKT 18:35

NNNN