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Following is the speech by the Chief Executive, Mr Donald Tsang, at the luncheon organised by Asialink in Melbourne, Australia, this afternoon (June 17):
Distinguished guests, ladies and gentlemen,
It is an honour to speak here at Asialink in the great city of Melbourne.
It was way back in the 1880s that a journalist from England christened this city "Marvellous Melbourne". It is easy to see why that nickname has stuck for all these years.
Back in the second half of the 19th century, Melbourne was in the midst of a gold rush. People from around the world came to seek their fortune here. Among them were many Chinese. It was the beginning of a long and mutually rewarding relationship between the people of Melbourne and their new friends from China – a relationship that continues to flourish.
Today, Melbourne's gold rush is part of this city's history and Melbourne remains marvellous – it is ranked as the second most liveable city in the world. The Chinese community is an integral part of the city, adding to its rich cultural diversity.
Today, I will talk about Hong Kong's role in an interconnected world – and in particular, our role in connecting Australia to opportunities brought about by China's breathtaking development. These opportunities not only cover business and finance, but also innovation, the arts and education.
The most dynamic modern-day "gold hunters" are often the entrepreneurs seeking their fortune in the fast-growing and lucrative markets in Mainland China.
Today there are more than 600 Australian companies operating in Hong Kong. Many of them have at least one eye on the exciting opportunities in Mainland China.
Bilateral trade between Hong Kong and Australia has been growing at an average annual rate of 4.7% over the last five years. The total value of this trade exceeded AUS$7.6 billion in 2010.
Also last year, some AUS$4.2 billion worth of trade between Australia and Mainland China was routed through Hong Kong. That represents 4.4 per cent of total trade between our two nations.
I hope this will continue to increase in the years ahead.
Today, Hong Kong's status as a financial, asset management and capital raising centre is firmly in the international spotlight. Recently we have seen high-profile international listings and a significant increase in capital flows. This provides tremendous opportunities for Australian firms to raise capital in Hong Kong.
Take the mining sector for example. You won't find gold in Hong Kong, but our stock market could provide the next best thing: a ready supply of capital.
The Hong Kong Stock Exchange recently changed the listing rules for mining companies. These changes came into effect last year. Since then, there has been considerable interest from Australian companies looking to explore primary or secondary listings in Hong Kong.
More important, a number of Australian mining services companies have established operations in our city. They cover areas such as engineering, valuation, education and mining finance.
Their presence is linked to the opportunities arising from ongoing developments in the Mainland's mining industry. Australian companies can leverage their expertise and knowledge to capitalise on these opportunities using Hong Kong as a familiar and low-tax business platform.
Elsewhere, we are promoting six knowledge-based industries where Hong Kong has a distinct advantage in our region. These are education services, medical services, innovation and technology, environmental industries, testing and certification and creative industries. In each of these areas there is great potential for stronger collaboration between Hong Kong and Australia.
Education services are a key link between our two communities. More than 7,000 Hong Kong students are enrolled in Australia. We'd like to see more Australian students coming in the other direction, to Hong Kong.
No less than three of our universities are ranked in the world's top 50 by the renowned QS World University Rankings 2010.
We are also opening the door wider to overseas students so they can enjoy the unique experience of an education on the doorstep of Mainland China. Hong Kong's integration with the Mainland is a great attraction for foreign students. Many see exciting opportunities from our nation's expanding role in international business and finance.
We have relaxed the quota for non-local students at our universities and changed the immigration rules. Overseas students can take up part-time work. They may also remain in Hong Kong without restriction for up to a year after they finish their courses.
Hong Kong is also fast becoming a centre for continuing and professional education in the Asia Pacific. With our city's status as the region's main financial centre, the demand for finance, business and legal professionals is ever increasing.
This also poses a challenge. With the high demand in Hong Kong for professional services, it is important that such professionals remain qualified to international standards. This requires a robust and high performing support sector.
Associations and organisations that can provide educational services to ensure that our professionals remain proficient are highly sought after.
One such organisation is CPA Australia. CPA Australia has its roots here in Melbourne and currently has more than 13,000 members in Greater China. They provide a vital service in meeting this demand. They also set a benchmark for other Australian and international organisations to replicate.
Ladies and gentlemen, Australia's commitment to high-quality education as well as other knowledge-based industries is held in high regard around the globe. Indeed, Australia is ahead in areas including environmental industries, innovation and technology and creative industries.
In Hong Kong, the Government is helping to clear the way for these same industries to fulfil their potential in our region. We can't pick winners. That is not the way our Government works. But we can direct necessary land resources, funding and skilled labour to help these industries really take off.
International business school INSEAD's Global Innovation Index 2009-2010 already ranks Hong Kong as the most innovation-ready economy in Asia and third in the world.
There are huge opportunities for Australia's innovation companies in Hong Kong. They can take advantage of our competitive R&D capability, excellent infrastructure, sound legal system and robust IP protection regime. Perhaps most attractive is the strong R&D collaboration we have with Mainland China.
One cross-boundary initiative is the "Shenzhen-Hong Kong Innovation Circle" established in 2007. This combines Hong Kong's R&D advantages with those in our neighbouring city of Shenzhen on the Mainland. It brings together the best ideas of both places and has great commercialisation potential.
So far, 24 co-operation projects have been launched under this initiative. They include collaboration with DuPont, the leading international materials supplier to the photovoltaic (PV) industry.
Last but not least, Hong Kong has a competitive edge in Asia in creative industries. These include film, design, architecture, advertising, animation and comics, and digital entertainment. Our creative industries contribute added value of about US$8 billion to our economy annually.
I like to think of Hong Kong as a creative and cultural corridor in Asia connecting the very best of East and West.
For example, we recently appointed an Australian to spearhead our city's most ambitious cultural project. The project is called the West Kowloon Cultural District, and the gentleman's name is Michael Lynch. Among other things, Mr Lynch has been involved with the Sydney Opera House and the Southbank Centre in London before coming to Hong Kong.
For the next three years, he will lead a high-powered team in establishing the West Kowloon Cultural District. His job will be to help transform a 40-hectare site along our iconic harbourfront into a Mecca for arts and culture in Asia.
Ladies and gentlemen, arts and culture, innovation and technology, education and the environment are not separate entities in the development of a city, a nation or a region. They are interconnected economic activities that should progress hand in hand, each one spurring on the other. The best way to achieve that is through stronger collaboration with our international partners. I can think of no better international partner for Hong Kong than Australia.
I look forward to stronger links between Australia and Hong Kong that will benefit both of our economies, help our entrepreneurs seek their fortunes and bring our communities still closer together.
Thank you for this opportunity to meet you all today. I also hope you will pay us a visit in Hong Kong very soon.
Have a great day.
Ends/Friday, June 17, 2011
Issued at HKT 13:09
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