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Speech by FS at USC Global Conference in Hong Kong (English only)
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     Following is the speech by the Financial Secretary, Mr John C Tsang, at the University of Southern California (USC) Global Conference "Global Challenges and Enhancing Opportunities" in Hong Kong tonight (October 13):

Max (Dr Max Nikias), Beth (Garrett), Ronnie (Chan), Friends of USC, Distinguished Guests, ladies and gentlemen,

     Good evening.

     First of all, a warm welcome to all our visitors.  I am delighted to join you all for the opening of the USC Global Conference.  And it is an honour to share the same stage with such distinguished company.

     I would like to thank Ronnie for inviting me here this evening.  As you may know, Hong Kong is preparing for a lot of changes on the political front.  The Third Term Hong Kong SAR Government is in its final year, with the Chief Executive election scheduled for March next year.

     Some candidates appear to have thrown their hats into the ring months ago and are drumming up support for their campaigns with appearances in the media becoming a daily ritual.  Our city is certainly abuzz with speculations.

     Ronnie's preference for our next Chief Executive, I believe, is already widely known - so much so that I was asked whether my presence here this evening indicated my own preference for a particular candidate.

     So, without further ado, and without causing any confusion, I would like to come clean, lay my cards on the table, so to speak, and tell you where my loyalty lies.  My presence here is nothing more than a clear indication that I am an ardent supporter of the Trojans.  I should also mention that Ronnie and I are good friends, and I'm sure that he supports the Trojans too ¡V but that does not necessarily mean that we agree on everything, especially matters concerning candidates for the position of Chief Executive.

     Nevertheless, I'm sure I speak for everyone here by wishing the Trojans every success against the California Golden Bears later today.

     I am delighted that USC is holding this Global Conference here in Asia's world city.

     I believe this is an ideal location for the event, especially given the theme of "Global Challenges and Enhancing Opportunities".

     While economies around the world, including Hong Kong, cope with the challenges of the global economic turmoil, opportunities appear to be converging here in Asia.

     Although we have weathered the worst of the financial tsunami, our financial markets continue to be on a roller coaster ride, just like other major markets, and property prices remain high due to a sustained period of low interest rates and abundant liquidity.

     On a more positive note, our job market is healthy, our retail business is flourishing, our hotels are full, our economic growth is robust and our city's finances are in good order.  In other words, this is exactly the time to be enhancing our opportunities.

     Taking a leaf out of the USC's book of progress, Hong Kong is increasing its focus on attracting high quality international talent to our universities.  We are also working hard to become better connected with schools, research institutions and hi-tech companies around the world.

     These days we are placing much stronger emphasis on innovation and technology, education and creative industries.  This will make Hong Kong a more creative and innovative place.  By drawing on both local and overseas talent, we will be able to learn from others as well as share the knowledge and experiences from our own back yard.

     This has been reflected in the Chief Executive's Policy Address yesterday and in our Policy Addresses and Budgets in recent years.

     In my Budget in 2008, I set aside $18 billion for a Research Endowment Fund to promote research and development activities in our tertiary institutions.  Yesterday, the Chief Executive earmarked another $5 billion for this cause.  That makes a total of $23 billion going towards generating new ideas and turning them into reality.

     That is a large financial commitment anywhere at any time, especially during a period of economic uncertainty.

     But we live in a relatively small city with no natural resources apart from our well-educated and hard working people.  They contribute greatly to our city's competitiveness and provide the momentum needed to move up the value added chain.

     In yesterday's Policy Address our Chief Executive also set aside $1 billion for a fund to support Hong Kong firms in tapping the Mainland markets.  The fund would encourage local companies to make the most of our city's advantages in branding and design to reach more Mainland consumers.

     Another proposal from the Chief Executive yesterday was to establish an International Cuisine College.  The College would bring in culinary experts from all corners of the globe; it would train chefs here and strengthen related sectors including tourism, catering and wine trading.  Maybe an off-shoot of this initiative will be our own Master Chef Show, featuring local talents.

     To give you a clearer overall picture, allow me to share with you a few of the achievements of the Third Term SAR Government since taking office in 2007.

     In the past five years, we have introduced a statutory minimum wage to help raise living standards of the low income group, we have set up a Community Care Fund with $6.5 billion to assist the underprivileged, and we have built around 67 000 public rental flats.  We have increased our expenditure by 60 per cent and boosted our fiscal reserve by about 20 per cent while sharing our wealth with the community and creating as well as preserving jobs by stimulating the economy to the tune of $170 billion.

     On education, we have introduced a new academic structure which is closely aligned with the international mainstream, we have introduced small class teaching in primary schools and we have extended free education to 12 years as well as coupons for use in kindergarten.  Education alone accounted for 22.5 per cent of total recurrent expenditure in my Budget this year, or more than $54 billion.
 
     We have also invested heavily in infrastructure with new roads, railways, bridges, residential areas and even a vast Cultural District all at various stages of development.  We anticipate spending over $60 billion on capital works projects each year for the next five years.  

     We have also worked hard to strengthen Hong Kong's regional and international connectivity.  We have signed a Framework Agreement on Hong Kong-Guangdong Co-operation, we have expanded the free trade agreement between Hong Kong and the Mainland known as CEPA, and Hong Kong has become far more deeply engaged in the Central Government's development blueprint "The Five Year Plan".

     Further afield, we have expanded our network of double taxation agreements to cover more than 20 jurisdictions and we have signed free trade agreements with New Zealand and members of the European Free Trade Association.

     These are some of the achievements of the Third Term SAR Government - and we still have more than eight months remaining!

     In an inter-connected world, no economy can thrive in isolation - even with the best of ideas and intentions.  We have to continue looking outwards.  This has been our city's philosophy since its earliest days as a trading outpost on the shipping routes linking East and West.

     These days, we are reaching out in all directions to increase our research capabilities.

     On the one hand, there is a huge pool of people in Mainland China eager to explore the opportunities in the wider world through Hong Kong.  As a city in China but outside the Mainland, Hong Kong is the ideal platform for Mainland students as well as entrepreneurs and investors to experience Hong Kong's free flowing style of capitalism.

     At the same time, people from around the world are keen to learn more about Mainland China.  I am not just referring to the enormous opportunities for doing business in China, but also the fascinating cultural and arts scene, to learn the language and meet the people in a vibrant and stimulating environment.

     I would like to encourage the outstanding researchers, educators and students from USC to test the waters in Hong Kong, gain some experience here and - if you like what you see - stay and make a valuable contribution to our community.  You would be most welcome.

     Ladies and Gentlemen, I am delighted to have this opportunity to share some of my thoughts with you today.  I wish you all a successful and rewarding Global Conference.

     I also hope that our visitors will find time to explore the city and enjoy our great food and warm hospitality.

     And please, shop a lot!

     Thank you, and Fight on, Trojans!

Ends/Thursday, October 13, 2011
Issued at HKT 21:11

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