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Hong Kong will continue to make the most of its "China advantage" and global connectivity to foster economic ties with Association of Southeast Asian Nations (ASEAN) countries, including Indonesia, in the year of 2012, the Director of the Hong Kong Economic and Trade Office, Singapore, Mr Fong Ngai, said today (January 31).
Speaking at the 2012 Spring Celebration Luncheon held in Jakarta, Indonesia, Mr Fong said that while the world economic outlook is still fairly uncertain, Asia is increasingly seen as the engine for global economic growth, with the strong domestic demand of Mainland China being one of the major driving forces.
"Hong Kong is well placed to benefit from Asia's resilience, with Mainland China and ASEAN being Hong Kong's first and second largest trading partners," he said.
Six of the ASEAN countries, including Indonesia, are among the top 20 trading partners of Hong Kong. Trade between Hong Kong and ASEAN has been growing at an annual average of 8 per cent year on year from 2006 to 2010, reaching US$85.4 billion in 2010, and is expected to have double-digit growth in 2011.
Mr Fong said the Mainland's National 12th Five-Year Plan released in March last year reinforced Hong Kong's strategic position as an international centre for financial services, trade and shipping. It also set out the support for Hong Kong's development as China's offshore Renminbi (RMB) centre and an international asset management centre.
"In the past, the entire trade portfolio of Mainland China was conducted and denominated in US dollars. A few years ago, major trading partners of China began to settle trading transactions in RMB.
"In 2011, Hong Kong handled RMB1.9 trillion of trade settlement and clearances. This represented more than 90 per cent of the total trade conducted in RMB, but only 8 to 9 per cent of the total trade portfolio of Mainland China. In other words, the potential of offshore RMB business in Hong Kong is huge and yet to be fully tapped," he said.
Another unique strength of Hong Kong relates to the fact that it remains a separate customs territory and has therefore been able to negotiate a free trade pact with the Mainland - the Closer Economic Partnership Arrangement, or CEPA.
Mr Fong said, "Under CEPA, all Hong Kong products that meet the rules of origin can enter the Mainland market tariff-free. CEPA also provides preferential and enhanced access to the Mainland market in the services sector. There are plenty of opportunities that Indonesian companies can take advantage of under this arrangement through setting up a presence in Hong Kong."
The 2012 Spring Celebration Luncheon in Jakarta was jointly hosted by the Hong Kong Economic and Trade Office and the Hong Kong Tourism Board.
It was one of a series of Chinese New Year luncheons in the Southeast Asian region to be held during the festive season to renew friendship and update local contacts on the latest developments in Hong Kong. Other Chinese New Year lunch receptions will be held in Singapore, Kuala Lumpur, Manila and Bangkok early next month.
Ends/Tuesday, January 31, 2012
Issued at HKT 17:46
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