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Following is the speech by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, at the opening ceremony of the 19th International Congress of Maritime Arbitrators this morning (May 11):
Distinguished guests, ladies and gentlemen,
Good morning. It is my great pleasure to speak to such a respectable audience from the maritime law and arbitration sectors around the world. Welcome to Hong Kong, one of Asia's international maritime centres.
Let me begin with the big picture. Asia, in particular China, is booming. The International Monetary Fund projected last month that the developing Asia will grow by 6.6 per cent this year. For China, the Central Authorities set the growth target for the Mainland economy at about 7 per cent for the same period. Both will outrun the forecast global economic growth at 3.5 per cent.
We are also seeing a clear shift of trading and shipping activities to the East. Nine out of the world's top 10 busiest container ports are in Asia, and seven of them are in China, including Hong Kong. The total throughput of these seven Chinese ports amounts to 148 million TEUs in 2014, with Hong Kong's share exceeding 22 million TEUs. Over the past five years, the merchandise trade value of Mainland China has grown by 14.3 per cent in nominal terms per annum on average, reaching US$4.3 trillion last year.
My colleague, the Secretary for Justice has mentioned the new "One Belt, One Road" development strategy of China, which has been catching a lot attention worldwide, which will also add impetus to China's growth into a major trading and shipping power. This "One Belt, One Road" strategy together will foster closer co-operation and create new prospects among those Asian, European and African economies along the two routes, benefiting over 60 countries and 4 billion people.
And of course, we have the launch of the new Asian Infrastructure Investment Bank (AIIB), which Secretary Yuen has also mentioned. Hong Kong stands ready to take an active part in the "One Belt, One Road" development vision, as well as the endeavours of AIIB.
These bold multinational and cross-cultural development initiatives will certainly open up immense business and developmental opportunities across regions and continents. While the huge development potential is hardly measurable, it also brings an important challenge to achieve synergy among so many countries, each with distinct cultures, institutions and even business environments. But this is not a new challenge to those of us in Hong Kong. Hong Kong has always been a global city, bridging the East and West and operating between nations and cultures. For decades, Hong Kong has been a hub for businesses from all around the world. Last year, some 9 600 non-Hong Kong companies and 1 400 regional headquarters operated in our city.
Connectivity is one of Hong Kong's core strengths. With world-class infrastructure in its sea, air and land transport, Hong Kong is a transport and logistics hub for passenger and cargo flow in the region. It is right at the heart of Asia and from here you can reach most major Asian and Chinese cities in five hours' flight. In fact you can reach half of the world's population within those five hours. Every day, over 100 airlines operate about 1 100 flights connecting Hong Kong with 180 destinations worldwide, including 45 destinations on the Mainland of China. I hope the Hong Kong International Airport gave those of you from overseas a good impression when you arrived. It is one of the most efficient and busiest airports in the world.
Apart from physical infrastructure, what makes Hong Kong distinct as a global city is its strategic geo-economic position, its institutional and market vibrancy, as well as its unique qualities and strengths it enjoys under the post-1997 "One Country, Two Systems" constitutional arrangement. Beginning as the famous entrepôt of the Far East in the last century, Hong Kong is now the "super-connector" between Mainland China and the world.
Hong Kong's Basic Law allows us to maintain our open market economy, our free port status, our own financial system and our own currency which is freely convertible internationally, and the free flow of talent, capital and information. Property rights, including intellectual property, are well protected. Doing business in Hong Kong is relatively easy. We have a low and simple tax regime. Hong Kong is also a bilingual city, with both Chinese and English widely used in business transactions and within government. It has the most cosmopolitan outlook among Chinese cities.
As the Mainland of China expands its economic and trade ties with countries along the "One Belt, One Road" routes, Hong Kong, as an important international financial, commercial and maritime centre, can provide Mainland enterprises that seek to "go global" with a wide range of professional services whether in the financial or legal arenas. Underpinned by its strong professional and maritime services, Hong Kong is also a natural partner and platform for international maritime companies aspiring to reach out to the China market.
Here, you will find a robust maritime cluster consisting of some 700 maritime companies, providing a host of quality maritime services.
Hong Kong is a leading ship finance centre in Asia, and most of the world's top 10 book runners have offices here. Likewise for marine insurance, 12 of the 13 members of the International Group of P&I Clubs have a presence in Hong Kong, the largest cluster outside London. As the Secretary for Justice has mentioned, Hong Kong of course is the prime centre in Asia for maritime arbitration.
Being in Hong Kong means being close to your clients. Shipowners' presence is prominent here. According to the Hong Kong Shipowners Association, its members own and manage about 8 per cent of the world's merchant fleet measured in deadweight tonnage. The Hong Kong Shipping Register ranks as the world's fourth largest, with total gross tonnage of 96 million.
Since opening up and economic reform from the 1980s, China had soon emerged as a major manufacturing centre and the world's factory. As its economy and wealth grow, China is now also a major consumer nation and exporter of capital of the world. To facilitate companies based in Hong Kong to tap into the growing China market, a free trade agreement called the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) was concluded in 2003. CEPA opens up the Mainland market, allowing greater access for Hong Kong goods and services, and further enhancing the already close economic co-operation and integration between the Mainland and Hong Kong. Foreign investors establishing businesses in Hong Kong can leverage on the CEPA benefits and partner with local companies in exploring the vast opportunities offered by the growing China market. There are now a total of 403 liberalisation measures agreed under CEPA covering logistics, freight forwarding agency, storage and warehousing, air transport, maritime transport and road transport services, etc.
The Hong Kong Government is dedicated to supporting the maritime industry to adapt to and seize the opportunities amidst the fast-changing global trends and industry environment. We are planning for setting up a new maritime body, which will embody closer government-industry collaboration and which can also drive the further development of Hong Kong as an international maritime centre and maritime services hub. Under the Economic Development Commission, which is personally chaired by the Chief Executive, there is also a maritime sub-group which advises the Government on how to take the maritime sector forward. So you can see the degree of importance the Government attaches to maritime development here.
To build up a competitive talent pool for the continued growth of the maritime cluster, the Government has also set up a HK$100 million (or equivalent to US$13 million) Maritime and Aviation Training Fund last year. This is to prepare Hong Kong for the further growth of the aviation and maritime sector.
Ladies and gentlemen, let me say in closing that Hong Kong puts a lot of emphasis on its maritime development, particularly maritime services. Hong Kong will continue to be a global hub for people, cargo and services. Finally, I wish you all a very productive conference. A conference where you find not only meaningful exchanges, but also a lot of partnership and friendship. I wish those of you coming from overseas a wonderful stay in Hong Kong, and do enjoy Hong Kong's efficient public transport system, even though at times you may have congestion.
Ends/Monday, May 11, 2015
Issued at HKT 12:50
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