The Chief Executive, Mr Tung Chee Hwa, says he is happy with the success of his first overseas visit.

After a two-day visit to Malaysia, the Chief Executive said he had successfully explained to Malaysian leaders - including the Prime Minister Dr Mahathir Mohammad - as well as business and financial figures that it was 'business as usual' in Hong Kong.

He said the Malaysian Government understood, and was supportive of, the concept of 'one country, two systems' and had shown a keen interest in Hong Kong's continued development.

Mr Tung said that throughout his talks there was an obvious desire on both sides to strengthen two-way economic, trade and investment ties.

"I explained to them, in Hong Kong business is as usual. Government is functioning as normal, economy continues to expand and our lifestyle which we are accustomed to has not changed," he said.

"Things are going very well and I am glad they were happy with this message. They, too, share our confidence of the future.

"We also talked about how to, obviously, deepening and strengthening the Hong Kong-Malaysia relationship because this trading relationship is becoming very important."

Mr Tung said the Malaysian Government has assured him that visa-free access will be given to SAR passport holders.

"It will be announced very, very quickly. The details, please wait patiently," he told reporters after a luncheon keynote address in Kuala Lumpur.

Mr Tung said discussions were also held in regards to the recent 'ups and downs in the financial markets' in Malaysia and across Asia.

"It is understandable that you feel the pain and frustrations of what has happened," he said.

"But I would like to emphasise the fundamentals in Malaysia are good, the fundamentals all over Asia are very good so we should look forward with confidence.

"In due course I'm sure it will be fine."

Before his luncheon address, Mr Tung was briefed on the development near Kuala Lumpur of a Multi-Media Super Corridor, a 50-kilometre by 15-kilometre information technology 'cyberzone' being established by the Malaysian Government.

The briefing included discussion on how Malaysian hopes to harness the potential of information technology to improve such areas as education, government efficiency and to develop world-class research and development facilities.

"It is an impressive blueprint and definitely an area we will be looking at, " Mr Tung said.