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The economic recovery of the Hong Kong Special Administrative Region (SAR), projected to grow by five per cent this year, augurs well for the territory's development to become an IT hub and would help maintain its position as a leading financial and trading centre of the region, the Director of the Hong Kong Economic and Trade Office (Toronto) of the SAR Government, Mr Donald Tong, said today (Canada time May 16).

Speaking at a breakfast seminar in Halifax and attended by businessmen, academics and government officials, Mr Tong said the SAR Government, to jump start and diversify the economy, has introduced a series of measures in the past few months.

He encouraged Canadians, particularly those with IT/telecommunications expertise, to take advantage of business opportunities generated by these measures and participate in Hong Kong's plans as the door is open to all foreign entrepreneurs wishing to invest in the gateway to China.

"The growth last year was 2.9 per cent. Our unemployment rate is gradually falling and now stands at 5.5 per cent. Our exports and re-exports have shown robust growth for nine consecutive months since July 1999. Our container port handled 11 per cent more containers than in 1998 and the volume of international cargo handled by our airport increased by 21.4 per cent," he said.

Mr Tong pointed out that the SAR Government's blueprint for diversifying the territory's economy was mooted at a time when the territory was going through difficult adjustment as a result of the financial turmoil.

"We are glad that with the benefit of steady growth which we believe would be four percent over the medium term up to 2003-2004, we will be able to achieve our goals and maintain our competitive edge," he said.

"Our Government is also committed to build Hong Kong into a world-class city like London in the UK and New York in the US We will invest more in education and environment so as to provide a better living environment for Hong Kong people and our overseas investors.

"In addition to building on our traditional strength as a financial, trading, shipping and fashion centre in Asia, we will transform Hong Kong into a knowledge-based society by developing information technology and telecommunications and high value-added industries," Mr Tong said.

Currently, he continued, the SAR is developing a Cyberport, which would create a cluster of IT/telecommunications experts to jump start hi-tech industries in Hong Kong. We have received favourable responses and more than 100 companies including some from Canada have expressed interest in becoming a Cyberport tenant.

"We are also working very hard on e-commerce and the provision of government on-line services to the public. We have opened our external telecommunications services and facilities markets with a view to turning Hong Kong into an international IT/telecommunications hub. All these no doubt would continue to generate excellent business opportunities for Canada."

On financial services, the ETO Director said, significant progress had been made in the past two years. "We have successfully launched the Growth Enterprise Market which is Hong Kong's Nasdaq. A new body - the Hong Kong Exchange and Clearance Corporation was formed recently by merging the Stock Exchange, the Futures Exchange and the three clearing houses. We will also take steps to demutualize this new corporation with a view to eventually listing it on the stock market as well."

Mr Tong reminded the audience that China will remain Asia's growth engine. China's imminent accession to the World Trade Organization would bring even more economic benefits to Hong Kong and reinforce its roles as the gateway to China.

"I'm sure that you would not want to miss this golden opportunity. No one is better placed than Hong Kong if you want to exploit the potential of this big market."

End/Wednesday, May 17, 2000

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