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The following is the translation of the speech delivered by the Chief Executive, Mr Tung Chee Hwa, at the Second Term Government Swearing-in Ceremony, at Hong Kong Convention and Exhibition Centre today (July 1):
President Jiang, Vice-Premier Qian, Distinguished Guests, Friends and Fellow Citizens,
As I pledge my allegiance once again to serve Hong Kong loyally and to serve our citizens with dedication, on behalf of the Hong Kong Special Administrative Region Government and our fellow citizens, I extend our warmest welcome to President Jiang for gracing Hong Kong with his presence. Ever since the Basic Law was promulgated in 1990, in the period leading up to the birth of the Hong Kong Special Administrative Region in 1997, and thereafter in the implementation of "One Country, Two Systems", President Jiang has shown his care for Hong Kong, kept his trust in us and given us full support. He has encouraged us to use our wisdom, courage and hope to compose a new chapter for Hong Kong. To the unfailing support of President Jiang for Hong Kong, we would like to express our deepest appreciation.
As I commence my Second Term as Chief Executive, I recognise that the situation we face is full of challenges, that the responsibility is immense and that worries are weighing on the hearts of Hong Kong people. In the last five years, we have successfully implemented "One Country, Two Systems" and have withstood the pressures of the Asian Financial Crisis. We have governed Hong Kong according to the rule of law, maintained our social and economic systems, and kept our way of life. But I recognise fully that, aside from implementing "One Country, Two Systems", we need to ensure the continued growth of the Hong Kong economy and to sustain our social developments. Indeed, it is the common wish of Hong Kong people that we preserve Hong Kong's stability and prosperity.
The biggest challenge facing the Second Term Government is to lead Hong Kong out of the economic downturn and to restore the confidence of Hong Kong people in the future. I have resolved to act to the best of my abilities and to live up to the undertakings which I have given to you all. We will reform the structure of the Government to ensure that our governance will move with the times, use every possible means to promote economic restructuring, improve further the business environment, attain higher growth by tapping the opportunities unleashed as a result of our country's rapid economic development, and create more employment opportunities. At the same time, we will continue to look after those who are disadvantaged and underprivileged, to empower them to look after themselves and to strengthen our solidarity. The new team of the Government will undertake wide consultation to ensure that we have a broad spectrum of views as a basis for formulating policies and adopting measures to turn the above undertakings into reality. The immediate priority is to respond to the expectations of the public and to reform our style of governance, so that the HKSAR Government can provide leadership during these times of adversity.
I have evaluated comprehensively the success and shortcomings of our governance in the last five years. For the Second Term Government, with the introduction of the Principal Officials Accountability System, we will ensure that there is a clear delineation of power and responsibility to improve our effectiveness and that measures adopted are fully implemented. We must adopt a new style of governance, feel the pulse of the community, take community sentiments fully into account, and enable different sectors of the community to participate extensively in the policy-making process, so that Government policies will reflect properly the concerns and expectations of the people. On this basis, we have put together a strong team which is totally committed. We have also reconstituted the Executive Council, so that the Council will have a much more complete grasp of our policies, and thus more effectively fulfil its role in policy-making. We will strengthen the role of the Central Policy Unit in gauging community views and sentiments. Their research will not only facilitate the making of long-term and macro strategies for Hong Kong, but also ensure that due consideration is given to the priorities of the community and our long-term development in Government policy formulation. We will also review and revise the structure covering over 400 advisory boards and committees, so that the organisational arrangements will enable us to consolidate the views and contribution of different sectors including the political, business, academic and grassroot sectors, amongst others. We will place special attention on improving the relationship between the executive government and the legislature, so that we are able to respond better to the demands of the times, thereby improving our services to the community.
Fellow citizens, I fully appreciate that after some 30 years of rapid economic growth, it is very difficult for us to accept the current economic stagnation, continued deflation, rising unemployment, falling salaries and wages, and a sizeable budget deficit. These problems have arisen due to the bursting of the bubble economy which was formed prior to the handover and was led by the property sector. The rapid advent of globalisation, the new economy and the information age have also contributed to this. The position of Hong Kong as the link between the Mainland and the international economy is thus facing a new challenge. Developments in the region also clearly signify that Hong Kong has to reduce its cost structure. These factors have further reinforced one another. So in a nutshell, the Hong Kong economy needs restructuring.
Obviously, the economic and unemployment problems which Hong Kong currently faces cannot be resolved by one or two measures; neither can they be dealt with within one or two years. It is going to be a long and arduous process. However, we need not be pessimistic. All of us should realise that Hong Kong possesses the ability to overcome adversity. Provided that we :
- set a clear direction and adopt effective measures;
- fully utilise and develop our strategic geographical location, our favourable business environment, our pool of quality human resources, and our position as a centre of international finance, business, communications, logistics and tourism; and
- prudently use our sizeable fiscal reserves, and fully capitalise on our country's membership in the World Trade Organisation and the resultant rapid economic growth, we will realise the full potential of the vitality of Hong Kong people. With our confidence and resilience, I am sure Hong Kong will come out from the current difficulties.
The direction for Hong Kong's future development is clear. We must build on the competitive edge of our gateway position to the Mainland, deepen our ties with the world, further entrench our position as an international financial centre and a centre for business services, communications, logistics and tourism, embrace fully the application of new knowledge and new technology, move up the services value chain and develop new spheres of growth.
Towards the end of last year, in order to promote economic restructuring and improve employment opportunities for Hong Kong people, we proposed to the Central Government various measures to strengthen cooperation between Hong Kong and the Mainland. Some of the measures have already produced practical results. We will continue to pursue these endeavours with vigour.
We will pursue earnestly our discussion with the Central Government to establish a "Closer Economic Partnership Arrangement", with a view to maximising the opportunities and market potential arising from the rapid economic development of the Mainland, particularly in facilitating traditional industries and development of new industries. This will help accelerate our economic restructuring and create job opportunities. In parallel, we will quicken our cooperation with the Guangdong Province across the board. We will fully utilise all existing channels between the HKSAR Government and the Guangdong Provincial Government to facilitate the flow of human resources, capital and goods, so as to enhance economic and commercial exchanges between both places. This will be beneficial to our mutual development and mutual prosperity.
In the first five months of this year, we received a total of 2.46 million visitors from the Mainland. This represents an increase of 47% on last year's arrivals for the same period. We will adopt even more flexible measures to complement the policy of the Central Government to relax arrangements for Mainland residents to visit Hong Kong. In the event, they can more conveniently come to Hong Kong to sight-see, to visit friends and relatives, to pursue studies and to conduct business. At the same time, the HKSAR Government will strengthen supervision of the tourism industry together with relevant bodies in the tourism trade. We are determined to see Hong Kong's tourism prosper, as this will lead to growth in other sectors. Tourism aside, private enterprises are flourishing in the Mainland. It is a particularly welcome development that 55 private enterprises have decided to be listed in the Hong Kong Exchange this year. We will adopt a full range of proactive measures to encourage and attract companies including Mainland enterprises to be listed in Hong Kong, to push for further development of the Hong Kong capital market, and to strengthen Hong Kong's position as an international financial centre.
Fellow citizens, the HKSAR Government is as concerned as you all are about those among us who are unemployed. We take a serious view of the trend of rising unemployment. A relatively high and sustained unemployment rate is part and parcel of economic restructuring. The HKSAR Government will use every possible means to help those who are unemployed to re-enter the job market. For those who are unable to find a job and who face difficulty in making a living, the Government will provide assistance. They are our fellow citizens who do wish to make a contribution, but have been made unemployed as a result of the restructuring process. They deserve our care and support.
Among those who are over 15 years old, about 50% only have education attainment equivalent to Form 3 or below. If we include immigrants and foreign domestic helpers, the mis-match of human resources in Hong Kong is serious. There is an urgent need for development of a comprehensive population policy, and we will work on this within this year. This population policy will be designed to fit Hong Kong's long-term social and economic development, will complement family requirements, and will address the interests of different sectors in our community. We also need to focus on some 90,000 young people among us who are unemployed and unable to pursue further studies. I have asked the Youth Commission to come up with a clear and practical plan within six months to provide our young people with pluralistic options both in terms of training and employment opportunities. As for other workers who have not been able to adapt to economic restructuring, we will review seriously the training and re-training programmes. We will try to resolve the current multiple-layer organisation, to deal with problems associated with curriculum, and to ensure that resources are well used. The purpose is to ensure that the public will get practical help from these programmes. In this regard, I would like to stress that it is not solely the responsibility of the Secretary for Economic Development and Labour to promote policies to enhance employment opportunities. It is the responsibility of all fourteen Principal Officials under the Accountability System and that of the HKSAR Government as a whole. Furthermore, in rolling forward all policies, we have to consider fully the question of employment. We will need to apply new thinking, adopt a new style of governance, and bring new hope to our people.
Fellow citizens, Hong Kong is facing unprecedented difficulties. To all of you, this is a huge challenge. Likewise to me, this is a momentous challenge. In the process of coping with these difficulties, you and I have strengthened our bond. We also share a common destiny. All these will eventually strengthen our solidarity, as well as the relationship between the Government and the people.
In the last five years, we have gone through many adjustments and difficulties. And we have established a foundation for Hong Kong's renewed prosperity. Our cost structure has been lowered. The market has been liberalised to facilitate competition. There are over 3,200 regional headquarters and offices established in Hong Kong by multinational companies. The number is increasing at the rate of one per week. The listing of foreign companies in Hong Kong is very active. We are setting new records of tourist arrivals. Hong Kong's port and airport continue to be among the busiest and the most efficient in the world. The development of science and technology is making good progress. The public sector is leaner. Not only have we reduced the establishment by 17,000 posts leading to annual savings of $5.8 billion, our efficiency and quality of work have also improved. We can further see that there is more consensus on the direction of Hong Kong's economic development. There is now greater support and more common ground within the community on the policy directions adopted by the HKSAR Government. There is also a clearer understanding of the roles, mutual responsibility and commitment among the Government, society and the individual. People are growing tired of unceasing disputes. The community longs for stability and tranquility. All these factors reflect that Hong Kong has not been mired in difficulty. Instead, we are continuing to forge our way forward.
Hong Kong has experienced countless difficulties. We are arriving at another turning point. In the past, at each turning point, Hong Kong people, seasoned in turning adversity into opportunity, have always prevailed. What can we count on? It is the force of the Hong Kong spirit. The Hong Kong spirit is displayed through the will of Hong Kong people to face up to difficulties, to rise up to challenges, to excel, to adapt, to persevere and never to give up. If we look closely, everyday we find in Hong Kong many such stories. Each of them demonstrates that the Hong Kong spirit is alive and well.
Fellow citizens, the path ahead is one of hope, though laden with many challenges. The world is changing all the time. We cannot stand still. The advancement of the country urges us on. The successful implementation of "One Country, Two Systems" and the unfailing support of the Central Government encourage us. What is essential now is for us to forge ahead collectively and single-mindedly on the basis of solidarity and confidence. We have to overcome the difficulties before us. We must persevere to promote Hong Kong's economic development and to make "One Country, Two Systems" a momentous and lasting success.
On this auspicious occasion, I call on the people of Hong Kong to work together, and I thank you once again for the trust and support which you have placed in me.
Thank you very much.
End/Monday, July 1, 2002
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