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Following is a speech by the Secretary for Commerce, Industry and Technology, Mr Joseph W P Wong, at the HKSAR 10th Anniversary Gala Dinner hosted by the Hong Kong Economic and Trade Office in Tokyo tonight (May 31):
Ladies and gentlemen,
It's always a great delight to return to Tokyo, a city which I have the good fortune to visit on a number of occasions, both on business or for pure pleasure.
That said, with some 26,000 Japanese calling Hong Kong home – bringing with them a huge amount of business, academic and cultural investment, not to mention the many wonderful Japanese restaurants, supermarkets and fashion outlets, I can often enjoy a Japanese break in Hong Kong without leaving home!
Hong Kong and Japan have long maintained a close business partnership. You are our third largest export market – and in return we are your second largest export market. Japanese companies have put their faith firmly in Hong Kong, with more than US$17 billion of investment covering everything from electronics and retail to sourcing and trading.
Indeed, Japan and Hong Kong are not only close trading partners, we are also each other's important tourist markets. Last year Hong Kong welcomed more than 1.3 million Japanese visitors, about 8% more than in 2005.
I am glad to say that this is not a one-way street. Japan has long been one of the most popular travel destinations for Hong Kong people, and figures show that our arrivals last year grew by more than 20% as compared to 2005. Hong Kong is the fourth largest tourist market for Japan (note), and Hong Kong tourists accounted for about 5% of all foreign visitors to Japan last year. Your beautiful country has so much to offer that I personally know some friends who come here more than once a year just to enjoy the seasonal flowers, the hot springs as well as the local cuisine in different parts of the country. So it is no surprise to me when I learn from the Japanese Consul-General in Hong Kong that more than 18,000 Hong Kong people are now in fact learning Japanese.
Indeed Hong Kong people not only love to visit Japan, they eat a lot of Japanese food even when they stay at home. Many Japanese friends were surprised to learn that our tiny city of about 7 million people is actually the largest export market for Japanese food products. According to Japanese government statistics, 17.4% (or US$533.4 million worth) of Japan's foodstuff was exported to Hong Kong last year, making us the top importer of Japanese foods, beating the United States of America which has almost 40 times our population (300 million people)!
10TH Anniversary
Ladies and gentlemen, let me turn to the theme of today's event: the 10th anniversary of the reunification of Hong Kong with China.
I recall the headline "Death of Hong Kong" on the famous Fortune magazine's front cover in 1997. Right from the first day of the handover, there was a huge amount of interest in whether we would succeed or were doomed to fail.
This year, as we approach our 10th anniversary as a Special Administrative Region of China, I like to take a short stroll down memory lane and answer the question which has been frequently asked "Has Hong Kong changed for the better or for the worse?".
Last 10 years
Put simply, from 1997 to now, the numbers are overwhelmingly up. For example, our total external trade almost doubled from HK$2.9 trillion to HK$5 trillion, our mobile phone penetration increased four times from 2.1 million sets to 9.4 million sets. Our GDP per capita has also increased to HK$215,000 or US$27,600, despite the fact that during the period Hong Kong has weathered the Asian financial crisis, Avian flu, a property slump, high unemployment and the SARS outbreak.
The freedoms that our people hold so dear have remained unchanged. Our rule of law, our civil rights and freedoms, our free – and very vocal – press. Our free flow of capital, people and goods. Our multi-cultural, multi-religion and multi-national community.
In fact, I'm proud to say we've retained the top spot – unbroken – as the "World's Freest Economy" for the past 13 years.
From strength to strength
Our economy has continuously changed for the better for the past 10 years.
A key growth sector has been financial services. Hong Kong now has the world's sixth largest stock market – with a market capitalisation more than four times larger than in 1997. A lot of this is due to our new relationship with China, with Hong Kong having emerged as the city of choice for Mainland companies looking to raise capital. The number of Mainland firms listed on our Stock Exchange has risen from 101 in 1997 to 367 this year: a mighty 360% increase. These companies come to Hong Kong – despite their own thriving local A-share markets – because of the maturity, security and transparency of our stock exchange.
Another pillar of Hong Kong's economy – trade – is also flourishing. We are currently the world's 11th largest trading economy. And far from being sidelined in the international scrum to get into China, our traders are reaping the rewards. In fact, trade with the Mainland has more than doubled since the handover. Also doubled is our investment into the Mainland. Today, some 40% of total investment into China has come from, or through, Hong Kong.
Hong Kong also benefits massively from its multicultural business community. We remain Asia's most popular city for foreign companies as the number of foreign-owned regional offices and headquarters has risen by more than 50% to more than 4,000.
Closing
Ladies and gentlemen, while anniversaries provide us with a welcome opportunity to look back and reflect. Hong Kong, as well as our international business community, which of course includes our Japanese friends, already have their sights firmly set on this next wave of opportunity over the next decade, which will certainly include Hong Kong, Japan and Mainland China.
I look forward to welcoming you – or welcoming you back – to my home Hong Kong in the very near future. And with the many special 10th anniversary commemorative events we are holding in Hong Kong this year, such as grand parades, special international soccer matches, and art exhibitions, in addition to the arrival of the two giant pandas Le Le and Ying Ying that the Central People's Government generously gave to the Hong Kong SAR as gifts to mark our 10th anniversary, there should be more than enough good reasons for you to join me as guests of Hong Kong in this momentous occasion.
Thank you.
Note: After South Korea, Taiwan, and China.
Ends/Thursday, May 31, 2007
Issued at HKT 20:03
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