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The Hong Kong Commissioner to the USA, Mr Donald Tong, addressed a gathering of more than 350 guests at the Hong Kong Economic and Trade Office, New York annual spring reception in New York City today (February 4, New York time).
Welcoming the Heritage Foundation and the Wall Street Journal ranking of Hong Kong as the worldˇ¦s freest economy for the 15th consecutive year, Mr Tong said Hong Kong had an auspicious start to the year.
"The ranking acknowledges Hong Kong's commitment to free market principles and devotion to our common law tradition," Mr Tong said. "They are also good encouragement for us to maintain a free and open system, including open markets, free trade, low taxes, and a free flow of people, capital, ideas and information, in Hong Kong."
Pointing out that Hong Kong's economy had performed reasonably well in 2008, Mr Tong, however, said that, as an externally oriented economy, Hong Kong was not immune to the current global financial crisis and negative economic growth and a rising unemployment rate in 2009 might be inevitable.
The Hong Kong Government had put in place a full range of measures to deal with these challenges, he said.
"Since the Asian financial crisis a decade ago, Hong Kong has reinforced its financial markets by improving risk management of banks and creating a more transparent regulatory system.
"To ease liquidity for the business community and bolster public confidence, our Government has guaranteed all bank deposits and established a mechanism to provide additional capital to banks, if requested, until at least 2010," Mr Tong said.
A US$12.8 billion loan guarantee scheme had been introduced for enterprises to help unfreeze credit and make available more resources for their operations.
Hong Kong and Mainland China have also entered into monetary co-operation to provide short-term liquidity support to Mainland operations of Hong Kong banks and the Hong Kong operations of Mainland banks in case of need.
The Hong Kong Government has also increased public expenditure largely in fast-tracking infrastructure projects to create more than 60,000 jobs this year. Public bodies and the private sector have also pledged to create several thousand short-term jobs and internship places, particularly targeting fresh graduates from schools and universities.
Expressing confidence that these measures would help Hong Kong weather the storm, Mr Tong said the Hong Kong Government had also taken some new initiatives to pave the way for Hong Kongˇ¦s further development.
"We are working with the Mainland Government to further develop renminbi business in Hong Kong. Hong Kong will be one of the pilot areas for transforming renminbi into an international currency, with permission for qualified enterprises to settle their cross-border trade in yuan."
"Recently we entered into agreement with Guangdong Province to step up further co-operation in four priority areas - financial industry, service industry, infrastructural facilities and town planning as well as innovation and technology," Mr Tong said. "New infrastructure projects across the border including large-scale bridge and high-speed rail projects will also begin construction in the coming two years to cope with the increasing people and vehicular flow between Hong Kong and Southern China."
To enhance Hong Kong's attractiveness as a business and trade hub, Mr. Tong pointed out that Hong Kong had intensified global efforts to promote Hong Kong as a destination for "Meetings, Incentives, Conventions and Exhibitions" and also waived hotel accommodation tax.
Hong Kong will be building a 100-acres cultural hub in West Kowloon, which will feature 15 performing arts venues, outdoor performance piazza areas, a new concept museum, an exhibition centre and galleries.
"We have also waived our duty on wine with a view to developing Hong Kong into a regional hub for wine-related business."
Mr Tong said Hong Kong and the US had long enjoyed closed ties. "The US tops the list of countries with regional headquarters and regional offices in Hong Kong, increasing by more than 100% to about 900 in the past 10 years. This was a strong vote of confidence in our role as Asia's leading business hub and a reliable partner for US businesses.
The Hong Kong Economic and Trade Offices in the US will be hosting a series of Spring Receptions in San Francisco (February 9), Boston (February 12), Chicago (February 18), Washington DC (February 24) and Atlanta (February 26) for key interlocutors in the academic, business, and media sectors.
Ends/Thursday, February 5, 2009
Issued at HKT 11:35
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