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Following is the speech delivered by the Chief Executive, Mr Donald Tsang, at the Hong Kong Business Community Luncheon 2009 held at the Hong Kong Convention and Exhibition Centre today (November 2):
Distinguished guests, ladies and gentlemen,
Thank you first of all for the chance to join you for this annual event of post-Policy Address lunch. Today, I want to talk about our plans to unleash the enormous potential of Hong Kong - plans that we can't realise without the help, support and co-operation of the business community.
My Policy Address this year was entitled 'Breaking New Ground Together'. It underscores the need for all of us to work together to make the most of our considerable advantages, the advantages of Hong Kong; to work together to improve our quality of life; to work together to help those less fortunate; and, to work together to evolve a new political structure that will serve as an important stepping stone on our way to achieving universal suffrage.
Let me first explain why I raise this topic at this point in time. It is more than just today, or a few weeks or several months hence. It is about a confluence of events, policies and opportunities that will shape our city for decades to come.
Over the past three decades, we have witnessed the remarkable transformation of our nation - a transformation that has lifted millions out of poverty, significantly modernised and upgraded infrastructure, improved the living environment of countless cities, and unleashed the spending power of an expanding and increasingly savvy middle class on the Mainland. Hong Kong, in this regard, has played a very important role, a role in this transformation - our capital, our expertise and our global connections have been put to good use as our country continued to open up and reform. At the same time, Hong Kong's economy and society also benefited enormously from this process. We ourselves upgraded our capabilities and competitiveness.
Twelve years ago, Hong Kong's Reunification not only opened a new chapter in our history, it also opened new doors of opportunity under the framework of the Basic Law. Hong Kong is now part of a much greater whole, but with a unique identity and skills set protected by law. This has become a very different place, a unique place. In 1997, Hong Kong was given the opportunity to develop and grow from within our nation - an opportunity that only now many people are really starting to understand and fully appreciate.
Hong Kong's inclusion in the 11th Five Year Plan - and our proactive work on the 12th Five-Year Plan - have shown us that the Hong Kong Special Administrative Region does indeed enjoy special privileges and has a special role to play in our country's ongoing economic development and progress. But it's not a role we can take for granted. The Basic Law protects our way of life - it does not protect us from competition, though.
So, we need to do more than just protect and maintain our special characteristics; we must look for ways in which we can use them to enhance Hong Kong's vibrancy and viability so that we can continue to play a significant role in the modern globalised world, as well as boost our own prosperity.
That is what this year's Policy Address is all about - exploring new ways to add value to our city, to upgrade our product, to diversify our economic structure, to meet the competition head-on, to more fully exploit the joint opportunities for progress with Shenzhen and Guangdong Province as a whole, and, most of all, to create more jobs and increase the income of our own people.
And what I'd like all of you to do today is to look beyond the details of the policies announced three weeks ago to imagine perhaps what our city will be like in three to five years from now; to translate those policies into results; to envision that potential unleashed.
Our traditional pillar industries will be even stronger and more robust than they are today. Our financial services sector will be the main testing ground for the internationalisation of the Renminbi, we will have significantly enhanced financial co-operation with Guangdong, and we'll be playing an even more important role as the global financial centre of choice for Mainland enterprises. We will have a broader and deeper talent pool that will position Hong Kong at the forefront of a global realignment of the international currency regime and the boundaries of economic powers.
On the tourism front, we will be seeing new attractions opening at Disneyland and Ocean Park; the first berth of our new cruise terminal will be operating, and major enhancement projects at Ngong Ping, Tsim Sha Tsui East, Lei Yue Mun waterfront and the Tsim Sha Tsui Star Ferry terminal will be finished.
Our logistics sector will be focusing on more high-value goods and services, with a new logistics cluster under development at Kwai Tsing, and planning work well under way for the midfield expansion of the airport.
And our business and professional services will be enjoying first mover advantage in the Mainland market under the continued enhancements of the Closer Economic Partnership Arrangement with the Mainland. Many new services will be offered by Hong Kong companies for early and pilot implementation on the Mainland, especially within the Pearl River Delta, particularly at Qianhai of Shenzhen.
Let me now turn to the six industries where Hong Kong enjoys clear advantages - education services, medical services, testing and certification, environmental industries, innovation and technology, cultural and creative industries.
The two financial crises over the past 10 years have taught us many things. The most important thing that have taught us is that we can't rely solely on our pillar industries - especially only financial services - for sustainable or stable economic growth and prosperity. That is why we are exploring and encouraging the development of these new industries with suitable and appropriate policy measures.
Here I must stress that we are not picking any winners. They were chosen as a result of long discussions in the light of the scale and steam of development in the Mainland. They represent areas where Hong Kong excels and enjoys a clear advantage over our neighbours. Yet, ultimately - these six industries will sink or swim on the basis of market reaction and development, as well as consumer demand.
What we are doing though - through policy adjustments in key areas such as land supply and financial support - is helping these industries to become even bigger winners than what they are already.
So, for example, in the next three to five years we'll see new colleges and international schools opening in Hong Kong to provide an even wider range of education choices for local and overseas students; we'll have our own world-class testing and certification regime that will become a leader in standards for the promotion and development of Chinese medicine, for instance; we'll be working with the medical sector to support development of private hospitals; we'll see more electric and hybrid vehicles on our roads, all helping to reduce harmful emissions; and our cultural and creative industries will be thriving and expanding thanks to new opportunities on the Mainland under CEPA, as well as a wide range of new venues and facilities in Hong Kong, many of them in heritage buildings or converted industrial buildings.
Our new policy and approach to releasing the potential of old industrial buildings will not only benefit the six industries - it will also benefit the communities where these buildings are situated. Experience elsewhere in the world has shown that when old industrial buildings are revitalised and upgraded, whole new communities spring up around them which in turn adds economic, social and cultural vibrancy to our city as a whole. Just witness Lan Kwai Fong, look at what is happening in Wan Chai, look at what is happening in the Central area. They are good examples here in Hong Kong. We are talking about a renaissance by revitalisation.
The revitalisation of Central as a whole - the business, political, administrative and religious headquarters of our city - was another key plank of this year's address. We are acutely aware that, in the long run, our economic success and development will depend heavily on the standard and quality of the living and working environment on offer.
The relocation of the Central Government Offices to Tamar, and the greenfield opportunities of the new Central waterfront, are providing a unique opportunity to revitalise and reinvigorate Central.
We will protect and enhance the use of the district's considerable heritage assets, while at the same time provide our people with a vibrant and inviting new harbourfront that befits a modern, sophisticated global metropolis.
By doing all this we will ensure that while Central is upgraded and rejuvenated, it will also retain its unique character and charm - an eclectic blend of East and West, of old and new snuggled between beautiful Victoria Harbour and verdant Victoria Peak. So, there will be huge changes to the Central harbourfront over the next few years.
And on the other side of the harbour in Kowloon, we will start to see the emergence of the West Kowloon Cultural District; the Kai Tak development will be taking shape; and, the first phase of a massive urban renewal project at Kwun Tong will have been finished.
Later this year, we expect to open the new Stonecutters Bridge - an impressive suspension bridge that will provide another strategic transport link to the port and airport. Work is due to start soon on the Hong Kong - Zhuhai - Macao bridge - another massive project that will further enhance Hong Kong's links with the Pearl River Delta. We also hope to start work later this year or early next year on the Hong Kong - Shenzhen - Guangzhou Express Rail Link. This will link Hong Kong into the nation's 16,000-kilometre high-speed railway network. It will reinforce our status as a transport, financial and commercial hub for China.
I hope now you can understand what I mean by 'breaking new ground together'. All of what I mentioned just now is designed to unleash the enormous potential of our city, and to make Hong Kong a better place to live and work. The business community has a crucial role to play in these efforts. I urge all of you to seize these opportunities so that Hong Kong can continue to grow and shine and live up to its potential as Asia's world city.
Some people have said that the Policy Address has ignored the needy and the poor - that without extra help they will not be in a position to benefit from these policies. This is not true. A key plank of this year's address was to provide new resources to cover a range of social issues including elderly services, rehabilitation services, domestic violence, unemployment, the youth drug problem and social mobility.
It is true that we have not introduced any short-term relief measures or handouts on this occasion. Those introduced last year have helped lower-income families, through increases in the CSSA payment, old age allowance payment, a public housing rent waiver and other means.
But short-term relief measures are not a long-term solution for the unemployed, or those in the lower income groups. The solution lies in the sustainable growth of our economy.
When our economy grows, not only the rich and the better educated, but the public as a whole will benefit. I say this not as a prediction. This is something that is borne out by facts in Hong Kong. From 2004 to 2008, for example, when our economy rebounded from its lowest ebb in 2003, the unemployment rate of unskilled workers decreased from 10% to 3.5%, and the number of full-time workers earning less than $5,000 a month reduced by half, from around 160,000 to 80,000, showing a general increase in people's salaries.
That is why we are so eager to explore new areas for growth, as well as enhance the competitiveness of our traditional pillar industries.
And let me assure everyone that as we look for new opportunities for economic growth, we will never forget the core values of Hong Kong, the elements of our past success: that is, equal opportunities for all, fairness in competition, respect for individual freedom and press freedom, reward for hard work and talent, and care for the needy and elderly. These values will continue to guide and shape this administration's policies.
Ladies and gentlemen, there are two other issues I'd like to touch on today - both of which have been in the news lately - that is, the property market, and the development of our political system.
First, the property market. Recent actions by the Hong Kong Monetary Authority (HKMA) and the Financial Secretary have shown that we do not want to see a huge property bubble developing in Hong Kong. Although the dynamics of the situation are different to 1997 - when there was much more speculation in the market - any bubble is not healthy for the long-term development of the property market, or the economy as a whole. We are constantly monitoring price movements and we do have tools available to stabilise the market if needed. We are also identifying ways to enhance transparency in the release of property information. But, whatever action we may consider, we have to take into account the legitimate concern of existing home owners. For most people, their home is the biggest and most important investment they will ever make. So, any actions we may take will be premised on the need for stability, transparency and the smooth operation of the market.
Now, let me turn to the development of our political system. We will soon start a consultation exercise on the arrangements to elect the Chief Executive in 2012, as well as the Legislative Council in 2012.
These two sets of elections in 2012 are a vital stepping stone on the road to the election of the Chief Executive by universal suffrage in 2017; and the election of Legco members by universal suffrage in 2020.
We cannot afford to miss another opportunity to advance our democratic systems, as we sadly did in 2005. And 2012 is the next opportunity we get to make progress. I would encourage everyone here to provide us with your views on how we can improve the electoral methods in 2012. Business and professional groups have a natural interest, and they cannot sit on their hands and let events carry them away. Speak up and be counted, as is everybody else in Hong Kong.
Hong Kong is a city that has been built on the constant quest for progress. This year's Policy Address is designed to further our progress - economically, socially, politically. And we all have a role to play, you, me, in that process of progress.
Thank you very much.
Ends/Monday, November 2, 2009
Issued at HKT 17:44
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