Kong 2011-2012 Policy Address - From Strength to Strength

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The Chief Executive of the Hong Kong Special Administrative Region (CE) Mr Donald Tsang delivered his annual Policy Address yesterday (October 12) his last policy address before relinquishing his post in June 2012. In it he laid out strategies to tackle some of the city's most pressing concerns: enhancing competitiveness; improving living standards; dealing with an ageing population; and providing affordable housing.

He said that the Hong Kong economy started to recover in the second quarter of 2009 and has since remained strong. Last year Hong Kong achieved growth of 7% and he said that he expected the economy to grow by 5-6% this year.

On economic development, Mr Tsang said it was important to maintain Hong Kong's competitiveness by seizing opportunities both in the Mainland and globally. He said that in the National 12th Five-Year Plan, our country has expressed her support for Hong Kong to reinforce and enhance our status as an international centre for financial services, trade and shipping, and to develop industries where we enjoy competitive advantages: the pillar industries of Financial Services, Tourism, Logistics, and Professional Services, and the six new industries of Medical Services; Environmental Industries; Testing and Certification; Education Services; Innovation and Technology; and Cultural and Creative Industries.

He added that Hong Kong would strengthen investment co-operation with emerging markets overseas including the BRICS countries BRICS (Brazil, Russia, India, China and South Africa), especially Russia, with which Hong Kong hopes to soon negotiate an agreement on investment promotion and protection. Closer to home Mr Tsang also said Hong Kong would continue to boost co-operation with Taiwan, Fujian and Chongqing.

In financial services, Mr Tsang committed to reinforcing Hong Kong's role as an offshore Renminbi (RMB) business platform, establishing strong and extensive links with the Mainland's onshore RMB market by three "bridges", namely trade settlement, direct investment and equity investment. These links received a further boost earlier in the year when the Central Government announced the third issue of Renminbi Sovereign Bonds through Hong Kong, amounting to RMB15 billion.

To further boost Hong Kong's competitiveness in innovation and technology, Mr Tsang proposed injecting HK$5 billion into the Research Endowment Fund.

He proposed to address the growing demand for high quality office space by encouraging the development of East Kowloon into a core business district, by enhancing connectivity both within Hong Kong and externally. Since there is increasing global demand for data services, the Government has also reserved about two hectares of land in Tseung Kwan O for data centre use. The first such site is expected to be put up for open auction in 2013 at the earliest. All this would help make Hong Kong a more attractive place for international businesses.

This attractiveness would also be boosted by further developments in the education sector as four new international schools come on stream offering more than 5,000 new places over the next few years, and as the Queen's Hill site is put up next year for applications to establish higher education campuses.

To promote the skills needed in the development of tourism, catering, retail and wine trading, Mr Tsang announced plans to establish an International Cuisine College. This will provide training facilities and progression pathways for people aspiring to become professional chefs proficient in international cuisines.

Mr Tsang also proposed setting up a dedicated fund of HK$1 billion to support Hong Kong enterprises to promote domestic sales in the Mainland and encourage them to develop high value-added products and build brands by leveraging Hong Kong's strengths in design.

And the creative sector in Hong Kong will also receive due recognition as Mr Tsang announced that next year (2012) will be designated as "Hong Kong Design Year", which will encompass a number of mega events on design to consolidate Hong Kong's position as Asia's creative hub.

On quality of life, Mr Tsang proposed policies to help address the shortage of affordable housing and to support elderly people. Mr Tsang also said the Government was exploring ways to further raise living standards including the feasibility of introducing standard working hours and providing paid paternity leave to promote family-friendly working practices.

To boost environmental industries, the Chief Executive said the Government would introduce additional requirements and incentives for bus companies to switch to zero emission buses or the most environment-friendly buses when replacing old diesel vehicles. This would include funding of HK$180 million to enable bus companies to purchase 36 electric buses for trial runs on a number of routes to assess their performance.

In recognition of the life and achievements of one of Hong Kong's best known international film artists, Mr Tsang also announced Government plans to establish a Bruce Lee Gallery in the Hong Kong Heritage Museum, to celebrate the life and work of the Hong Kong raised Chinese American martial arts actor who turned Kung Fu into mainstream entertainment.

Finally Mr Tsang urged Hong Kong people to believe in their own ability to take the city's economic and social development to the next level.

The complete text of the Policy Address can be found at www.policyaddress.gov.hk

Agnes Allcock
Director-General
Hong Kong Economic & Trade Office
6 Grafton Street
London W1S 4EQ
Tel.: +44 (0) 20 7499 9821
Fax: +44 (0) 20 7495 5033
Email: general@hketolondon.gov.hk
Website: www.hketolondon.gov.hk