Freedom is precious
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HK wins 'freest economy' accolade
Heritage Foundation heaps praise on city for 14th consecutive year
Lina Lim
2:30pm, Jan 15, 2008
Hong Kong on Tuesday was ranked as the “world’s freest economy” for the 14th consecutive year, according to an international study.
The Heritage Foundation study said Hong Kong had again scored well in almost all areas of economic freedom.
“Hong Kong was also complimented as one of the world’s leading financial centres, with its limited regulation of banking and financial services cited as both non-intrusive and transparent,’’ a government spokesman said on Tuesday.
“Among the 10 individual areas assessed, Hong Kong ranks first in trade freedom, investment freedom, financial freedom and property rights. Hong Kong also ranks in the top 10 in another four areas — fiscal freedom, government size, monetary freedom and labour freedom,” he explained.
The Heritage Foundation study is an annual economic freedom index. It measures the degree of economic freedom of 157 economies worldwide by assessing 10 factors. These are: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption, labour freedom.
The report also noted that Hong Kong’s income and corporate tax rates were very competitive; overall, taxation was relatively small as a percentage of gross domestic product.
It said the territory’s labour market was highly flexible and investment was strongly encouraged by the government with almost no restrictions on foreign capital.
Hong Kong’s top ranking was followed by Singapore and Ireland.
However, compared with Singapore, Hong Kong performed better in regard to trade freedom, fiscal freedom, investment freedom and financial freedom. But Singapore performed better in business freedom, government size, monetary freedom, freedom from corruption and labour freedom. Both Hong Kong and Singapore were ranked first in property rights.
Financial Secretary John Tsang Chun-wah welcomed the study. “We are determined to uphold Hong Kong’s position as the freest economy in the world.
“We provide a business-friendly environment where all firms can compete on a level-playing field and establish an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market,” added Mr Tsang.
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