Hong Kong is different from Thailand................................
TuesdayÿÿOctober 28ÿÿ1997
Peg commitment will be kept at all cost, says Tsang
DUNCAN HUGHES
Financial Secretary Sir Donald Tsang Yam-kuen reconfirmed the Government's commitment to the link with the US dollar and again warned that currency speculators would be hurt.
Sir Donald, who was speaking on the first day of the 11th International Investment Funds Conference, said the Government would defend the link despite the short-term cost to some sectors such as manufacturing and tourism.
He said yesterday: "But my duty is to serve the public interest, not sectoral interest."
"Hong Kong is not any other Asian economy.
"We do not have a huge unearning stock of vacant offices.
"Two-thirds of our domestic exports and three-quarters of our re-exports within Asia go to China or Japan, against whose currencies ours is stable," Sir Donald said.
"Crucial sectors of our economy, such as our financial services industry, benefit from stability."
The conference, hosted for the first time by Hong Kong, is being attended by representatives of investment fund associations handling about US$6 trillion and representing 28 countries.
Sir Donald said there were big differences between Hong Kong and other regional economies caught in the regional currency and equity turmoil.
"In Hong Kong our economy is not unbalanced, our finances are not weak: Hong Kong is here for the long term as a centre to serve the stable and sustained growth of the region."
Sir Donald also defended proposed budgetary expenditure foreshadowed by Chief Executive Tung Chee-hwa in the 1997 Policy Address. He said the estimated spending increase of $7.7 billion in the next financial year represented 5 per cent real growth.
"Budgetary guidelines enable us to raise public spending over our medium range forecast period by 5 per cent annually in real terms."
He said Hong Kong would seek to strengthen its position as a regional financial centre by maintaining the rule of law, maintaining low tax rates, encouraging open markets and boosting the financial infrastructure, such as communications.
"The clear commitment to continued financial and economic reform in mainland China, set out at the 15th Party Congress, meant Hong Kong's pivotal role as the best place for mainland enterprises to raise capital would develop firmly in years ahead." |
