Despite the impact of the global financial crisis, Hong Kong still enjoys a number of advantages, including a sound institutional framework, a large pool of talent, solid commercial fundamentals, and a favorable geographical location. The Financial Secretary, Mr John Tsang said in his Budget on February 25, 2009, that Hong Kong will continue to capitalize on her strengths and to enhance the four pillar industries – financial services, logistics, tourism, and business support and professional services.

“To consolidate Hong Kong’s position as an international financial center, we will further develop and increase financial co-operation with emerging markets. Particular measures are needed to improve Hong Kong’s regime as a platform for the growing area of Islamic finance,” the Financial Secretary said.

To provide more diversified investment products and avenues for financing for institutional and individual investors, the Hong Kong Special Administrative Region (HKSAR) Government intends to implement a program to issue government bonds.

On tourism economy, the HKSAR Government has decided to finance the construction of the Kai Tak cruise terminal. The project is expected to create over 3,000 jobs in the next few years.

Since the exemption of wine duties last year, wine trading, distribution and other related businesses have all shown notable growth. In the 10 months ending last December, the total value of imported wine reached HK$2.6 billion (US$ 333.33 million), an increase of 82 per cent over the same period in 2007. Mr Tsang said in the Budget that Hong Kong will step up the promotion of Hong Kong as an Asian wine and gourmet centre through festivals and trade fairs.

On new economic initiatives, Mr Tsang said, “we will promote the development of new technologies to enhance the competitiveness of Hong Kong through the provision of infrastructure, manpower training, co-operation with the Mainland and other economies and funding schemes.”

“To further co-operation in various areas under the framework of the ‘Shenzhen-Hong Kong Innovation Circle’, the two governments will formulate an action plan for the next three years on top of the annual joint funding for co-operative research projects of the two places.”

The Hong Kong Science Park promotes innovation and technology by providing advanced laboratories and research and development facilities in a quality environment. Two purpose-built laboratory buildings in Science Park Phase 2 have been reserved to support biotechnology research, which will become a new cluster in the Science Park. The Science park is exploring the feasibility of and the development plans for Phase 3 of the Park.

On creative economy, the Financial Secretary has earmarked HK$300 million (US$38.46 million) for the development of creative industries other than film and design industries which have received effective support from the Film Development Fund and the DesignSmart Initiative.

“Promoting a ‘green economy’ will enhance Hong Kong’s overall competitiveness as well as making it a more liveable city,” the Financial Secretary said.

Mr Tsang outlined plans for promoting more energy efficient buildings, beautifying the harbourfront and introducing electric vehicles to Hong Kong in the Budget.

Details of the 2009-10 Budget can be found on the Web site: [www.budget.gov.hk].