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Directions
for Development
18.
The
recovery of our economy has allowed us more room to
consider and map out the directions for our future
development. In
promoting economic development, I consider the
following three principles to be crucial:
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first, market
leads and government facilitates; |
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second,
maintain strict fiscal discipline and manage
public finances prudently by keeping
expenditure within the limits of revenues,
striving to achieve a fiscal balance and keeping
the budget commensurate with the growth rate of
GDP; |
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third,
maintain a low and simple tax regime.
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19.
Our ability
to undergo continuous economic restructuring is a
key element underpinning Hong Kong's competitiveness. Service industries account
for 91 per cent of our GDP, and those enjoying the
fastest growth include financial services,
import/export and logistics. To retain our
share of the
highly-competitive international market, Hong Kong must keep moving towards high value-added production
and a knowledge-based economy. Our economic
integration with the Mainland is pivotal to our
future development. Hong Kong's restructuring should complement the economic
development of the Mainland, and create a "win-win" situation. To achieve this, we
should focus on the following three areas:
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first,
reinforce our competitive edge by vigorously
developing our financial services, trade,
logistics and tourism industries, thereby
fostering growth in a broad range of economic
activities; |
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second,
create a favourable environment for a
knowledge-based economy by pooling talent,
encouraging creative industries and facilitating
research and development; |
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third,
care for the disadvantaged, helping them to achieve
self-reliance and improve their livelihood. |
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