Budget Speech

Regional Economy

Fostering Hong Kong/Guangdong/Macao Co-operation

33.      The interaction between Hong Kong and the Mainland have been evolving over the past 30 years. Today the two economies are highly integrated. My confidence in Hong Kong's future is buttressed by our advantage in having the Mainland as our hinterland. To effectively and speedily implement and follow-up on the "Outline of the Plan for the Reform and Development of the Pearl River Delta" (the Outline) published by the National Development and Reform Commission in January this year, Guangdong and Hong Kong have agreed to focus on four priority areas of co-operation, namely: the financial industry; service industries; infrastructure and town planning; and, innovation and technology. At the same time, both sides have proposed to incorporate the concept of transforming the Pearl River Delta (PRD) region into a green and quality living area into the national 12th Five-year Plan.

34.      At their first co-ordination meeting, senior officials from the Guangdong, Hong Kong and Macao governments discussed specific actions to implement the Outline and regional co-operation initiatives. The meeting reached consensus on major areas of work. We will seek to identify economic opportunities in keeping with the Greater PRD region's effort to upgrade its industries. We will capitalise on the opportunities presented by the Outline to increase co-operation among the three places on all fronts so as to set directions and targets that are most beneficial to the long-term development of the Greater PRD region.

35.      As a financial, trading and services centre for the region, Hong Kong must strengthen infrastructural link with the Mainland. We will expedite the study and implementation of various major cross-boundary infrastructure projects, including the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Shenzhen-Hong Kong Express Rail Link, the Hong Kong-Shenzhen Airport Rail Link, and the Liantang/Heung Yuen Wai Boundary Control Point.