The Government's Role

30.    Our free and highly efficient market has won worldwide acclaim.  Under normal circumstances, the market is the most efficient mechanism to allocate resources.  One should therefore respect market forces when formulating economic policies.

31.    That said, with the upsurge of I&T and fierce competition between economies, the current-term Government will examine Hong Kong's competitiveness, our economy as well as the current state and direction for development of our industries from a forward-looking and strategic perspective.  Playing the role as a "facilitator" and a "promoter", we will introduce timely and appropriate measures to support industries where we have strengths and development potentials, and tap new markets.  We will also review regulatory and tax requirements to remove red tape and create a business-friendly environment.  Our various initiatives in promoting I&T and financial development are some examples.

32.    The Government will focus in particular on removing land and manpower constraints.  At the same time, we will maintain a simple and competitive tax regime as well as a transparent and efficient regulatory system, while encouraging investment and innovation.  Under the present macro environment in which opportunities abound, I am confident that we can find more drivers for growth to support the development of our society.

33.    Now, let us review our economic performance over the past year.