Budget Speech

Stimulating the Economy

Positioning and Directions for Economic Development

Assessment of Situation

53. Hong Kong has been leveraging the support from the Mainland while engaging the world.  Over the past many years, we have been utilising our advantages in institution, talents and external connections, and served as a bridge between our country and the rest of the world in different ways in response to our country's ever-changing needs.  By doing so, Hong Kong has contributed to national development and at the same time promoted its own development and economic growth.  Only by making good use of the advantages of "One Country, Two Systems" with the precondition of strengthening national security can we continue to play and even enhance our role on this front.

54. Over the past two years, Hong Kong has been affected by the deterioration of the China-US relations, and experienced the blow from the social incidents and the ravages of the pandemic.  However, we should not let these challenges weaken our confidence in the future.  Instead, we should learn from the experience and make correct assessment of the major development trends.

55. First, the world is facing profound changes unseen in a century.  The economic gravity is shifting from West to East, and the political setting has also seen subtle changes.  Our country's composite national strength has enhanced significantly, while other developing countries in Asia have undergone robust development.  However, with the rise of unilateralism in recent years and the misunderstandings of some western countries towards Hong Kong's developments, we are facing greater difficulties.  The epidemic has increased various countries' concerns about development security, which might further escalate protectionism.  Some nations encourage or even ask enterprises to move back to their home countries, impacting on the development and setting of global value chains.

56. Second, the world is facing drastic disruptions brought by technological revolution, which have far-reaching implications for our personal life, modes of production and operation, economic structures, development prospects and international landscape.  The pandemic has also accelerated changes in the mode of business operation and people's living habits.  Making good use of digital technology is not only essential to effective business operation, but also crucial for preventing and combating the pandemic and protecting public health and safety.  Whether a place can attain a leading position in I&T will determine its success or failure.

57. Third, green development is a major global trend.  Environmental pollution and climate change have become too serious to ignore.  There is a general recognition in the international community that we should promote green and low-carbon development, which involves extensive new areas.  The Government needs to have visions and determination; the people need to build awareness of environmental protection and corresponding habits; the business sector needs to develop and adopt novel technologies, and launch products of high efficiency.  Other matching services such as financial support are also needed.

58. Fourth, as for Hong Kong, we have experienced many changes at different points in our history, but the support of our country has remained unchanged.  With the advantages under "One Country, Two Systems", Hong Kong has a unique and irreplaceable role in the national development.