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Tsang outlines roadmap for HK development

By Albert Auyeung (China Daily)
Updated: 2007-10-11 07:52

HONG KONG: Chief Executive Donald Tsang Wednesday delivered the first policy address of his new term, highlighting "progressive development" as the main theme for Hong Kong's development in the next five years.

He pointed out that the rise of the motherland has ushered in a new era for Hong Kong, and called upon Hong Kong people to become "new Hongkongers" who are "better equipped to sustain developments in the new era".

Underlining the significance of infrastructure in economic development, Tsang listed 10 large-scale projects he would push ahead during his current term. Together they would add more than HK$100 billion to the local economy a year, which amounts to 7 percent of the SAR's GDP in 2006, and create about 250,000 more jobs.

Infrastructure development will be coupled with corresponding efforts in reinforcing the city's position as a global financial center.

Tsang pledged to actively facilitate mainland investors' participation in Hong Kong's stock market under the Qualified Domestic Institutional Investors Scheme and introduce other financial reforms and products to lure overseas investors.

He also promised to strengthen cooperation with the mainland financial market, develop an Islamic bond market, and promote international arbitration services.

In terms of economic and trade development, Tsang said the SAR government will continue to help Hong Kong manufacturers adapt to the new business environment in the Pearl River Delta through communication with the central government and the industry.

"Progressive development" also applies to the realms of culture, society and the environment, the CE explained.

Tsang pledged to introduce energy saving measures at different levels and encourage power companies to reduce greenhouse gas emissions.

Responding to rising public demand for preserving historical buildings, he would introduce the concept of revitalization, namely, ensuring that the structures could have practical use after preservation.

Honoring his promise made during his election campaign earlier this year, Tsang cut the standard rate of salaries tax to 15 percent and lowered profits tax by one percentage point to 16.5 percent in 2008-2009.

In helping the poor and needy, he encouraged the private sector to develop social enterprises that employ the underprivileged, expand schemes that retrain jobless people, prepare for legislating a minimum wage for security guards and cleaning workers, and set up a child development fund.

The elderly will receive health care vouchers to purchase private medical care, and more day care and home care services.

To enhance the quality of the younger generation, the government will extend the provision of free education from nine years to 12 and reduce the size of school classes to 25.

New international schools will be built and universities will accept more non-local students to enhance the SAR's education hub status.



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