THE ECONOMY
well-trained and highly adaptable workforce, and by sustaining an open and competitive financial market. Complementing these are a robust monetary regime, a stable currency and a healthy banking sector, which are key to confidence for Hong Kong to foster its global finance and business operations.
Consistent with its market-led economic policies, the Government has sparingly intervened in the market over the past years. The Government will not seek to influence the overall economic structure through regulations, tax policies or subsidies. Business decisions are best left to the private sector. It will consider intervening only when the market fails to work, or to invest in projects or programmes that will clearly yield profound economic benefits for the community. While past experience has clearly demonstrated the vital importance of trusting in the market and the conditions that give maximum support to the private sector as the principal engine of growth, it is of no less importance to exercise sound judgment on the need and timing of government intervention when necessary.
The Government will continue to adhere to prudent fiscal practice, whilst maintaining a simple tax structure with low tax rate that will sustain workers' incentive to work and entrepreneurs' incentive to invest. The current corporate profits tax rate and standard tax rate, at 16 per cent and 15 per cent respectively, are low by international standards. The public sector will be kept slim and efficient. In concrete terms, the Government undertakes to contain the growth rate of public expenditure within the trend growth rate of the economy over the medium term. This ensures that the Government will not crowd out an excessive amount of resources from the private sector. In addition, the Government strives to spend within its means, thereby keeping the budget in balance and leaving the substantial fiscal reserves to cater for grave adversities. Prudent fiscal practice is amongst the key elements that instil confidence of international investors in the Hong Kong economy.
Business and Services Promotion
The Financial Secretary launched the Helping Business Programme in 1996 with a view to maintaining Hong Kong as the best place in the world for business, and making the Government genuinely business-friendly. Leading businessmen and senior officials meet quarterly in the Business Advisory Group to take forward helping business issues in areas of deregulation, assessment and reduction of cost of compliance, transfer of public services to the private sector, and introduction of new and improved services in support of the business community. The administration completed 13 studies and projects in 1999 under the Helping Business Programme and identified more than 100 helping business recommendations. Departments implemented more than 90 specific measures leading to a wide range of improved practices in their operations. These include putting more public forms on the Internet, one-stop service for the marine industry, improving the business friendliness of many government licensing procedures, the publication of layman guides on licensing requirements and employment laws and the preparation of a sample employment contract.
The Business and Services Promotion Unit (BSPU) has initiated an ongoing programme to engender throughout the Government a helping business culture and secure the right mindset among civil servants. In addition to symposiums and seminars, for senior government officials, BSPU organised a Helping Business Awards Scheme in 1999 to encourage every civil servant to be aware of the need to
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