WEDNESDAY, MARCH 26, 1986
32
+
MR SOHMEN APPLAUDED THE FINANCIAL SECRETARY EFFORTS TO HELP POLISH HONG KONG'S IMAGE AS A FINANCIAL CENTRE, INCLUDING THE REPEAL OF THE 1984 AMENDMENTS REGARDING PROFITS TAX ON INTEREST EARNED ON OFFSHORE DEPOSITS, THE WAIVER OF THE ONE PER CENT STAMP DUTY CHARGE ON HONG KONG BEARER INSTRUMENT RELATING TO LOAN CAPITAL AND THE RECENT INTRODUCTION OF THE BANKING BILL.
ON THE FORECASTS FOR THE GDP, DOMESTIC EXPORT AND RE-EXPORT GROWTH FIGURES, HE SAID HONG KONG MUST NOT BECOME COMPLACENT OVER THE MORE ENCOURAGING GDP GROWTH ESTIMATE BASED ON GREATER COMPETITIVENESS ARISING MAINLY FROM THE RELATIVE WEAKNESS OF THE CURRENCY.
THE VOLATILITY OF THE FOREIGN EXCHANGE MARKETS HAD TO BE ACCEPTED AS A FACT OF MODERN LIFE, AND ANY APPRECIABLE RETURN IN THE STRENGTH OF THE US DOLLAR, WHICH COULD OCCUR AT ANY TIME AS A POSSIBLE RESULT OF UNFORESEEN POLITICAL DEVELOPMENTS, COULD VERY QUICKLY ALTER THE PICTURE AND PUT MORE STEAM BEHIND PROTECTIONIST PRESSURES IN THE UNITED STATES, OUR MAJOR MARKET.
+DIFFICULT INTERNATIONAL TRADE NEGOTIATIONS STILL LIE AHEAD OF US IN 1986, AND WHILE ANXIETIES ABOUT THEM WERE TEMPERED SLIGHTLY BY THE RELIEF THAT THE TERRITORY WILL NOW BE ALLOWED TO BECOME A MEMBER OF GATT, WE SHOULD BE PREPARED FOR ALL EVENTUALITIES AND MAKE DEDICATED EFFORTS TO RETAIN OR REGAIN OUR SHARE OF EXPORT MARKETS BY INDIVIDUAL AND COLLECTIVE MARKETING ACTION ON ALL FRONTS, AND IN NEW ARENAS AS WELL,+ HE SAID.
MR SOHMEN COMMENTED THAT THE BUDGET HAD AGAIN DEMONSTRATED THE RESILIENCE OF HONG KONG'S ECONOMIC SYSTEM IN THE FACE OF AN UNEXPECTEDLY POORER SHOWING AND 'WE MUST ENDEAVOUR TO KEEP THE SYSTEM STRONG EVEN AS, OR PARTICULARLY WHEN WE HAVE TO IMPROVE THE REGULATORY FRAMEWORK.'
PROVIDENT FUND SCHEME ADVOCATED ****
THE GOVERNMENT SHOULD INITIATE THE ESTABLISHMENT OF A PROVIDENT FUND SCHEME AND THE PROVISION OF ASSISTANCE FOR INDUSTRIAL DEVELOPMENT, THE HON TAM YIU-CHUNG SAID DURING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
+
HE SAID ENACTMENT OF LEGISLATION TO IMPLEMENT A PROVIDENT FUND SCHEME OF A 'PROMOTIVE' AND 'COMPULSORY NATURE MIGHT PROBABLY CONSTITUTE AN IMTERIM GOAL IN IMPLEMENTING A TERRITORY-WIDE CENTRAL PROVIDENT FUND SCHEME.
HE EXPLAINED THAT A CENTRAL PROVIDENT FUND HAD MANY ADVANTAGES.
/+IT IS