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Nor have we been helped by the difficulties which Japan has experienced during the 1990s. The Japanese economy remains under pressure, and there has been little growth for the past four years. Japan is an important trading partner for Hong Kong.
We must face the fact that if the Japanese economy is experiencing difficulties, we are certain to feel the impact.
Measures to strengthen the supply side
As I have said, Hong Kong is an open economy. We live by trade. We should not be surprised that our own growth is strongly influenced by the economic situation of our major trading partners. But the fact that this external factor falls outside our control does not mean that we should not look for ways to improve our performance. I agree with the many Members who have argued today that we need a strategy to facilitate investment, enhance efficiency and to reduce unemployment. The issue before us today, and in the months leading up to my Budget, is what should such a strategy involve?
Clearly, such a strategy should be based on markets, enterprise and free trade. I hope no one is proposing that the Government attempt to manage the economy. The Government's role must be to support business by helping to enhance our productive capacity, improve efficiency and sharpen our competitiveness. That is why we invest billions of dollars each year in improving Hong Kong's physical infrastructure. We also invest billions of dollars each year in education and skills training.
I could list a formidable catalogue of recent new initiatives to improve the support we provide for industry, to enhance the business environment and to expand our infrastructure of skills. The Industrial Technology Centre and the Applied Research Council are two recent examples. But Members know all of this very well. I want to reassure this Council today that the Government does not seek to rest on its past record or its current programmes. You have my personal assurance that I am prepared to consider any specific proposals, any practical measures, which would enhance our productivity and our competitiveness. And in this regard, I'm most grateful for views expressed today. This open-minded commitment to respond to the needs of business is, in my opinion, exactly what the Government should be doing to support the economy.