XN000022-1993-03-03 — Page 35

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WEDNESDAY, MARCH 3, 1993

HK IS A PREDOMINANTLY SERVICE ECONOMY

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HONG KONG IS NOW A PREDOMINANTLY SERVICE ECONOMY, WITH CHINA AND THE REST OF THE REGION AS THE MAIN MARKET AND SOURCE OF GROWTH, THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, SAID TODAY

(WEDNESDAY).

SECTOR,

HIS

IN 1991, 73% OF HONG KONG'S GDP CAME FROM THE SERVICE WHICH NOW EMPLOYS 66% OF THE WORK FORCE, MR MACLEOD SAID IN BUDGET FOR 1993/94.

"THIS STRATEGIC SHIFT IN THE BALANCE OF OUR ECONOMIC ACTIVITIES HAS CREATED NEW CHALLENGES, ESPECIALLY IN TERMS OF THE GOVERNMENT'S RESPONSIBILITIES."

A GOOD EXAMPLE OF HONG KONG'S POSITIVE RESPONSE TO THESE NEW CHALLENGES WAS THE DECISION LAST YEAR TO GO INTO PARTNERSHIP WITH THE PRIVATE SECTOR IN THE NEW FIELD OF ELECTRONIC DATA INTERCHANGE, OR EDI.

"AS A RESULT, WE WILL BE SIGNIFICANTLY IMPROVING THE EFFICIENCY

OF OUR TRADE AND BUSINESS SECTORS,

HE SAID.

THE FINANCIAL SECRETARY SAID ONE OF HONG KONG'S GREATEST ASSETS WAS AN ABILITY TO ADAPT TO NEW ECONOMIC REALITIES, THROUGH THE WORKING OF THE MARKET MECHANISM, NOT THROUGH GOVERNMENT EDICT.

OVER THE PAST DECADE, HONG KONG'S ECONOMY HAS BEEN TRANSFORMED AS IT HAD EMERGED AS ONE OF THE BUSINESS CAPITALS OF ASIA.

IN 1981, 23% OF GDP CAME FROM THE MANUFACTURING SECTOR. IN 1991, MANUFACTURING - WHILE STILL IMPORTANT ACCOUNTED FOR ONLY 16%.

MR MACLEOD SAID IF THE SERVICES SECTOR WAS AT PRESENT THE PREDOMINANT SECTOR OF HONG KONG'S ECONOMY, THERE WAS NO MORE IMPORTANT COMPONENT OF IT THAN THE FINANCIAL SERVICES.

HONG KONG OWES A GREAT DEAL TO ITS FINANCIAL SERVICES SECTOR.

"IT HAS BEEN THE FLAGSHIP OF OUR ECONOMIC TRANSFORMATION IN RECENT YEARS. I SHOULD LIKE TO PAY A SPECIAL TRIBUTE THIS AFTERNOON ΤΟ DAVID NENDICK WHO, AS SECRETARY FOR MONETARY AFFAIRS UNTIL A FEW WEEKS AGO, DID SO MUCH TO ENCOURAGE THIS PROCESS,' HE SAID.

THE SUCCESS OF THE FINANCIAL SERVICES INDUSTRY IS BASED ON A PARTNERSHIP WITH THE GOVERNMENT.

THE GOVERNMENT'S MAIN ROLE HAS BEEN TO SECURE:

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A STABLE EXCHANGE RATE AND SOLID PUBLIC CONFIDENCE IN THE CURRENCY, AND

THE STABILITY AND INTEGRITY OF THE MONETARY AND FINANCIAL MARKETS THROUGH A STRENGTHENED REGULATORY FRAMEWORK.

/"FOR THE