Mr Seals-
Address by Dr. the Honourable Daniel Tse, OBE, JP Member of the Executive and Legislative Councils, Hong Kong, at the Forty-fifth Session of the United Nations Economic and Social Commission for Asia and the Pacific
(27 March-5 April 1989, Bangkok)
C.C. R. Footman,
Mr. Chairman, Mr. Executive Secretary, Excellencies,
Distinguished Delegates,
you,
as
On behalf of the Hong Kong delegation I would like to congratulate
Mr. Chairman, on your election to the chair and all those elected
vice chairmen of the Session. Let me join the other delegates in thanking
the Government of Thailand for the warmth of their hospitality and the ESCAP
Secretariat for the excellent arrangements in organizing this Conference.
2.
I cannot agree
Mr. Chairman, the theme of this Plenary Session is restructuring the
developing economies of Asia and the Pacific in the 1990s'.
more with the choice of the topic as. I think it is most timely to discuss
the issue in view of the rapidly changing international environment and the
phenomenal growth of the Asian-Pacific region in recent years. Hong Kong
has undergone several phases of economic restructuring and I would try to
highlight the major factors influencing the development and share with you
some of our experiences. Before that, allow me to give a brief report on
our economy.
3.
It is estimated that
After two consecutive years of double-digit growth, Hong Kong's
economic growth took more moderate pace last year.
a
Hong Kong's GDP grew by about 7.5% in real terms in 1988.
The slow-down can
be attributed mainly to the supply-side constraints. The unemployment rate
stood at a record low of 1.3% in the fourth quarter of 1988 and the keen
competition for resources drove up costs.
14.
HKC
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4.
Overall, I am glad to say that our external sector had performed
remarkably well in 1988. We have achieved in real terms increases of 9% in
domestic exports, 46% in re-exports, and 27% in imports. It is noteworthy
that with the substantial growth in re-exports, we see the re-emergence of
Hong Kong as an entrepot serving China and the Asia-Pacific region.
our domestic exports
were
in substantial increases
There
to China, the United
Kingdom and Japan while there was a decline in respect of the United States
rose rapidly, with the result that our visible trade
market.
Imports also
account showed a deficit.
I
5.
say
that there is
a continual increase in
also pleased to am
investment in plant and machinery by the manufacturers, reflecting greater
activity in the manufacturing sector and continued mechanization as
to alleviate labour shortages.
6.
a means
However, one of the main problems we now have to face is inflation.
Consumer prices rose by 7.5% in 1988 and this is a relatively high figure
by containing public
for
We
are
hoping to
tackle this
Hong Kong.
expenditure as far as possible.
7.
exports
In 1989, we expect the growth rate in real terms of our
domestic
to be about 7%, re-exports 22%, and the gross domestic product 6%.
Consumer prices are likely
Considerable inflationary pressures still exist.
to rise by an average of 8.5% and the labour market is expected to remain
tight. Nevertheless, we are proud to say that our per capita GDP in current
price terms is expected to rise to US$11,000 at the same time.
8.
c. f. Burma or Puito!
Mr. Chairman, Hong Kong
is
resources.
a small territory with limited natural
Yet taking advantage of our location and the possession of one
of the best natural harbours in the world, Hong Kong quickly established
itself as an entrepot between China and
the outside world in the early
stages of development.
It
is worthy to
note that
even
at
such
an early
/stage
15
3
stage of development, Hong Kong already declared itself as a free port with
impediments to the movement of goods in and out of the
territory. Thanks to the initiatives of the private sector,
no duties or other
a lot of the
essential back-up services such as communications, commercial and financial
institutions came into place. The role of the government had been limited
to the provision of the necessary infrastructural support.
9.
the
In the 1950s, Hong Kong underwent a major economic transformation.
Because of a number of external factors, Hong Kong had developed from a
predominantly trading economy to one which relied mainly on its own exports
of light manufactured products. The process was not easy and much of
success depended on the hardworking labour force, the flexibility of the
the government
entrepreneurs,
the
open international
trading system and
policy of minimum intervention.
10.
In recent
is
years, there are signs that Hong Kong's economy
undergoing another restructuring process: a steady shift from manufacturing
labour-intensive
products to
technology-intensive goods, more
and
from
light-manufacturing activity
towards
providing an
range increasing
of
services.
11.
So far
the
restructuring has
been
But successful.
in
order
to
maintain
the
momentum of
the
process.
The Hong
Kong
Government
will
continue to provide a sound legal and institutional framework and ensure the
availability of adequate infrastructural support. The policy of leaving
maximum
to flexibility
the private sector
minimum with
government
intervention will be maintained.
12.
Hong Kong's experiences may be unique.
development needs and
and circumstances of different territories,
And given the different
the formula
However, there are
for economic development must necessarily be different.
a couple of factors which seem to us to be of crucial importance.
/13.
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