TNAG-2644-FCO40-3837-Emigration-from-Hong-Kong-overseas-rights-to-abode-and-passp-1992 — Page 77

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It was replaced on 17 February by a new Business Skill

Category which vets the business background of potential

business migrants far more rigorously than the old BMP.

4. The number of applications received by the Australian

Consulate in Hong Kong fell by 13% in 1990/91 as compared

with 1989/90. Confidence in Hong Kong and world recession

discouraging people from emigrating. However, the number of

immigrant visas issued rose by 23% during the same period as

a result of relaxation of the selection creteria. Despite the drop in applications, emigration to Australia is

expected to remain at the current level for the next two to three years, owing to a backlog of applications to be

processed.

Budget

- A prudent budget. A huge surplus predicted for 1991-92 (HK$14 bn). By end of 1992/93, reserves estimated to be

HK$98 bn. Government expenditure to increase by 6% in real

terms in 1992/93 and Government expenditure to take up 18.8%

of GDP (cf 17.8% in 1991/92). Few notable revenue measures:

an increase in profits talk from 16.5% to 17.5% -

elimination of tax on soft drinks and cinema tickets (to

help inflation); increases in tax on alcohol, tobacco etc to retain the real yield.

Inflation and the Economy

- The recovery in the economy continues. Inflation currently running at 10.3% down from 12% in 1991. Efforts

by Hong Kong Government to combat inflation, eg property

market price stabilisation and labour import scheme seem to

be working. Total exports in 1991 increased by 20% over

previous year, imports by 21%, and re-exports increased

dramatically by 29%. There was a small trade deficit of

HK$1.68 bn.

JH2ADR/4

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