Financial Secretary Henry Tang says Cepa would create business opportunities in Hong Kong in his budget speech for 2004-5

"Sustained rapid economic growth in the mainland and the continued opening up of its market will create abundant business opportunities for Hong Kong," said Mr Tang, referring to the Closer Economic Partnership Arrangement (Cepa). He added that the government would work to expand the agreement with the mainland.

The Hong Kong economy staged a rapid rebound in 2003, registering a GDP growth of 3.3 per cent, up 2.3 per cent from 2002.

"Our economy has bottomed out with a V-shaped rebound, and businesses have revived. I am very optimistic about our economic prospects," said Mr Tang. "I have every confidence that by grasping our opportunities, constantly renewing our strengths and making full use of our advantages, we can work another economic miracle."

Cepa opportunities to aid economic growth

Mr Tang forecasted real GDP growth of 6 per cent in 2004. He said that three factors would aid Hong Kong's economic growth:

•  The ongoing implementation of the mainland / Hong Kong Closer Economic Partnership Arrangement
•  Increased tourist arrivals from the mainland
•  Solid growth in external trade, including robust performance of offshore trade and professional services exports

The forecast deficit for 2003-4 has shrunk to HK$49 billion (US$6.3 billion), compared with $61.7 billion (US$7.9 billion) in 2002-3.

The Executive Director of the Hong Kong Trade Development Council (TDC), Michael Sze, highlighted the importance of the Financial Secretary's message on Cepa opportunities for Hong Kong.

"Hong Kong companies have to seize Cepa opportunities as quickly as possible," said Mr. Sze.

He said TDC had set aside more than HK$80 million (US$10.2 million) for Cepa-related activities in 2004/05. Part of that will support the establishment of Cepa Business Service Centres in Beijing, Shanghai, Guangzhou and Hong Kong, which will open from next week.

Creativity and tourism hub status boosted

Mr Tang introduced a HK$20 billion (US$2.5 billion) bond programme to fund the government's investment spending and support planned asset sales, further developing Hong Kong's role as a world-class asset management centre.

The government also earmarked HK$250 million (US$32 million) towards enhancing Hong Kong's position as the region's hub for design excellence. The "DesignSmart" initiative will nurture start-up design ventures and provide training manpower in design and branding. A Design and Innovation Centre will be set up for this purpose.

Hong Kong's image as Asia's premier tourist destination will be boosted by an additional HK$95 million (US$12 million) for promotional and training activities in tourism.

Under a new initiative, car owners can make unique statements with personalised number plates - a proposal which is expected to fetch more than HK$70 million (US$8.9 million) a year.

"Economic recovery can be clearly seen; Hong Kong has a bright future," said Mr Tang.

Related links:
TDC's message on Budget proposal
Budget Highlights
Full Budget Speech