Task Force on Economic Challenges to Discuss
Long Term Strategy

For more information, please contact:
Melissa Ng /David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

April 2, 2009 - Hong Kong Chief Executive, Mr. Donald Tsang, says the Task Force on Economic Challenges will meet tomorrow to discuss medium and long-term strategy to develop Hong Kong's economy. It will also study ways to promote the city’s industries with high potential.

Speaking at Government House today, Mr. Tsang said measures introduced in recent months have helped stabilize Hong Kong’s situation, adding that no local bank needs to be "rescued" and the city's banking system remains stable.

He said he would monitor the situation and consider launching more relief measures in the middle of the year if necessary.

Mr. Tsang said it was difficult to say when the economy will bottom out, but the Administration would do its best to prevent the unemployment rate from exceeding the level seen during the SARS outbreak in 2003.

“I do not believe that we have seen the worst yet in the current financial crisis. It has already shown the defects in our financial institutions, in the international community, and it has begun to bite on the real economy.

“It would take a bit of time before we are going to see the worst. Much depends on the effectiveness of measures being taken by large economies such as the US, Europe, and our own nation.

“If there are protectionist measures being taken, I'm afraid it would take a much longer time for the world to recover. But no one can say that they could rescue the whole world in a short space of time using proactive means by a single nation. It requires a global collective effort.”

On the country’s plan to develop Shanghai as an international financial center, he said Hong Kong should not be afraid, nor worry about the move. Hong Kong thrived on competition and should find ways to maintain its competitiveness as a top financial hub, he said.