Going international: Chief Executive Tung Chee Hwa says Hong Kong can act as an intermediary for external economic co-operation and link the Pan-Pearl River Delta region to the rest of the world.

With its highly open and cosmopolitan outlook, Hong Kong can act as an intermediary for external economic co-operation, linking the Pan-Pearl River Delta region and the rest of the world.

Hong Kong will also play a positive role in facilitating the opening up and future development of the region, Chief Executive Tung Chee Hwa says.

Guangdong plays a leading role

Speaking at the first Pan-Pearl River Delta Co-operation & Development Forum in Hong Kong today, Mr Tung said Guangdong Province, which initiated the concept, should play a leading role in the process of regional co-operation and development.

Comparing the strengths of Hong Kong and Mainland provinces, Mr Tung said the nine southern provinces are a major manufacturing base and consumption market while Hong Kong has it own advantages in raising capital, financing, information exchange and delivering services.

HK becomes service hub

With stronger capability in doing business and opening up new markets, Hong Kong can become a hub of high added-value services in the region, he added.

The four major pillars of Hong Kong's economy - finance, logistics, tourism and professional services - are also the fastest developing industries in the PPRD region, the Chief Executive said.

He believed that enhancing regional co-operation in these areas will help the concerned provinces and cities give full play to their own strengths and advantages.

"To activate the PPRD regional co-operation, it is necessary to launch large-scale infrastructure projects, capital-raising activities and business promotion events."

New mechanism to enhance communication

Mr Tung agreed that the establishment of a new mechanism will boost communication and co-ordination among provinces and cities within the region.

A PPRD government leaders joint conference system should be set up, he said, adding that the functions of policy research institutions, intermediaries and enterprises should be brought into play.

Speaking at the same forum, Chief Secretary for Administration Donald Tsang said the PPRD regional co-operation is a process with a lot of challenges.

These challenges include the difficulties in building cross-provincial infrastructure, differences among the systems in various places, and problems in skills-exchanges.

Determination essential to overcoming challenges

Governments' determination and business wisdom are essential to overcoming these challenges, Mr Tsang said.

"PPRD regional co-operation will help Hong Kong leverage our unique advantages, expand our economic hinterland and scope of development, and facilitate Hong Kong's economic recovery and long-term development.