Welcome news: Financial Secretary Henry Tang says the Government will continue to pursue a prudent fiscal strategy and strictly control public sector spending.

Financial Secretary Henry Tang welcomes the Heritage Foundation's ranking of Hong Kong as the world's freest economy for the 11th consecutive year.

The Government remains firmly committed to maintaining the city as a free market economy that gives maximum scope to the private sector and will continue to pursue a prudent fiscal strategy and strictly control public sector spending, he added.

The Heritage Foundation released its 2005 Index of Economic Freedom today.

According to the foundation, Hong Kong's virtues lie in:

* its duty-free port with no barriers to trade;

* low level of government intervention in the economy;

* very low level of inflation;

* very low barriers to capital flows and foreign investment;

* very low level of restrictions in banking and finance;

* low level of intervention in wages and prices;

* strong property rights;

* very low level of regulation; and

* a low level of informal market activity.

Mr Tang said: "I am pleased that the virtues we have been upholding to keep Hong Kong flourish as a free market economy have once again been reaffirmed by the international community.

Gov't's key role is to act as a facilitator   

"We see the Government's roles as those of a facilitator which provides a business-friendly environment for all firms to compete on a level playing field while maintaining an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market. The Government will also take a leading role in government-to-government interactions, for instance, on market-access arrangements," he added.

Mr Tang stressed the Government will spare no efforts in preserving its strengths and in making changes where there was room for improvement.