The Government's priority should be to stabilise the economy and restore confidence in Hong Kong, says Secretary for Financial Services & the Treasury Prof KC Chan.

The Government should not consider increasing taxes at this time, he added. 

Prof Chan quoted Financial Secretary John Tsang as saying earlier that he is not about to increase the burden on the public. The Government's priority is to try to increase aggregate demand in the economy.

Government efforts

Speaking to the media after a radio talk show today, Prof Chan said the Government is stimulating the economy and trying to prevent further job losses.

The Government is ensuring that there is a good supply of liquidity in the banking sector so that there will be confidence in bank lending.

It is also helping small and medium enterprises - the backbone of the economy - by increasing guarantees for some SME funds.

The Government is also committed to speeding up public works projects and infrastructure projects, to maintain or even increase the aggregate demand for jobs in the economy.

Long-term strategy crucial

Prof Chan said businesses should consider the long-term strategy - even in times of difficulty. They should try to re-organise their resources in a way to minimise the impact on their staff.

He thought companies long-term future, and their staffs' long-term loyalty, is crucial to the economy's future.