Sustainability strategy: Secretary for Commerce & Economic Development Rita Lau outlines Hong Kong's tactics to counter the global financial turmoil at a luncheon in Vancouver.

Secretary for Commerce & Economic Development Rita Lau has shared with the Vancouver business community Hong Kong's "game plan" to sustain its economic development and the opportunities available amid the global financial crisis.

Speaking at a luncheon seminar entitled "Global Financial Crisis: Hong Kong's Game Plan & Canadian Opportunities" today (November 25, Vancouver time), Mrs Lau said no economy in the world can escape damage from the financial turmoil, but Hong Kong can always "turn crisis into opportunity".

A game plan has been formulated to deal with the upcoming challenges. Outlining some of the measures being taken, Mrs Lau said Hong Kong has adopted temporary measures to provide liquidity assistance to its licensed banks, and the Government will guarantee deposits held with all authorised institutions.

Strong bank system

"I want to emphasise Hong Kong's banking system remains strong and robust, with capitalisation well above international standards. The measures aim mainly to promote confidence and monetary stability in Hong Kong," she said, adding the Government has formed the Special SME Loan Guarantee Scheme to help small and medium enterprises obtain bank credits, and offered better protection for exporters.

Despite an expected budget deficit, Hong Kong will maintain public expenditure on infrastructure.

"We will expedite many of the major infrastructural projects," she said, giving the new cruise terminal and the Hong Kong-Zhuhai-Macau Bridge as examples.

She told the seminar the signing of the Fifth Annex to the Closer Economic Partnership Arrangement between Hong Kong and the Mainland will present many opportunities for Canadian businesses.

Invest in HK

Mrs Lau urged businesses, especially the wine industry, environmental technology, information technology and innovation sectors in British Columbia, to either establish operations in Hong Kong or find registered Hong Kong companies as partners.

She said the strong economic growth, increasing prosperity and changes in lifestyle have led to drastically increasing demands for wine on the Mainland. Hong Kong has become the first free wine port among major economies after abolishing wine duty earlier this year.

As for the environment, she said Hong Kong is working with Guangdong authorities to transform the Pearl River Delta Region into a green and quality living area, adding Canadian companies and service providers can offer green technologies and management practices.

On innovation and technology Mrs Lau said as the Mainland's 11th Five Year Plan stresses the upgrading of the capability and technology level of its enterprises, Hong Kong firms have a key and active role to play in supporting the Mainland's technological development, and Canadian businesses can tap into it through Hong Kong.