Top of the charts: Chief Executive Donald Tsang is presented with a copy of the 2009 Index of Economic Freedom from Heritage Foundation President Dr Edwin Feulner.

Financial Secretary John Tsang welcomes the Heritage Foundation's ranking of Hong Kong as the world's freest economy for the 15th consecutive year.

He said the Government is determined to uphold Hong Kong's free-economy status.

"We see the role of the Government as that of a facilitator. We provide a business-friendly environment where all firms can compete on a level playing field and establish an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market," Mr Tsang said.

Top-ranked in three areas

The Heritage Foundation released its 2009 Index of Economic Freedom study today. The study covered 179 economies worldwide after assessing them on 10 economic freedom factors.

Hong Kong retained its position as the freest economy in the world, followed by Singapore and Australia. Hong Kong scored 90 this year, 0.3 point better than last year, well above the world average of 59.5.

The city ranked first in trade freedom, investment freedom and financial freedom. It also ranked in the top 10 in another three areas - business freedom, monetary freedom and property rights.

The study said Hong Kong's institutional strengths had allowed it to achieve high levels of prosperity reinforced by vibrant entrepreneurial activity.

Tax rates competitive

It said the city's income and corporate tax rates were very competitive, and overall taxation was relatively small as a percentage of GDP, adding Hong Kong's business regulation was straightforward, and the labour market was flexible.

The foundation said Hong Kong was one of the world's leading financial centres, and the regulation of banking and financial services was transparent and efficient. Property rights were well protected by an independent and corruption-free judiciary.