Bolstering ties: Hong Kong, Guangdong and Macau will work together to expedite the reform and development of the Pearl River Delta, while Hong Kong is promoting exchanges with Taiwan.

Hong Kong's advantage in having the Mainland as our hinterland bolsters Financial Secretary John Tsang's confidence in the city's future, he says, adding that Hong Kong, Guangdong and Macau are working together to speedily implement the "Outline of the Plan for the Reform & Development of the Pearl River Delta".

The National Development & Reform Commission published this plan in January. Since then, Guangdong and Hong Kong have agreed to focus on four priority areas of co-operation - the financial industry, service industries, infrastructure and town planning, and innovation and technology.

Both sides have proposed to incorporate the concept of transforming the Pearl River Delta region into a green and quality living area into the national 12th Five-year Plan. Guangdong, Hong Kong and Macau government officials have also agreed to identify economic opportunities that will help the delta region upgrade its industries.

"We will capitalise on the opportunities presented by the outline to increase co-operation among the three places on all fronts so as to set directions and targets that are most beneficial to the long-term development of the greater PRD region," Mr Tsang said in his Budget address today.

"As a financial, trading and services centre for the region, Hong Kong must strengthen infrastructural links with the Mainland," he said, noting major cross-boundary infrastructure projects will be expedited - including the Hong Kong-Zhuhai-Macau Bridge, the Guangzhou-Shenzhen-Hong Kong Express Rail Link, the Hong Kong-Shenzhen Airport Rail Link, and the Liantang/Heung Yuen Wai Boundary Control Point.

The Government supports the full implementation of the "Three direct links"  across the Taiwan Strait and has set up an inter-departmental steering committee to study and co-ordinate overall strategy and action plans on closer economic and trade ties with Taiwan.

The Hong Kong Trade Development Council's Taipei Office, opened in late 2008, will step up efforts to promote trade and service industries in Taiwan.

"We are encouraging the industrial and business sectors and Taiwan business people in Hong Kong to set up a Hong Kong-Taiwan business co-operation committee to provide opportunities for direct exchanges between enterprises from both places," Mr Tsang said.

HK-Macau co-operation

Co-operation between Hong Kong and Macau is being stepped up, Mr Tsang noted, with meetings between the two cities chaired by himself and Macau's Secretary for Economy & Finance.

"The publication of the 'Outline of the Plan for the Reform & Development of the Pearl River Delta' has provided more opportunities for co-operation between the two places. We consider there is a need to strengthen our links with Macau in economic and other areas, especially in tourism and convention business, cross-boundary infrastructure and economic development in order to achieve synergy through complementing each other's strengths."