We are entering a new phase of regional co-operation on various fronts. This includes financial co-operation and environmental co-operation as well as co-operation in pulling off significant engineering projects.

This spirit of collaboration was highlighted at the APEC meeting in Singapore earlier this month when leaders pledged to forge a "partnership of common interest". By sharing knowledge, expertise and talent, we can improve our region's competitiveness and desirability as a place to live and work.

No doubt, many of you will be familiar with the Hong Kong Government's plans for infrastructure development. This is key to our vision for a more competitive and efficient city that will attract more investors from around the world.

In his Policy Address last year, our Chief Executive set out the principle of 'progressive development' to underpin our sustainable growth. Promoting economic development through infrastructure projects is one of the main strategies to achieve this goal.

Hong Kong has experienced high-speed growth over the past 30 years. This was partly driven by infrastructure development, including waterworks and transport infrastructure as well as the Airport Core Programme. These projects have helped to expedite urbanisation and bring economic benefits to our city and our region.

Among the 10 major infrastructure projects outlined by the Chief Executive last year, three are local transport works. These include extending the railway system and a new bypass in the northwest New Territories. As a small and relatively densely populated area, the better connected our city is, the more productive we can become.

There are also four major cross-boundary projects that will help to unleash the economic potential of our region including the Pearl River Delta. These are the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Hong Kong-Zhuhai-Macau Bridge, Hong Kong-Shenzhen Airport Co-operation, and Hong Kong-Shenzhen Joint Development of the Lok Ma Chau Loop.

The remaining three mega projects are new urban development areas - West Kowloon Cultural District, Kai Tak Development Plan and New Development Areas.

Allow me to expand on the details of some of these projects because they offer promising opportunities for engineers in various fields.

Geo-technical engineers will have a significant role to play in the site formation works for a new cruise terminal at Kai Tak. Their work will help develop Hong Kong into a leading cruise hub in the region for local, regional and international visitors.

There are also exciting projects in the pipeline for civil engineers. Construction of the massive Hong Kong-Zhuhai-Macau Bridge is set to begin before the end of this year. The bridge will play a strategic role in the economic development of Hong Kong, Macau and the western Pearl River Delta region. It will reduce transport costs and time for travellers and goods. Completion is expected by 2015-2016.

Work on the Guangzhou-Shenzhen-Hong Kong Express Rail Link is also due to begin by year-end. The Hong Kong section of the express rail link will run in a 26-kilometre tunnel and require a high degree of engineering technology to complete the project. Once up and running, the link will connect Hong Kong to the 16,000-kilometre national high-speed rail network.

Structural engineers will be kept busy with a number of building works. These include the Kai Tak Development with its three schools and 13,000 public housing flats. There will also be the Kai Tak Government Offices with a gross floor area of 50,000 square metres. Completion of the first phase of the Kai Tak Development is expected by 2013.

Other building projects include the West Kowloon Cultural District. This is an ambitious integrated arts and cultural project comprising world-class facilities, iconic architecture and quality programmes with must-visit appeal. A public engagement exercise is under way, and renowned international architectural teams are working on a master plan for the 40-hectare site.

Electrical and mechanical engineers have equally attractive opportunities. Apart from the major infrastructure projects, we have allocated significant capital investment to energy conservation and green building projects.

Large-scale energy conservation projects include the District Cooling System for the Kai Tak Development and energy conservation initiatives at Government buildings, such as the Tamar Project and the Civil Aviation Department Headquarters.

Minor works will also be carried out in Government buildings to install energy efficient lighting systems, retrofit plumbing with water saving devices and incorporate energy efficient features in air-conditioning, elevator and escalator systems. In my Budget this year, I allocated $450 million for these works which will contribute to our overall goal of 'quality city, quality life'.

Now, I shall talk about our strengthening co-operation with the Mainland. These ties have become even more robust in recent times.

Last year, the Central Government in Beijing announced a 4 trillion renminbi stimulus package to tackle the global financial crisis and boost domestic demand. About 1.5 trillion renminbi has been earmarked for infrastructure projects, building construction and environmental conservation projects. This translates into huge opportunities for engineers as well as the business community.

Rapid economic growth and the liberalisation of the market in the Mainland will bring benefits to Hong Kong as well as other neighbouring Southeast Asian economies.

The Hong Kong Government has been strengthening ties with the construction and engineering industries on the Mainland. In 1997, the two sides jointly organised the first large-scale conference for the Hong Kong and Mainland construction industries. This conference has become a major annual event, providing an excellent platform for industry stakeholders and professionals to network and jointly explore market and co-operation opportunities. 

To promote the exchange of professional services, the Development Bureau has maintained close relations with the Mainland's Ministry of Housing and Urban-Rural Development. A great deal of progress has been made in promoting mutual recognition of professional qualifications for engineers.

Representatives from relevant professional institutes in Hong Kong have held several meetings with officials from the ministry and professional bodies in the Mainland. Six construction-related professions have reached mutual recognition of qualification agreements and we are working to expand this area.

Given our city's unique history, we have a key role to play in our nation's continued development and opening up to the rest of the world. We are the premier gateway for overseas entrepreneurs doing business on the Mainland, and for Mainland firms to seek opportunities overseas.

We have one of the world's busiest land boundary crossings. In 2007, an average of 490,000 people crossed the boundary every day. That is double the number of daily trips in 1997. And each year, more than three million passengers fly into Hong Kong and divert to the Pearl River Delta region and other destinations.

We like to refer to Hong Kong as an Asian hub for a variety of things, from arts and culture to business and finance. This is partly because of our geographical location in the centre of East Asia and on the southeastern tip of China. It is also because we have been able to attract a great deal of investment through our open markets and a free flow of talent, capital, information and ideas.

Hong Kong is the world's freest economy as rated by both the US-based Heritage Foundation and the Fraser Institute in Canada. We have a business-friendly environment with low taxes, efficient civil service and zero tolerance of corruption.

This has helped to transform Hong Kong from a manufacturing base into a high-value-added economy based on services, including engineering services. These include project planning, construction management and risk management services as well as services provided by consultants and contractors. Also, local firms often have the right experience, connections and know-how in doing business on the Mainland.

These are some of the areas where Hong Kong can contribute to regional engineering co-operation. We also have a lot to learn from the unique engineering challenges and expertise among other ASEAN member countries.

Financial Secretary John Tsang gave this address at a seminar on engineering projects development in ASEAN member countries held at the Hong Kong Convention & Exhibition Centre.

Financial Secretary John Tsang