Special Report: Global Financial Crisis

John Tsang (2nd L), Financial Secretary of China's Hong Kong Special Administrative Region, responses to questions at the press conference held after presenting the 2009-2010 Budget in Hong Kong, south China, Feb. 25, 2009. (Xinhua/Chen Duo) Photo Gallery>>>

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong Special Administrative Region (HKSAR) government will likely have a surplus of 18 billion HK dollars (2.32 billion U.S. dollars) in the Operating Account for 2008-2009.

    HKSAR government financial secretary John Tsang made the forecast while delivering the Budget for the fiscal year 2009-2010 at the Legislative Council here Wednesday.

    But the HKSAR government was estimated to have a deficit of 4.9billion HK dollars (632 million U.S. dollars) in the Consolidated Account, equivalent to 0.3 percent of the city's gross domestic product (GDP), Tsang said.

    Fiscal reserves are forecast to stand at 488 billion HK dollars (62.97 billion U.S. dollars) in the fiscal year ending March 2009.

    Tsang said in face of economic recession, he would pragmatically review the various economic segments and decisively inject impetus into the economy to bolster market confidence and provide a better environment for enterprises to play to their strengths.

    He outlined multi-pronged, strategic measures to counter the current global financial crisis, including the provision of liquidity assistance to the banking system, provision of full deposit guarantee according to the principles of the Deposit Protection Scheme and the establishment of a Contingent Bank Capital Facility.

    The HKSAR government also introduced new measures to address the funding needs of small and medium enterprises (SMEs).

    Tsang said as a result of the financial crisis and a global economic slowdown, Hong Kong's GDP grew by only 2.5 percent in 2008, lower than the trend growth rate over the past 10 years.

    The average inflation rate as measured by the Composite Consumer Price Index for 2008 was 4.3 percent due to the fall in global food and energy prices and the decline in consumer demand in the second half of last year.

    "It will be a very difficult year in 2009," Tsang said, "both external trade and domestic demand are expected to remain subdued."

    He forecast that the GDP would decrease 2-3 percent in 2009, the first negative growth for a whole year in Hong Kong since the Asian financial crisis in 1998.

    With the economy sinking into recession, Tsang noted the employment situation is expected to deteriorate further but the headline inflation rate in 2009 will ease to 1.6 percent.

    After falling to a 10-year low of 3.2 percent in the middle of last year, unemployment in Hong Kong reversed to an up-trend with the latest figure standing at 4.6 percent.

    The financial secretary said securing employment was the government's top priority in the global financial crisis.

John Tsang (R), Financial Secretary of China's Hong Kong Special Administrative Region, presents the 2009-2010 Budget at the Legislative Council in Hong Kong, south China, Feb. 25, 2009. (Xinhua/Chen Duo) Photo Gallery>>>

    "To our citizens, having a job is of the utmost importance," the financial secretary told the legislators in his televised budget speech, "The best way to preserve jobs is to improve our economy."

    Tsang said while the HKSAR government need to create more employment opportunities in the near future, the government should concentrate on promoting medium and long-term development, strengthen Hong Kong's economic foundations, bolster the existing strengths and tap new opportunities during this worldwide economics lump.

    Tsang said he gave priority to measures that are effective in creating jobs and supporting employment in preparing the 2009-2010 Budget and decided to introduce in the short-term more measures to strengthen the employment program.

    For the medium and long term, he said, the HKSAR government would spell out measures to grasp opportunities in the Chinese mainland, consolidate strengths in financial services, promote tourism and implement infrastructure projects to help Hong Kong recover from the current financial crisis.

    "Being a small open economy, Hong Kong will inevitably be hit by the once-in-a-century and the most severe financial turmoil since the Great Depression in the 1930s," he noted, "our economy will slide into recession.

    He said the HKSAR government was responding with measures to ease the liquidity crunch in the financial system, relieve enterprises' financing difficulties and bolster the community's confidence.

    The financial secretary promised to be responsive to social problems arising from the economic downturn, including unemployment, reduced incomes, and the negative wealth effect of lower property and stock values.

John Tsang, Financial Secretary of China's Hong Kong Special Administrative Region, presents the 2009-2010 Budget at the Legislative Council in Hong Kong, south China, Feb. 25, 2009. (Xinhua/Chen Duo) Photo Gallery>>>

HK Chief Secretary sees 2009-2010 Budget outstanding, pragmatic

   HONG KONG, Feb. 25 (Xinhua) -- Hong Kong Chief Secretary for Administration Henry Tang said Wednesday that the 2009-2010 Budget is outstanding and pragmatic.

    Speaking at a media session after Financial Secretary John Tsang presented the budget at the Legislative Council on Wednesday, Tang said the budget has a number of very good and appropriated measures, which will protect and promote the employment in Hong Kong.Full story 

HK to introduce one-off revenue concessions

   HONG KONG, Feb. 25 (Xinhua) -- Hong Kong's top financial official announced here Wednesday that he had decided to introduce some one-off revenue concessions to reduce the burden of the public.

    "Although it is expected that a larger deficit will occur in 2009-10, for the long-term interests of the community as a whole and having regard to the Government's financial position, I have decided to introduce some one-off revenue concessions," said John Tsang, financial secretary of the Hong Kong Special Administrative Region, when delivering the 2009-2010 budget speech at the Legislative Council.Full story 

HK financial secretary promotes green initiatives in budget 

   HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang announced a series of initiatives in his budget Wednesday to promote green industries and energy conservation and improve the living environment.

    Tsang made the remarks when delivering the budget speech for the fiscal year 2009-2010 at the Legislative Council here Wednesday morning. Full story

Donald Tsang praises 2009-10 Budget 

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong Chief Executive Donald Tsang Wednesday praised the 2009-10 Budget for being pragmatic and forward-looking in responding to the financial crisis as well as laying the foundations for long-term growth.

    "The global, national and local environments have changed dramatically since last year's Budget. Our GDP is expected to contract this year, and of course our revenues will be hit hard as well," Tsang said. Full story

HK gov't to increase heritage conservation funding

   HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of Hong Kong John Tsang Wednesday proposed to increase funding for the conservation of historic buildings in the city.

    According to Tsang, who delivered his budget speech on Wednesday, the Development Bureau of Hong Kong has just announced the results of the first batch of historic buildings under the Revitalizing Historic Buildings Through Partnership Scheme. Full story

HK economic growth expected to average 3.5% in coming years

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong's top financial official on Wednesday forecast the city's annual economic growth to average 3.5 percent in 2010 to 2013, while inflation was expected to average 2 percent.

    Financial Secretary John Tsang of the Hong Kong Special Administrative Region (HKSAR) government also said he expected deficit in the operating account for the next three years, followed by a return to surplus in the fiscal year 2012-2013. Full story

Financial Secretary: HK to bring art into community
   
    HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang said here Wednesday morning that the SAR government would make efforts to bring art into the community.

    Tsang made the remarks when delivering the budget speech for the fiscal year 2009-2010 at the Legislative Council. Full story

Financial Secretary: HK gov't to raise medical expenditure

    HONG KONG, Feb. 25 (Xinhua) -- The Hong Kong government will increase healthcare expenditure to 17 percent of recurrent expenditure by 2012, said Financial Secretary of Hong Kong John Tsang on Wednesday.

    While delivering his budget speech on Wednesday, Tsang said the government would draw an amount of 50 billion HK dollars (about 6.4 billion US dollars) from the fiscal reserves to implement medical reform. Full story

Official: Hong Kong's creative economy office to come in mid-year

    HONG KONG, Feb. 25 (Xinhua) -- A previously announced dedicated office for nurturing creative industries under the Hong Kong Special Administrative Region (HKSAR) government will come in the middle of this year, a senior official said Wednesday.

    Delivering an annual budget speech, Financial Secretary John Tsang said the office will integrate existing government resources to effectively support the sector. Full story

HK's capital works expenditure estimated at 39.3 bln HK dollars

   HONG KONG, Feb. 25 (Xinhua) -- Hong Kong's top financial official said here Wednesday that he estimated capital works expenditure for 2009-2010 in the city will be as high as 39.3 billion HK dollars (5 billion U.S. dollars).

    "A key strategy of this Government is to promote economic growth through infrastructural development," said John Tsang, financial secretary of the Hong Kong Special Administrative Region, when delivering the 2009-2010 budget speech at the Legislative Council. Full story

HK to increase co-op with emerging markets

   HONG KONG, Feb. 25 (Xinhua) -- Hong Kong would further develop and increase financial cooperation with emerging markets to consolidate Hong Kong's position as an international financial center, Hong Kong's top financial official said here Wednesday.

    "Particular measures are needed to improve Hong Kong as a platform for the growing area of Islamic finance," said John Tsang, financial secretary of the Hong Kong Special Administrative Region, when delivering the 2009-2010 budget speech at the Legislative Council.Full story 

Financial chief: HK intends to issue gov't bonds

    HONG KONG, Feb. 25 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government intended to issue government bonds to promote the development of local bond market, Hong Kong's financial chief said Wednesday.

    The development of the local bond market helped reinforce Hong Kong's position as an international financial center by offering more diversified investment products and avenues for financing, Financial Secretary John Tsang said in a budget speech.Full story

HKSAR gov't continues managing public finances prudently

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong's top financial official said here Wednesday that he would continue managing public finances prudently by keeping expenditure within the limits of revenues, and maintaining a low and simple tax regime.

    John Tsang, financial secretary of the Hong Kong Special Administrative Region, said he had stated his principles of management of public finances in the 2008-2009 Budget, including managing public finances prudently by keeping expenditure within the limits of revenues, maintaining a low and simple tax regime, and following the direction of "Market Leads, Government Facilitates".  Full story

HK to spend 300 bln HKD to create job opportunities

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong would spend more than 300 billion HK dollars (about 38.46 billion U.S. dollars) to ease pressure of economic contraction, boost domestic demand and increase employment opportunities, said Hong Kong's top financial official here Wednesday.

    "We will also introduce some targeted measures to provide various types of jobs and internship opportunities," said John Tsang, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, when delivering his second budget speech to the Legislative Council.  Full story

HK gov't to create jobs, support employment

    HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang said here Wednesday that the budget for the fiscal year 2009-2010 was guided by principles including job creation.

    Delivering his second budget speech as financial secretary at the Legislative Council here Wednesday morning, Tsang said that since his first Budget made in 2008, the global financial environment had changed dramatically. Therefore, in preparing this year's Budget, he had been guided by three principles.  Full story

HK to provide additional funding to provide more jobs

    HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang said on Wednesday the government would provide additional funding to provide various types of jobs.

    Delivering the budget for the fiscal year 2009-2010 at the Legislative Council, Tsang said he would provide an additional 1.1 billion HK dollars non-recurrent funding to provide various types of jobs.  Full story

HK to foster cooperation with Guangdong, Macao

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong's top financial official said here Wednesday that Hong Kong would foster its cooperation with neighboring Guangdong Province and the Macao Special Administrative Region.

    "My confidence in Hong Kong's future is buttressed by our advantage in having the Mainland as our hinterland," said John Tsang, financial secretary of the Hong Kong Special Administrative Region, when delivering the 2009-2010-budget speech at the Legislative Council.  Full story

HK to attract more Mainland tourists

    HONG KONG, Feb. 25 (Xinhua) -- Financial secretary of Hong Kong John Tsang Wednesday proposed a string of measures to boost the city's tourism, including attracting more Mainland tourists through Individual Visit Scheme.

    "In face of the current economic difficulties and competition from other regions, we should take proactive action to facilitate the continuous development of tourism," said Tsang while delivering his budget speech at the Legislative Council on Wednesday.  Full story

HKSAR gov't supports full implementation of "Three Direct Links"

    HONG KONG, Feb. 25 (Xinhua) -- Financial Secretary of the Hong Kong Special Administrative Region (HKSAR) John Tsang said here Wednesday morning that the SAR government supported the full implementation of the "Three Direct Links" across the Taiwan Straits.

    Tsang made the remarks when delivering the budget speech for the fiscal year 2009-2010 at the Legislative Council here Wednesday morning.  Full story

HK to spend 61.7 bln HK dollars on education

    HONG KONG, Feb. 25 (Xinhua) -- Hong Kong would spend about 61.7 billion HK dollars (7.9 billion U.S. dollars) for 2009-2010, accounting for the largest share of government expenditure, the top financial official of Hong Kong said here Wednesday.

    "Human capital is the most valuable resource for our pillar industries and sustaining our economic edge," said John Tsang, financial secretary of the Hong Kong Special Administrative Region, when delivering the 2009-2010-budget speech at the Legislative Council.  Full story