In terms of trade and logistics, he said Hong Kong will work closely with the mainland authorities to maintain its leading position in the global supply chain. The city also has an important role to play in the blueprint for the Pearl River Delta region.

    The HKSAR government has also identified permanent sites close to the container terminals and airport to facilitate the shift to high-value goods and services.

    Access to mainland market in professional services, where Hong Kong also has a clear advantage, will be facilitated, Tsang said in the 90-minute address.

Chief Executive of the Hong Kong Special Administrative Region (HKSAR) Donald Tsang Yam-kuen (L Front) delivers his 2009-10 policy address at the Legislative Council in south China's Hong Kong, Oct. 14, 2009. (Xinhua/Chen Duo) Photo Gallery>>>

    Land use will be optimized to boost the six industries where Hong Kong enjoys a clear advantage.

    Measures will be considered or put in place to allow more students from the Chinese mainland and other places to receive education at senior high schools and higher education institutions in Hong Kong.

    In a move to support the medical services industry, Tsang said the government planed to invite Expressions of Interest from the market to develop private hospitals on four sites by the end of the year. Standard setting will also speed up for Chinese herbal medicines.

    The HKSAR government will allocate about 200 million HK dollars (25.6 million U.S. dollars) to launch an "R&D Cash Rebate Scheme," under which eligible enterprises may enjoy a cash rebate equivalent to 10 percent of their investments, Tsang said.

    Tsang outlined plans to boost, among others, creative industries, environmental industries and cooperation with the neighboring Guangdong province in the policy address. Healthcare, cultural conservation and anti-drug campaign were also covered.

    Tsang said Hong Kong is a city of immigrants and "a free, pluralistic, advanced and civilized society" and that the integration between Hong Kong and the Pearl River Delta would speed up in the next decade.

    "We are entering a new era, but we need not be worried about the new competitive landscape. With an open mind, pioneering spirit, and full preparation, we can break new ground together," he said.

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