KONG ECONOMIC & TRADE OFFICE • SINGAPORE FilesFiles FEBRUARY 2002 ISSUE • MITA (P) 297/09/2001

New HKETO Director to promote in ASEAN countries

THE Hong Kong Economic and Trade rule of law, a clean and accountable Office (HKETO) would strive to its administration, the free flow of captial, uttermost to maintain and foster the close information and ideas, a level playing tie between Hong Kong and ASEAN field would continue to provide the countries in trade, business and culture, basis of Hong Kong’s success in the Mr Rex Chang, Director of HKETO in future. While Hong Kong’s strategic Singapore, said at a welcoming reception location with China as its hinterland, in January. low and simple taxes, world- class Mr Chang said, “ ASEAN, taken as a transport and communication group, is Hong Kong’s third largest infrastructure, concentration of top market for domestic exports, re-exports flight financial and business service and source of imports. It is also the Mr Rex Chang, Director of Hong Kong Economic providers had all worked out to make fourth largest trading partner of Hong and Trade Office, addressing at the reception. Hong Kong the Asia’s World City. Kong. Five of the ASEAN countries, Over 200 guests including diplomats, namely Singapore, Malaysia, Thailand, enhance the understanding of Hong government officials, senior business the Philippines and Indonesia, are Kong in the region. Mr Chang added that executives and representatives from the among the top 20 trading partners of Hong Kong welcomed more investment media and community organisations Hong Kong.” from the region. attended the reception to welcome Mr He stressed that HKETO would Mr Chang also highlighted that Chang who took up the director post in continue to promote Hong Kong and Hong Kong’s foundation stones of the November, 2001. Regional headquarters in HK hit record high THE number of regional He commented, “The survey operations set up by foreign- Number of Regional Headquarters shows Hong Kong is again owned companies in Hong Kong and Regional Offices in 2001 topping the charts as the reached a record high of 3,237 preferred hub and living up to its

on June 1, 2001, representing a 2500 role as Asia’s world city.” 7.9 per cent increase over 2000, “With China’s accession to according to the 2001 Annual 2000 WTO, Hong Kong’s status as the

Survey of Regional Offices 1500 preferred location for regional Representing Overseas headquarters for multinationals Companies in Hong Kong. 1000 will be strengthened further,” Mr The total number of regional 500 Rowse added. headquarters in 2001 rose from Companies considered low 0 855 in 2000 to 944, an increase 2000 2001 2000 2001 and simple tax system as the of 10.4 per cent, and the highest Regional Regional most important factor in Headquarters Offices ever. choosing the location for setting The total number of regional 2001 Annual Survey of Regional Offices Representing Overseas Companies in Hong Kong up regional representation. offices rose by 6.8 per cent from Other important factors included 2,146 in 2000 to 2,293 in 2001 — the site for regional headquarters. free flow of information, political another all-time high figure. “More and more multinationals stability and security, corruption free The Director-General of (MNCs) are flocking to set up government, and communication, Investment Promotion at Invest Hong beachheads in Hong Kong, taking transport and other infrastructure. Kong, Mr Mike Rowse, said, “Since its advantage of the territory’s competitive Mr Rowse said Hong Kong would inception 16 months ago, InvestHK advantages over other Asian cities, in continue working hard to retain its has seen a constant and rising particular, as a gateway to China,” Mr attractiveness as a place to do international interest in Hong Kong as Rowse said. business. 2 Hong Kong remains the world’s freest economy

HONG KONG has been rated great deal to our belief in a as the world’s freest economy free and market-oriented for the eighth consecutive year economy with minimum by the Heritage Foundation’s government involvement 2002 Index of Economic and fair competition. We Freedom. will continue to strongly In receiving the 2002 adhere to this belief because Index of Economic Freedom it served us well. Together from Mr Edwin Feulner, with the freedoms provided President of the Heritage for by the Basic Law, the Foundation, the Chief rule of law upheld by an Executive, Mr Tung Chee Hwa, independent judiciary, a said that he was delighted the level playing field for Heritage Foundation had rated business, free flow of Hong Kong as the freest information, a clean and economy in the world for the efficient government, and eighth consecutive year, prudent management of signifying the confidence of government finance, it has the international community sustained Hong Kong’s in Hong Kong. continued prosperity and The Heritage Foundation The Chief Executive, Mr Tung Chee Hwa, receiving the 2002 Index of Economic created our competitive continues to acknowledge Freedom from Mr Edwin Feulner, President of the Heritage Foundation. advantage today as an Hong Kong’s superb international centre for performance in the rule of law, recognises Hong Kong as one of the finance, trade, transport and logistics, upholding of non-intervention on world’s most accessible markets to and for tourism.” economic policies, effective external trade and foreign investment. The study covers 161 economies in enforcement of property rights, uniform The study also credits the the world. Hong Kong scores 1.35 on a and non-burdensome regulations on Government’s effort to promote greater best-to-worst scale of 1 to 5. The Index business, absence of trade barriers and civil servant accountability. ratings reflect an analysis of 50 low taxes. Mr Tung said, “Hong Kong’s economic indicators including banking The Heritage Foundation also remarkable success over the years owes a and finance and trade policy. Hong Kong named host of top travel congress

HONG KONG Tourism their interest in Board (HKTB) Executive packaging and Director Ms Clara Chong promoting Hong Kong to told over 200 executives their customers. Already, from travel companies Hong Kong commands worldwide along with the largest share of US global media guests at a outbound travel of any round-table gathering in destination in Asia.” early December that Hong Ms Chong added that Kong had won its bid to China’s accession to the host the annual World WTO and Beijing’s Travel Congress of the successful bid to host the American Society of Travel 2008 Olympics would Agents (ASTA) in 2004. bring an added boost to Ms Clara Chong, Executive Director, HKTB, signs a contract with Mr Richard Copland, ASTA is the world’s US-Hong Kong tourism. President and CEO, ASTA, for Hong Kong to host the ASTA Congress in 2004. largest and most prestigious “By 2004 when the ASTA association of travel professionals, honour for Hong Kong and I should like Congress takes place, these two boasting more than 26,000 members. to thank our industry partners, especially developments will be providing a great The 2004 World Travel Congress, to be the Hong Kong Hotels Association and number of new business opportunities held from 28 September to 3 October, the Hong Kong Convention and for overseas companies,” she observed. is expected to bring more than 5,000 Exhibition Centre, for their role in making “Hong Kong’s role as the premier delegates to Hong Kong, including our bid successful.” regional transport and thousands of US travel agents who will “ASTA’s decision to choose Hong communications hub will make it an have the opportunity to see the City of Kong is very important and timely for us, excellent base both for doing Life for themselves. Hong Kong last as it shows that the US travel trade has business in the Mainland and for hosted the event in 1965. long-term confidence in Hong Kong as a staging related conferences and Ms Chong said, “This is a great destination. This, in turn, will stimulate exhibitions,” said Ms Chong. 3 DITS promotes HKSAR IT strategy in e-ASEAN Government Congress

HONG KONG has made great strides in the business community and the launched the award-winning Electronic building the necessary infrastructure industry.” Service Delivery (ESD) scheme through and putting in place the right The HKSARG is committed to which members of the public can environment for a buoyant e-culture leading by example in the use of obtain a wide variety of public services following the implementation of the e-business, both in conducting internal through the Internet and public “Digital 21” information technology (IT) business operations and in delivering information kiosks 24 hours a day and strategy. public services. seven days a week. The Director of Information “We have set up a dedicated E- Apart from continuing to roll out Technology Services, Mr Alan Wong government Co-ordination Office to drive more new ESD applications, the Chi-kong, said this at the e-ASEAN and co-ordinate e-government HKSARG has developed one of the Government Congress held in Bangkok, initiatives,” said Mr Wong, adding that world’s first web-based electronic at the end of November 2001. the HKSARG had also set the target of tendering system, which enables it to IT leaders in government bodies providing e-option for 90 per cent of issue tenders and receive bids securely from the ASEAN countries attended the public services amenable to the electronic via the Internet, further demonstrating congress to discuss IT policies and best mode of service delivery by end 2003. its dedication to promote the adoption practices. Additionally, the HKSAR has of e-business. Mr Wong told the congress participants that the Hong Kong Special Administrative Region Government Cyberport – a world-class (HKSARG) introduced its first IT strategy, “Digital 21”, in November information infrastructure 1998. Since then, Hong Kong has made THE Cyberport project, significant progress in developing as a a world-class information digital city and has recorded infrastructure, was part increasing technology deployment of Hong Kong’s overall and adoption. strategy to build up the Citing a few examples, Mr Wong city as a leading said, “Our mobile penetration rate at knowledge economy in over 80 per cent is among the highest the globally e-connected in the world. Our broadband network world, the Financial covers all commercial buildings and Secretary, Mr Antony over 95 per cent of our households. Leung, said at the Our Internet penetration rate at project’s topping out around 50 per cent is among the ceremony at the end of highest in Asia.” November 2001. “Besides, we have a very high The Cyberport utilisation rate of smart card technology architecture will with more than seven million in the combine the state-of- Mr Antony Leung, Financial Secretary (middle), Mrs Carrie Yau, market for a population of around the the-art interactive Secretary for Information Technology and Broadcasting, and Mr Richard Li, Chairman and Chief Executive of PCCW top out the same number.” technology with a first building at the Cyberport. To ride on the next wave of the e- nurturing environment revolution, the HKSARG revised the to facilitate the cross-fertilisation of optimistic that the IT companies here strategy and promulgated in May 2001 ideas in the IT field. will develop new technologies, the “2001 Digital 21 Strategy: “It is not just an ideal place for big applications and content to support Connecting the World” which builds on multinational corporations. Medium our industries and services, as Hong Hong Kong’s early success in and small enterprises will also benefit Kong works to enhance its position as establishing a solid foundation for from a wide range of shared facilities Asia’s World City.” leveraging IT to further promote the and services on a “need to use” basis. Selection of office tenants began development of Hong Kong’s This full spectrum of companies at the in April last year. More than 72 information economy. Cyberport will attract professionals multinationals, local and overseas “We will continue to enhance our from around the world. companies had initially applied to world class e-business infrastructure. “Thus we will build up within the rent office spaces there. The first This includes telecommunications Cyberport a society brimming with batch of IT companies will start infrastructure, regulations and the knowledge and vitality of moving into the first building legislation, public key infrastructure individuals who specialise in IT around April and more than 100 and certification authorities,” said applications, information services and companies will gather in the Mr Wong. content creation,” said Mr Leung. Cyberport upon its full completion “In addition, we will continue to The Financial Secretary said, “I am by end 2003. encourage the adoption of e-business in 4

technology and world-class sophisticated equipment to fight against cancer. “By the same token, the establishment of this cancer centre in Hong Kong, coupled with the collaboration with the world-renowned Memorial Sloan-Kettering Cancer Centre of New York, will help strengthen the territory’s position as a hub of medical excellence in Asia,” Dr Yeoh said. AmMed’s President and Chief Executive Officer, Dr Kevin Loh who is a medical oncologist commented, “With the rapid increase of cancer incidence in Asia, the demand for quality and affordable cancer care and treatment is more urgent. “Hong Kong is our first stop in developing a network of American-style comprehensive cancer treatment centres with good management skills throughout Asia,” Dr Loh said. “As it is very convenient to travel to Dr E K Yeoh (centre); Mr Mike Rowse (left); and Dr Kevin Loh (right), at the opening ceremony Hong Kong, which is centrally located in Asia, our cancer centre can serve as a Hong Kong as Asian hub for cancer direct referral centre for patients in the region, for example, from and South Korea,” he added. treatment and medical tourism The Director-General of Invest Hong A US healthcare company, AmMed Officiating at the opening of the Kong, Mr Mike Rowse, said, “We are International opened Asia’s first cancer centre, Secretary for Health and delighted that another international comprehensive cancer centre in Hong Welfare, Dr E K Yeoh, said he was healthcare service provider has chosen Kong in November, confirming the delighted that AmMed had chosen Hong Hong Kong as its regional base for territory’s position as the Asian hub for Kong as its regional base for the diagnosis and treatment. cancer treatment and medical tourism. development of its cancer diagnosis and “A strong healthcare sector not only The AmMed Cancer Centre, housed in treatment services. benefits the local community, but also the Hong Kong Adventist Hospital, is in “With our well-endowed physical helps attract visitors on medical tours affiliation with the Memorial Sloan – infrastructure, manpower management from neighbouring regions. Hong Kong Kettering Cancer Centre in New York, skill and medical expertise, Hong Kong is has now become a destination for which was ranked the Number One the ideal location to pool international patients all over Asia to seek premier Cancer Hospital in the United States. medical experts, state-of-the-art medical services,” Mr Rowse added. Dragon soars at international kite festival

BRAND Hong Kong’s Director (Leisure Services) distinctive ‘flying dragon’ Mr Ho Wing-him, Deputy took to the skies at an Director of Information international kite festival Services (Overseas), Mr in Hong Kong last Kerry McGlynn and December. Legislative Council Around 3,000 kite member Dr David Chu lovers joined a fun day of Yu-lin. the Hong Kong About 2,500 smaller International Kite Festival kites bearing Brand Hong 2001, held at the Hong Kong’s distinctive dragon Kong Sports Institute and visual identity were organised by the Leisure handed out to and Cultural Services participants who filled the Department. Officiating guests are ready to fly the Kite. skies with flying dragons. The Kite Festival was During the Fun Day, divided into three parts: Local Kite highlight and included the launch of a 15 teams from Hong Kong, Macau, Flying Competition, a Kite Flying Fun large Brand Hong Kong kite jointly flown China, Singapore, the Philippines, Day, and Kite Making Workshops. by Director of Leisure and Cultural Malaysia and vied for honours in The Fun Day was the festival Services, Mr Paul Leung Sai-wah, Deputy an International Kite Flying competition. 5 A year of accomplishments CE meets President of for MPF World Trade Centres Association THE Mandatory Provident Fund System had rapidly received wide public acceptance and support since its inception in December 2000, Chairman of the Mandatory Provident Fund Schemes Advisory Committee, Professor Nelson Chow Wing-sun, SBS, JP, said after the committee was briefed on the work progress of the Mandatory Provident Fund Schemes Authority (MPFA) at the end of November, 2001. Professor Chow hailed the first year of work by the MPFA as a year of accomplishments. Professor Chow said, “By and large, the System has achieved considerable success in major areas in Mr Tung Chee Hwa meets with Mr Guy F Tozzoli. terms of enrollment, public acceptance as well as scheme THE Chief Executive, Mr Tung Chee Hwa, met with the President of World operation. The enrollment rate, in Trade Centres Association, Mr Guy F Tozzoli, at his office in early December, particular, has already reached 95 per 2001. Mr Tozzoli was attending the Asia Pacific Regional Trade Centres Meeting cent and this has never been achieved in Hong Kong. Mr Tung told Mr Tozzoli that he was pleased to learn that the elsewhere in the world. The social Hong Kong Airport Authority was planning to establish a World Trade Centre at the Hong Kong International Airport. He noted that a World Trade Centre at the benefits of the System will be felt by airport would bring benefits to the business and trading communities in Hong many future generations to come.” Kong and around the world. As at the end of last October, 209,000 employers, 1,743,000 employees and 301,000 self-employed persons have joined MPF schemes, Hong Kong representing 88 per cent, 95 per cent and 91 per cent of the respective Observatory awarded relevant population. Regarding scheme assets, as at 30 THE was and publicity of names September 2001, the Aggregate Net awarded the 2001 Committee in the western North Pacific and the Asset Values of all MPF schemes Natural Disaster Prevention Award at South China Sea, and assisting the amounted to HK$28.282 billion, the 34th annual session of the Typhoon World Meteorological Organization including assets transferred from the Committee held last November in (WMO) to develop and host a website voluntary occupational retirement Honolulu, USA. Dr H K Lam, Director of to provide information on all tropical schemes (ORSO). the Hong Kong Observatory, accepted cyclones anywhere in the world. Amongst the HK$28.282 billion the award on behalf of the Observatory. The Typhoon Committee was scheme assets, 45 per cent has been The award was presented to the constituted under the auspices of the invested in balanced funds, 22 per Hong Kong Observatory for its United Nation Economic and Social cent in guaranteed funds, 16 per cent significant contributions to the tropical Commission for Asia and Pacific (ESCAP) in short-term money market funds cyclone programme that have been of and the WMO to promote and (including capital preservation funds), special benefit to the emergency coordinate efforts for minimising 16 per cent in equity funds and one management community, the media tropical cyclone damage in the ESCAP per cent in bond funds. and the general public in the region. For the month of September 2001, Committee’s area of responsibility. The Typhoon Committee is currently the total amount of MPF contributions In the citation of the award, the composed of 14 members: Cambodia; stood at about HK$2 billion. Typhoon Committee commended the China; DPR of Korea; Hong Kong, To date, there are a total of 51 Observatory for its distinguished China; Japan; Lao; Macau, China; registered MPF schemes in the services as the chair of the Committee Malaysia; the Philippines; Republic of market, comprising 300 approved and the Typhoon Research Coordination Korea; Singapore; Thailand; USA and constituent funds. Group, contribution to the development Vietnam. 6 CS takes ‘delivery’ of new helicopter fleet in Paris THE Chief Secretary for Administration, from all over the world can compete Mr Donald Tsang, had taken ‘delivery’ of on an equal footing for major the government’s new helicopter fleet in contracts such as this one. Paris during his visit to Europe in “At the end of the day it’s about November, 2001. getting the best possible product for French company Eurocopter secured the best possible price. I’m sure our the HK$728 million deal to supply eight new helicopter fleet will serve us well helicopters to the Government Flying and enhance our service capabilities.” Service (GFS) after a world-wide tender in Eurocopter President and CEO Mr 1998. Jean-Francois Bigay said his company The contract to supply three Super was very proud to be supplying the Puma L2 and five EC155 helicopters was new helicopters to Hong Kong. the company’s biggest non-military order “GFS is really a major operator The Chief Secretary for Administration, Mr Donald in the past decade. world-wide in terms of missions Tsang, takes a closer look at one of GFS’s new Super Mr Tsang received a close-up look at Puma helicopters in Paris. He was joined by Eurocopter capabilities and operational the helicopter’s capabilities and Senior Vice President, Mr Philippe Harache. efficiency,” he said. performance at Paris’s Charles de Gaulle Two Super Puma’s arrived in Airport where he joined Eurocopter executives for a flight in Hong Kong in October, 2001 while the third is expected early one of the government’s new Super Pumas. January 2002. The EC155s will be delivered in phases by the And he was presented with a model helicopter to end of this year. symbolise the deal at a business reception. GFS Controller Captain Brian Butt said the new helicopters would “The Eurocopter deal is a good example of the greatly enhance Hong Kong’s search and rescue (S&R) capabilities. opportunities that are possible in Hong Kong,” said Mr Tsang. All eight helicopters are equipped with floats to allow S&R “We have a level playing field for business. Companies over water.

CAN’s Chairman New foreign-owned and Chief Executive Officer, Mr Peter de broadcasting company Krassel, said, “The needs and sets up in Hong Kong expectations of the Asian viewer are A newly established broadcasting company comprised of US and diverse and complex European partners had selected Hong Kong for its worldwide — there are many corporate headquarters. Communication Asia Network (CAN) will cultures and a vast broadcast a wide range of cultural, educational and informative geographical reach TV programming content from its Hong Kong-based TV to cover.” production and broadcasting operations centre via satellite to Director-General of Investment Promotion at Invest “CAN looked for Greater China and other Asian countries. Hong Kong, Mr Mike Rowse (left); CAN’s a base where the Chairman and Chief Executive Officer, Mr Peter infrastructure was de Krassel (centre); and the President/CEO of the well established to HKUST R and D Corporation, Professor Tony deliver a world class HK FILES Subscription / Response Form Eastman (right) at a launch press conference. service to the many different markets we We hope you have enjoyed this issue of HK FILES. To make sure that you can hoped to cover in the Asia Pacific region,” he said. continue to receive free copies of the newsletter, please mail or fax the response “Hong Kong simply stood out as our best choice,” Mr Krassel form back to us and give us your comments. continued. The Director-General of Investment Promotion at Invest Hong Name: Kong, Mr Mike Rowse, said, “Invest Hong Kong has worked with CAN to encourage its management to establish a corporate Designation: headquarters and production base here. We are delighted to see Address: this major investment project come to Hong Kong. It is one of several recent broadcasting successes for us. The Hong Kong SAR Government is committed to developing our city as the Asia Pacific broadcasting hub.” CAN has also partnered with the Hong Kong University of Comments: Science and Technology (HKUST) to jointly develop a state-of- ❏ Please put me on your mailing list the-art twenty-first-century digital multi-media institute. Both will ❏ I enjoyed reading your newsletter. I would like to read about: position Hong Kong at the forefront of new media and multi- media technologies.

❏ Other comments: CAN was launched on November 29, 2001 in Hong Kong at CASBAA 2001, Asia’s premier event for the broadcasting and Mail or fax back to the Editor, HK FILES. Hong Kong Economic & Trade Office, related industries. 9 Temasek Boulevard #34-01 Suntec City Tower Two, Singapore 038989. Tel: (65) 338 1771, Fax: (65) 339 2112. Produced by ARMOUR Publishing Pte Ltd