Economy

Hong Kong to foster economic diversification

(Xinhua)
Updated: 2011-02-23 15:48

HONG KONG - Hong Kong's Financial Secretary John Tsang Wednesday said, in addition to the city's developing six industries, the government is committed to promoting wine trading and exploring opportunities in emerging markets to promote the diversification of its economy.

Tsang mentioned about the development of the six industries which was rolled out in 2009, when delivering his budget speech on Wednesday, saying the share of these industries in GDP rose from 7. 6 percent in 2008 to 8.0 percent in 2009.

As for the innovation and technology industry, the city's Science Park Phase 3 is due for completion in phases starting 2013, according to Tsang.

With the advent of the National 12th Five-Year Program, Hong Kong will strengthen its collaboration in scientific research with the mainland and encourage the participation of more research personnel of Hong Kong in national science and technology programs.

"From April, we will provide an annual sum up to HK$2 million ($256,674) to each of the 12 Partner State Key Laboratories in Hong Kong to support their operation and enhance their research capability," Tsang said.

In 2011-12, the government will continue to help the cultural and creative industries tap into the mainland market, support local creative talent in taking part in major overseas competitions and exhibitions, and co-operate with the film, design, digital entertainment and other sectors to organize promotion, exchange and business matching activities in the mainland and overseas markets.

"We will give priority to electric vehicles when replacing government vehicles in the two financial years of 2011-12 and 2012- 13," Tsang said, the government expected to have an intake of close to 200 electric vehicles of various types in these two years.

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Since wine duty was exempted in February, 2008, there has been sustained growth in wine imports and related businesses. In 2010, the total value of wine imports exceeded HK$6.9 billion, an increase of 73 percent over 2009.

According to the industry source, Hong Kong surpassed New York to become the world's largest wine auction center in 2010.

In view of the sustained development of emerging markets and their burgeoning economic and trade links with the mainland, Tsang said Hong Kong has strengthened its investment promotion efforts in markets such as Southeast Asia, the Middle East, Russia, India and South America.

"We will continue to enhance investment promotion efforts in major emerging markets, encouraging corporations to establish footholds in Hong Kong," he added.