The government will take several measures, including setting up the Economic Development Commission and the Financial Services Development Council, to boost the long-term economic development and competitiveness of the financial sector, the Chief Executive said in his Policy Address on Wednesday.

Leung said that he will soon announce the establishment of the Economic Development Commission (EDC). "From a high-level, cross-departmental and cross-sectoral perspective, the EDC will explore ways to make use of our long-standing advantages and the opportunities offered by our country," he said.

"The EDC will focus on efforts to broaden Hong Kong's economic base, work on the overall strategy and policy to enhance our long-term development, and identify industries which present opportunities for the city's further economic growth," said Leung.

Under the EDC, Working Groups on Transportation, Convention and Exhibition Industries and Tourism, Manufacturing Industries, Innovative Technology and Cultural and Creative Industries, and Professional Services will be set up to make concrete recommendations to the government.

According to government sources, the Commission, whose membership list will be unveiled soon, will be chaired by the Chief Executive, with over a dozen representatives from various industries.

Besides, Leung also said that he will establish the Financial Services Development Council (FSDC). It will provide a high-level and effective platform for stakeholders to explore ways to complement the internationalization of the financial market of the country.

The Council will also help facilitate the further development of Hong Kong's financial services industry, including advising the government on areas related to diversifying the financial services industry and enhancing Hong Kong's position and functions as an international financial center of the country and in the region.

Government sources said the FSDC is not a statutory organization; it will be an "advisory organization" at first, comprising around 20 professionals from various industries in Hong Kong.

But after a transition period, the FSDC will become a "limited liability company", with the members becoming its directors, to pursue a "flexible development", a government source said, adding that the membership list will be released on Thursday.

Government sources also mentioned that the FSDC will be a coordinator of the industries in Hong Kong, a think tank (of the government) and a policy promoter.

The Council is likely to be launched for the purpose of establishing a "sovereign fund" for Hong Kong, Chong Tai-leung, an economics professor at The Chinese University of Hong Kong, told China Daily during a telephone interview.

Chong stressed that the investment strategy of this "sovereign fund" is expected to be more aggressive as compared to the city's Exchange Fund and it may invest in some riskier assets like companies and resources.

"I think it is essential for the sovereign fund to stay transparent, so conflicts of interest could be avoided," said Chong.

Meanwhile, Peter Lee, divisional president Greater China, CPA Australia, said that he welcomes the FSDC's establishment as it will be a platform where financial professionals can provide their suggestions to the government.

"We appreciate the government's efforts in setting up such a platform where professionals can discuss about important financial strategies for the city."

As for the EDC's establishment, Lee also believes it will be a positive move for Hong Kong, since Singapore has had a similar organization 10 years ago to promote its major industries.

He said that the EDC may have an important role to play in maintaining the city's leading advantages of its mainstay industries in the region.

Aside from the EDC and FSDC, Leung is also determined to promote the city's legal services. "One Country, Two Systems", the rule of law and the advantages of CEPA stand Hong Kong in good stead in promoting arbitration and mediation services, said Leung, adding that he will enhance the city's position as a legal services hub in the Asia-Pacific region.

Under the National 12th Five-Year Plan, the central government has made clear its support for Hong Kong to reinforce and enhance its status as an international shipping center. Leung said that he would like to emphasis that the shipping center concept covers both aviation and maritime transport.

"We will continue to improve our aviation, maritime and land transport facilities and their connectivity, and reinforce and enhance Hong Kong's role as a regional hub for passenger and cargo traffic."

Leung said that he will also promote industries where Hong Kong enjoys clear advantages, such as innovation and technology, and testing and certification.

sophiehe@chinadailyhk.com

(HK Edition 01/17/2013 page2)