Kids are our future: Chief Executive Tung Chee Hwa says the main tool for promoting economic restructuring and establishing a knowledge-based economy is to invest substantially in education and to strategically raise the competitiveness of our labour force.

The Government will continue to invest substantially in education and training to raise the labour force's competitiveness, Chief Executive Tung Chee Hwa said in his Policy Address today.

"In facing up to the challenges of globalisation and in dealing with economic restructuring, we have to devote serious attention to people's livelihood and social stability, and to help Hong Kong people upgrade themselves and manage these changes," he said.

Ensuring the success of education reforms already underway is key, he added. The public will be widely consulted on the new '3-3-4' academic structure for junior secondary, upper secondary and university study.

Employment, training to get $1.2b boost

The Administration will set aside $1.2 billion to implement three employment initiatives:

* 11,000 temporary positions will be extended;

* the Youth Work Experience & Training Scheme for 10,000 young people aged 15-24 will be extended; and

* a one-year trial scheme to assist 1,000 young people to become self-employed will be introduced.

A new task force to oversee implementation of youth training and employment programmes will also be set up.

A Youth Sustainable Development & Employment Fund will also be established, to promote experimental schemes and exploit opportunities for training, placement and employment.

Over the next five years, an average of $29 billion annually will be spent on capital works, sustaining about 41,000 construction-related jobs each year.

Social capital to be enhanced

Mr Tung said there are plans to further examine how to help poor people elevate themselves and improve their economic situation.

The Government will also formulate new strategies to develop the partnership between the government, business and non-governmental organisations.