The prevailing non-interventionist policy and proactive approach in promoting competition still suits Hong Kong best, Secretary for Economic Development & Labour Stephen Ip said.

Responding to a question from Emily Lau in the Legislative Council today, Mr Ip said the policy works best taking into account Hong Kong's open economy and the competitive business environment, together with recent developments at the multilateral forum.

He said the Government closely monitors developments on all fronts and ensures its competition policy serves Hong Kong's best interests and goes in tandem with changes both locally and overseas.

"Our economy has always been free and open. For Hong Kong, our competition policy is a means to enhance economic efficiency and free trade, thereby benefiting our consumers. An all-embracing competition law does not suit the needs and circumstances of Hong Kong best," he said.

The World Trade Organisation said last December that Hong Kong's competition policy is "a text book case of the market economy at work", and that an all-embracing competition law might not be required in certain circumstances.

The Competition Policy Advisory Group, chaired by the Financial Secretary, re-affirms that as a small and completely open economy, Hong Kong should adopt a sector-specific approach to promote and enhance competition.

Mr Ip said: "We have enacted specific legislation against anti-competition behaviour in the telecommunications and broadcasting sectors, and are in the process of drawing up a code of practice for retail payment services, including the Easy Pay System, to promote market access, competition and efficiency in that sector."