Freest economy: Speaking after  the opening ceremony of the 2003 Business Fair for Guangdong-Hong Kong Economic, Technology & Trade Co-operation, Antony Leung says he is pleased to note that Hong Kong's entrenched advantages are once again recognised by reputable organisations.

Hong Kong once again ranks as the world's freest economy, according to the newly released "Economic Freedom of the World, 2003 Annual Report". The Cato Institute of the United States publishes this report in conjunction with the Fraser Institute of Canada and 50 other global research institutes.

Financial Secretary Antony Leung welcomed the report - the seventh in a row that places Hong Kong at the top of the economic freedom index.

Apart from winning the first place in economic freedom, Hong Kong also ranks first in "size of government", "freedom to exchange with foreigners", and "regulation of credit, labour and business".

Key advantages keep HK on top

"I am pleased to note that Hong Kong's entrenched advantages are once again recognised by the reputable organisations," Mr Leung said. He noted that Hong Kong's low tax system, free trade and free market and free flow of capital and information, were some of its key advantages.

"The Government is firmly committed to further enhancing Hong Kong's competitiveness as an international financial and business centre and maintaining an open and business-friendly environment. I am sure international investors, businessmen and traders will all find Hong Kong as their preferred location for doing business," he added.

He noted that in the last two weeks, Hong Kong had signed the Closer Economic Partnership Arrangement with the Mainland.

"This arrangement will enable the Hong Kong economy to restructure and to grow faster. I hope that foreign investors can see our institutional strengths and together with the opportunities offered by CEPA, they will come to Hong Kong to invest and to do business.

"Reviving the economy is the No. 1 priority of the Government, but reviving the economy requires a stable social situation as well as the support of our citizens. We will continue and will strengthen our communication with the community. We look forward to working with various sectors of the community to revive the economy and to increase employment opportunities in Hong Kong."

Canadian trade office welcomes report

The Hong Kong Economic & Trade Office in Canada also welcomed the announcement. Its director, Rosanna Ure, said she is pleased to note that Hong Kong retains the No. 1 one ranking with a rating of 8.6 out of 10.

"The fact that Hong Kong retains its position as the world's freest economy illustrates its distinctive advantages and competitiveness and further proves that Hong Kong is the ideal place for doing business, especially for foreign companies. Hong Kong will continue to maintain its openness, rule of law, free flow of information, transparency and a level playing field for investors," Mrs Ure added.

Background

The Economic Freedom of the World: 2003 Annual Report ranked 123 nations on economic freedom which include such core elements as personal choice, voluntary exchange, freedom to compete and protection of persons and property, all of which requires the rule of law, property rights, freedom to trade, sensible regulation and reasonably sized government.

Singapore was rated as the second freest economy after Hong Kong, following by the United States, New Zealand and the United Kingdom. The other 10 top nations are Canada, Switzerland, Ireland, Australia and the Netherlands.