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Hong Kong Business Summit '99
"Hong Kong, China: Into the Next Millennium"

December 2, 1999

Chamber Chairman CC Tung's Introduction
to the 6th Annual Business Summit
(9:00 a.m. for 5 minutes)

Good Morning, Ladies and Gentlemen,

Welcome to the Chamber's Sixth Annual Business Summit.

We meet this year in far better economic circumstances than we did just 12 months ago.

Last year when we gathered here, the Hong Kong economy was still in the depths of the recession brought on by the East Asian financial crisis.

The SAR had just reported its third quarter of negative economic growth.

As things turned out, we were far too gloomy about our future prospects.

Although the Chamber's forecast got the trend right for the 1999 year - negative GDP growth in the first half and a return positive growth in the second - we were too conservative in our overall forecast.

But there will be more on that from our Chief Economist later this morning.

This year, we meet in far better economic circumstances.

Although there are still some difficulties out there, overall growth has recovered strongly, as has the local share market.

The property market has stabilized and land sales have resumed.

The unemployment situation is also more positive than it was a year ago.

But interest rates remain very high in real terms, private sector investment is still to recover and consumer price deflation still prevails.

There have also been some major announcements that have helped boost confidence.

We look forward to exploring some of these key issues with you today at the 1999 Business Summit - "Hong Kong, China: Into the Next Millennium"

The Chamber is enormously proud of its Business Summit programme started back in 1994.

We are also proud of the role the Summit programme has played in opening up discussion of some of the key issues vital to the SAR's future.

Importantly, these have included such issues as the environment and the role of small and medium enterprises in our economy.

We are also pleased with the way the inter-active nature of the Summit panel discussions has developed.

And, above all else, we are delighted with the calibre of speakers we have been able to attract to the Summit.

They have included speakers, from local and international business, from government and academia, and from the Chamber's own General Committee.

This year is no exception.

Shortly, we will hear from our own SAR Chief Executive, Mr Tung Chee Hwa.

We will then have a Plenary Session looking at the "Opportunities and Challenges" ahead for Hong Kong.

This will be followed by a coffee break. We will then begin our highly popular Panel Discussion with members of the Chamber's General Committee.

During this session, the Chamber will also present its economic forecasts for the year ahead and the results of its Business Prospects Survey of members.

Our very special luncheon speaker will be Mr David Hale, the Chief Global Economist of the Zurich Group.

But more of that later.

We are extremely honored today to have the SAR Chief Executive, The Honorable Tung Chee Hwa, to open this year's Summit.

Since becoming Chief Executive on the return of sovereignty on 1 July 1997, he has faced some difficult economic times and had to make some difficult decisions.

The SAR is today, however, in the process of reaping the rewards of those decisions made during the depths of the economic downturn.

Our Chief Executive, of course, needs no introduction (and I know him better than most).

Let me, therefore, just ask you to welcome him in the usual manner.

I thank you.