Business leaders at the 7th Annual Hong Kong Business Summit remain confident that the territory will not lose its role as the hub of Asia

Hong Kong's role as the hub of Asia is not under threat and it will retain its number-one position for some time to come, said key speakers at the Chamber's 7th Annual Hong Kong Business Summit.

Hong Kong's geographic location, world-class infrastructure, international workforce, entrepreneurial spirit and minimal government intervention were among the territory's many advantages touted by business leaders at the Dec. 13 summit entitled, "Hong Kong -- The Hub of Asia."

HKSAR Chief Executive Tung Chee-hwa said in his opening remarks at the summit that while more multinational corporations were expected to relocate their operations to the Mainland, Hong Kong will attract more companies than it loses with China's WTO entry because the pie will be much bigger.

"The fact is that the number of regional headquarters and offices in Hong Kong has increased from 2,500 in 1999 to about 3,000 this year -- an increase of 20 per cent," he said.

Other speakers were similarly upbeat on Hong Kong's future, but cautioned against becoming complacent.

"People are trying very, very hard to knock Hong Kong off its perch. That is fine by us, because I think we are capable of competing with the best anywhere," HSBC Ltd Chairman David Eldon (left) said.

Goldman Sachs (Asia) Vice-chairman Carlos Cordeiro, speaking on "Expanding Our Financial Role," told attendees that Hong Kong has been the undisputed gateway to China, but that it must continue to position itself to dominate those financial flows into China.

To achieve this, Hong Kong must preserve the quality and independence of its financial institutions, enhance its markets, and continue to be a magnet for talented workers.

"The quality of our people will ensure that Hong Kong continues to serve as a financial hub," he said.

Education was the universal theme that all panellists said must be improved upon if Hong Kong is to ensure it remains the hub of Asia.

"Highly educated and skilled staff keep our operation in Hong Kong," Esquel Group Chairman Marjorie Yang said. But she added that one of her biggest concerns is whether or not she will be able to find people of a similar calibre to take over when current staff retire.

Hong Kong Monetary Authority Chief Executive Joseph Yam, speaking at the summit luncheon, said the HKMA estimates that Hong Kong's annual GDP growth rate will be boosted by somewhere between half to 1 per cent through the increase in re-export trade resulting from China's membership of the WTO.

Chamber Chief Economist Ian Perkin forecast GDP growth of 4.8 per cent for Hong Kong in 2001 despite the many uncertain external risks on the horizon.