This year’s Annual General Meeting (AGM), held for the first time at the Chamber Club at the Cheung Kong Centre, had a far more confident feel about it than last year’s gathering, which admittedly occurred early in the economy’s recovery phase. Not only were we able to announce at this year’s meeting a lift in our own growth forecast for the current 12 months, but there were other encouraging signs as well.

The chairmen of the China and Americas committees (Dr Lily Chiang for China and Andrew Yuen for the Americas) gave positive reports on their respective geographic areas of interest. In addition, the Chamber’s Legislative Council representative, James Tien, outlined his Legco efforts on behalf of Chamber members and the broader business community.

There seems to be little doubt that now we have more than 12 months of marked economic improvement behind us there is certainly every reason for confidence. But, as I said, in my own remarks to the meeting, there is still a need for caution as there are plenty of uncertainties in the period immediately ahead. It is for this reason that we did not lift our growth forecast more aggressively in line with some other private sector forecasters.

Judging the ultimate outcome for the year is complicated by several factors. These include continuing deflation in the local economy, two rounds of interest rate rises so far this year and, more recently, some uncertainties in the equity markets. The restructuring of the business community towards e-commerce and information technology is also having an impact.

Externally, the improved rates of growth in most of our major trading partners, both regionally and globally, continues to drive the local expansion. Domestic demand also appears to be picking up, but it is always best to be cautious in the early stages of recovery when even the slightest hiccup may bring a setback. Local investment also needs to improve to achieve sustained growth.

That said, it is abundantly clear that the local economy will continue to recover this year, it is only the likely pace of the recovery that remains debatable. As I pointed out at the AGM, the fortunes of your Chamber also have recovered quite nicely along with the better performance of economy and the return of confidence to the local business community.

Our membership base has solidified, our programmes are well attended, our services have been expanded, our cost cutting has been substantial, and our revenue stream is now steady. Like many of its member firms, the Chamber has come through the recent economic downturn well.

Since the end of the old year, the Chamber has taken action to ensure that it plays a greater role in the development of e-commerce with the establishment of an e-commerce committee. We have also made some other minor adjustments to the existing committee structure. We have entered the MPF market. And we are now admitting individual associate members.

In January, too, the Chamber had a great success with the publication of its detailed business perspective report on China’s imminent entry to the WTO, its likely effects on Hong Kong businesses and the challenges and opportunities China’s entry might bring to all of us here in Hong Kong. The English edition of the report has already sold almost 800 copies, and the Chinese edition was just released on April 28.

We look forward to further progress in the 12 months between now and the next AGM when we will be celebrating your Chamber’s 140^th anniversary. We already have plans for a grand celebration next spring marking this additional milestone in the Chamber’s long history. More details will be coming to you later this year. I wish you well in your businesses in the next 12 months and look forward to celebrating the Chamber’s important anniversary with you at the next AGM.