Chamber Annual Report 2003

CEO's Report

The Chamber's fortunes for 2003 almost exactly mirrored Hong Kong's fortunes for the year.   The Chamber started 2003 with enthusiasm and optimism, with our continual pressing for CEPA to be agreed upon between the HKSAR and the Central governments, and with membership renewal at a high rate in early 2003, signalling both an appreciation for our services and a better economy. Then came SARS.  We found ourselves battling a disease which was horrifying, it turns out, not in its medical effects, but in its mystery.   To be sure, thousands got infected, and hundreds unfortunately succumbed to the disease, but the impact on society and the economy went far beyond that. When we received in April almost 300 replies to our request for ideas to combat the economic devastation of SARS, we could tell the anguish, the sorrow, the anger, the eagerness to help, and the determination in these replies.  Our members were deeply affected economically and emotionally, but they were united in their resolve to conquer this disease and return Hong Kong to its glory days again. We sent all these ideas and sentiments into the government, which came up with a rescue plan that was largely based on your input to the Chamber.

Luckily, none of the Chamber staff or their families got infected, and we were able to operate as best as we could to continue our services to members.  We gave discounts on programs and discounts on certificate of origin applications.  We conducted programs to help members cope with the highly unusual business situation.  We rallied our membership to tell the whole world what Hong Kong was doing and our spirit even in the darkest days of April and May. In the spring, we organised two very meaningful missions, one to Guangzhou and the other to Shanghai, telling the world and telling China that our relationship with the Pearl River Delta and the Yangtze River Delta is so close that an epidemic is not going to deter us from normal interaction.  

The Chamber also joined in community efforts to unite our citizens and lift our spirits. The Chamber was a board member in both "Operation Unite" and "Hong Kong is Our Home," which were campaigns to help society at large, and SARS victims and health workers in particular.  All in all, although the number of visitors to the Chamber dropped dramatically during the spring, our workload did not decrease at all, as we tried to help our members and Hong Kong get through the most fearful period in recent memory here.

In June, when it was clear that Hong Kong was winning the battle against the epidemic, we organised a major full-day program at the airport called "Taking off with Hong Kong" featuring a "Business After SARS" program that had almost 500 people attending on a Saturday afternoon and a fifty-table gala fundraising banquet in the departure hall. 

Then a major pleasant surprise, which had the Chamber's fingerprints all over it, happened on June 29, 2003, after months of no public news. Premier Wen Jiabao presided over the signing of CEPA between the Central and the HKSAR governments.  The Chamber first proposed in early 2000 the idea to the HKSAR Government, and eighteen months after negotiations started in July 2002, which had continual Chamber input, this historic agreement was concluded, with far reaching benefits to our members who do business with China. 

That triggered a tremendous interest by local, foreign and China business communities in CEPA and in re-evaluating Hong Kong's role as a platform to and from China.  The Chamber did its part by publicising the benefits of CEPA far and wide -- over 70 speeches on CEPA were given by the Chamber in Hong Kong, inside China, and overseas.  We received over 50 delegations from the Mainland discussing CEPA-induced cooperation.  And the recognition that the Chamber had been behind CEPA right from the beginning and relentlessly through  the past couple of years flowed to the Chamber.  Madam Wu Yi, Vice Premier  of China, specifically acknowledged the Chamber's role in our high-level visit to Beijing in September and praised the Chamber for thinking up this "innovative and creative" suggestion.

What is most important of course, is that our members are beginning to benefit from CEPA both directly and indirectly.  Directly since many are looking at ways to expand in or enter into China.  Indirectly since the Hong Kong economy's rebound in the last six months of 2003 can be traced in a large part to the stimulation's of commercial activity and the rise of confidence due to CEPA. 

But we did not let CEPA deter us from other work on behalf of the members.  Look at the accompanying chart on the next page and you will see the large number of activities we conducted for our members this past year, with many not related to CEPA but to the everyday challenges and opportunities of business in China.  Along with helping to fight SARS and to make CEPA useful to as many as possible, lobbying the government on issues ranging from Article 23, to better governance, to cutting costs, occupied a good part of our time.

On Article 23, we fully supported enacting legislation to implement it, but we recognised right from the beginning the sensitivities of the community and the need for thorough and patient consultation.  This is why we asked for a White Paper earlier than any other organisation did, back in fall 2002.  And as the consultation continued with increasing difficulty, we were troubled with the confrontation that resulted and we continued to ask for patience and responsiveness on the part of the government.  At the end, despite the fact that we did -- and still support -- legislation to implement Article 23, we wanted the consultation done better and more sensitively. We represented our members when we said this several times to the HKSAR Government, and we broadened that to a plea for better governance to resolve some urgent problems such as cutting expenses and balancing the budget.  In short, we did not shy away from issues of community concern behind the phrase:  "We are business people and we don't do politics," because we realise that politics affect business.   This is why we plan to participate in 2004 and beyond in the discussions on the deep and broad concern in the community regarding the topic of constitutional development.

The tumultuous year of 2003 ended with our members looking once again optimistically ahead.  The Chamber, just like the HKSAR, not only survived SARS but actually had a record financial year which saw a healthy surplus.  This was despite providing broad discounts to members for several months during SARS.  We did it the old fashioned way, by cutting costs and headcount, raising value, and improving service.   We do not need more money from our members, but we do need more support for our activities and services and more ideas on how we can help you.  That is something we will continue to work on in 2004.

2003 ended on a high note, including a record setting membership renewal pace at the end of the year.  No matter what turbulence comes in 2004, you can be assured that the Chamber will be right alongside helping to ride through the storm.

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