Hong Kong Financial Secretary Henry Tang on Wednesday promised to further improve Hong Kong's business environment to increase its competitiveness and boost economic development.

In his 2005-2006 government budget presented to the Legislative Council, Tang said the Hong Kong government will uphold the principle of "Market Leads, Government Facilitates" and actively promote economic growth by facilitating the development of the market and providing a favorable platform for the business community.

He said in striving to improve the business environment, the government will encourage fair competition, foster economic co-operation with the mainland, assist Hong Kong enterprises to access the mainland market, enhance the competitiveness of the financial, logistics and tourism industries, improve training and attract more talent.

"I hope that these measures will help create an environment in which enterprises can thrive and give full rein to their creativity, and so raise Hong Kong's competitiveness as a knowledge-based economy."

He said Hong Kong has a very favorable business environment, underpinned by a sound legal system, an independent judiciary, a low and simple tax regime, free flows of capital and information, and a clean and efficient government, noting that nonetheless, Hong Kong must strive for continuous improvement if it is to increase the competitiveness and boost economic development.

"We will continue our efforts to secure more favorable market access for local enterprises and to protect the lawful rights of Hong Kong businessmen. We will maintain a healthy social system and a business-friendly environment. We will provide essential services and facilities," Tang said, adding the government will persevere with rigorous control of expenditure and allow the private sector more room to expand.

To create a more user-friendly business environment, Hong Kong will continue to drive its e-government program to enhance the service quality and efficiency, and promote the adoption of e-business in the private sector, Tang said.

He expressed the government determination to promote the principle of fair competition, saying "We have been working to increase the transparency of our existing regulatory regime to ensure it is fair and to enhance Hong Kong's competitiveness."

Editor: Olivia