Policy Address

Critical Assessment

121.       After reunification, Hong Kong experienced the Asian financial crisis and the ensuing recession. When the first glimmer of recovery was visible, we were hit hard by the SARS outbreak. The subsequent economic recovery brought us several prosperous years but inflation set in before long. As the Government was preparing to fight inflation, the global financial tsunami plunged the world into recession. I deeply share the frustrations endured by our people over the past decade. Many are earning lower wages as a result of the economic downturn. Similarly, civil servants have had their pay cut to ride out the difficulties with the rest of the community.

122.       In dealing with the financial tsunami, I understand more than ever that effective governance requires critical assessment of the situation, prompt response to issues, and taking the public pulse. During times of change, the Government has to maintain close contact with various sectors to review public policies in a timely manner. Our policies should be stable and predictable, yet flexible enough to cope with a rapidly changing situation. After setting policy objectives and principles, we need to reach out to the community and listen to their views before refining the implementation details.

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