14. We have travelled a rough and winding road and made substantial progress. We must, however, be aware of our inadequacies. The bubble economy and superficial prosperity before Hong Kong's return to China bred a false sense of superiority. We were not alert enough to the looming challenges of globalisation and the knowledge-based economy. We did not react in time to solve the structural problems of our economy or respond promptly to the Mainland's economic advances. As a result, we needed more efforts and extra time to eliminate these impacts. Although our economy has now recovered, many problems and hidden dangers still remain. We must stay alert to the challenges that lie ahead.

15. Internally, the structural adjustment of our economy is progressing slowly and the task is incomplete. A mismatch of human resources and an excessively high unemployment rate still remain a major problem troubling the community. Poverty is also a problem we have to deal with seriously. Our neighbouring cities are raising their competitiveness. We must continue to strengthen our capabilities.

16. Externally, we are still menaced by major fluctuations in oil prices and the US dollar exchange rates, the upward cycle of interest rates and the lingering threat of epidemic outbreaks, terrorism, cross-strait tensions and international conflicts. In the age of globalisation, any sudden and unexpected incident can lead to economic fluctuations and shocks for global markets, directly impacting on our economic development. We must stay alert. Our hard-won economic achievements of the past few years bear witness to Hong Kong's unique advantages and prove that our positioning and strategies are correct. I am confident that we will continue to sustain our development as long as we proceed with unwavering determination.