55. In our transition to a knowledge-based economy, we will insist on substantial investment in education. After incessant efforts by the education sector, our reforms of primary and secondary education have started to produce results. Our education system has become more flexible and diversified. Students are learning more happily and effectively. Our teachers have enhanced their quality and professionalism. In international studies, our students have done exceptionally well and earned favourable comments, indicating that our reforms are achieving results. In the recently released Trends in Mathematics and Science Study 2003, Hong Kong students ranked high in both mathematics and science, with an increasing proportion of "elite" performers. In the Programme for International Student Assessment 2003, our students remained first in mathematics, came second in problem solving and were at the forefront in science and reading.

56. On tertiary education, with concerted efforts of all staff, our universities have sustained budget cuts and raised the quality of education in recent years. Many of our universities enjoy a good reputation internationally. In view of the serious mismatch of human resources, I set in the 2000 Policy Address the target of providing, within 10 years, 60% of our senior secondary school leavers the opportunity to receive tertiary education. The overall participation rate of the relevant age group in tertiary education has increased from 30% in 2000 to 53% today, and we hope to achieve the target ahead of schedule. From 2005 to 2007, the Government will begin to increase second and third year places in local universities to provide further opportunities for learning for those who have completed their associate degree programmes. We will continue to promote life-long learning to upgrade the competitiveness of our workforce. We will also encourage more students from overseas and the Mainland to come to Hong Kong to study, thereby adding a greater international dimension to our tertiary education.

57. Last year we consulted the public on the "3+3+4" academic structure reform proposal. The initial response has been positive. This is an important issue relating to the development of local talent. We will actively take it forward.

58. Hong Kong has a dedicated and zealous teaching force which has toiled without complaint for the benefit of students and contributed enormously to the promotion of education reforms. With effect from the next school year, we will allocate additional resources to enable our teachers to continue learning and to participate in professional development activities. We will let primary schools implement specialised teaching and enable secondary schools to prepare for the introduction of the new academic structure of senior secondary schools. In view of the practical needs for developing education, we believe there will not be a serious surplus of teachers from now on.

59. As for the issue of small-class teaching, the Education and Manpower Bureau last September embarked on a three-year study, involving the participation of 37 schools, to investigate the best teaching strategies and the necessary support measures for a small-class environment locally. We believe small-class teaching is a positive development, and we will promote it on the basis of results from the trial and research.