The 2004 Policy Address of the Chief Executive, Mr Tung Chee Hwa, highlights how Hong Kong can seize new opportunities to build on the economic recovery and meet the challenges of globalisation. It also lays out a blueprint to get closer to the people, improve governance and outlines how the Government will plan political arrangements for the future.

Seizing Opportunities to Expedite Restructuring

“We expect to see sustained economic growth and a continued decline in unemployment this year. Hopefully, deflation will disappear in 12 to 18 months ... we are optimistic about our own economic prospects.”

Improving the Business Environment

• Financial Secretary will merge and re-organise committees under his purview into a new high-level body to simplify procedures and improve regulation

Consolidating Core Industries

Consolidate the development of core industries, namely, financial services, producer services, logistics and tourism, including:

• Financial Secretary will chair a task force to comprehensively co-ordinate planning and development of major infrastructure and development projects on Lantau
• Actively plan and support the holding of more world-class events as well as more cultural activities with local characteristics and stepping up tourism collaboration with the Mainland, especially the Pearl River Delta

Promoting New Growth

Promote new opportunities in manufacturing, new and high-tech industries, creative industries, the local community economy, education and health care industries, international asset management and environmental improvement, including :

• Adjust policy as necessary to facilitate development of more competitive, high-tech manufacturing industries
• Continue to support the application of new and advanced technologies and promote transition to a knowledge-based economy
• Study how immigration and related policies can support further development of education, medical and health care industries to serve people in the Mainland and elsewhere in Asia
• Work with the financial services industry to create favourable conditions for Hong Kong to provide Asia with high value-added services in fund management, corporate investment management, personal banking, insurance sales, and various investment and savings instruments

Support for SMEs and professional services

• Minimise obstacles to participation of local small- and medium-sized professional organisations for government tenders or consultancies
• Continue discussions with the Mainland on entry thresholds, recognition of professional qualifications and practice requirements

Eliminating the Fiscal Deficit

• Will strike a careful balance between reducing the fiscal deficit and safeguarding people's livelihood, and give the community adequate time to recover

Meeting the Challenges of Globalisation

"In facing up to the challenges of globalisation and in dealing with economic restructuring, we have to devote ... serious attention to people's livelihood and social stability, and to help Hong Kong people upgrade themselves and manage these changes."

Investing in Education

• Continue to invest substantially in education and training to strategically raise competitiveness of the labour force
• Ensure the success of education reforms already started
• Consult the public widely on the new '3-3-4' academic structure for junior secondary, upper secondary and university study

Promoting Employment and Training

• Set aside $1.2 billion to implement three employment initiatives:
  - Extend 11 000 temporary positions
  - Extend by two years the Youth Work Experience and
  Training Scheme for 10 000 young people aged 15-24
  - Introduce a one-year trial scheme to assist 1 000 young people to become self-employed
• Average of $29 billion annually to be spent on capital works over next five years will sustain about 45 000 construction-related jobs annually
• Set up new task force to oversee implementation of various youth training and employment programmes
• Establish a Youth Sustainable Development and Employment Fund to promote experimental schemes and exploit opportunities for training, placement and employment

Enhancing Social Capital

• Further examine how to help poor people elevate themselves and improve their economic situation
• Formulate new strategies to further develop the tri-partite partnership between the government, business and the third sector

Improving Governance

"We know that there are inadequacies, which will require a redoubling of our efforts to improve. We are determined to put the interests of people at the forefront of our administration."

Enhancing the Principal Officials Accountability System

• Focus on political work and strengthen links with the community

Improving policy-making capabilities

• Raise level of policy formulation through objective and concrete public policy research, particularly from the macro and long-term perspective
• Central Policy Unit will explore ways to promote public policy research and develop the human resources needed.

A better grasp of public sentiment

• Make fuller use of District Offices, District Councils, advisory bodies and community organisations to form a community-wide political network
• Strengthen monitoring of public opinion through polls, social networking, focus groups and the media

Strengthening advisory and statutory bodies

• Streamline the structure, organisation and membership of some 500 advisory and statutory boards
• Bring in more talents from different backgrounds
• Strengthen their role in government decision making and in grooming leaders

Reinforcing co-operation with the legislature

• Strengthen dialogue and co-operation with the Legislative Council, on the basis of equality and mutual respect

Enhancing work in districts

• Better deploy resources to more quickly and effectively solve problems and improve the quality of life in districts
• Provide more channels for local residents to participate in district affairs
• Review function and composition of District Councils at a suitable time

Attaching importance to the middle class

• Involve more middle class in political affairs
• Appoint more middle class managers and professionals to advisory boards and committees
• Interact more with political, social, cultural, religious and professional bodies whose core members come from the middle class
• Foster a closer partnership with academia

Supporting Participation of Women

• Gradually introduce Gender Mainstreaming Checklist in policy areas

A Proper and Serious Constitutional Review

• The Government attaches great importance to constitutional review and will strictly follow the Basic Law in handling the matter
• In view of the serious concern and principled stance of the CPG towards the development of Hong Kong's political structure as pointed out by President Hu, and subsequent views of Mainland legal experts and certain individuals in Hong Kong, there is a definite need to understand the full implications of these important issues before making appropriate arrangements for constitutional development
• A Task Force headed by the Chief Secretary for Administration, with members including the Secretary for Justice and the Secretary for Constitutional Affairs, will be established to seriously study these issues, particularly those concerning the understanding of relevant provisions of the Basic Law, and consult relevant authorities of the CPG
• The Government will encourage all sectors of the community to consider exploring these issues rationally, as well as expressing their views, so that the relevant arrangements may be made as early as possible.

"The Government is determined to work together with the community in the days ahead to promote Hong Kong's political, economic and social development and overcome any obstacles in the process. We share a common goal of developing ourselves into Asia's world city, a city that will be the envy of the world."