C. Meeting the Challenges of Globalisation

42. Madam President, globalisation brings not only opportunities but also severe challenges, such as intensified competition, corporate restructuring, loss of jobs, more poverty and the marginalisation of certain communities. The entire world faces these economic and social challenges that carry far-reaching implications. People in Hong Kong have also experienced asset depreciation, prolonged deflation and lower wages. They have had to bear the additional burdens arising from the need to reduce the fiscal deficit and from the SARS attack last year. In facing up to the challenges of globalisation and in dealing with economic restructuring, we have to devote at the same time serious attention to people's livelihood and social stability, and to help Hong Kong people upgrade themselves and manage these changes.