Hong Kong has devised a comprehensive, far-sighted development action agenda on its way forward in tandem with the mainland's 11th Five-Year Plan (2006-10).

Left: CE and Financial Secretary Henry Tang with team heads of four focus groups under the Action Agenda.

Unlike previous studies behind the doors, the action agenda is the concerted effort of the government, businessmen, academics and the society at large over the past few months.

Addressing the expert groups of the "115" economic summit yesterday, Chief Executive Donald Tsang said Hong Kong had been desperately thinking of its way out of the doldrums after the Asian Financial Crisis in the late 1990s.

Currently, Hong Kong is closing in reaching a consensus on its future development trend to focus on finance, logistics, tourism and information services.

"The reports and action agenda delivered by the four focus groups today rightly put forth a range of proposals to consolidate Hong Kong's economic status in a systematic and holistic manner," he told the audience.

"This is the first time we make the best use of collective intelligence by working out a concrete action agenda with timetables together with the business sector and professionals.

"As Hong Kong is an international metropolis, our economic development must be based on this standpoint without fancies or hoping to touch on every industry.

"And as Hong Kong's strengths lie in service sectors like finance, logistics, information, trade and shipping, our prospect lies in intensifying our strengths in these areas and do better than before."

After conclusion of the economic summit, Tsang said the SAR government would follow up with the action agenda on three fronts.

First, he would ask all policy bureau heads to go through the proposals and take action with relevant mainland authorities especially for things that need to be started in the first half of the year.

He will also pass the reports and action agenda to the central government and to the next-term government as an important aid for the formulation of economic strategies.

"I firmly believe today is the beginning of a new era as we move on from the collective thinking to action. We not only need to move forward but to move fast forward and race with time," Tsang said.

Financial Secretary Henry Tang said the purpose of the economic summit held in September 2005 was to find out opportunities and challenges that the "115" brings to Hong Kong.

It also meant to explore the overall strategy Hong Kong should adopt and chart a whole set of clear, workable action agenda in the light of the mainland's economic development and globalization.

The 11th Five-Year Plan clearly supports financial, logistical, tourism and information services in Hong Kong to ensure its position as an international, trade and shipping centre, he noted.

"It affirms Hong Kong's premier industries and their importance to the country, but these strengths do not necessarily last forever.

"Changes generated by the fast-growing economic development on the mainland and globalization will constantly create new opportunities and challenges.

"So Hong Kong must think of the danger while living in comfort, find out its inadequacies and strengthen its international competitive edge.

"It is only by doing so can it enhance its role as an international finance, trade, shipping hub and the bridge between the mainland and the overseas markets," Tang said.

Conveners of the four focus groups also took the opportunity to submit their reports to the chief executive at the ceremony.

Among other things, the focus group on trade and business proposed creation of the high-quality, inexpensive "Hong Kong brand" that aims at the mainland market.

It also asked the SAR government to tackle the air pollution problem and help the 60,000 Hong Kong-funded manufacturers operating in the Pearl River Delta to come under the environmental protection laws and regulations.

On the other hand, the focus group on maritime, logistics and infrastructure said it was necessary to increase the cost-effectiveness of cross-boundary freight operations.

They included the use of green channels, employment of the mainland drivers and reduction of cross-boundary licence fees by the Guangdong authorities in order to cut cost.

The focus group on professional services, information & technology and tourism suggested enhanced exchanges between Hong Kong professionals (particularly the legal, medical, accounting, architectural sectors) with their mainland counterparts at all levels.

For example, the scope of mutual recognition of professional examinations and exemption can be broadened to enable professionals to start sole proprietorships on the mainland.

Once this proposal is implemented, the other professional sectors will also benefit from this new arrangement.