The number of regional headquarters and regional offices set up by international companies in Hong Kong in 2001 increased 7.9 percent over 2000 to hit a total of 3,237, a spokesman for the Hong Kong Special Administrative Region government said Wednesday.
Foreign direct investment in Hong Kong had been consistently strong in recent years, the spokesman said. At the end of 2000, the stock of Hong Kong's inward direct investment amounted to HK$3,551.3 billion at market value.
The spokesman made the remarks in response to the Economist Intelligence Unit's (EIU) latest Business Environment Rankings report released here Wednesday.
Refuting EIU's allegation that Hong Kong's role as an entrepot for trade was diminishing, the spokesman said: "Hong Kong has moved forward substantially from a mere entrepot for years. Indeed Hong Kong's unrivaled geographical location and first-class physical infrastructure means that we will remain as the prime financial, logistics and commercial center for the region, in particular the Mainland of China."
In addition, the spokesman pointed out that the new accountability system for principal officials in the HKSAR Government would improve Hong Kong's governance, as well as preserve the integrity of Hong Kong's civil service system.
"The purpose of introducing the accountability system is to enable the HKSAR government to enhance understanding of community sentiments and to strengthen liaison and communication with the Legislative Council, the media, different functional groups and the wider community", the spokesman stressed.
Moreover, the spokesman refuted the EIU's allegation on the morale of Hong Kong's civil service, noting that it was not based on any survey or objective evidence.
He said that, according to a survey report published in February this year by the Political & Economic Risk Consultancy Ltd., Hong Kong's civil service had been viewed as more effective, efficient and responsive in 2002 than in 2001.
On the tax structure, the spokesman underlined the fact that despite record budget deficit, the Government chose not to increase tax or to introduce a consumption tax in this year's Budget. "As a result, we still have a very simple tax regime as well as one of the lowest tax rates throughout the region, even taking into account any possible changes in the tax regime of Singapore," he noted.
(People's Daily April 25, 2002)
