Involvement in the Mainland's services market could well usher in the next wave of Hong Kong investment into the Mainland. Hong Kong's Competitiveness Let me now turn to competitiveness. Hong Kong has regularly been rated as one of the world's more competitive economies. On the other hand, we have often been criticized for being too expensive. That same philosophy applies to Hong Kong, as much as it does to, say, Toronto, London or Tokyo.
Good locations come at a premium, because they deliver a premium.
But we are mindful that we have to contain costs. We have become more competitive over the past two years. Office and housing rents are now between 30 per cent and 50 per cent below their peak in late 1997. Consumer prices have fallen and wages have generally remained static. This is the silver lining, if you like, of the dark clouds of the Asian financial crisis.