The unemployment rate is steadily edging down. The recent cut in interest rates is likely to boost consumer sentiment and alleviate the burdens of mortgage holders. And of course our currency has remained rock solid thanks to the linked exchange rate with the US Dollar. Over the past year we have also seen a resurgence of interest in Hong Kong as a regional base - the number of companies using Hong Kong as a regional HQ or office jumped by more than 500, or 20 per cent, to just over 3000 last year. Hong Kong companies are already looking at ways to leverage their existing contacts, experience and operations in the Mainland market to get the 'first mover' advantage over other competition.
International companies seem to be doing the same.
However, we do have our share of challenges. We have had to face up to the fact that our education system is outmoded and has to change if we are to tackle the challenges and opportunities of the information age which has also exposed a skills mismatch in the profile of our workforce. We need urgently to equip more people with the skills required for the IT revolution and are introducing major training and re-training programmes to do just that. In particular, we need imaginative educational initiatives to avoid bottlenecks in the supply of IT talent. We must also ensure high levels of bilingualism in our education system.