Tung Chee-hwa yesterday pledged to study ways to stimulate the economy, but said spending had to be prudent. He said the economic base was narrow and the Asian financial turmoil had resulted in drastic changes. 'To stimulate the economy we will look into ways to expand our economic base and the type of value-added economic activities to be developed,' he said. 'It is obvious that labour-intensive industries are no longer to our advantage.' At a meeting with the provisional municipal councils and district board chairmen, Mr Tung said he was confident that, with public support, Hong Kong would pull through the economic downturn. He hoped the Commission on Innovation and Technology's preliminary report later this month would provide some ideas on the way forward for industrial development. Sai Kung Provisional District Board chairman George Ng Sze-fuk quoted Mr Tung as saying the Government would try every measure possible to stabilise the property market. The Chief Executive also had reiterated the dollar peg would remain unchanged. On a possible revamp of the municipal councils, Mr Tung indicated that not everyone would be happy about the suggestions. 'We hope that in forming a view on this issue, people will take into consideration the interest of the community as a whole,' he said. 'We understand fully that sometimes our policy may not be able to please everybody.' But people's views would be considered. Provisional Regional Council chairman Lau Wong-fat said he was not surprised Mr Tung did not focus the meeting on the district organisation revamp. He declined to say whether he would resign in protest if the Government decided to scrap the councils. Mr Tung also assured district leaders that medical blunders would be dealt with thoroughly. 'We must not overlook the hard work and achievements of our medical staff just because of some isolated incidents,' he said. 'Of course, medical incidents will be thoroughly investigated so as to make improvements and to prevent any recurrence.'