Tung Chee-hwa, who delivers his second Policy Address today, will urge people not to let the economic crisis sap their confidence.
In his blueprint to be delivered to the Legislative Council at 2.30pm, the Chief Executive will speak at length on the recession and his assessment of what lies ahead.
One important section will be the ailing property market, which has seen prices plunge by up to 60 per cent in less than 12 months.
The focus will be the target - announced in his first address - of ensuring an annual supply of 85,000 flats. The aim then was to stabilise rocketing prices.
Now some academics and developers are calling for the target to be abandoned to help stimulate the market. But a source said Mr Tung would not change the long-term policies outlined in his first address. 'He's going to be pragmatic and express his hope that people should have confidence in the long run,' the source said.
'He's not going to say everything is and will be fine. The fact is that it isn't and the economy isn't good. But he will give his views on the long-term future of the economy.' Mr Tung will also report on initial findings of two bodies he set up last year to provide long-term strategies - the Commission for Strategic Development and the Commission for Innovation and Technology.
