Tung Chee-hwa sought yesterday to defend businessmen who had criticised increasing calls for democracy in government, saying it was a sign of strength.
Making his first appearance at the annual meeting of the World Economic Forum in Switzerland, Mr Tung rebuffed claims that it had become more difficult for businesses to operate because of accountability in government, and said it was beneficial that society was becoming increasingly pluralistic.
Speaking before an international audience of businessmen and academics, Mr Tung said: 'There are some businesses in Hong Kong, who are concerned with the investment climate in Hong Kong, and I think their concern is understandable.
'But Hong Kong is a very pluralistic society and newspapers . . . feel a sense of mission that they are out there to make sure the Government is honest and accountable.' The comments come after Li Ka-shing threatened not to make a big investment because of the political environment, but Mr Tung said: 'The voices you hear are really a demonstration of our strength rather than our weakness.' However, he warned that investors could not expect any improvement in economic prospects, and that the economy was likely to remain in a trough for some time. He believed the bottom had been reached 'but we are likely to be continuing moving sideways'.
In response, however, he said the Government had embarked on a bold financial policy, aimed at stimulating demand, that amounted to four per cent of gross domestic product.
