Tung Chee-hwa was criticised yesterday for his pledge to make Hong Kong a world centre for Chinese medicine.
The criticism came from a consortium that claims it has been ignored in its attempt to go into the business.
Mr Tung yesterday told a group of Baptist University students: 'Let's work together and turn Hong Kong into a hub of Chinese medicine.
'The Government is studying whether we should have a separate hospital specially for Chinese medicine or develop a Chinese medicine department within the existing hospital context,' he said.
But the Hong Kong-US consortium is threatening to go to Singapore instead after receiving what it claims was a lukewarm reception here.
Cheng Chun, chairman of Chung Wei Medicine Group, complained that its plans for a herbal medicine project had been delayed because Mr Tung's office ignored its request for a date to present its submission.