I am excited to see that our economy is picking up again, as evidenced by the sheer number of shoppers on the streets. Consumer confidence - a telltale sign of the state of the economy - has been boosted, largely due to the central government's solid support for Hong Kong. It is crucial that we keep the momentum going. Even with its generosity and capability, Beijing cannot do that for us. Only Hong Kong can keep the ball rolling and it will take all of us, together with the Tung administration, to make it happen.
I truly believe that we, the people of Hong Kong, have got our old fighting spirit back. We have endured bad times and we must pat each other on the back because we are still standing strong, having weathered last year's storms. However, it is time for the government to do its part. With the right policies, a promising 2004 - and beyond - is not out of reach. To start with, here are three things the administration must do:
First, consolidate the Closer Economic Partnership Arrangement's advantages and maximise its full potential. Many have criticised Cepa as being only a one-way street; an opportunity for Hong Kong businesses to head north. More important now is for the government to lay the foundations that will lead mainland enterprises to Hong Kong. The special administrative region's long-established and successful 'front shop, back factory' business model - setting up business in Hong Kong and manufacturing in the mainland - can be replicated for mainland businesses as well. Mainland enterprises will benefit enormously when they, too, put up their shop fronts in Hong Kong, taking full advantage of our service industry, as they open to the rest of the world.
Second, introduce tax relief, not increases (or freezes). There is no easier way to halt economic growth than through tax rises. Dealing with the budget deficit can no longer be the SAR government's sole economic aim. A booming economy will pump money into government coffers and fill the hole without the need for tax hikes. There has been much conflict over this theory, but why risk recovery for the sake of balancing the books?
Third, the government must begin smart public spending. Smart consumers spend a lot on things they see as investments, not merely expenditure items. The same holds true for the government. While raising efficiency is always good policy, spending more in important areas like education, health care and social welfare is not necessarily bad, and the two do not work against each other. Perhaps it is time the government looked again at its basic reason for being: investing in our future (education); looking out for the well-being of the people (health care); and caring for the underprivileged (social welfare).
In today's Policy Address, I hope Chief Executive Tung Chee-hwa will reveal his plans for the economy. Perhaps Mr Tung's most daunting task is how he will address the concerns of the people. The government seems to have learned a hard lesson about the importance of heeding people's concerns and needs, and how Mr Tung tackles these issues in his annual speech will be of huge importance.
The Policy Address, as I see it, is the government's way of making New Year resolutions - reflecting on the past year, identifying those lessons learned, setting new goals, and laying down concrete plans about how to achieve them.