Campus Recruitment Talk HKUST (11.09.2002)

1. Campus Recruitment Talk HKUST (11.09.2002)

2. Title Page Promotion of Inward Investment Presentation by the Director-General of Investment Promotion

3. Vision & Mission of InvestHK Vision To confirm and strengthen Hong Kong as the leading international business location in Asia. Mission To attract to and retain in Hong Kong economically and strategically important investment.

4. Proactive Reactive Aftercare Mode of Operation

5. YES WE CAN San Francisco New York Brussels Sydney London Toronto Tokyo Beijing Shanghai Guangzhou HONG KONG InvestHK External Presence

6. Sponsorship of Major Business ConferencesFortune Global Forum 2001Forbes Global CEO Conference 2002 • Sponsorship of International Sporting EventsBT Global ChallengeHong Kong Rugby 7s • Membership of International Chambers of Commerce Marketing Activities

7. Exceptional X-border transaction Foreign Direct Investment (FDI) Inflow in Asia (in billion US dollars) Source: UNCTAD World Investment Report 2002

8. Foreign Investment Attracted Investment Amount ($HK million)

9. Regional Headquarters and Regional Offices in Hong Kong 3500 3000 Slight drop in 2002 Mainly Japanese firms (mainly closing NOT moving out) 944 855 2500 840 RHQ 2000 RO 1500 2293 2146 1000 1650 500 0 1999 2000 2001

10. Tax system Rule of law and legal framework Convertible currency, absence of foreign exchange controls Free flow of information World class infrastructure Strengths of Hong Kong

11. High cost of business and residential premises High cost and availability of qualified personnel Low standard of English and declining use Environmental pollution Difficulty of bringing in key Mainland personnel Aspects to be Improved

12. Certainty Consistency Clarity Creditability 4Cs MGC’S Re-collection & Sharing The HKSAR Govt

13. MGC’S Re-collection & Sharing Community Attitude Philips/Gold Star JV - its headquarters in HK Why choose HK --> after Intensive due intelligence

14. MGC’S Re-collection & Sharing Critical Hi-tech Success Factors : • Space Program • Heavy military base • Large bunch of hi-tech graduates

15. MGC’S Re-collection & Sharing What HK could offer to MNCs • Regional base for Pacific Region • National level - compete with Beijing & Shanghai • Sub-regional - PRD (HK is Complementary) walking with a swagger

16. MGC’S Re-collection & Sharing 5 Key Criteria in becoming a Financial Institute • Fully convertible currency • No restriction in flow of capital • Legal system built on international • acceptable principle • FREE flow of information • The Gov’t does not own any part of the • banking community

17. HK and PRD - the Natural Partners Vocational Training CouncilTransport Logistics Symposium(24 October 2002)

18. Mainland Economy: An Overview • Overall size of US$1.2 trillion, growing at an annual average of 7.8% over past 5 years • Growth in 2001 was 7.3% • Target growth for the 10th “Five-year Plan” (2001-2005) is 7%, reaching US$1.5 trillion by 2005 or 29% of Japan’s projected GDP for that year • Future growth factors: rising domestic demand, “Western Development” and accession to WTO

19. Pearl River Delta (PRD) in Focus Includes most vibrant Mainland cities such as Guangzhou, Shenzhen, Zhuhai, Dongguan, Zhongshan, Huizhou and Zhaoqing in addition to Hong Kong SAR and Macau SAR Covers an area of 42,821 sq. km, or one-fourth of Guangdong A population of 47.87 million, with GDP at US$258 billion Economic growth at an average of 6.8% for the past 5 years

20. GDP (US$ million) GDP per capita (US$) HKSAR 香港 163,974 24,383 Macau SAR 澳門 6,202 14,281 Guangzhou 廣州 32,448 4,592 Shenzhen 深圳 23,615 5,238 Foshan 佛山 12,908 3,863 Jiangmen 江門 7,432 1,952 Dongguan 東莞 6,994 4,564 Zhuhai 珠海 4,429 3,541 Zhongshan 中山 4,380 3,261 GDP of Major cities in PRD in 2001

21. Strengths of PRD Manufacturing capability Technology base Universities and research institutions Services industries International financial services (Hong Kong SAR) Recreational facilities (Macau SAR)

22. Hong Kong:A Natural Partner for PRD Already Guangdong’s largest trading partner World class infrastructure (physical and information) Business “know-how” and international connections Well-established legal systems

23. Hong Kong Port’s World Ranking in Containerised Cargo Throughput (2001) World Top 10 Container Ports Source: Containerisation International

24. Major Ports within PRD

25. Container Throughput Comparison of Hong Kong and Major Ports in Guangdong/PRD

26. Sharpening Our Competitive Edge in Maritime Transport Port cargo growth following Mainland China’s accession to WTO CT9 development Container port productivity enhancement Hong Kong Port - Master Plan 2020

27. Our Strengths: Logistics Hub Logistics Heart of Asia Prime location World class infrastructure Physical and information connectivity A culture for excellence Friendly business environment

28. Conclusion: A New Partnership Mainland – a strong growth engine for the world economy, with high growth potential a prominent and ascending trading entity: both as a world supplier and a world market PRD will continue to lead in terms of the scale, depth and sophistication of economic activities in Mainland China Hong Kong will continue to play a pivotal role in the Mainland’s long-term economic development, but no longer the sole agent Hong Kong remains the preferred international transportation and logistics hub in Asia, servicing in particular PRD Need to develop a closer partnership with PRD, and further enhance competitiveness