HONG KONG: One of the most important themes in the budget for Hong Kong's long term economic prospects is the emphasis on further ties with the mainland.

Yesterday, in his annual Budget Speech, Financial Secretary John Tsang said Hong Kong will take full advantage of the platform being provided under the National 12th Five-Year Plan (2011-2015).

The preparation work on the 12th five-year plan has started. The plan will set the national social development and economic framework in the coming five years.

"Our state leaders have indicated that in preparing the plan, the mainland authorities will keep the SAR government informed of the planning progress and seek our views, so that we can have a full picture of China's situation and directions for development. We will capitalize on this opportunity," Tsang said.

The Financial Secretary said the government will strengthen its liaison with relevant mainland departments and ministries as well as its direct working relationship with the National Development and Reform Commission.

He added the government will continue to make the best of Hong Kong's modernization and internationalization, and capitalize on the "China advantage".

"Hong Kong can provide a platform for the mainland's enterprises to expand overseas, and assist by attracting foreign investment, facilitating international exchanges and providing quality services that are essential to the restructuring and upgrading of the mainland's economy," Tsang said.

At the regional level, Tsang said Hong Kong can speed up its integration with the Pearl River Delta (PRD) to increase the depth and breadth of the market in the region, creating synergy for the joint development of the two places.

The Greater Pearl River Delta Business Council, an advisory body of prominent businessmen appointed by the Chief Executive with a mandate to foster closer economic cooperation within the PRD, has in its 2008-2010 term report this week.

The Council has proposed that Hong Kong and Guangdong authorities increase the number of 24-hour boundary crossings as soon as possible in view of the surge of travelers from both places. The council also said one-stop customs clearance services and more Express e-Channels should also be provided to enhance clearance efficiency.

"The future will hold unlimited possibilities for Hong Kong if it can leverage its strength in services industries and integrate with the Pearl River Delta to form a strong economic region," said Council Chairman Victor Fung.

However, Lau Pui-king, associate professor and co-ordinator in China Business Studies at the Polytechnic University, said the government needs to focus on more concrete measures rather than on "concepts" when promoting cross border business cooperation.

"What role will Hong Kong play exactly in the PRD's overall division of responsibilities?" Lau queried.

But she admitted the government's work with mainland authorities is already an improvement from the previous Five-Year Plan; nonetheless, she was quick to add, it will need to be more proactive in helping HK companies to open up mainland.

(HK Edition 02/25/2010 page3)