Hong
Kong still world's freest economy
Hong Kong Standard. December 1, 1999
By Clare Cheung
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HONG KONG has kept its status as the world's
freest economy, according to the annual Index of Economic Freedom published
by the Washington-based research firm The Heritage Foundation in conjunction
with The Wall Street Journal.
It has kept the place ever since the index was first compiled in 1995. Last year the conservative think tank warned Hong Kong might lose the top slot to Singapore because of the government's intervention in the stock market.
Singapore stays second but with a poorer score because of an increase in income tax and government interventions. ``While Hong Kong is still consistent with its laissez faire policy, Singapore government has made a lot of forced investment. It has been wasting assets and money of its taxpayers. It is not only bad policy, but counter-productive and foolish. That's why Singapore did not do as well this year as over the past years,'' Mr Feulner said.
Heritage Foundation president Edwin Feulner expressed his satisfaction that the Hong Kong government had started to sell off its shareholding. But the foundation warned Hong Kong's position may be threatened because of the government involvement in the Disneyland project. It also expressed concern over the government's decision to allow the Pacific Century CyberWorks development without opening it to the usual competitive process.
Mr Feulner said: ``If Disney wants to make a commercial decision to locate a theme park here, the government should co-operate by facilitating Disney to come in to make that commercial decision. But it's not up to the government to subsidise a private enterprise project. It's not a good thing for government to do.''
Financial Secretary Sir Donald Tsang Yam-kuen said the government is committed to disposing of a significant portion of its shareholdings over time.
``This is a recognition that Hong Kong continues to adhere to the free-market principles that have provided the opportunities for our entrepreneurial and hard-working community to generate such remarkable economic growth,'' Sir Donald said.
However, he denied there had been any favouritism by the government as suggested by the foundation. ``There is no question that the government would favour one section of the economy over another'', he said.