42.     Let me now turn to the Government's role in the economy.  I am a firm believer in market economy.  I believe the market can allocate and utilise resources more effectively and has greater capacity to foster creativity, provide economic impetus and create employment opportunities.  Some may have the impression that, to maintain Hong Kong's economic freedom, the Government should be passive and distance itself from the economy.  I disagree.  I am of the view that the Government should have a clear vision of the direction of economic development and be a proactive market enabler.  This role includes -

• first, maintaining an institutional framework conducive to market development, including reinforcing our institutional strengths, such as the rule of law, the low and simple tax regime, the level playing field, law and order and the business-friendly environment.  The Government should review the regulatory and supervisory framework at regular intervals to ensure that it remains user-friendly, effective and up-to-date;

• second, providing that infrastructure in which the private sector will not invest;

• third, providing an appropriate environment and the resources required to raise the quality of our human capital.  That includes investing in education and attracting outside talent to Hong Kong;

• fourth, securing more favourable market access for our local enterprises through multilateral and bilateral economic and trade negotiations and participation in relevant economic and trade organisations.  The Government in conjunction with the appropriate organisations should also assist local enterprises to promote their products outside Hong Kong; and

• fifth, considering the need to take appropriate measures to secure projects beneficial to our economy as a whole when the private sector is not ready to invest in them.