16.    Our strengths lie in the following four areas -

• first, our geographic location. Hong Kong is at the centre of Asia. Our hinterland, the Mainland, is the fastest-growing economy in the world.  Other cities cannot claim this advantage;

• second, our institutional strengths.  These include "One Country, Two Systems", the rule of law, a level playing field, clean government, the free flow of information, a simple and low tax regime, and an efficient and effective market-regulatory system. These institutional strengths, developed over many years, have deep roots;

• third, our talent.  Hong Kong is rich in talent in fields such as business, management, and professional services, as well as some aspects of scientific research and education.  These individuals are biliterate and trilingual, and familiar with both Chinese and Western cultures, management, business operations, mindset and practices; and

• fourth, our strong business base.  Over the years, many leading enterprises have built up a strong presence in Hong Kong.  They complement and support each other, and create a clustering effect that helps attract more high-value-added business activities to Hong Kong.

• first, our costs are relatively high so we need to develop high-value-added businesses;

• second, we need to upgrade the quality of our manpower further and increase the number of talented individuals, to meet the needs of our changing economy; and

• third, we need to enhance economic ties with our neighbouring region, particularly the Mainland, to maintain Hong Kong's status as a regional financial and commercial centre.