2025 is not only a year of opportunities but also a year of challenge. Global economy has since the third quarter of 2024 entered a period of gradual easing of interest rate hike. Interest environment in Hong Kong followed suit which should have been promising for our economy, yet geopolitics and a weak consumer confidence continue to cast their negative impact on Hong Kong. Due to the lackluster economic performance and market adjustment, banking sector started to take a more conservative view and it became difficult and costly for various business sector to seek financing and refinancing services.
Our sector is not immune from this dire strait and many friends and colleagues share with me the conviction that we should try every means to protect cash flow and stop the contraction of liquidity from snowballing into an avalanche. I brought this concern up in LegCo repeatedly and in many meetings with the Financial Secretary and other finance officials, I urged them to spare no efforts in gauging the severity of the cashflow issue and considering proactive intervention. I also appealed to the banking sector to stand with other sectors of the business community to weather through the distress of the difficult times. I am encouraged that our voice has not fallen on deaf ears and the Government is working closely with the finance sector to identify the pain points and solutions. But the issue of high interest rate and high cost of financing will not go away soon, and I will continue to work with the industry and the Government to find ways to protect our business environment, reduce costs in doing business in Hong Kong, and preserving our competitiveness for a full economic recovery.
Economic revival relies on confidence in the future and continuous investment. When confidence is weak there is a tendency to save resources for rainy days. Now the business community does not lack the intention to invest, all it needs is the Government's clear commitment to protecting a stable business environment in which they can continue to invest. I vow to work with the Government and our industry to strengthen the economy and build a better and brighter future for Hong Kong, and I look forward to receiving your wise advice on how to achieve this goal.
