In a statement released ahead of next week's Policy Address by Hong Kong Chief Executive, Donald Tsang, the Hong Kong General Chamber of Commerce has urged the government to consider the needs of small businesses when making policy decisions for the coming year.

The HKGCC argued that providing specific assistance for SMEs, improving Hong Kong's attractiveness in general as a location for business, and addressing environmental factors, such as air pollution, should be priorities for the authorities.

HKGCC Chairman, Anthony Wu observed that:

“Hong Kong’s economic recovery is still subject to many uncertainties, not least because of continuing worries about the global economy. We must not lower our guard."

He went on to stress the importance of achieving "sustainable" economic growth, in order to boost the jobs market at all levels.

The HKGCC also called for a reduction in the profits tax rate to 15%.

“Reducing profits tax back to 15% will send a clear signal to the international business community that we are determined to stay competitive in the face of intense regional competition,” explained Mr Wu.

With regard to environmental issues, the Chamber suggested that factors such as air pollution have dented the jurisdiction's attractiveness, both as a business location, and as a place to live.

The HKGCC therefore urged the government to take decisive action to improve air quality, including the adoption of higher fuel standards for sea-going vessels, and the introduction of incentives to encourage the replacement of old buses and lorries, and to boost the use of 'green' transportation, such as electric or hybrid vehicles.

The Chamber went on to reiterate its long-standing position that the government should align Hong Kong’s air quality standards and objectives with Guangdong in southern China, arguing that the air pollution problem can only be addressed effectively by coordinated regional efforts.

“It is crucial that we, as a community, tackle the quality of life issues decisively, with a sense of urgency. While many different aspects that might not have been given the highest priority in the past, such as clean air, heritage preservation, improving the waterfront, quality health care and adequate housing, should be pushed to the forefront,” observed Chamber CEO, Alex Fong.

The Chamber's submission to the Hong Kong government further recommended that over the long term, the jurisdiction should be seeking to complement the development of the Chinese mainland, by continuing to transorm itself into "a high value-added, knowledge-based economy".

Recommendations as to how this might be achieved included:

-Broadening Hong Kong’s Renminbi (RMB) business and facilitating the development of commodities-related financing, risk management and trading activities;
- Increasing integration with the Pearl River Delta (PRD); taking advantage of the strategic positioning of Hong Kong in the 12th Five Year Plan and pursuing rigorous integration with the PRD in terms of the flow of goods, services, information, people and funds;
- Reviewing the manpower needs of the Hong Kong economy and putting in place measures to boost the recruitment of talent at all levels from the mainland and elsewhere;
- Proactively supporting Hong Kong's position as the eminent maritime cluster in Asia through the harmonisation of cross-border standards and infrastructure, the construction of specialized logistics facilities, and the appointment of a dedicated Policy Secretary with broad policy responsibilities for the harbour.