MFA Press Release: Speech by Minister, Prime Minister’s Office and Second Minister for Manpower and Foreign Affairs Mrs Josephine Teo at the PRC Embassy’s Reception in Celebration of the 20th Anniversary of Hong Kong’s Return to China, Fullerton Bay Hotel, 28 June 2017

His Excellency Chen Xiaodong, Ambassador of the People’s Republic of China to Singapore

Distinguished Guests,

Ladies and Gentlemen,

Good evening.

1.             I am very happy to join you this evening to celebrate the 20^th anniversary of the return of Hong Kong to China, and the establishment of the Hong Kong Special Administrative Region (SAR).  It is a significant milestone for both China and Hong Kong, and I’m honoured to convey the best wishes of the Singapore Government. 

“One Country, Two Systems”

2.             Hong Kong has continued to thrive under the “One Country, Two Systems” first formulated by Mr Deng Xiaoping in 1979.  Before 1997, there were already close ties between Hong Kong and the Mainland.  Today, these ties have strengthened. 

3.             For example, the Hong Kong economy is much more integrated with the Mainland and enjoys an advantageous position as a gateway to southern China.  This has boosted Hong Kong’s re-export trade and secured its standing as one of the world’s top ten trading ports. 

4.             Closer links with the Mainland have also accelerated Hong Kong’s transformation from a manufacturing to a service-based economy.  The listing of major Chinese companies and banks in Hong Kong’s Stock Exchange has further solidified Hong Kong’s position as an important financial centre.

5.             As a Special Administrative Region, Hong Kong is well-placed to continue its strong economic performance.  This is evident from its consistent growth over many years.  Another indicator of confidence in Hong Kong is its ranking as the world’s most competitive economy by the International Institute for Management Development in 2016 and 2017.

6.             China has also benefited from Hong Kong’s unique status under the “One Country, Two Systems” policy.  Hong Kong has played an important role in connecting the Mainland with the rest of the world, with its extensive global trade network and financial expertise.

7.             Chinese companies gain greater access to global capital markets for bond and loan financing through Hong Kong.  The Chinese government has also made Hong Kong the testing ground for a range of financial reforms.  Hong Kong was the first offshore renminbi market chosen by Chinese regulators, and is currently the largest offshore renminbi centre in the world.  The Chinese government recently announced the Mainland-Hong Kong Bond Connect, which will increase foreign access to its bond market through Hong Kong.

8.             Going forward, the further integration of Hong Kong with the Mainland will spur new growth.  The “Guangdong-Hong Kong-Macao Big Bay” area, which has a combined population of over 67 million and GDP of over US$1.3 trillion, will be one of the world’s largest bay-area economies.  Just to have a sense of scale, the San Francisco Bay Area is about half the GDP, one-third the area, and one-tenth the population of the Guangdong-Hong Kong-Macao Big Bay area.  Key infrastructure projects in the pipeline, such as the Guangzhou-Shenzhen-Hong Kong High Speed Rail Link and the Hong Kong-Zhuhai-Macao Bridge will facilitate the closer integration of Hong Kong into the Pearl River Delta region.

Singapore-China-Hong Kong Relations

9.             Singapore has been a steadfast and longstanding supporter of China’s peaceful development and engagement of the region and international community.  We have always supported the “One Country, Two Systems” for Hong Kong SAR and will continue to do so.

10.          We have good and substantial ties with both the Mainland and Hong Kong, underpinned by frequent high-level exchanges, robust economic cooperation and strong people-to-people ties.  The Mainland and Hong Kong rank as Singapore’s top and 5^th largest trading partners, as well as Singapore’s top and 3^rd largest investment destinations respectively.  Our leaders engage each other frequently during bilateral visits and at regional and international fora. 

11.          Hong Kong and Singapore are often compared with each other.  Indeed, we do compete in many fields.  But we also share a very high level of mutual admiration, and as a result, learn continuously from one another.  Singapore, in particular, admires Hong Kong for its vibrancy and resilience.  We see in Hong Kong and the Hong Kong people, an indomitable spirit of entrepreneurship.  In times of difficulty, you inspire with dogged persistence and a never-say-die attitude.

12.          Both Hong Kong and Singapore face similar long-term challenges, such as keeping our cities liveable and maintaining social cohesion while sustaining growth, and adjusting to an ageing population.  My Cabinet colleagues and Hong Kong Secretaries make regular visits to study each other’s approach to these common challenges, and adapt solutions to our own societies. 

13.          More importantly, we continue to explore partnerships where Singapore and Hong Kong can draw on different strengths to complement one another.  For example, Hong Kong is a gateway to southern China, while Singapore is a gateway to ASEAN and South Asia.  Singapore companies are using Hong Kong as a launchpad to venture into the Mainland market in sectors such as finance and Fintech.  They include promising Singapore startups such as PolicyPal.  This also shows Singapore’s confidence in the future of Hong Kong under the “One Country, Two Systems” policy.  Hong Kong businesses are similarly welcome to use Singapore as a springboard for accessing an enlarged market with the implementation of the ASEAN Economic Community.

14.          Ladies and gentlemen, I have spoken about the positive relations between Singapore, Hong Kong and China.  Let me now conclude with a personal reflection. 

15.          On the eve of the historic occasion when Hong Kong was returned to China, my husband and I had the opportunity to be in Hong Kong and went for a stroll along Star Boulevard at Kowloon Harbour.  Apart from enjoying the sea breeze, we were dazzled by the neon lights and the glittering skyline across the water on Hong Kong Island.  We found a nice spot and settled into position, to do nothing else but enjoy and take in the atmosphere.  There is something special about the fragrant harbour, so full of lights, life and hope.  Since then, each time we have the opportunity to go to Hong Kong, we repeat this pleasurable ritual. 

16.          I am very glad, 20 years after its return, Hong Kong remains a city of lights, a city of life, and a city of hope. Like all cities, it has its up and downs.  But it never fails to bounce back. 

17.          Throughout this unique journey, Hong Kong has held its head high as a thriving city, a vibrant economy and a resilient society.  Through closer integration with the Mainland, Hong Kong is in a stronger position to continue to thrive.  These reasons alone give us cause to celebrate. 

18.          As it turns out, in two days, Hong Kong will witness the inauguration of its fourth Chief Executive Mrs Carrie Lam, a good friend.  There is every reason in my view to be confident that the Central and Hong Kong SAR governments will continue to chart a successful course for the Mainland and Hong Kong that will also benefit our region. 

19.          Singaporeans wish the Mainland and Hong Kong well in its continued journey of integration.   Now, I will like to invite Ambassador Chen, ladies and gentlemen, to join me in a toast to even greater prosperity for China and Hong Kong in the coming years.  Congratulations once again!

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MINISTRY OF FOREIGN AFFAIRS

SINGAPORE

28 JUNE 2017