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HONG KONG : Hong Kong leader Donald Tsang intends to spend his way out of a recession next year.
He is pressing on with 10 major infrastructure projects announced last year, and introducing more financial regulations to safeguard the city's status as a commercial centre.
"The financial tsunami we now face is a global crisis. Its destructive force is stronger and more widespread than the Asian financial turmoil in 1997. The recovery will take longer and be more difficult. It cannot be taken lightly," said Hong Kong Chief Executive Tsang.
Tsang's policy speech was interrupted twice - once, at the start by well-known activist Leung Kwok-Hung, better known as 'Longhair', accusing him of letting the poorest of society down, and later, two other legislators were ejected after throwing bananas at Tsang.
While the Hong Kong leader was delivering his annual policy address, dozens of petitioners and protestors gathered outside the Legislative Council Building to call on the government to do more, especially regarding livelihood issues and the fall-out from the global financial crisis.
More than 9,000 complaints have been received by authorities over alleged misconduct in selling Lehman Brothers structured products.
"If the government can state strongly (its position) and the bankers go back to the clients to discuss what can be done for their mistakes, they should negotiate with clients - because all those clients are the elderly, retirees and they need this money," said one Hong Kong resident.
In Parliament, Tsang said he plans to boost oversight at financial institutions to shore up confidence. That means tighter regulations over banks, fund managers and insurance companies.
An insurance protection fund may also be set up after the government's move to guarantee bank deposits on Tuesday.
"The HKMA (Hong Kong Monetary Authority) and the SFC (Securities and Futures Commission) will examine how to further strengthen the regulatory regime and enhance investor protection and education before making a full report to the financial secretary," said Tsang.
The territory is moving full steam ahead with 10 major infrastructure projects, totalling some US$32 billion, including a bridge linking nearby Zhuhai and Macau. More than a quarter million jobs will be created, including economic benefits of US$13 billion annually.
A controversial minimum wage bill will also be introduced this legislative session, in a bid to protect low income workers. No economic sweeteners were offered, after the US$1.4 billion inflation relief package was handed out in June. - CNA /ls
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