4 Jan 2002
Directors and Colleagues,

Happy New Year! It is a great pleasure to be here this evening. We have about 1,200 directors, key executives, and colleagues gathered here tonight, the highest attendance ever.

The local and global economies continued to slow in 2001, and the decline was aggravated by the September 11 incident. The estimated GDP growth in Hong Kong for 2001 could be zero. Even under such difficult conditions, our Group continued to develop our businesses in keeping with our philosophy, "To advance while maintaining stability, and to maintain stability while advancing". All of our businesses, whether they be in Hong Kong, the mainland and overseas, showed good progress during the past year. At present, we have investments and operations in 35 countries, employing 120,000 people. The amount that we have invested worldwide stands at an all-time high. I want to take this opportunity to thank our executives for their outstanding performance and all our colleagues for their hard work.

The inexorable march of globalization is having a powerful impact on every economy, including Hong Kong's. Competition is more intense than ever, accentuated by Hong Kong's current structural transformation process; and individuals and corporations are facing major challenges. With our wages and operating costs much higher than those of our competitors, on what can we depend to sustain future growth? Besides the rule of law, a sound financial system and good infrastructures, people represent Hong Kong's greatest asset. It was our hard work and indomitable spirit that created the Hong Kong miracle, and I hope that this spirit can continue to be maintained. I have lived and worked in Hong Kong for over 60 years, and I firmly believe that our fate is in our own hands. We can overcome any difficulty by lowering costs, enhancing our competitiveness, and facing challenges with strong willpower and a fighting spirit. For Hong Kong to successfully transform itself into a knowledge based economy, we must boost our innovation and value creation capabilities; these in turn will drive up internal demand for services, increase employment opportunities, benefitting all classes of people in Hong Kong.

China's accession to the WTO will create bountiful opportunities never seen before. For Hong Kong, the benefits outweigh the risks. In view of the intensifying competition between fast-growing mainland corporations and established multi-nationals, if Hong Kong does not pick up the pace and catch up, if we do not raise our competitiveness, our role as intermediaries may be weakened. Nevertheless, Hong Kong possesses many unique advantages: our familiarity with Chinese and western cultures; a free economy that conforms to international standards; a mature, experienced service industry; a comprehensive financial system; advanced communications and shipping facilities; a sound commercial legal system; and especially our well-established links with countries all over the world. If we can grasp the opportunity in the next few years to tighten our cooperation with the mainland and to increase our share of the mainland market, I believe there will be countless business opportunities.

I expect 2002 to be another volatile year. Under the impact of globalization, the economy worldwide will undoubtedly face greater challenges, and Hong Kong will continue to be faced with deflationary pressures. In the 50-plus years since I established Cheung Kong, I have overcome untold obstacles and challenges; naturally I have greater confidence than most people do. The number of people employed by our Group around the world will continue to increase. Senior executives of the Group and I will lead the way forward together. As long as we are united, are well-equipped to raise our competitiveness, remain alert to risks and opportunities, and follow our set strategies, I believe we can stand up to any present or future challenge and achieve outstanding results for our Group.

Lastly, I would like to reiterate what I said last year: we must recognize the importance of the knowledge based economy, enhance our competitiveness, be innovative, work in harmony, and continue to advance and pursue higher horizons. These are essential components throughout the Group's development and will be our way forward. Thank you.