Experience in other countries shows that privatisation of government assets is good for the economy as it results in improved efficiency and better services for the consumer, according to Alec Tsui, chief executive of the Stock Exchange of Hong Kong.

Mr Tsui was speaking at a forum today (Tuesday), organised by the Stock Exchange and the British Consulate-General.

A number of distinguished speakers, led by the Lord Mayor of the City ofLondon, Lord Levene, told of their personal experiences in the privatisations that have taken place in the United Kingdom over the past 20 years.

Mr Tsui described the United Kingdom as the pioneer of privatisation, which he defined as the transfer of government businesses or assets to the private sector.

He said privatisation was good for the government as it raised substantial revenues. “And it is good for the securities market as it brings to it large companies of high quality in diverse industries. This makes the market more balanced and representative of Hong Kong’s economy,” Mr Tsui said.

He said the preparation of enterprises of privatisation would stimulate new economic activity and encourage the development of specialised skills that could be applied in China and the region and support the development of Hong Kong as a regional service economy.

“The government, the public and business community all need better understanding of the substantial benefits of privatisation,” Mr Tsui said. “We can also learn how to address concern about substantial lay-offs and cultural change, and from mistakes that may have been made in overseas jurisdictions,” he said.

Hong Kong’s public sector is smaller than in many developed countries. It includes the two railway corporations, the Airport, Hospital, and Housing Authorities as well as a number of government services.

Corporate Communications Department