HONG KONG RANKED AS WORLD'S FREEST ECONOMY FOR 17TH CONSECUTIVE YEAR

By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, Jan 12 (Bernama) -- Hong Kong has been ranked the world's
freest economy by the Heritage Foundation for the 17th consecutive year, since
the Index of Economic Freedom was first published in 1995.

Welcoming the Heritage Foundation's high regard for Hong Kong, a government
spokesman, in a statement to Bernama Wednesday said :"We are determined to
uphold economic freedom in Hong Kong, which is the cornerstone of sustained
economic stability, growth and prosperity.

"We see the role of the government as that of a market facilitator to
provide a business-friendly environment, where all firms can compete on a
level playing field.

"We have established an appropriate regulatory regime to ensure the
integrity and smooth functioning of a free market."

The spokesman also said the government's strategy is to remove impediments
to industries tapping into new markets while adhering to the principle of "Big
Market, Small Government".

According to the 2011 Index of Economic Freedom released today, Hong Kong
scored 89.7, well above the world average of 59.7.

Among the 10 economic freedom factors assessed, Hong Kong ranks first in
financial freedom and trade freedom, second in investment freedom and property
rights, and third in business freedom and monetary freedom.

The Heritage Foundation also recognised Hong Kong's sound fiscal
management,which has helped it weather the global economic downturn.

It further complimented Hong Kong's effective legal and regulatory
frameworks and openness to global commerce as qualities that strongly support
entrepreneurial dynamism, while the city's overall macroeconomic stability
minimised uncertainty.

It also said, Hong Kong has maintained its status as Asia's second-largest
destination for foreign direct investment, trailing only mainland China.

At the same time, the Heritage Foundation also noted that Hong Kong's
economic interaction with mainland China had become more intense and
sophisticated, chiefly through strengthened financial linkages.

The study measures the degree of economic freedom of 179 economies around
the world.

The 10 factors assessed are, business freedom, trade freedom, fiscal
freedom, government spending, monetary freedom, investment freedom, financial
freedom, property rights, freedom from corruption and labour freedom.

While Hong Kong retains its position as the freest economy, Singapore and
Australia remain second and third respectively when compared with the 2010
index.

While mainland China ranks 135th (up five places from the 2010 index), two
other Greater China economies, Macau, ranked 19th (up one place) and Taiwan in
25th spot(up two places).
-- BERNAMA