The finance chiefs of Hong Kong and Singapore met yesterday during a regional economic conference in the eastern Chinese city of Suzhou to discuss the economies of the two cities that were both feeling the pinch of the global slowdown.
In a meeting of the Asia-Pacific Economic Cooperation, Hong Kong's financial secretary Antony Leung and Singapore's finance minister Dr. Richard Hu exchanged views on economic restructuring, unemployment and the introduction of a general sales tax, a government statement said.
Both acknowledged that Hong Kong and Singapore rely heavily on external economic factors and were similarly affected by the downturn in the US and elsewhere.
"Nevertheless, we should strive to enhance the fundamentals of our economy and to create a conducive business environment for opportunities to thrive," Leung said.
Dr. Hu told Leung that Singapore's technology, media and telecom sectors were hard hit and warned of more job losses.
Dr. Hu also shed light on Singapore's experience in introducing a general sales tax in 1994.
He advised Leung that major tax reforms should only be implemented in favorable economic environment.
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