Hong Kong's competitive edge, together with city government's " appropriately proactive" approach, makes Hong Kong well placed to diversify its industries to meet the needs of Hong Kong's people for start-up initiatives, investment, business operation and employment, he said.

Leung said Hong Kong must deepen and expand its industries. For deeper development, Hong Kong must play to its strengths to increase business volume. To expand development, it must diversify the products and services of its existing industries and identify new areas for development.

Leung said he would soon announce the establishment of the Economic Development Council. From a high-level, cross- departmental and cross-sectoral perspective, the council will explore ways to make use of Hong Kong's long-standing advantages and the opportunities offered by the nation.

The council will focus on efforts to broaden Hong Kong's economic base, work on the overall strategy and policy to enhance the city's long-term development and identify industries which present opportunities for Hong Kong's further economic growth.

Under the council, Working Groups on Transportation, Convention and Exhibition Industries and Tourism, Manufacturing Industries, Innovative Technology and Cultural and Creative Industries, and Professional Services will be set up to make concrete recommendations to the city government, he added.

Leung added he had taken into account four factors in drawing up and implementing this policy address.

First, the deep-seated problems of Hong Kong cannot be solved overnight, but Hong Kong needs to grasp the nettle and take the first step to deal with them. Second, the city must act proactively to address the concerns of people promptly.

Third, the city government is determined to deliver results, but Hong Kong people must act with one heart and one vision to tackle these problems. Fourth, some decisions which are fiscal- related will be announced by the Financial Secretary of the HKSAR government in the upcoming budget.