Chief Executive Tung Chee-hwa made the remarks during his meeting with Senior Minister of Singapore Lee Kuan Yew at Government House yesterday.

The achievement has been widely acknowledged by the international community, Tung said.

"During the last three years, we have seen a continual inflow of foreign investments, and former Hong Kong residents are returning in significant numbers from overseas," Tung said. "These trends signify confidence in the SAR."

The chief executive noted that the SAR was established at a time when China is growing and gaining international stature.

Hong Kong, being a Special Administrative Region of China, is privileged to be able to contribute in the process, he told the visiting Singaporean guest.

"We look forward to these opportunities and are filled with confidence about our future," he said.

He said Hong Kong will continue to face many challenges, and the external competitive pressures will be strong.

However, Hong Kong has always enjoyed a fine reputation internationally as a free, open, forward-looking and vibrant society.

With the firm foundation in the rule of law, Hong Kong is well-qualified to maintain its position as a world-class city in Asia, Tung stressed.

During the meeting, they also exchanged views on recent developments in the region.

Both Hong Kong and Singapore have made progress in reforming the financial regulatory frameworks and have achieved substantial economic growth, they agreed.

"Hong Kong is expected to achieve 10 percent GDP (gross domestic product) growth this year. With further improvements in the external environment, we can look forward to sustained growth," Tung said.

They agreed that Hong Kong and Singapore has very close ties and that both economies are complementary.

Tung welcomed Lee to Hong Kong and congratulated him on receiving his honorary doctorate from the Chinese University of Hong Kong.

(China Daily 12/11/2000)