Address to Launch Reception of Cayman Islands Investment Bureau, Hong Kong

The Hon McKeeva Bush; OBE, JP - Leader of Government, Minister for Tourism, Environment, Development and Commerce

15th March 2005

Ladies and gentlemen, honourable members of LegCo and other distinguished guests, welcome to this event to celebrate the official opening of the Hong Kong Office of the Cayman Islands Investment Bureau. It is a pleasure to be back in Hong Kong, and an honour to have the opportunity to address you this evening.

I am delighted that we are joined by so many eminent friends and colleagues from the Cayman Islands, Hong Kong, China and around the region - I am honoured that you have been able to join us this evening. Cayman has many good friends in Hong Kong.

From the Cayman Islands, we are joined by the Executive Director of the Cayman Islands Investment Bureau based in Cayman, Mr Dax Basdeo, and Mr William Conolly, Assistant Director of the Investment Bureau, based in Hong Kong. Unfortunately the Chairman of the Investment Bureau, Mr Naul Bodden is unable to be with us tonight.

However, if you need any further information on the work of the Bureau, please speak to us over the course of the evening.

The purpose of my visit, and of the Cayman Islands Investment Bureau Office which I am here to officially launch, is to strengthen the already strong relationships that exist between our two territories. And it is my sincere hope that developing closer relationships will lead to new and exciting business opportunities for both of our countries.

Indeed, our two homes have much in common. For one, we share a British history. In Cayman, we celebrate and embrace our heritage and its historical significance as a British Overseas Territory, but, like Hong Kong, we are drawing on our rich history and are looking to the future. We both look outwards, not inwards. We have to. Cayman, like Hong Kong now embodies the international perspective which is fundamental for success in a globalised 21st Century economy.

We both have thriving tourism industries and financial services sectors which are central to both our current prosperity, and to our future success.

Part of the work of the CIIB is to build on Cayman's international reputation in our traditional industries and encourage inward investment and diversification in our economy.

I am pleased to see so many people from the investment community here today. As you may know, the Cayman Islands offers a wide variety of investment vehicles which are of great interest to the investment community - there are several of my colleagues from the Investment Bureau and from Cayman Islands' professional services firms here this evening who would be happy to provide any further information you may need on this exciting area.

The links between Asia and the Caribbean are deep and growing - this is most obvious in the investment community. 80 percent of the world's hedge funds are registered in the Cayman Islands, with 2004 seeing a significant increase in investments by Asian institutional investors through Cayman-based investment funds. Over the last five years, the total number of Asian hedge funds globally have grown from 162 funds managing US$13.8 billion in 1999 to more than 500 funds managing over US$59 billion.

The Cayman Islands Government has been continuously working both domestically and internationally to maintain a strong regulatory and compliance framework - as the International Monetary Fund confirmed recently with their Assessment of Supervision and Regulation in the Cayman Islands Financial Services Industry which provided a comprehensive affirmation of the quality of Cayman's regulatory regime.

Both Cayman and Hong Kong recognise the importance of maintaining a level-playing field in international financial matters. It is important for the future of the Cayman Islands that we build and strengthen our relationships with like-minded economies around the world - Hong Kong is pre-eminent in this regard, and that is why we are here this evening.

Cayman offers the investor political, economic and social stability, a positive business environment, local expertise, first class infrastructure and a robust but flexible regulatory regime which exceeds international standards. This is combined with no income, capital gains or property tax and a truly beautiful, safe and clean environment.

Cayman's success in recent years has been based on an ability to spot international trends and rapidly adapt to meet and exceed the expectations of international investors.

I launched the Cayman Islands Investment Bureau in November 2003. It has its head office in Grand Cayman, with offices in London and New York. When we decided that we needed to have a presence on the Pacific Rim, Hong Kong was a great choice. I am so pleased to be able to add Hong Kong as another 'World City' in which we have a presence.

The aim of the Bureau is to help us meet our strategic goals of economic growth, diversification through industry development, job creation and access to foreign markets.

In achieving its objectives of promoting investment in the country, the Cayman Islands Investment Bureau is a key platform for launching new business opportunities. It will assist potential investors by pulling together all the necessary contacts, resources and bureaucratic channels to simplify and accelerate the investment approval process.

My vision is that the Investment Bureau will be the key facilitator in the investment process: it will provide a single point of contact to address the needs of potential investors and an important source of information about the Cayman Islands.

Put simply, the Investment Bureau will make the process easier and simpler. The Investment Bureau will help business cut through red tape: it will roll out the 'red carpet' to investors.

Going forward, we will build on our modern physical, technological and professional infrastructure to further expand and complement our strengths in service-related sectors such as financial services and tourism. With the global shift in foreign investment towards services, the Cayman Islands is ideally positioned to diversify into technology and e-business related areas. In addition to these sectors, we also welcome investors pursuing innovative business models that will broaden the economic base of the Cayman Islands.

My Government is committed to delivering growth and ensuring the Cayman Islands remains highly efficient and sensitive to the requirements of business, particularly of those in this important part of the world.

I hope that you and your colleagues in Hong Kong and around the region will come to realise that the Cayman Islands is a welcome place to do business.

In closing, I would like to thank Mike Rowse, for his kind words this evening and pay tribute to him and all his colleagues at Invest Hong Kong for their assistance. They are true friends of the Cayman Islands and we look forward to working in partnership with them for many years to come.

As you leave this evening, we encourage you to leave with a sense of the comparative advantages of investing in the Cayman Islands and assure you we are readily available for further discussion on how the Cayman Islands best fits into your investment plans.

Tonight I pay tribute to the achievements of both Hong Kong and the Cayman Islands. I thank you very much for coming here tonight and making us feel so welcome - and wish all of you a pleasant evening and a very prosperous Year of the Rooster.

Last Updated: 2008-12-05