Outlook for 2009   The past year, 2008, can be seen as a most turbulent one for the industry.  For the first half of last year, the market had been on healthy growth and all members enjoyed good business.  Towards the second half of the year, the effect of the financial turmoil has gained momentum and the industry felt significant impact starting from August.   Looking ahead, I believe the situation is expected to last for some time.  We therefore, project a challenging year ahead and members need to be prepared for the winter.   Given the tough business environment in front of us, I urge all MTA members to take a balanced view between their commercial decisions and taking care of their loyal staff to maintain best long-term stability.  I am sure most of our members have the ability to do so.  Another point we need to be cautious is that vehicle manufacturers may have unforeseen changes that may cause negative impact to motor business.  This is a global situation which, although we cannot influence, but we must be prepared for the unexpected.   Cross border temporary license   The Association welcomes the plan from the Government to introduce short-term holiday temporary license for private cars to drive into China.  This idea has been initiated by the MTA way back in 2004 and proposed to the Government via HK Tourism Association (refer: Chairman’s report 2004).  The introduction of such scheme will give the public the chance to drive their own cars to travel into China.  It will definitely increase the desire of car ownership and give more alternatives to motorists on holidays.   Allow Euro 5/Japan 09 diesel passenger cars   The Association has proposed to the Government to allow Euro 5 and Japan 09 diesel passenger cars to be registered.  Such consideration is based on the vastly reduced emission from those two standards, which are now on par with petrol engines and no more harmful.  Furthermore, the fuel efficiency by adopting diesel will also reduce the consumption of fossil fuel and help to conserve global resources.   We are please to note the Government has agreed to our request and allow the registration of diesel passenger cars with immediate effect, on condition they can meet relative Euro 5 or Japan 09 petrol emission levels.   Intelligent Road Network   The Government has been developing a “Dynamic Traffic Information” system, which is to offer instant on-road traffic data to motorists and other road users.  This will greatly facilitate drivers and can improve road efficiency.  Our Association has taken a consultative role in the development task force so to ensure the system adopted is compatible with the products we sell.   On the other hand, our Association is in most concern that the current Transport Regulation on Video Display is not in line with major international markets, which may hinder the supply of on board system as time arises.  This I hope can eventually be streamlined by the authority.   Donation to Szechuan Earthquake Victims   The Association has donated HK$200,000 to the Earthquake Victim Assistance Fund as a gesture of our commitment towards the society.   Epilogue   I hope all can take an optimistic vision for the coming year.  There are always cycles in any economy.  Things gone down will definitely come up again one day.  The motor industry is one of the major backbones in Hong Kong economy and all MTA members will have our commitment and role to play.   Michael Lee Chairman The Motor Traders Association of Hong Kong   January 2009