Dr John C C Chan, GBS, JP

I am pleased to present, on behalf of the University Council, the 2001/02 Annual Report of the Hong Kong University of Science and Technology.

The year saw the University enter its second decade of operation, following 10 years of truly remarkable achievement. HKUST's outstanding record was further enriched in many areas during the year, including teaching, research and the performance of our students. Our thanks are due for the sterling work of our faculty, staff, students and alumni, and the able and inspiring leadership of our new President, Prof Paul Ching-Wu Chu. On behalf of the University Council, I warmly congratulate the members of the University on their successes.

There is, however, no time to rest on our laurels. We must move forward and develop our facilities to achieve critical mass, in line with our aspiration to be a leading university with significant international impact and strong local commitment. The economic recession, brought on by the Asian financial crisis and exacerbated by the horrific terrorist attack on the United States on 11 September 2001, has created added difficulties for Hong Kong's restructuring. The need for greater investment in our people and our knowledge base through education and research has become even more relevant and urgent. Unfortunately, the recession has given rise to large and unaccustomed fiscal deficits and significantly reduced the Government's ability to fund various programs and services. As an institution heavily dependent on Government funding, the University is being asked to find ways of broadening its funding base, and to do more with less without compromising quality.

This is a major challenge. The University is determined to face it squarely, in the spirit of our commitment to making a positive contribution to Hong Kong's transition to a knowledge-based economy. In doing so, we shall need the support and partnership of the Government, the business sector and the community at large, as well as the commitment and cooperation of our faculty and staff.

It is my honor and privilege to have been appointed Chairman of the University Council, following in the footsteps of my distinguished predecessors, Dr the Hon Sir Sze-Yuen Chung and Dr Vincent H S Lo. The University owes them a great debt of gratitude. I am gratified that they both remain closely involved in the University's affairs. I shall be relying heavily on their advice and guidance, and that of all the other members of the Court and Council.