Confronting Change–with a Winning Spirit

The University made tremendous progress in the reporting period, despite budget constraints and the significant economic setbacks in Hong Kong. The present downturn has combined with rapid and dramatic change that continues to test us all. However, we can draw con dence from the University's performance this past year, and indeed from its stunning achievements since its inauguration just a decade ago. Few people expected HKUST to accomplish so much in just 11 short years.

Hong Kong's transition to a knowledge-based economy has been impacted by drastic change: increasing globalization, intense competition with neighboring cities in the Pearl River Delta, China's accession to WTO, and talks on closer commercial ties between Taiwan and the Mainland. To remain competitive Hong Kong must move its industry and business upstream, and position itself as the design and management hub of business operations within and beyond China.

To facilitate the transition we need an infrastructure that supports innovation and technological advancement. Based on the extraordinary results of our brief history, we will be successful in our efforts to help create that advanced infrastructure. Failure to do so is simply not an option: Today more than ever, Hong Kong needs all the intellectual and entrepreneurial talent that HKUST can produce. We are charged with the challenging task of increasing revenues and cutting costs without compromising the high quality of our education and research. We are confronting these challenges head on — and we will win.

I wish to thank the students, staff and faculty for their great support, and the Court and Council members for their valued guidance and help. I particularly note the appointment of Dr John C C Chan, an accomplished community leader, as Council Chairman. He succeeds Dr Vincent H S Lo, who served in the position with vision, dedication and distinction. I also note with pleasure the Council's appointment of Prof Yuk-Shee Chan, former Dean of Business and Management, as Vice-President for Academic Affairs. Everyone has done their part in bringing the University's vision a step closer to reality. The success of HKUST is a tribute to all HKUST members, and a reminder to our fellow citizens that the University is an invaluable asset to Hong Kong.

Over the past year HKUST has contributed to Hong Kong's economic transition on four fronts: education, research, technology transfer and service, which constitute the essential infrastructure for Hong Kong's development and application of high technology.