Tung's policy address promises measures to prop up creative industries including design, architecture, advertising, film and digital entertainment - all forecast to become major growth areas.

At the same time, unemployment - especially in low-skilled industries badly hit by Hong Kong's rapid transition to a knowledge-based economy - will be tackled by the creation of more low-skilled jobs in the fields of construction and tourism.

``Hong Kong is well positioned to develop cultural and creative industries. We have a rich variety of cultural activities and lifestyles conducive to inspiring creativity,'' Tung said on Wednesday. ``Cultural and creative industries account for only about 4 percent of our GDP, compared with 8 percent in the United Kingdom. Obviously, there is still scope for growth.''

A consultative framework, chaired by Tung himself, will be set up as soon as possible to enable representatives from relevant industries to contribute their views.

A government source said the administration will serve a middleman's role to facilitate partnerships between investors and the industry.

Activities promoting local films have been lined up, including an Entertainment Expo Hong Kong to be held in March.

The ``world-class mega-event'' will combine the Hong Kong International Film Festival, the Hong Kong International Film and TV Market, the Hong Kong Film Awards presentation ceremony and the Digital Entertainment Leadership Forum.

In addition, facilities such as a Digital Media Center, a HK$250 million design service center DesignSmart Initiative, and a Design Center have been set up. A Cyberport iResource Center will facilitate the video game industry.

Industrial buildings in old districts such as Sham Shui Po will also be refurbished to house small creative businesses.

The moves will be in addition to ongoing work aimed at enhancing Hong Kong-Guangdong cooperation, facilitating mainland investment, as well as consolidating the four core industries of financial and producer services, logistics and tourism, to promote economic development.

The policy address also features measures to ease Hong Kong's structural unemployment problem.

``As the economy picks up, we expect a further drop in the unemployment rate this year,'' Tung said, while at the same time acknowledging that more than 200,000 people are still unemployed.

Workers in the film industry generally welcomed Tung's move to boost the territory's creative industries, although some were skeptical about its effectiveness.

sylvia.hui@globalchina.com