``We are told often by businessmen who have businesses in Shanghai how much better English is spoken in Shanghai than Hong Kong,'' Chan said Tuesday.

``It is a pity because we used to lead all the cities in mainland China. We need to do all we can to retain, and sharpen this competitive edge or run the risk of being overtaken by other cities in the mainland where the enthusiasm to learn the language is growing very rapidly.

``English is not a colonial language to be shed after the handover, it is a universal language that is spoken by probably more people in the world than any other language.''

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Chan spoke at the launch of English Adventure, a joint educational program sponsored by the British Council and Prudential Insurance.

Her comments come ahead of a public consultation on a review of the controversial Medium of Instruction (MOI) policy, expected to be launched by the Education and Manpower Bureau (EMB) next month.

Chan said there are several steps that can be taken to reverse the decline. It would be unfair, she said, to lay the blame entirely at the door of the administration.

``The government has taken steps to put more resources to get teachers properly trained in the teaching of the language. I hope that very soon we will see a significant increase in the standard,'' she said.

Some experts say the EMB needs to overhaul the way English language is taught in the territory's schools.

In an interview with The Standard Anita Poon, assistant professor at Hong Kong Baptist University's department of education studies, criticized the EMB's Native-speaker English Teacher Scheme (Nets), in which native speakers teach English in schools.

Poon said that schools are not provided with sufficient guidance by the department on the appropriate use of language teachers, and that it will be more effective to focus Nets at the primary level than in secondary schools.

A spokeswoman for the EMB said that the Nets program was introduced in primary schools in 2002.

Meanwhile, Chan said more can be done by the government.

``The government should set a good example and make sure we are truly bilingual, which means that senior officials should speak in both languages,'' Chan said.

Teachers, students and the private sector also need to do their bit to prevent standards from falling.

``It is important that teachers realize that they need to upgrade their skills,'' said Chan.

She said that while quite a few of Hong Kong teachers are qualified to teach in English, others clearly are not.

Ultimately, however, it is up to students.

``At the moment a lot of students do not seem to think that it is in their own interest to learn English. [We need] to get over that hurdle,'' Chan said.

However, she said she does not consider that the current MOI policy was at fault for the declining standards, saying that the when the policy was originally introduced (in 1998) it was an acknowledgement of the fact that a lot of schools that purported to teach in the English language were not qualified nor equipped to do so.

``There is not much point in choosing English as the medium of instruction if your teachers are not suitably trained and equipped to teach in that language,'' Chan said.

She said the wider community can also help maintain and build English language competencies.

``Businesses, enterprises, and academic institutions benefit from im-proved English skills, so it is fitting that they should give something back to the community by pitching in to help, not just by contributing the necessary funds, but more importantly, sharing their resources and their expertise,'' Chan added.