The Government has pledged to cut red tape and simplify regulations to facilitate and sustain a vibrant business environment in Hong Kong. The business facilitation initiatives are taken forward under the overall steer of the Business Facilitation Advisory Committee (BFAC) set up in January 2006 to replace the former Economic and Employment Council. The BFAC is made up of representatives from the political, business, academic and professional sectors and senior government officials from the relevant bureaux. Industry representatives provide their input through participation in the business facilitation task forces. Under the guidance of the BFAC and its task forces, regulatory reviews were conducted and measures were initiated to make government regulations and procedures more business-friendly and reduce compliance costs to business. In 2006, 28 studies and projects (focusing mainly on the regulations governing the construction, real estate, retail, entertainment and food business sectors) were completed or initiated, and over 30 recommendations for improvements were completed.

The Business Facilitation Division of the Economic Analysis and Business Facilitation Unit under the Financial Secretary's Office coordinates and takes forward the Government's business facilitation efforts. The division also provides secretariat and other executive support to the BFAC and its task forces.