The Chief Executive announced the establishment of the $300 million Community Investment and Inclusion Fund (CIIF) in his 2001 Policy Address. The CIIF was set up to encourage mutual concern and assistance, promote community participation and mobilise community resources through cross-sector collaboration to build social capital and foster harmony.

At the end of 2006, the CIIF had approved $91 million to fund 116 projects carried out by more than 2 700 organisations, schools and businesses working together. Eighty-five of these projects are at various stages of operation. When fully implemented in three years, the projects will enable over 20 000 people who were previously service recipients to become volunteers. These projects will result in over 340 mutual help networks and over 20 cooperatives being formed. In addition, 2 000 jobs will be created; 3 500 jobs will be matched; and over 300 000 people will be helped under the programme.

Some of the new strategies are showing encouraging results, with groups previously considered marginalised, such as unemployed middle-aged people, disengaged youth, the elderly, new arrivals, women and ethnic minorities, the homeless, ex-mentally ill and people with disabilities, becoming more integrated into society and gainfully employed. The viability of these social capital development strategies was affirmed by the Chief Executive in his 2006-07 Policy Address. The Chief Executive acknowledged the contributions made through the CIIF over the past four years that created new models of district collaboration in mobilising community resources and building mutual support networks. The CIIF will extend these good practice models to mainstream services.