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Incumbent Chief Executive (CE) Donald Tsang will be the right and most suitable person to lead Hong Kong, said Ian Fok, President of the Chinese General Chamber of Commerce.

Not only does Tsang enjoy high popularity with the people, he has also the support of the central government and possesses a wealth of administrative experience, Fok said.

"We are all very impressed with his policy agendas and think he is a very suitable person to lead Hong Kong," said Fok after an hour-long meeting with Tsang in the presence of about 70 businessmen at the chamber's office.

"He also knows the economy and has the ability to deal with contingencies and solve problems as he did so well to tackle the Asian financial crisis," he added.

However, without naming the other candidate Alan Leong, Fok said the business sector would in no way support a person who does not know about the economy and the people's livelihood.

"We would not support the one who ignores the political reality by proposing to cancel all the functional constituency seats in the Legislative Council.

"This contravenes the principle of gradual and orderly manner as stated in the Basic Law. It is also against the Basic Law for one to propose that appointment of principal officials does not have to go through the central government," he said.

At the meeting, Tsang had attempted to allay the business sector's fears about the proposed minimum wage and fair competition law.

It looks like the government will go ahead to legislate for the minimum wage in two years' time if the "wage protection movement" does not work out well, said a source close to the meeting.

If there is no law that guarantees a minimum wage, people will have no incentive to find jobs because what they earn may be lower than the social security paid to a three-member family, said the source.

Tsang was also quoted as saying that in the absence of such law, it will bring no good to both society and the business sector. Under that circumstances, social security expenditure will increase and the government may be forced to raise tax.

On the fair competition law, the source quoted Tsang as assuring that it would not seriously impact the business sector at large and the small and medium-sized enterprises (SMEs).

Instead, the new law would serve as an umbrella for protection of the SMEs. Tsang said a full-fledged consultation with the chamber members would be undertaken before the law is enacted.