The Government has pledged to reduce red tape and simplify regulations to facilitate and sustain a vibrant business environment in Hong Kong. The Economic and Employment Council (EEC), which was made up of representatives from the political, business, labour and academic sectors and directors of bureaux, was set up in January 2004. The council and its sub-group on business facilitation guided the business facilitation programme. Under the council's guidance, reviews of regulations were conducted and measures were implemented to make government regulations and procedures more business-friendly and reduce compliance costs to business. In 2005, 24 studies and projects (focusing mainly on the regulations governing the construction, real estate, retail and entertainment business sectors) were completed or initiated and around 40 recommendations for improvements were implemented.

After a review of the role of the EEC, members concluded at their December meeting that a more focused approach should be adopted and that a dedicated advisory committee should replace the council to take forward its business facilitation initiatives. The EEC was subsequently dissolved on December 22, 2005.

The Business Facilitation Division of the Economic Analysis and Business Facilitation Unit under the Financial Secretary's Office provided secretariat and other executive support to the EEC, the sub-group and its task forces. It coordinates and takes forward the Government's business facilitation efforts.