)
1
2
3
4
5
6
7
8
9.
10
}
a new era. At present, over 90 per cent of factories belong to small and medium manufacturers employing less than 100 workers. Since they lack the capital necessary, the Government's assistance in improving their products by their competitiveness is therefore badly needed. The Government should indeed address such a need. If we look at the other three
dragons, Taiwan, South Korea and Singapore, we would see that their Governments all have comprehensive
technological research programmes so that they can/kup improve their products and also their competitiveness. N12 Doubtless, Hong Kong's industry is still largely
11
13
14
15
16 ھ
lo
17
18
19
→
ejthei
technology
labour-intensive and low tax in nature and we have
already transferred our manufacturing to other areas
alary which have lower incomes for their workers, for example,
and Thailand. Mainland China, and the Philippines, and we are lagging far behind the other Asian countries in our development towards a high-tech industry. I must say that if wẹ.
Positive want to have high-tech industry, the government's (support
have to encourage investors to bring in machinery 20 is most important. We must try to help our industries.
Reduction of profits Tax is inadequate. A more direct industrial structe
amp! increas! way to help our manufacturers is, to increase our depreciation rate and also reduce our registration fees.
la 21.
22 23
24
97. profit
machinery,
alter our
Competitiveness
25 The Profits Tax rate in Hong Kong is, relatively speaking, lower and 1 per cent of reduction provides inadequate
frequent incentive to our investors. What is more, regular adjustments to our tax rate would cause chaos. Even from the point of view of a businessman, an unstable tax rate would bring difficulties to the calculation of operational costs and investment figures, so
, so I think it is beneficial
26
27
28
29
30
31
32
33
34
long-teun
to us to maintain a stable tax rate for our businesses.
Sir, in the beginning of my speech I pointed out that the
35 Budget this year only concentrates on keeping what we
36
have and lacks farsightedness.
I think we must have a