GF

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CONFIDENTIAL 機密

8

Role of Hong Kong Government in maintaining the

competitiveness of the local economy and its manufacturing sector in particular

16.

(a) Facilitation of product upgrading and

innovating

In order to counter the competitive pressures likely to be exerted on Hong Kong's manufacturing industries as a result of industrial development in Guangdong, it is important that Hong Kong's products and production processes are upgraded and further diversified on a continuous basis. Hong Kong's relatively more expensive workers can continue to be competitive in those

The production processes which require higher skills. need to shift towards higher skills is a factor behind the increased funding by Government of education and training on the one hand, and of services to encourage and facilitate the adoption of more productive and sophisticated processes on the other. Expenditure on both education and training, and services related to industrial development has increased substantially in recent years. It is important to ensure that the uses to which this money is put adequately reflect the changes that are taking place in our economy (paragraphs 44 to 46).

(b)

Continuing to improve the educational standard, work skills and language

ability of the labour force

17.

To enhance the quality of the labour force in Hong Kong, the educational standards and work skills in different trades will have to be continuously improved. With the likely slow but steady shift in employment from manufacturing to services, Hong Kong's educational and

CONFIDENTIAL #3

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