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8. LOCAL MANUFACTURERS HAVE REPORTED LITTLE CHANGE IN BUSINESS PERFORMANCE OVER THE FIRST QUARTER OF 1990. THEY ARE NOT OPTIMISTIC ABOUT THE PROSPECTS FOR THE NEXT TWELVE MONTHS, ANTICIPATING THAT BUSINESS WILL REMAIN AT PRESENT LEVELS WITH NO SIGNIFICANT GROWTH. GENERALLY, MANUFACTURERS ARE RECOVERING FROM THE ANXIETY AND UNCERTAINTY CAUSED BY THE POLITICAL UPHEAVAL IN CHINA. THOSE THAT HAD CONTEMPLATED WITHDRAWING THEIR INVESTMENT FROM CHINA AFTER THE PEKING INCIDENT HAVE NOW INDICATED THEIR INTENTION TO STAY AS THE POLITICAL POLITICAL ENVIRONMENT HAS STABILISED. THE TIGHT LABOUR MARKET IS FORCING MANY MANUFACTURERS TO EXPLORE THE POSSIBILITY OF RELOCATING SOME OF THEIR PRODUCTION FACILITIES ELSEWHERE IN SE ASIA. MANUFACTURERS ARE REPORTED TO BE GENERALLY STILL CAUTIOUS ABOUT COMMITTING SUBSTANTIAL NEW INVESTMENT LOCALLY. CONFIDENCE AMONGST OVERSEAS INVESTORS REMAINS GOOD, BUT THEY ARE SENSITIVE TO DEVELOPMENTS ON THE MAINLAND. A RECENT SURVEY REPORTED THAT 62 PER CENT OF 50 COMPANIES POLLED WERE CONSIDERING RELOCATING THEIR REGIONAL HEADQUARTERS AWAY FROM HONG KONG.
9.
HONG KONG INVESTORS IN SOUTH CHINA HAVE NOTICED NO CHANGES IN THE ATTITUDE OF THE AUTHORITIES TOWARDS INVESTMENT. THE AREA STILL OFFERS ADVANTAGES SUCH AS LOW PRODUCTION COSTS COMPARED WITH OTHER COUNTRIES IN THE REGION.
CIVIL SERVICE
10.
CIVIL SERVANTS ARE PARTICULARLY INTERESTED IN THE NATIONALITY PACKAGE. CHINA'S HARD LINE ATTITUDE ON THE ISSUE HAS HAD AN UNSETTLING EFFECT. THERE REMAINS A HIGH DEGREE OF INTEREST IN SECURITY OF PENSIONS AND FUNDING FOR DEPENDENT PENSIONS. THE RECENT LEAKS OF PAY TREND INDICATORS, ON WHICH PAY RISES IN THE CIVIL SERVICE ARE BASED, HAS LED TO EXPECTATIONS OF A 15-17 PER CENT INCREASE THIS YEAR. SOME DISCONTENT HAS SURFACED WITHIN THE CIVIL SERVICE DURING RECENT WEEKS, WITH FIRE SERVICES OFFICERS HOLDING A SIT-IN AND HUNGER STRIKE AND IMMIGRATION DEPARTMENT OFFICERS DEMONSTRATING IN SUPPORT OF DEMANDS FOR IMPROVED PAY AND CONDITIONS. ON THE OTHER HAND NON-DISCIPLINED SERVICES STAFF ARE EAGERLY AWAITING THE FINDINGS OF THE PAY STRUCTURE REVIEW CARRIED OUT BY THE STANDING COMMISSION WHICH ARE EXPECTED TO BE PUBLISHED
LATER THIS MONTH.
WILSON
YYYY
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