"F
120
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CONFIDENTIAL #
13
(ii) Investment in the textiles and
clothing industries varied among
sub-sectors. In the spinning and weaving sub-sector, the weak demand
had led to under-utilisation of
production facilities in many
factories. In the knitwear
sub-sector, a major supplier of computerised knitting machines reported a less than satisfactory
sales volume in the fourth quarter.
On the other hand, investment interest in the dyeing and finishing and the
cut-and-sewn garment sub-sectors was
sustained.
(iii) Still enjoying a strong market,
especially for electronic parts and components and cordless telephones, many manufacturers in the electronics industry remained keen to invest so as to upgrade their equipment and
technology.
(iv) Investment in the plastics industry
had slowed down. For example, sales
by the largest local supplier of plastic injection moulding machines registered a considerable decline in
the fourth quarter of 1989 from a year
earlier. It is worth noting that some
30-40% of the machines sold were
likely to be installed in China.
CONFIDENTIAL #
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