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FRIDAY, FEBRUARY 6, 1987
JAPAN REMAINED THE SECOND LARGEST SOURCE COUNTRY WITH $3 273 MILLION (21.1 PER CENT OF TOTAL INVESTMENT) INVESTED IN 117 MANUFACTURING ESTABLISHMENTS WITH 18 467 WORKERS.
CHINA CAME THIRD ON THE LIST WITH ITS STAKE OF $2 851 MILLION (18.4 PER CENT OF OVERALL INVESTMENT) IN 35 MANUFACTURING ESTABLISHMENTS EMPLOYING MORE THAN 5 000 WORKERS.
CHINESE INVESTMENT WAS CONCENTRATED MAINLY IN THE MANUFACTURING OF NON-METALLIC MINERAL PRODUCTS, ELECTRONICS (EXCEPT TOYS AND WATCHES AND CLOCKS), AND CHEMICAL PRODUCTS.
THE UNITED KINGDOM, IN FOURTH PLACE, ACCOUNTED FOR $1 051 MILLION WORTH OF INVESTMENT (6.8 PER CENT OF TOTAL INVESTMENT), AND WAS PROVIDING JOBS FOR 11 079 WORKERS IN 56 MANUFACTURING ESTABLISHMENTS.
THE MANUFACTURERS WERE ALSO ASKED TO GIVE THEIR VIEWS ON HONG KONG AS A LOCATION FOR INVESTMENT.
THE SURVEY FOUND THAT 345, OR 68 PER CENT OF THE 509 FACTORIES SURVEYED, SAID HONG KONG OFFERED A FAVOURABLE INVESTMENT CLIMATE TO OVERSEAS INVESTORS WHILE 141 OR 28 PER CENT HELD THE OPPOSITE VIEW.
THE DIRECTOR OF INDUSTRY, MR K.Y. YEUNG, SAID IN THE FOREWORD TO THE REPORT: +IT IS PARTICULARLY GRATIFYING TO NOTE THAT A MAJORITY OF THE FACTORIES SURVEYED REGARD HONG KONG AS PROVIDING A HIGHLY FAVOURABLE ENVIRONMENT FOR INDUSTRIAL INVESTMENT, CITING OUR LOW AND SIMPLE TAX STRUCTURE, GOOD INTERNATIONAL COMMUNICATIONS, FREIGHT. UTILITY, BUSINESS AND TRANSPORT SERVICES, AND THE GOVERNMENT'S CONSISTENT ADHERENCE TO FREE TRADE AND FREE ENTERPRISE.+
SOME FACTORIES ALSO INDICATED THAT THERE ARE WEAKNESSES IN CERTAIN AREAS SUCH AS IN THE SUPPORTING INDUSTRIES.
THIS IS WELL KNOWN TO THE INDUSTRY DEPARTMENT AND THE HONG KONG PRODUCTIVITY COUNCIL WHICH ARE PURSUING SOLUTIONS TO THE PROBLEM MAINLY THROUGH PRODUCTIVITY ENHANCEMENT AND QUALITY PROMOTION SERVICES.
HIGH LABOUR TURNOVER, HIGH LABOUR COSTS, THE LACK OF SPECIAL FISCAL INCENTIVES FOR INDUSTRIAL INVESTMENT (FOR EXAMPLE, NO TAX HOLIDAYS), AND THE ABSENCE OF LONG-TERM LEASES FOR COMMERCIAL AND INDUSTRIAL PREMISES WERE ALSO CONSIDERED UNFAVOURABLE FACTORS.
THE SURVEY FOUND THAT THE ELECTRONICS (EXCLUDING TOYS AND WATCHES AND CLOCKS), NON-METALLIC MINERAL PRODUCTS AND TEXTILES AND CLOTHING INDUSTRIES WERE THE THREE MAJOR INDUSTRIES FOR OVERSEAS INVESTMENT.
THE ELECTRONICS.