TUESDAY, JANUARY 3, 1989
REPORT EXAMINES METALS AND LIGHT ENGINEERING INDUSTRIES
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A NEW REPORT ON HONG KONG'S METALS AND LIGHT ENGINEERING INDUSTRIES SUGGESTS THAT THEY COULD BE MORE EFFICIENT IF WEAKNESSES, INCLUDING LOW LEVEL OF TECHNICAL EXPERTISE, LOW LABOUR PRODUCTIVITY. INADEQUATE PRODUCT DEVELOPMENT AND INSUFFICIENT INVESTMENT COULD BE DEALT WITH.
THE STUDY, "TECHNO-ECONOMIC STUDY OF HONG KONG'S METALS AND LIGHT ENGINEERING INDUSTRIES" WAS UNDERTAKEN BY P-E CONSULTING SERVICES LTD., A UNITED KINGDOM MANAGEMENT CONSULTANT.
THE INDUSTRIES ARE SUPPORTIVE IN NATURE, INVOLVING THE MANUFACTURE OF PRODUCTION MACHINERY, TOOLING AND COMPONENTS FOR "FINISHED GOODS" INDUSTRIES SUCH AS TOYS, WATCHES, ELECTRONIC GOODS, DOMESTIC APPLIANCES, PLASTIC WARES, JEWELLERY, DECORATIVE ITEMS, AND OTHER LIGHT ENGINEERING PRODUCTS.
IN ADDITION TO A HIGH LEVEL OF LOCAL CONSUMPTION, THE INDUSTRIES ALSO HAD EXPORTS IN 1986 OF $27 BILLION, RANKING BEHIND CLOTHING AND ELECTRONICS, THE REPORT SAID.
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DESPITE KEEN COMPETITION IN OVERSEAS MARKETS, HONG KONG HAS ADVANTAGE OVER DEVELOPED AND DEVELOPING COUNTRIBS, GIVEN LOW TAXATION, FREE PORT STATUS AND THE ABSENCE OF BUREAUCRATIC INTERFERENCE, THE STUDY SAID.
HONG KONG'S PROXIMITY TO CHINA'S SPECIAL ECONOMIC ZONES ALSO ENABLES PRODUCTION OF SOME COMPONENTS AND SUB-ASSEMBLES TO BE CARRIED OUT THERE, TAKING ADVANTAGE OF CHEAPER LAND AND LABOUR.
HOWEVER, IF HONG KONG'S METALS AND LIGHT ENGINEERING INDUSTRIES WERE TO REMAIN VIABLE, IT WAS IMPORTANT FOR THEM ΤΟ IMPROVE THEIR TECHNOLOGICAL CAPABILITIES, PRODUCTIVITY AND QUALITY.
THE REPORT SHOWED THAT LOCAL METALS AND LIGHT ENGINEERING INDUSTRIES SUFFER FROM A VARIETY OF PROBLEMS, INCLUDING LOW PAY, LOW LABOUR PRODUCTIVITY, POOR WORKPLACE ORGANISATION AND WORKING CONDITIONS, LACK OF QUALITY ASSURANCE, BACKWARD TECHNOLOGY, INADEQUATE PRODUCT DEVELOPMENT, INSUFFICIENT INVESTMENT AND INABILITY TO RECRUIT AND RETAIN TECHNICIANS AND TECHNOLOGISTS.
TO CURB THE PROBLEM OF DEVELOPMENTAL SUPPORT,
THE CONSULTANTS PROPOSED THAT THERE SHOULD BE LESS EMPHASIS ON "STATE OF THE ART" INVESTMENT, AND A MORE CO-ORDINATED APPROACH BETWEEN INDUSTRY, EDUCATION AND INDUSTRIAL BODIES ΤΟ TRAIN MORE TECHNICIANS AND RE-TRAIN THE EXISTING WORKFORCE.
/THE STUDY