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WEDNESDAY, MARCH 4, 1992
MACI
FOR THE COMMUNITY AT LARGE, MR MACLEOD SAID TRAINING PROGRAMMES BEING UPGRADED TO ENABLE WORKERS TO ENHANCE THEIR SKILLS AND TO ONES, AND TO SWITCH FROM DECLINING INDUSTRIES TO JOBS IN
WERE FIND GROWTH SECTORS.
BUT HE STRESSED THAT PRODUCTIVITY GAINED ALONR COULD NOT OVERCOME THE OVERALL SHORTAGE OF RESOURCES WHICH FUELS INFLATION.
"LAST YEAR, THANKS TO THE INCREASED EFFICIENCY OF OUR WORKFORCE, BACKED BY THE SURGE IN INVESTMENT WHICH I HAVE ALREADY MENTIONED, WE SAW A FURTHER INCREASE IN LABOUR PRODUCTIVITY GENERALLY."
BUT STILL THE PRESSURE ON PRICES CONTINUED, HE ADDED.
"PLAINLY, WE HAVE TO TACKLE THE SHORTAGE OF LABOUR RESOURCES AT SOURCE. THE UNEMPLOYMENT RATE IS CURRENTLY BRLOW 2%. THIS IS EFFECTIVELY FULL EMPLOYMENT. IT IS FOR THIS REASON EMBARKED ON A CAREFULLY-CONTROLLED PROGRAMME OF LABOUR HE SAID.
THAT WE HAVE IMPORTATION,
"
MR MACLEOD SAID A WIDESPREAD VIEW AMONG HONG KONG'S ECONOMISTS, WHICH HE ACCEPTED, WAS THAT INFLATION HAD MAINLY BEEN GENERATED BY THE STRAINS AND DISTORTIONS INVOLVED IN THE RESTRUCTURING OF THE ECONOMY.
"WE ARE SWITCHING FROM AN INDUSTRIAL ΤΟ A MIXED MANUFACTURING/SERVICE ECONOMY.
"IN ONLY 10 YEARS, THE PROPORTION OF OUR WORKFORCE EMPLOYED IN. SERVICES SECTOR HAS INCREASED FROM ABOUT 47% TO 63%. AND THE MANUFACTURING WORKFORCE HAS DECLINED BY 220,000 PEOPLE.
THE
"WE ARE TAKING ON A NEW ROLE AS THE CENTRE OF AN EXTENSIVE MANUFACTURING AND COMMERCIAL HINTERLAND IN SOUTHERN CHINA," HE SAID.
THE FINANCIAL SECRETARY SAID THIS RADICAL TRANSFORMATION IN THE FUNDAMENTAL CHARACTER OF THE HONG KONG ECONOMY HAD CREATED ACUTE SHORTAGES OF KEY PROFESSIONALS, EXECUTIVES AND SERVICE WORKERS, AS WELL AS OF LAND AND BUILDINGS.
HIGHER LIVING STANDARDS, AND EXPECTATIONS OF FURTHER RISES IN DISPOSABLE INCOMES GENERATED BY THIS TRANSFORMATION, HAD ALSO CREATED A SURGE IN DEMAND FOR SERVICES OF EVERY KIND WITHIN HONG KONG ITSELF.
"THE RESULT HAS BEEN INFLATION. IT IS UNDESIRABLE AND, FOR SOME, PAINFUL. IT SHOULD GRADUALLY ABATE AS THE TRANSFORMATION
PROGRESSES."
IN THE MEANTIME, HE SAID, RISING PRICES REFLECTED THE STRAINS CREATED BY THE QUEST FOR GROWTH AND THE PURSUIT OF A HIGHER STANDARD OF LIVING.
"THIS
TRANSFORMATION HAS GIVEN US GOOD GROWTH DESPITE THE PROBLEMS OF THE WORLD ECONOMY IN RECENT YEARS, AND HAS ALLOWED OUR EXPORTS TO REMAIN HIGHLY COMPETITIVE DESPITE DOMESTIC INFLATION."
/"LET US