WEDNESDAY, MAY 27, 1992
5
STI ON INDUSTRIAL POLICIES
THE FOLLOWING IS THE FULL TEXT OF THE SPEECH BY THE SECRETARY FOR TRADE AND INDUSTRY, MR T.H. CHAU, IN A MOTION DEBATE ON INDUSTRIAL POLICIES IN THE LEGISLATIVE COUNCIL TONIGHT (WEDNESDAY):
MR DEPUTY PRESIDENT,
SERVICES
THE GOVERNMENT CONTINUOUSLY REVIEWS ITS POLICIES AND FOR INDUSTRY TO ENSURE THAT THEY ARE EFFECTIVE IN ENHANCING COMPETITIVENESS AND DEVELOPMENT. DURING A TIME OF RAPID STRUCTURAL CHANGE IN THE ECONOMY, IT IS PARTICULARLY IMPORTANT THAT THIS PROCESS OF REVIEW IS RELEVANT TO THE NEEDS OF INDUSTRY AND TO THE ECONOMY GENERALLY.
RESTRUCTURING AND ITS EFFECTS ON INDUSTRY
THE
THE STRUCTURAL CHANGES IN THE ECONOMY OVER THE LAST FIVE YEARS OR SO
ESPECIALLY IN SO FAR AS THEY RELATE TO MANUFACTURING INDUSTRIES HAVE BEEN DRAMATIC. MANUFACTURING INDUSTRIES' SHARE OF TOTAL GDP DECLINED FROM 21.9% IN 1985 TO 16.7% IN 1990. MANUFACTURING LABOUR FORCE HAS BEEN REDUCED FROM 849,000 TO 655,000 BETWEEN 1985 AND 1991. SINCE THE OPENING OF CHINA
IN
1979, HONG KONG'S INDUSTRIALISTS HAVE MADE CONSIDERABLE USE OF LOWER LABOUR AND LAND COSTS IN SOUTHERN CHINA FOR THE MANUFACTURING ON A MUCH LARGER SCALE
FOR OF GOODS THAT USED TO BE PRODUCED IN HONG KONG AND
THE OUTWARD PROCESSING OF GOODS WHICH ARE ULTIMATELY FINISHED IN HONG KUNG.
-
-
A NUMBER OF MEMBERS HAVE PRESENTED THESE CHANGES IN SOMEWHAT NEGATIVE TERMS. BUT IN REALITY, THE EVIDENCE INDICATES CLEARLY THAT THESE DEVELOPMENTS ARE MAKING POSITIVE CONTRIBUTIONS TO HONG KONG'S ECONOMY GENERALLY AND TO ITS MANUFACTURING INDUSTRIES IN PARTICULAR. THE REDUCTION IN MANUFACTURING INDUSTRIES' SHARE IN HONG KONG'S GDP IS BALANCED BY RAPID ADVANCES IN OTHER SECTORS OF THE ECONOMY, SUCH AS TRADING, TRANSPORT AND COMMUNICATIONS, AND ONE OF THE MAIN IMPETUS FOR THE ADVANCES IN OTHER SECTORS IS THE NEED TO SUPPORT OUR MUCH ENLARGED PRODUCTION BASE IN SOUTHERN CHINA. IN REAL TERMS, INDUSTRIAL OUTPUT IN HONG KONG INCREASED SUBSTANTIALLY AT AN AVERAGE ABOUT 9% IN ALMOST THE WHOLE OF THE 1980'S AND HAS ONLY SINCE 1989. THIS MEANS THAT, IN SPITE OF THE STRUCTURE OF OUR ECONOMY,. HONG KONG STILL HAS MANUFACTURING SECTOR WHICH IS TODAY PRODUCING, IN REAL TERMS, 80% MORE THAN IT DID 10 YEARS AGO.
דד
ANNUAL RATE OF REMAINED STABLE CHANGES IN THE A SUBSTANTIAL
DECLINED
SECONDLY, ALTHOUGH THE MANUFACTURING LABOUR FORCE HAS IN NUMBERS, PRODUCTIVITY PER PERSON ENGAGED - LARGELY THE RESULT OF GREATER AUTOMATION, MORE EFFICIENT PRODUCTION PROCESSES, AND A CONCENTRATION ON HIGHER-VALUE PRODUCTS HAS GROWN AT AN IMPRESSIVE RATE IN QUANTITATIVE TERMS, PRODUCTIVITY PER PERSON HAS INCREASED BY AN AVERAGE 10.5% PER ANNUM BETWEEN 1986 AND 1991. THIS FIGURE COMPARES FAVOURABLY WITH THE EQUIVALENT RATES FOR DEVELOPED INDUSTRIAL ECONOMIES AND FOR NEWLY-INDUSTRIALISED ECONOMIES IN THE REGION.
THIRDLY, THE