WEDNESDAY, MARCH 3, 1993
"THE
FOUND TRUTH IS THAT VERY FEW PLACES IN THE WORLD HAVE LOW-COST, SURE-FIRE REMEDY FOR INFLATION.
A
KONG
"BUT
GIVEN THE CONSTRAINTS UNDER WHICH WE OPERATE, HONG HAS PROBABLY COME AS CLOSE TO FINDING AS MUCH RELIEF FROM INFLATION AS WE CAN PRESENTLY REALISTICALLY EXPECT, MR MACLEOD SAID.
17
LABOUR REMAINS HONG KONG'S BIGGEST CONSTRAINT.
"WITH A LIMITED WORKFORCE, OUR FIRST PRIORITY MUST BE
MAXIMUM
EFFICIENCY.
TERMS.
"LAST YEAR, LABOUR PRODUCTIVITY INCREASED BY 5.4% IN REAL
**IN
TO CONTINUE PARTNERSHIP WITH THE PRIVATE SECTOR, WE WILL IMPROVE THE EFFICIENCY OF OUR LABOUR FORCE THROUGH EDUCATION AND TRAINING PROGRAMMES,
||
THE INJECTION LAST NOVEMBER OF $300 MILLION INTO THE EMPLOYEES WORKERS FUND WILL MAKE IT POSSIBLE TO RETRAIN SOME 10,000
RETRAINING
IN 1993.
BE
TRAINING
THIS IS, OF COURSE, ADDITIONAL TO THE $1 BILLION WHICH WILL IN 1993/94 ON VOCATIONAL TRAINING BY THE VOCATIONAL
SPENT COUNCIL.
"HOWEVER, THERE IS NO DOUBT THAT WE WILL STILL FACE A SERIOUS FOUND SHORTAGE OF LABOUR IN CERTAIN SECTORS, AND THAT WE HAVE NOT YET A SATISFACTORY SOLUTION TO THIS PROBLEM, HE SAID.
H
LAND IS ALSO A SERIOUS CONSTRAINT, ONE WHICH MANY FAMILIES FEEL THROUGH THE HIGH COST OF ACCOMMODATION.
MITIGATING THE IMPACT
OF
"WE HAVE GONE SOME WAY TOWARDS SPECULATIVE PRESSURES ON THE PRICE OF HOUSING,
"IN
PARTICULAR,
INTRODUCED
IN
LATE
THE STAMP DUTY MEASURES 1991, TOGETHER WITH THE LIMIT ON BANK MORTGAGE LENDING, HAVE HELPED TO STABILISE THE PRICE OF HOMES.
INDEED,
RESIDENTIAL FLAT PRICES HAVE NOW COME
SOMEWHAT
OFF
THEIR PEAK.
HOWEVER,
THEY ARE STILL VERY HIGH; FOR EXAMPLE, THEY FAR OFF DOUBLE THEIR PRICE IN JANUARY 1991.
ARE NOT
TO BASE
*I BELIEVE WE MUST BE VERY CAUTIOUS ABOUT PROPOSALS LENDING LIMITS AND THE LIKE IF WE ARE TO AVOID ANOTHER PRICE SPIRAL."
ΤΟ
INDIVIDUAL BUYERS ALSO NEED TO BEAR IN MIND THEIR VULNERABILITY POSSIBLE HIGHER INTEREST RATES, ESPECIALLY IF THEY BORROW
CLEARLY THE
—
PERCENTAGE OF THE PRICE OF A PROPERTY HIGH BORROW TOWARDS A FLAT, THE MORE EXPOSED THEY ARE.
A VERY MORE THEY
/"BUT WHEN