"We will need to resolve problems in these areas, such as outdated layout, unsatisfactory traffic conditions, overloaded sewerage and waste disposal facilities, obsolete building design, and poor building maintenance and management," he said.
"The consultants have suggested that planning and financial incentives be provided and an agency be set up to encourage restructuring of these areas."
On the supply and demand of land, Dr Pun said there were about 560 hectares of existing and planned industrial land for "general industrial uses", half of which had been developed.
"Our consultants have forecast that the requirement by the year 2001 will be around 260 hectares, decreasing to around 250 by 2011," Dr Pun said.
"On the face of it, we will have a surplus of 300 hectares of land for 'general industrial uses' but most of it is undeveloped land.
"And if we take into account the additional land required for new industrial developments which will be more land-intensive, additional land to meet new planning standards, and the general industrial land being considered for conversion to special industrial uses, the surplus will be between 115 and 140 hectares," he added.
"On the other hand, the consultants have forecast a deficit of about 185 hectares of land for 'special industrial uses' by the year 2011 to meet longer term demand.
"Special industrial uses" relates to purpose-designed, owner-occupied premises. Demand for these premises has been increasing in the face of emerging high-value- added and high-technology industries, such as video telephones, cordless telephones, computers and related products.
"In this respect, the Government is actively planning the fourth industrial estate and a Science Park. We are also looking into the concept of a Business Estate. All this is in line with the consultants' recommendations," Dr Pun said.
Meanwhile, the consultants have recommended a number of measures to enhance the financial viability of redevelopment projects, including amalgamation of sites.
These measures include up-zoning, bonus plot ratio, deferred premium, linked projects and low interest loans or grants. An organisational framework for industrial area upgrading has also been suggested as part of the Government's wider Urban Renewal Strategy which is being formulated.