XN000022-1976-01-28 — Page 2

WEDNESDAY, JANUARY 28, 1976

BRIGHT PROSPECTS FOR ENGINEERING INDUSTRIES

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ENGINEERING INDUSTRIES ENGAGED IN THE PRODUCTION OF WATCHES, CAMERAS, MACHINE TOOLS AND SIMILAR ITEMS ARE LIKELY TO SEE THE MOST PROFITABLE AND MOST EXCITING DEVELOPMENTS IN HONG KONG OVER THE NEXT FIVE YEARS, SAYS THE DEPUTY DIRECTOR OF COMMERCE AND INDUSTRY, MR. ROY PORTER.

MR. PORTER, WHO WAS ADDRESSING A LUNCHEON MEETING OF THE ROTARY CLUB OF ISLAND, EAST, SAID THE BIGGEST POTENTIAL FOR INDUSTRIAL DIVERSIFICATION AND GROWTH LAY IN THESE INDUSTRIES.

HE SAID THAT HONG KONG ALREADY HAD SOME EXCELLENT FACTORIES PRODUCING THESE ITEMS AND THAT THE BEST OF THEM WERE AS GOOD AS ANY IN THE WORLD.+BUT OVERALL WE ARE STILL WEAK IN THE ENGINEERING INDUSTRIES,+ HE ADDED.

MR. PORTER EXPLAINED THIS SITUATION AROSE FROM A NUMBER OF FACTORS WHICH WERE LARGELY HISTORICAL BUT WHICH WERE NOW CHANGING.

HE POINTED OUT THAT ENGINEERING INDUSTRIES GENERALLY EMPLOYED A HIGHER PROPORTION OF MEN THAN DO MOST OF OUR OTHER INDUSTRIES.

+FURTHERMORE, THEY MANUFACTURE HIGH VALUE PRODUCTS AND REQUIRE GREATER SKILLS TO DO SO. THEY, THEREFORE, PROVIDE WELL PAID AND SATISFYING JOBS TO THE ALL IMPORTANT FATHER AND HUSBAND OF THE FAMILY: AN IMPORTANT SOCIOLOGICAL AS WELL AS ECONOMIC FACTOR,+ MR. PORTER POINTED OUT.

WILL

+THE NEW INDUSTRIAL ESTATE NOW BEING CONSTRUCTED NEAR TAIPO WILL WITHOUT DOUBT HAVE A PREPONDERANCE OF ENGINEERING INDUSTRIES. IN FACT, THE CASE FOR THE ESTABLISHMENT OF THE NEW TYPE OF INDUSTRIAL ESTATE WAS VERY LARGELY MADE ON THE BASIS OF THEIR NEEDS AND THE SUPPORT AND SERVICES WHICH THEY CAN SUPPLY TO OTHER INDUSTRIES.

+THE INDUSTRIAL INVESTMENT PROMOTIONAL ACTIVITIES OF THE COMMERCE AND INDUSTRY DEPARTMENT, THE HONG KONG GENERAL CHAMBER OF COMMERCE AND THE TRADE DEVELOPMENT COUNCIL ARE AIMED LARGELY AT THEM, NOT BECAUSE ANYONE HAS DECIDED THAT THESE ARE THE INDUSTRIES WE MUST HAVE AS YOU KNOW, THAT IS NOT THE TYPE OF EMPIRICAL DECISION WE TAKE IN HONG KONG - BUT BECAUSE WE ARE SO WELL SUITED TO THEM, THIS IS WHERE WE CAN GET THE GREATEST RETURN ON THE RESOURCES WE INVEST IN PROMOTION. OF THE 26 FACTORIES WHICH CAME IN TO HONG KONG IN 1975 FROM OVERSEAS, 12 WERE IN FACT IN THESE FIELDS.

+HONG KONG IS FORTUNATE TO HAVE SO MANY GOOD ENTREPRENEURS AND I HAVE NO DOUBT THAT THE GREAT MAJORITY OF OUR FUTURE INDUSTRIAL INVESTMENT WILL CONTINUE TO COME FROM WITHIN. BUT BECAUSE WE ARE NOW MOVING INTO SUCH ADVANCED AND HIGHLY TECHNOLOGICAL FIELDS, INVESTMENT FROM OVERSEAS WILL ASSUME AN INCREASED IMPORTANCE. INVESTMENT FROM ANY SOURCE WILL CONTINUE TO BE EQUALLY WELCOME AND TO BE EQUALLY TREATED, HOWEVER.

/+THE CONTINUED