XN000022-1981-10-29 — Page 11

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THURSDAY, OCTOBER 29, 1981

ANOTHER PROBLEM WHICH MR WONG SAID FACED THE MANUFACTURING INDUSTRY IS HOW TO MAINTAIN OR CREATE AN ENVIRONMENT CONDUCIVE TO ATTRACTING FOREIGN AS WELL AS LOCAL INVESTMENTS.

+ I BELIEVE IT IS NOT ALWAYS WRONG TO USE PUBLIC FUNDS TO STIMULATE INDUSTRIAL INVESTMENTS BY PROVIDING LOWER INTEREST RATES FOR THE MANUFACTURING SECTOR.

+ IF IT IS, WHY SO MANY COUNTRIES INCLUDING THE E.E.C., U.S.A. AND JAPAN USE THE FUNDS PROVIDED BY THEIR GOVERNMENTS OR PUBLIC BODIES TO FINANCE THE EXPORTS OF SPECIFIC PROJECTS AT AN AVERAGE INTEREST RATE AS LOW AS EIGHT PER CENT UNTIL NOW WHICH IS MUCH LOWER THAN THE MARKET RATE?+ MR WONG ASKED.

IN CALLING FOR SOME POSITIVE ACTION TO BE TAKEN TO RECTIFY THE UNFAVOURABLE CONDITIONS WHICH AFFECT THE LOCAL ECONOMIC DEVELOPMENT, MR WONG URGED THE GOVERNMENT TO GIVE CAREFUL CONSIDERATIONS TO THE FOLLOWING PROPOSALS:

* USE PART OF THE SURPLUS TO SET UP A CENTRAL FUND FOR

PROVIDING TRULY LOW-INTEREST LOANS TO CERTAIN CATEGORIES OF MANUFACTURING INDUSTRIES AND TO FINANCE

IMPORTANT INDUSTRIAL PROJECTS AND

*

INTRODUCE A PAYMENT-BY-INSTALMENT SCHEME AT A LOW INTEREST RATE FOR AUCTIONED INDUSTRIAL LANDS, SPECIFIED FOR INDUSTRIAL USE ONLY, BY THE

MANUFACTURER-PURCHASER FOR A MINIMUM OF, SAY, TEN YEARS, ON THE CONDITION THAT THEY CANNOT BE RESOLD IN THE OPEN MARKET.

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