XN000022-1985-02-15 — Page 7

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FRIDAY, FEBRUARY 15, 1985

THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY FIRMS.

FOR THE MANUFACTURING SECTOR, PRICE COMPETITION FROM FIRMS IN HONG KONG REMAINED THE MAJOR PROBLEM IN THE FOURTH QUARTER AND IS EXPECTED TO PERSIST IN THE FIRST QUARTER. AN INCREASING PROPORTION OF MANUFACTURING FIRMS REGARD INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM FIRMS OVERSEAS AS PROBLEMS FOR BOTH THE FOURTH AND THE FIRST QUARTERS. ON THE OTHER HAND, THE PROBLEM OF SHORTAGE OF SKILLED LABOUR EASED OFF CONSIDERABLY IN THE FOURTH QUARTER.

FIRMS IN THE CONSTRUCTION SECTOR STILL CONSIDER INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM FIRMS IN HONG KONG AS THE MAJOR PROBLEMS FOR THE FOURTH AND THE FIRST QUARTERS,

FIRMS IN WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES' CONTINUED TO QUOTE PRICE COMPETITION AS THE MOST SIGNIFICANT PROBLEM IN THE FOUTH QUARTER, WITH LITTLE PROSPECT OF EASING IN THE FIRST QUARTER.

AS FOR RESTAURANTS, THE STRAIN OF THE PROBLEM OF INSUFFICIENT BUSINESS EASED IN THE FOURTH QUARTER WHILE HIGH STAFF TURNOVER EMERGED AS A MAJOR PROBLEM. MOREOVER, PRICE COMPETITION REMAINED AS A PROMINENT PROBLEM FOR RESTAURANTS AND HOTELS DURING THE FOURTH QUARTER AND IT IS EXPECTED TO PERSIST IN THE FIRST QUARTER.

FIRMS IN 'TRANSPORT, STORAGE AND COMMUNICATION' AND 'REAL ESTATE DEVELOPMENT AND SERVICES' ALSO CONSIDERED PRICE COMPETITION AS THE IR MAJOR PROBLEM FOR BOTH THE FOURTH AND FIRST QUARTERS,

THE CENSUS AND STATISTICS DEPARTMENT SAID THAT THE SURVEY RESULTS, OBTAINED WITH A MINIMUM TIME LAG, WERE BASICALLY INTENDED TO PROVIDE ONE SOURCE OF REFERENCE FOR MAKING A QUICK ASSESSMENT OF THE CURRENT ECONOMIC SITUATION OF HONG KONG,

IN THE SURVEY, PARTICIPATING FIRMS WERE ASKED TO INDICATE WHETHER, IN THEIR OPINION, THE GENERAL BUSINESS SITUATION AND LEVEL OF CAPACITY UTILISATION HAD IMPROVED', 'REMAINED THE SAME' OR 'DETERIORATED IN THE QUARTER JUST ENDED AS COMPARED WITH THE QUARTER BEFORE THAT, FOR THE FORTHCOMING QUARTER, THEY WERE ALSO ASKED TO INDICATE WHETHER THE SITUATION WILL IMPROVE' 'REMAIN THE SAME OR DETERIORATE THE BALANCE OF OPINIONS OF RESPONDENTS WERE TABULATED AND ANALYSED. THE SURVEY REPORT ALSO CONTAINS A SECTION ON BUSINESS PROBLEMS EXPERIENCED AND EXPECTED BY FIRMS IN DIFFERENT ECONOMIC SECTORS AND A BREAKDOWN OF VIEWS OF FIRMS BY SIZE GROUPS.

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THE DEPARTMENT CAUTIONED THAT IN A SURVEY OF THIS NATURE, THE RESULTS SHOULD BE INTERPRETED WITH CARE AS IT WAS DIFFICULT TO ESTABLISH PRECISELY THE EXTENT TO WHICH RESPONDENTS' PERCEPTION OF THE PAST AND THE FUTURE ACCORDS WITH THE UNDERLYING TRENDS.

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