XN000022-1987-04-13 — Page 2

MONDAY, APRIL 13, 1987

NEW TECHNOLOGY PLAYS VITAL ROLE IN INDUSTRY

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THE GOVERNMENT ATTACHES CONSIDERABLE IMPORTANCE TO THE INTRODUCTION OF NEW TECHNOLOGY AND TO ITS WIDEST POSSIBLE DISSEMINATION AMONG THE MANUFACTURING INDUSTRIES.

THIS WAS STATED THIS EVENING (MONDAY) BY THE DIRECTOR OF INDUSTRY, MR K.Y. YEUNG, IN A SPEECH TO THE HONG KONG ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE AND TECHNOLOGY.

SAID MR YEUNG: +TECHNOLOGICAL DEVELOPMENT STRENGTHENS THE EXPORT COMPETITIVENESS OF OUR MANUFACTURING OUTPUT, AND COMPETITIVENESS IN TURN FOSTERS GROWTH.

+THE IMPORTANCE OF MANUFACTURING MAINTAINING ITS GROWTH MOMENTUM IS EVEN MORE APPARENT WHEN WE BEAR IN MIND THAT THIS SECTOR ACCOUNTS FOR MORE THAN ONE-THIRD OF TOTAL EMPLOYMENT AND 22 PER CENT OF THE GROSS DOMESTIC PRODUCT.+

MR YEUNG SAID THE THRUST OF THE GOVERNMENT'S INDUSTRIAL DEVELOPMENT SERVICES IS DIRECTED TOWARDS REMOVING OBSTACLES TO THE ACQUISITION OF USEFUL TECHNOLOGIES, ESPECIALLY THOSE TECHNOLOGIES ASSOCIATED WITH PRODUCTIVITY GROWTH AND QUALITY IMPROVEMENT. SUCH SERVICES INCLUDE MANPOWER TRAINING, THE PRODUCTIVITY ENHANCEMENT AND QUALITY PROMOTION SERVICES PROVIDED BY THE HONG KONG PRODUCTIVITY COUNCIL AND THE INDUSTRY DEPARTMENT, INWARD INVESTMENT PROMOTION AND THE FUNDING OF DEVELOPMENT PROJECTS.

HOWEVER TECHNOLOGY ACQUISITION IS ONLY ONE FACET OF INDUSTRIAL DEVELOPMENT.

+ THE OTHER HAS TO BE ITS EXTENSIVE ABSORPTION AND APPLICATION BY THE MANUFACTURING SECTOR, AND THAT IS BY NO MEANS AN EASY OBJECTIVE TO ACHIEVE.

+THIS IS BECAUSE WE HAVE A PREPONDERANCE OF SMALL BUSINESSES COUPLED WITH A HIGH DEGREE OF CONCENTRATION IN LIGHT, RELATIVELY LABOUR-INTENSIVE MANUFACTURING.

+ BUT I AM CONFIDENT THAT, OVER TIME AND WITH SOME ENCOURAGEMENT, OUR MANUFACTURING COMMUNITY WILL RESPOND TO THE NEED TO BECOME MORE EFFICIENT, TO IMPROVE THE QUALITY OF THEIR OUTPUT AND TO INNOVATE, IF IT CAN BE DEMONSTRATED CONVINCINGLY THAT FAILURE TO DO SO MEANS INCREASING THE RISK OF GOING OUT OF BUSINESS, + MR YEUNG SAID.

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