XN000022-1987-06-05 — Page 8

FRIDAY, JUNE 5, 1987

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CALL FOR MORE INVESTMENT IN MACHINERY

INVESTMENT IN UP-TO-DATE MACHINERY NEEDS TO BE ENCOURAGED HONG KONG'S MANUFACTURING INDUSTRIES ARE TO CONTINUE TO COMPETITIVE IN ITS EXPORT MARKETS, THE SECRETARY FOR TRADE INDUSTRY, MR HAMISH MACLEOD, SAID TODAY (FRIDAY).

IF

BE

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SPEAKING AT THE OPENING CEREMONY OF THE 8TH MACHINERY AND MATERIALS EXHIBITION, MR MACLEOD SAID IN VIEW OF THE FACT THAT HONG KONG EXPORTED 90 PER CENT OR MORE OF ITS MANUFACTURED GOODS AND THAT THE COMPETITION FOR OVERSEAS MARKETS WITH OUR PRINCIPAL ASIAN COMPETITORS WAS INTENSE, LOCAL MANUFACTURERS WERE UNDER CONSTANT PRESSURE TO ACHIEVE HIGHER LEVELS OF QUALITY AND PRODUCTIVITY WHILE KEEPING DOWN PRODUCTION COSTS AS FAR AS POSSIBLE.

"INDUSTRIAL AUTOMATION AND THE USB OF MODERN MACHINERY ARE PERHAPS THE MOST EFFECTIVE MEANS OF ACHIEVING GROWTH IN PRODUCTIVITY BECAUSE THEY INCREASE OUTPUT, REDUCE ERROR AND WASTE. AND ENABLE QUALITY LEVELS TO BE IMPROVED CONSISTENTLY.

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MR MACLEOD SAID IT WAS ENCOURAGING TO NOTE THAT OUR MANUFACTURERS LAST YEAR INVESTED SUBSTANTIALLY IN THIS AREA.

"IN 1986, THE VALUE OF RETAINED IMPORTS OF INDUSTRIAL MACHINERY FOR USE IN THE MANUFACTURING SECTOR INCREASED BY 26 PER CENT IN REAL TERMS OVER 1985."

HE WAS CONFIDENT THAT THIS KIND OF INVESTMENT WOULD CONTINUE TO GROW IF HONG KONG'S ECONOMY RESPONDED AS EFFICIENTLY AND SPEEDILY TO DEMAND IN OUR OVERSEAS MARKETS AS IT HAD DONE IN THE PAST.

TO ENCOURAGE MANUFACTURERS TO TAKE ADVANTAGE OF CONSULTANCY AND OTHER SERVICES ALREADY AVAILABLE IN HONG KONG WHICH CAN HELP THEM ACHIEVE PRODUCTIVITY GROWTH AND QUALITY IMPROVEMENT, MR MACLEOD SAID THE INDUSTRY DEPARTMENT WOULD BE INTRODUCING A PILOT SCHEME LATER THIS YEAR CALLED THE INDUSTRIAL EXTENSION SERVICE.

"UNDER THIS PILOT SCHEME, OFFICERS OF THE DEPARTMENT WILL BE MAKING VISITS TO OVER 300 MEDIUM-SIZED FACTORIES DURING A SIX-MONTH PERIOD, TO EXPLAIN TO MANUFACTURERS THE EXISTING SERVICES PROVIDED BY THE HONG KONG PRODUCTIVITY COUNCIL, THE INDUSTRY DEPARTMENT AND OTHER AGENCIES, INCLUDING THE TERTIARY INSTITUTIONS.'

BE

IT IS HOPED THAT IN THE COURSE OF THESE VISITS THEY WILL ABLE TO PERSUADE SOME OF THEIR CONTACTS OF THE POTENTIALLY BENEFICIAL EFFECTS OF THESE SERVICES IN TERMS OF PRODUCTIVITY GROWTH AND QUALITY ENHANCEMENT.

"A REVIEW WILL BE CARRIED OUT AFTER THESE VISITS HAVE BEEN COMPLETED TO DETERMINE WHETHER THERE IS A NEED FOR A PERMANENT EXTENSION SERVICE AND, IF SO, PRECISELY WHAT FORM IT SHOULD TAKE AND WHAT ITS OBJECTIVES SHOULD BE," MR MACLEOD ADDED.

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