XN000022-1987-08-18 — Page 4

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TUESDAY, AUGUST 18, 1987

AS FOR THE 'WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES' BUSINESS, THE PREVAILING FAVOURABLE BUSINESS CLIMATE IS EXPECTED TO IMPROVE FURTHER IN THE THIRD QUARTER.

THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY FIRMS.

SECTOR,

THE

FOR THE MANUFACTURING

PROBLEMS OF PRICE COMPETITION FROM FIRMS IN HONG KONG, SHORTAGE OF SKILLED LABOUR AND HIGH MATERIAL PRICES WERE REPORTED BY FIRMS AS SIGNIFICANT PROBLEMS IN BOTH THE SECOND AND THIRD QUARTERS.

IN ADDITION, SHORTAGE OF LABOUR GENERALLY, WHICH EMERGED AS A PROMINENT PROBLEM IN THE FIRST QUARTER OF 1987 BECAME MORE EXTENSIVE IN THE SECOND QUARTER AND IS EXPECTED то REMAIN SO IN THE THIRD QUARTER.

FIRMS

AS FOR THE CONSTRUCTION SECTOR, PRICE COMPETITION FROM LOCAL AS WELL AS FOREIGN FIRMS IN HONG KONG REMAINED AS THE PREDOMINANT PROBLEMS FACED BY FIRMS IN THE SECOND QUARTER.

IN ADDITION, THERE WERE INDICATIONS THAT FIRMS WERE ALSO AFFECTED BY A NUMBER OF NEWLY EMERGED PROBLEMS, INCLUDING SHORTAGE OF LABOUR GENERALLY, SHORTAGE OF SKILLED LABOUR AND HIGH WAGE RATES.

PRICE COMPETITION AND HIGH STAFF TURNOVER WERE COMMON PROBLEMS FACED BY FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES, RESTAURANTS AND HOTELS' SECTOR IN THE SECOND QUARTER.

MOREOVER, THE PROBLEM OF SHORTAGE OF EXPERIENCED STAFF HAS BECOME MORE DOMINANT AMONG FIRMS IN THE RESTAURANTS AND HOTELS BUSINESSES. THESE PROBLEMS ARE EXPECTED TO REMAIN PREVALENT IN THE THIRD QUARTER.

FIRMS IN THE 'TRANSPORT, STORAGE AND COMMUNICATION' AND 'BANKS' BUSINESSES CONTINUED TO REGARD PRICE COMPETITION AS A MAJOR PROBLEM IN BOTH THE SECOND AND THIRD QUARTERS OF 1987.

IN ADDITION, AN INCREASING PROPORTION OF FIRMS IN THE BANKS AND REAL ESTATE DEVELOPMENT AND RELATED SERVICES' BUSINESSES AFFECTED BY SHORTAGE OF EXPERIENCED AND QUALIFIED STAFF.

WERE

THE SURVEY PROVIDE CURRENT

ACCORDING TO THE CENSUS AND STATISTICS DEPARTMENT, RESULTS, OBTAINED WITH A MINIMUM TIME LAG, ARE INTENDED TO ONE SOURCE OF REFERENCE FOR MAKING A QUICK ASSESSMENT OF THE ECONOMIC SITUATION OF HONG KONG.

/IN THE