XN000022-1988-09-05 — Page 2

MONDAY, SEPTEMBER 5, 1988

CHALLENGES AND OPPORTUNITIES FACING MANUFACTURING INDUSTRIES

OPERATIONS IN THE CURRENT TREND TOWARDS LOCATING SUB-ASSEMBLY

AND FOREIGN CHINA WOULD, IN THE LONG TERM, POSE A CHALLENGE ON LOCAL

KONG'S INDUSTRIES TO COMPETE FOR A MANUFACTURERS TO UPGRADE HONG

MADE BY MANUFACTURERS GREATER SHARE OF THE INCREASING PROFITS BEING

CONSUMER PRODUCTS IN OF HIGHER PRICED AND MORE TECHNOLOGY INTENSIVE THE REGION,

MR ANDREW LEUNG SAID THIS THE ACTING DIRECTOR OF INDUSTRY,

BUSINESS TODAY (MONDAY) WHILE ADDRESSING PARTICIPANTS OF A MASTERS OF ADMINISTRATION PROGRAMME OF THE LONDON BUSINESS SCHOOL.

THE

OPENING

SESSION

OF

THE PROGRAMME

THIS MORNING

WAS

OFFICIATED BY THE SECRETARY FOR TRADE AND INDUSTRY, MR HAMISH MACLEOD.

NOTED LEUNG MR

ALSO

THAT THE

OF MOVING

LABOUR-INTENSIVE OPERATIONS TO CHINA HAD NOT REDUCED JOB OPPORTUNITIES IN HONG KONG IN THE SHORT-TERM, OR RESULTED IN A SIGNIFICANT DIVERSION FROM HONG KONG TO CHINA.

"HONG

LARGEST

TRADING

OF INVESTMENT

PARTNER

KONG IS NOW CHINA'S DOMESTIC EXPORTS TO CHINA AMOUNTING TO $27,871 MILLION IN 1987, PER CENT, INCREASE OVER 1986," HE SAID.

WITH

A 55

"IT ALSO ACCOUNTS FOR ABOUT $43 BILLION OR 65 PER CENT .TOTAL DIRECT INVESTMENT IN CHINA.

OF THE

"AS

GATHERS

THE PACE, CHINA'S INDUSTRIALISATION

CHINA ALSO UNDERLINES THE RELATIONSHIP BETWEEN HONG KONG AND SOUTH TERRITORY'S INDUSTRIAL DEVELOPMENT IN HIGH QUALITY, AND CAPITAL AND TECHNOLOGY INTENSIVE MANUFACTURING.

BOTH LOCAL AND

SYMBIOTIC

HIGH VALUE-ADDED

OVERSEAS,

WILL GREATER

"THE ENTREPRENEURIAL SPIRIT, TAKE ADVANTAGE OF THIS DEVELOPMENT AND MAKE HONG KONG AN EVEN ECONOMIC SUCCESS THAN IT IS TODAY IN THE YEARS TO COME,

ALSO

HE ADDED.

"HONG KONG IS, HOWEVER.

FACING INCREASING COMPETITION CONSUMERS GOODS, FROM ITS ASIAN NEIGHBOURS IN THE MORE SOPHISTICATED

ON RELY AND PARTICULARLY ELECTRONICS,

CAN NO LONGER COMPETITIVENESS ALONE IN THE TYPE OF ORIGINAL · EQUIPMENT (OEM) WORK WITH A RELATIVELY HIGH LABOUR CONTENT.

PRICE

MANUFACTURE

PRODUCTS IN 1987, IT8

HAS

ELECTRONIC U.3.A. OF "WHILE ITS EXPORTS TO THE

$16,060 MILLION GROWN FROM $7,918 MILLION IN 1982 TO MARKET SHARE HAS DROPPED FROM FIVE PER CENT TO 3.9 PER CENT.

"IT WOULD HAVE TO COMPETE MORE IN TERMS ADDED, QUALITY, DESIGN AND INNOVATION.

OF

TECHNOLOGY,

VALUE

/IN RESPONDING