XN000022-1988-09-12 — Page 2

MONDAY, SEPTEMBER 12, 1988

LABOUR SHORTAGE, 'BRAIN DRAIN' BEING TACKLED: GOVERNOR

THE GOVERNOR, SIR DAVID WILSON, SAID TODAY (MONDAY) THAT HAVE ALREADY BEEN TAKEN TO DEAL WITH PROBLEMS CAUSED BY A SHORTAGE AND THE SO-CALLED "BRAIN DRAIN",

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LABOUR

IN HIS SPEECH TO THE YOUNG PRESIDENTS' ORGANISATION (YPO) INTERNATIONAL UNIVERSITY FOR PRESIDENTS, THE GOVERNOR TOLD THE INTERNATIONAL BUSINESS LEADERS THAT THOUGH HONG KONG HAD A FLOURISHING ECONOMY, AND WAS AN EXCITING INVESTMENT OPPORTUNITY, DID HAVE ITS OWN PROBLEMS, JUST LIKE ANYWHERE ELSE IN THE WORLD.

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THE TWO MOST OBVIOUS WERE PEOPLE'S ANXIETIES ABOUT THE FUTURE AND THE SO-CALLED "BRAIN DRAIN", LINKED TO A RECENT SHORTAGE OF LABOUR IN SOME AREAS OF THE ECONOMY, THE GOVERNOR SAID.

NOTING THAT A LABOUR SHORTAGE MIGHT BE TAKEN AS A SYMPTOM OF A SUCCESSFUL ECONOMY WORKING AT FULL STRENGTH AND THAT HONG KONG'S WORK- FORCE WAS BENEFITTING MUCH FROM THE GROWTH OF THE ECONOMY, SIR DAVED SAID IT MUST BE RECOGNISED THAT A LABOUR SHORTAGE WAS ALSO A CONSTRAINT TO GROWTH.

"WE ARE ALREADY BEGINNING TO DEAL WITH THE PROBLEM IN TWO WAYS. ONE IS GREATER INVESTMENT IN AUTOMATION, HE SAID.

"THE OTHER IS AN EXPANSION OF LABOUR-INTENSIVE MANUFACTURING OPERATIONS OVER THE BORDER INTO CHINA. IT IS AN EXTRAORDINARY FACT THAT HONG KONG MANUFACTURERS NOW EMPLOY FAR MORE WORKERS IN GUANGDONG PROVINCE THAN THEY DO IN HONG KONG.

"THE IMPLICATION IS THAT HONG KONG'S FUTURE LIES IN THE DIRECTION OF SERVICE INDUSTRIES, MERCHANDISING AND AUTOMATED, HIGH VALUE-ADDED, KNOWLEDGE INTENSIVE MANUFACTURING,

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"IN SHORT, OUR ECONOMY WILL NEED

CONTINUE то EVOLVE ADJUST TO CHANGING CIRCUMSTANCES AS IT HAS SO SUCCESSFULLY IN PAST."

AND THE

ON THE SO-CALLED BRAIN DRAIN", SIR DAVID SAID IT WAS CERTAINLY TRUE THAT SOME PEOPLE WERE EMIGRATING AND THE GOVERNMENT DID NOT UNDERESTIMATE THE IMPLICATIONS OF THIS OUTFLOW.

"WE HAVE STEPPED UP OUR EFFORTS IN MANPOWER TRAINING IN ORDER TO INCREASE THE SUPPLY OF SKILLED LABOUR, HE SAID.

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"OUR NEW 'OPEN LEARNING INSTITUTE' WHICH WILL BE HONG KONG'S SIXTH DEGREE-AWARDING INSTITUTION, WILL ADMIT ITS FIRST STUDENTS IN 1989.

"AND OUR