XN000022-1989-03-28 — Page 4

TUESDAY, MARCH 28, 1989

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GOVT COMMITTED TO HELPING LINKAGE INDUSTRIES GROW

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THE DIRECTOR OF INDUSTRY, MR K.Y. YEUNG, TODAY (TUESDAY) STRESSED THE IMPORTANCE ATTACHED TO THE GROWTH AND DEVELOPMENT OF THE 31,000 LOCAL INDUSTRIAL UNDERTAKINGS WHICH CONVERT IMPORTED RAW MATERIALS INTO SEMI-MANUFACTURES AND SELL THEM TO OTHER MANUFACTURERS FOR ASSEMBLY INTO FINISHED PRODUCTS.

SPEAKING AT THE OPENING OF THE LINKAGE INDUSTRIES EXHIBITION, MR YEUNG SAID THAT IN THE YEARS AHEAD THE STRENGTH OF THE LINKAGE INDUSTRIES WOULD BE A DECISIVE FACTOR IN THE PERFORMANCE OF OUR EXPORTS.

ON

"IF OUR LINKAGE INDUSTRIES FAIL, OUR EXPORTS WILL FAIL, FOR AS A RELATIVELY SMALL ECONOMY THERE IS A LIMIT TO WHICH WE CAN DEPEND IMPORTS, HE SAID.

申申

MR YEUNG GAVE TWO REASONS TO SUPPORT THIS VIEW.

FIRST, HE SAID, THE SHIFT OF OUR LABOUR INTENSIVE ASSEMBLY OPERATIONS INTO SOUTH CHINA HAD CREATED A STRONG DEMAND FOR HONG KONG TO BECOME A SUPPLY BASE OF MATERIALS, PARTS, COMPONENTS AND TOOLING THAT COULD NOT BE SUPPLIED FROM WITHIN CHINA.

OF SMALLER MARKET

SECONDLY, WITHIN HONG KONG ITSELF, THE COMBINATION ORDERS, SHORTER PRODUCT LIFE-CYCLES AND A TIGHT LABOUR UNDERSCORED THE NEED FOR INTRODUCING MORE EFFICIENT AND FLEXIBLE PRODUCTION METHODS.

TO

"OUR LINKAGE INDUSTRIES, MECHANISED THOUGH THEY MIGHT BE SOME EXTENT, HAVE TO BECOME EVEN STRONGER BY BECOMING MORE EFFICIENT AND ADAPTABLE TO CHANGE, HE SAID.

H

MR YEUNG SAID THE GOVERNMENT HAD, IN RECENT HEAVILY IN THE AREA OF DIRECT MANUFACTURING SUPPORT.

YEARS,

INVESTED

ADVISORY,

THIS SUPPORT TOOK THE FORM OF INFORMATION. CONSULTANCY AND BUREAU SERVICES PROVIDED BY THE HONG KONG PRODUCTIVITY COUNCIL (HKPC) AND OTHER ORGANISATIONS,

INDUSTRIAL

SUPPORT

IN THE LAST THREE YEARS, THE GOVERNMENT HAD PROVIDED THE HKPC WITH DEVELOPMENT GRANTS TOTALLING $69 MILLION FOR THE CREATION OF NEW LABORATORY FACILITIES AND THE EXPANSION OF ITS CONSULTANCY SERVICES.

"THIS YEAR. WE EXPECT TO RECEIVE FROM THE HKPC ITS THIRD TRIENNIAL DEVELOPMENT PROGRAMME, COVERING THE PROVISION OF NEW SUPPORT SERVICES IN THE PERIOD 1990-91 TO 1992-93, AND 1 UNDERSTAND THAT THIS WILL FOCUS MAINLY ON HELPING MANUFACTURERS TO ACHIEVE ADVANCED ENGINEERING DESIGN AND PRECISION MACHINING CAPABILITIES,' SAID.

HE

/TURNING TO