XN000022-1990-02-13 — Page 3

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TUESDAY, FEBRUARY 13, 1990

STORAGE AND COMMUNICATION

AS REGARDS TRANSPORT,

SERVICES, A DETERIORATION IN BUSINESS WAS REPORTED FOR THE FOURTH QUARTER OF LAST YEAR, AND THIS SITUATION IS EXPECTED TO CONTINUE IN THE FIRST QUARTER OF 1990.

ABOUT 1,000 FIRMS FROM VARIOUS INDUSTRIES AND BUSINESSES, FORMING A CROSS-SECTION OF THE BUSINESS COMMUNITY, PARTICIPATED IN THE SURVEY. THEY WERE ASKED ABOUT THEIR BUSINESS EXPERIENCES AND EXPECTATIONS, AS WELL AS THE BUSINESS PROBLEMS THEY FACED.

ALTHOUGH SHORTAGE OF SKILLED LABOUR AND SHORTAGE OF LABOUR GENERALLY CONTINUED TO AFFECT FIRMS IN THE MANUFACTURING SECTOR IN THE FOURTH QUARTER OF 1989, THESE PROBLEMS HAD BECOME LESS SEVERE COMPARED WITH THE SITUATION IN THE PREVIOUS QUARTERS.

FIRMS IN THE CONSTRUCTION SECTOR CONTINUED TO BE AFFECTED BY SHORTAGE OF SKILLED LABOUR, HIGH WAGE RATES, SHORTAGE OF LABOUR GENERALLY AND PRICE COMPETITION FROM LOCAL FIRMS IN HONG KONG IN THE FOURTH QUARTER OF 1989. THE SITUATION IS EXPECTED TO REMAIN SIMILAR IN THE FIRST QUARTER OF THIS YEAR.

A SIGNIFICANT PROPORTION OF FIRMS IN THE DISTRIBUTIVE AND CATERING TRADES SECTOR AND OTHER SERVICES SECTOR CITED SHORTAGE OF STAFF GENERALLY, HIGH STAFF TURNOVER AND HIGH STAFF COSTS AS THE MAJOR PROBLEMS IN THE FOURTH QUARTER OF 1989 AND THEY EXPECT THIS SITUATION TO CONTINUE IN THE FIRST QUARTER OF 1990.

IN ADDITION TO THE ABOVE PROBLEMS, HOTELS WERE ALSO AFFECTED BY INSUFFICIENT BUSINESS AND PRICE COMPETITION IN THE FOURTH QUARTER OF LAST YEAR.

TRADES QUARTER

FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT REPORTED PRICE COMPETITION AS THE MAJOR PROBLEM IN THE FOURTH OF 1989, THEY EXPECT THE SAME PROBLEM TO PERSIST IN THE FIRST QUARTER OF 1990.

MEANWHILE. MORE FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION SERVICES EXPECT INSUFFICIENT BUSINESS TO BE THE MAJOR PROBLEM IN THE FIRST QUARTER OF 1990, AS IN THE FOURTH QUARTER OF LAST YEAR.

TO

IN THE CASE OF BANKS, PRICE COMPETITION EMERGED AS A PROMINENT PROBLEM IN THE FOURTH QUARTER OF 1989 AND THE PROBLEM IS EXPECTED CONTINUE IN THE FIRST QUARTER OF THIS YEAR.

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

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