XN000022-1990-08-14 — Page 5

TUESDAY, AUGUST 14, 1990

HE SAID: "WE ARE NOW IN AN AGE OF ADVANCED TECHNOLOGY AND FAST EXPANDING INTERNATIONAL TRADE.

"THIS HAS CREATED MANY CHALLENGES AS WELL AS OPPORTUNITIES.

"WE ARE WITNESSING A TREND TOWARDS PRODUCT DOWNSIZING, SHORTER PRODUCT LIFE-CYCLES, SMALLER PRODUCTION RUNS, FASTER DELIVERY AND GREATER EMPHASIS ON PRODUCT QUALITY AND RELIABILITY.

TO MEET THESE EXACTING DEMANDS, IT BECOME IMPORTANT FOR

TO IMPROVE THEIR CAPABILITIES, MR WONG SAID.

MANUFACTURERS

INCREASINGLY TECHNOLOGICAL

HE SAID, WITHIN HONG KONG, RISING LABOUR AND LAND COSTS HAD MADE IT NECESSARY FOR MANUFACTURERS ΤΟ INCREASE THE VALUE-ADDED CONTENT OF THEIR PRODUCTS TO MAINTAIN A REASONABLE PROFIT MARGIN ON THEIR INVESTMENT. WHILE SOME HAD RESPONDED TO THESE CHALLENGES BY SHIFTING LABOUR-INTENSIVE MANUFACTURING PROCESSES OUTSIDE HONG KONG, THIS OPTION WAS WORKABLE ONLY IN THE SHORT TERM.

"UTIMATELY, AS OUR COMPETITORS CHALLENGE US AT THE LOWER-VALUE- ADDED END OF THE MARKET, AND OUR OVERSEAS BUYERS DEMAND BETTER PRODUCTS FROM US, WE NEED TO MOVE TOWARDS KNOWLEDGE-INTENSIVE AND HIGH QUALITY PRODUCTION TO REMAIN COMPETITIVE.

"INDUSTRIAL TECHNOLOGY ADVANCEMENT IS THEREFORE THE KEY TO ACHIEVING PRODUCTIVITY GROWTH, QUALITY IMPROVEMENT AND PRODUCT PRECISION AND INNOVATION," HE SAID.

FOR APPROPRIATE TECHNOLOGY TO

BE WIDELY DIFFUSED AND EFFECTIVELY UTILIZED, MR WONG SAID, IT MAY REQUIRE CONSIDERABLE EFFORTS FROM BOTH THE PRIVATE SECTOR AND THE GOVERNMENT.

IDEALLY, THE GOVERNMENT SHOULD BE PRIMARILY CONCERNED WITH REMOVING OBSTACLES TO THESE PROCESSES, WHILE MANUFACTURERS SHOULD THEMSELVES DETERMINE THE DIRECTION OF DEVELOPMENT BASED ON THEIR BETTER MARKET KNOWLEDGE.

IN GENERAL, HE SAID, THERE WERE TECHNOLOGY DEVELOPMENT:

FIVE MAJOR OBSTACLES TO

FIRSTLY, LACK OF INFORMATION ΤΟ IDENTIFY TECHNOLOGICAL REQUIREMENTS IN DIFFERENT MARKET NICHES COULD MAKE EFFORTS TECHNOLOGY DEVELOPMENT FUTILE.

IN

TECHNOLOGY DEVELOPMENT NORMALLY REQUIRED THE CHOICE OF RIGHT TECHNICAL KNOW-HOW AND ITS APPLICATION. ADEQUATE INFORMATION WAS CRUCIAL IN THIS PROCESS.

SECONDLY, LIMITED SCIENTIFIC AND TECHNICAL MANPOWER COULD MAKE ASSIMILATION OF NEW TECHNOLOGY VERY DIFFICULT.

THIRDLY, WEAK LINKAGE BETWEEN RESEARCH AND DEVELOPMENT IN TERTIARY INSTITUTIONS AND PRODUCTION IN FACTORIES COULD HAMPER THE DEVELOPMENT OF INDIGENOUS TECHNOLOGY.

/FOURTHLY, POOR