XN000022-1990-11-30 — Page 11

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HK'S STATUS AS BUSINESS HUB ENHANCED

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THE INCREASING ORIENTATION TO SERVICES HAS ENHANCED HONG KONG'S POSITION AS A BUSINESS HUB FOR TRADE, FINANCE AND COMMUNICATIONS IN THE ASIA-PACIFIC REGION, THE FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID TODAY (FRIDAY).

IN HIS ADDRESS TO THE CANADIAN CHAMBER OF COMMERCE, SIR PIERS FOCUSSED UPON THE CONTINUOUS STRUCTURAL CHANGES WHICH HONG KONG HAD BEEN UNDERGOING TO MEET THE CHANGING CIRCUMSTANCES IN THE WORLD ECONOMY.

"SEVERAL CHANGES WHICH GAINED MOMENTUM IN THE SECOND HALF OF THE 1980'S ARE WORTH MENTIONING, AS THEY ARE EXPECTED TO CONTINUE

To SHAPE OUR DEVELOPMENTS IN THE 1990'S," HE SAID.

SIR PIERS SAID THE FIRST DEVELOPMENT WAS RELATED TO THE RE- EMERGENCE OF HONG KONG AS AN IMPORTANT ENTREPOT FOR THE REGION.

"THE OPENING UP OF CHINA SINCE THE LATE 1970'S WAS THE MAJOR CONTRIBUTORY FACTOR," HE SAID, POINTING OUT THAT ABOUT 80 PER CENT OF OUR RE-EXPORTS INVOLVED GOODS GOING INTO AND OUT OF CHINA.

"HOWEVER, RE-EXPORTS NOT INVOLVING CHINA HAVE ALSO BEEN INCREASING RAPIDLY, IN LINE WITH THE FAST ECONOMIC GROWTH IN THE REGION."

REFLECTING THIS DEVELOPMENT, RE-EXPORTS NOW ACCOUNTED FOR NEARLY 65 PER CENT OF OUR TOTAL EXPORTS, WHEREAS IN 1980 THE CORRESPONDING SHARE WAS MUCH LOWER, AT 31 PER CENT, SIR PIERS SAID.

HE SAID THE SECOND DEVELOPMENT WAS RELATED TO OUTWARD PROCESSING ARRANGEMENTS.

"TAKING ADVANTAGE OF THE CHEAPER LAND AND LABOUR COSTS IN SOUTH CHINA, THE MORE LABOUR-INTENSIVE PRODUCTION PROCESSES ARE CONTINUOUSLY BEING SHIFTED ACROSS THE BORDER, HE SAID.

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"AS A RESULT, LOCAL MANUFACTURERS AND WORKERS CAN CONCENTRATE ON THE HIGHER VALUE-ADDED AND MORE SKILL-INTENSIVE ACTIVITIES.

THE THIRD DEVELOPMENT RELATED TO THE TRANSFORMATION KONG INTO A MORE SERVICE-ORIENTED ECONOMY.

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OF HONG

FOR THE

"THE RE-EMERGENCE OF HONG KONG'S ROLE AS AN ENTREPOT REGION HAS PROVIDED ABUNDANT BUSINESS OPPORTUNITIES FOR THE TRADING, FINANCE AND TRANSPORT SECTORS.

"THE AVAILABILITY OF OUTWARD PROCESSING ACTIVITIES HAS ALSO FACILITATED THE SHIFT OF MANPOWER RESOURCES FROM MANUFACTURING ΤΟ SERVICES. THIS DEVELOPMENT IS IN LINE WITH THE TENDENCY TOWARDS REGIONAL DIVISION OF LABOUR, HE SAID.

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LABOUR-INTENSIVE

LABOUR

SIR PIERS SAID THE TENDENCY WAS FOR THE MORE MANUFACTURING PROCESSES TO CONCENTRATE IN AREAS WHERE LAND AND COSTS WERE RELATIVELY LOWER AND THE SERVICE-TYPE ACTIVITIES TO EXPAND IN AREAS WHICH WERE BETTER LOCATED AND HAD A BETTER EDUCATED WORKFORCE AND RELATIVELY ABUNDANT CAPITAL RESOURCES.

/THE SHARE