XN000022-1991-10-10 — Page 4

THURSDAY, OCTOBER 18, 1991

3

INVESTMENT OPPORTUNITIES FOR VENTURE CAPITAL SECTOR

THE SECRETARY FOR TRADE AND INDUSTRY, MR T.H. CHÁU, TODAY (THURSDAY) URGED THE VENTURE CAPITAL SECTOR TO WATCH FOR INVESTMENT OPPORTUNITIES IN MANUFACTURING AS THE PORT AND AIRPORT DEVELOPMENT PROJECT PROCEEDS.

SPEAKING AT THE ASIAN VENTURE FORUM '91, MẸ CHÁU BÀIH THE REDEVELOPMENT OF KOWLOON WOULD HELP то SPEED UP TRANSFORMATION HONG KONG'S MANUFACTURING SECTOR WHICH WAS ALREADY IN PROGRESS.

OF

CHAU MR

SAID THE NEW AIRPORT PROJECT Also INVOLVED A SIGNIFICANT EXPANSION OF HONG KONG'S PORT, AND WOULD PROVIDE THE GOVERNMENT WITH THE OPPORTUNITY TO COMPLETELY REDEVELOP MUCH OF THE KOWLOON PENINSULA.

"AT PRESENT, KOWLOON IS DOMINATED BY OLD INDUSTRIAL AND RESIDENTIAL BUILDINGS WHICH CANNOT BE THINNED OUT BECAUSE OF AIRPORT HEIGHT RESTRICTIONS AND SCARCE LAND RESOURCES.

"THE REMOVAL OF KAI TAK AIRPORT AND THE CREATION OF LARGE NEW LAND AREAS ON THE OLD KAI TAK SITE AND AROUND THE NEW CHRK LAP KOK AIRPORT WILL GIVE US ELBOW-ROOM TO MAKE SUBSTANTIAL CHANGES.

"THE AIRPORT PROJECT WILL GIVE US A NEVER-TO-BE-REPRATED OPPORTUNITY TO SWEEP AWAY CROWDED FLATS AND POLLUTING FACTORIES IN KOWLOON, AND REPLACE THEM WITH A LIVING AND WORKING ENVIRONMENT WHICH TOWN PLANNERS AND ENVIRONMENTALISTS WILL BE PROUD OF," HE SAID.

MR CHAU SAID MANY MANUFACTURERS WOULD LEAVE THEIR CRAMPED EXISTING PREMISES IN KOWLOON FOR MORE SPACIOUS SITES IN THE NEW TERRITORIES, PROVIDED WITH SUPPORTING INFRASTRUCTURE OF A VERY HIGH STANDARD.

"THEY WILL MAKE THIS MOVE AT A TIME WHEN EXTERNAL DEMAND IN OUR MAJOR EXPORT MARKETS IS IN ANY CASE FORCING MANUFACTURERS TO ACHIEVE HIGHER LEVELS OF PRODUCTIVITY, QUALITY MANAGEMENT AND PRODUCT QUALITY, AND TO PIONEER ORIGINAL PRODUCT DESIGNS.

"30, AS WE MOVE INTO THE NEXT CENTURY, THE INTERACTION OF THESE TWIN PRESSURES WILL, I BELIEVE, RESULT IN A DECISIVE MOVE AWAY FROM LABOUR-INTENSIVE INTO CAPITAL-INTENSIVE MANUFACTURING.

CAPABLE DÍ

"THE LONG-TERM FUTURE WILL LIE WITH COMPANIES

IN CLEAN FACTORIES, WITH

PRODUCTS,

MANUFACTURING HIGH-VALUE-ADDED SOPHISTICATED TECHNOLOGY," HE SAID.

MR CHAU SAID

THE GOVERNMENT HAD ANTICIPATED TRANSFORMATION BY PLANNING THE NECESSARY INFRASTRUCTURE.

"THIS DOES NOT

THIS

AND

ARE

OF

AND

ONLY MBAN LAND, A A GOOD TRANSPORT COMMUNICATIONS SYSTEM, AND TRAINED MANPOWER, THOUGH ALL THREE COURSE VITAL; IT ALSO MEANS PROVIDING AN ENVIRONMENT WHERE IDRAS FINANCING CAN MEET.

"WE ARE