XN000022-1991-11-27 — Page 26

WEDNESDAY, NOVEMPER 27, 1991

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"WE BELIEVE THAT HONG KONG'S MANUFACTURERS MUST UPGRADE THEIR PRODUCTIVITY AND THE QUALITY OF THEIR PRODUCTS TO REMAIN COMPETITIVE.

"AND THE AIM OF THE INDUSTRY DEPARTMENT'S INWARD INVESTMENT PROMOTION PROGRAMME IS TO ENCOURAGE OVERSEAS INVESTORS TO INTRODUCE TO HONG KONG, THROUGH THEIR INVESTMENTS, NEW OR IMPROVED PRODUCTS, TECHNOLOGY, DESIGNS AND MANAGEMENT TECHNIQUES, HE SAID.

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IN THIS RESPECT, HE SAID, ABOUT 40 PER CENT OF THE COMPANIES WITH AN OVERSEAS INTEREST WERE JOINT VENTURES WITH LOCAL PARTNERS, A FORM OF CO-OPERATION WHICH PROVIDED A GOOD OPPORTUNITY FOR TECHNOLOGY TRANSFER.

"IN ABOUT THE SAME PROPORTION OF COMPANIES, STAFF HAVE BEEN DEPLOYED FROM THE OVERSEAS PARENT COMPANIES ΤΟ PROVIDE GUIDANCE OR ASSISTANCE IN AREAS SUCH AS COMPANY MANAGEMENT, OPERATIONS, AND RESEARCH AND DEVELOPMENT, HE SAID.

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MR BARMA SAID 328 COMPANIES (60 PER CENT) REPORTED THAT THEY EITHER HAD LICENSING ARRANGEMENTS WITH THE OVERSEAS PARENT COMPANY, OR HAD RECEIVED TECHNICAL ASSISTANCE OR HELP IN ACQUIRING MACHINERY AND EQUIPMENT FROM THEM.

MOREOVER, 87 (16 PER CENT) COMPANIES, ESPECIALLY THOSE IN THE ELECTRONICS AND ELECTRICAL PRODUCTS INDUSTRIES, REPORTED THAT OVERSEAS INVESTORS HAD BEEN INVOLVED IN THE TRANSFER OF ADVANCED TECHNOLOGY.

"OBVIOUSLY, OVERSEAS INVESTMENT

PLAYS AN IMPORTANT ROLE IN ASSISTING THE LOCAL MANUFACTURING SECTOR ΤΟ UPGRADE ITS PRODUCTION CAPABILITIES," HE SAID.

TOOK THE

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MR BARMA SAID THE INDUSTRY DEPARTMENT ALSO OPPORTUNITY IN THÊ SURVEY TO SEEK THE VIEWS OF OVERSEAS INVESTORS THE ATTRACTIVENESS OF HONG KONG AS A MANUFACTURING BASE.

HE SAID EACH COMPANY WAS GIVEN A LIST OF 12 FACTORS

WHICH, AND LARGE, MADE UP THE OVERALL INVESTMENT ENVIRONMENT OF HONG KONG A MANUFACTURING BASE.

SUCH

BY

AS

THESE FACTORS INCLUDED A RANGE OF NORMAL BUSINESS FACTORS, AS INFRASTRUCTURE, BANKING AND FINANCIAL FACILITIES, THE AVAILABILITY OF TECHNICAL AND PROFESSIONAL SKILL, AND ALSO SPECIAL CONSIDERATIONS SUCH AS HONG KONG'S POLITICAL CLIMATE AND ITS FUTURE.

SEVEN OUT OF THE 12 FACTORS USED IN THE SURVEY WERE CONSIDERED BY MORE THAN HALF OF THE RESPONDENTS TO BE FAVOURABLE.

BANKING AND FINANCTAL FACILITIES INFRASTRUCTURE, HONG KONG'8 REGIONAL LOCATION AND LABOUR PRODUCTIVITY WERE THE KEY FACTORS SEEN AS MOST FAVOURABLE.

FACTORS AND OFFICE

"THE SURVEY ALSO CONFIRMED SEVERAL COMMONLY RECOGNISED CAUSING CONCERN, SUCH AS LABOUR COST, COST OF FACTORY SPACE, AND HONG KONG'S POLITICAL FUTURE, HE SAID.

/MR BARMA