XN000022-1996-12-31 — Page 3

- 2 -

"Following the relocation of more labour-intensive and lower value-added manufacturing processes to neighbouring places, Hong Kong's businessmen are expanding not only their operation, but also their vision," Ms Wong said.

centre.

"Hong Kong is developing into a regional manufacturing support and control

"Amidst this process of globalisation of production, many industrialists are re- deploying their local resources to higher value-added and intelligence-based manufacturing-related activities, such as product design and development, testing, prototype manufacturing, which in turn support their offshore production bases. The integration enables Hong Kong firms to more effectively and efficiently respond to the demand of the market."

The report also contains the findings of a survey of Hong Kong's manufacturing environment conducted by Industry Department between June and September this

year.

Questionnaires were sent to 3,269 sampled establishments in 14 selected manufacturing industries. A total of 2,176 valid returns were received.

When asked to comment on the favourableness of 12 given investment factors, at least half of the respondents considered six of those factors to be favourable. They were: Hong Kong's infrastructure, banking and financial facilities, labour productivity, availability of professional/technical skills, availability of managerial skills and geographical location.

The survey is the seventh of its kind. Its aim is to ascertain manufacturers' views on Hong Kong's manufacturing environment and how they have seen their business situation.

End