TNAG-1607-FCO40-22122-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 48

UKAF 1

LEGISLATIVE COUNCIL

RICHARD LAI

14.1.1987

Adjornment Debate on

"Industrial Development in Hong Kong"

Sir,

Hong Kong's economic performance in 1985 was gratifying by most counts. Various economic indicators throughout the year in general and in the third quarter in particular, point to the fact that recovery of the economy is well under way. Encouraging signs as reflected by the increases in retained import of capital goods and retained import of raw materials and semi-manufactures convince me that investment activities will be bouyant for the next little while. While not intending to appear alarmist or pessemistic, which I am not, I still consider it premature to

The major self-congratulate for such noteworthy developments. factor underlying the recovery is the depreciation of the Hong Kong dollar which enhanced the competitiveness of our product. We must not be complacent. Industrial development requires foresight, planning, a comprehensive strategy and of course its namesake, industry: the industry of businessmen, labour and, increasingly, Government.

Coming off a good year in economic terms, this may be a suitable time to examine the foundation of our industry and address possible underlying problems that may adversely affect

its growth.

The growth of Hong Kong's industry is constrained by the particular nature of her markets, domestic and external, and

As well, her her trading relations with the rest of the world. physical limitations have largely defined the characteristics of her industrial endeavours.

The non-availability of low cost industrial land, lack of a sizable domestic market, need for heavy capital outlay have diminished the prospect of developing heavy industries in Hong Kong. In the era of high technology, Hong Kong must adapt to this prevailing trend to stay competitive. However, the