ENG-1972 — Page 35

INDUSTRY AND TRADE

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ahead on a firmer base, although the opportunity for future expansion of the industry as a whole is limited by the restraint agreements now in force.

Other Light Industries

The majority of Hong Kong's light industries have enjoyed continued expansion. Second in importance to textiles, the plastics industry accounts for 11 per cent of domestic exports and 13 per cent of the industrial labour force. Many plastics factories employ the latest equipment, with many injection and extrusion machines now being manufactured locally. Much of the industry's production was accounted for by novel- ties, dolls and toys; with the design and quality being up to the highest world standards, Hong Kong now ranks among the world leaders in the toy industry. In addition to plastic flowers and fruits, a wide variety of household requisites was produced, ranging from heat-insulated plastic tumblers and jugs to furniture made of polypropylene and fibreglass reinforced plastic. The 3,235 establishments in the industry employed 72,124 workers and contributed $1,710 million-to domestic exports in 1972.

The electronics industry has continued to develop rapidly. It accounted for 9.0 per cent of the industrial labour force in 1972. The products manufactured covered a wide range of hardware items, such as computer memory systems, transistors and integrated circuits; and consumer items, such as transistor radios, television sets, casette tape recorders, desk electronic calculators and radio-controlled toys. Employ- ing 49,772 workers, the 305 establishments contributed $1,719 million to domestic exports in 1972.

A serious decline in the demand for wigs continued. The industry is going through a complicated process of re-structuring and consolidation brought about by a con- traction in Hong Kong's principal overseas markets. Nevertheless, the industry still remained a sizeable one, employing some 9,433 workers in 194 establishments. Domestic exports in 1972 were valued at $224 million, a decrease of 58 per cent over total wig exports in 1971.

Other light industries of significance are footwear, metal products, watches and clocks, food manufactures and travel goods.

A degree of diversification of products has taken place within the light manu- facturing sector of Hong Kong's industry. Further diversification is possible but this will be dictated by the general state of world trade and international demand for light industrial products, along with Hong Kong's continuing ability to supply prod- ucts of good quality and design, at competitive prices.

Heavy and Service Industries

Hong Kong's heavy industry has developed in response to the need for port facilities, servicing and accommodation. Severe international competition in what is clearly a highly competitive industry, prompted the two major dockyards to enter into a merger during the year, with a view to achieving greater efficiency and higher productivity. This move should ensure that Hong Kong will remain a significant ship-repair centre in the Asian region.

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