ENG-1980 — Page 37

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Industry and Trade

DESPITE the recessionary economic climate prevailing in some of Hong Kong's major markets, the manufacturing industry - which is heavily dependent on exports - in general performed well during the year and achieved a high overall rate of growth,

The value of domestic exports in 1980 amounted to $68,171 million than in 1979.

22 per cent more

The major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre over the years contributed to this outcome. Among them are the consistent economic policies of free enterprise and free trade; an industrious workforce; a sophisticated commercial and industrial infrastructure; a modern and efficient seaport that includes one of the world's largest container terminals; a centrally-located air- port with a computerised cargo terminal; and excellent world-wide communications. There are no import tariffs, and revenue duties are levied only on tobacco, alcoholic liquors, methylalcohol and some hydrocarbon oils. Tax also is payable on first registration of motor vehicles, except franchised buses.

Apart from ensuring the provision of the infrastructure – either through direct services or by co-operation with privately-owned public utility companies and several autonomous bodies - the government's principal role in the economy is to ensure a stable framework in which commerce and industry can function efficiently and effectively with minimum inter- ference. The government normally intervenes only in response to the pressure of economic and social needs. It neither subsidises the export of manufactures, nor protects the domestic market for them.

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Industrial Development and Industrial Land

Light manufacturing industries, producing mainly consumer goods, continue to predomi- nate in Hong Kong. About 67 per cent of the total industrial workforce is employed in the textiles, clothing, electronics, plastic products, toys, and watches and clocks industries. These industries together accounted for 72 per cent of Hong Kong's total domestic exports. They have, over the years, been steadily introducing modern technology into their manufac turing processes as indicated, for example, by the growth in production of electronic toys and watches.

At the same time non-consumer electronics, which require relatively higher levels of technology, are gaining rapidly in significance. In 1980, exports of non-consumer electronic products were valued at $3,310 million, representing 40 per cent of total electronics exports. The first two stages of the Tai Po Industrial Estate now provide 45 hectares of land for allocation to industries with a relatively high level of technology which cannot operate in the normal multi-storey factories which house the bulk of Hong Kong industry. A third stage of development is proposed, involving the reclamation of a further 20 hectares of