ENG-1983 — Page 41

2

簡仁

Industry and Trade

WITH economic recovery in most of Hong Kong's major trading markets, in particular the United States, the manufacturing industry performed well in 1983. The value of domestic exports in 1983 amounted to $104,405 million - 26 per cent more than in 1982.

The major factors that have given Hong Kong its international reputation as a leading manufacturing and commercial centre continued to work well. Among these are the consistent economic policies of free enterprise and free trade, low earnings and profits tax rates, an industrious workforce, a sophisticated commercial and industrial infrastructure, a modern and efficient seaport in which is located the world's third largest container port, a centrally-located airport 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, methyl alcohol and some hydrocarbon oils. A levy is also payable on first registration of motor vehicles, except franchised buses.

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

Industrial Development and Industrial Land

Light manufacturing industries, producing mainly consumer goods, predominate 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 75 per cent of Hong Kong's total domestic exports in 1983 and are likely to continue to predominate, despite the fact that industrial diver- sification has continued to be a feature of the overall economic scene.

The Hong Kong Industrial Estates Corporation, a statutory body established in March 1977, develops and manages industrial estates which are intended to accommodate industries with a relatively high level of technology that cannot be operated in ordinary multi-storey factory buildings which house the bulk of Hong Kong's industries. The first two stages of the Tai Po Industrial Estate now provide 46 hectares of land for allocation to industries while the third stage, presently under construction, will produce a further 20 hectares by 1985. A second estate at Yuen Long provides an additional 67 hectares of land. By the end of 1983, 79 of the 202 applications received by the corporation had been approved and sites had been granted to 40 companies in the Tai Po and Yuen Long Industrial Estates. During the first six years of its operation, the corporation has offered land at fixed premium, varied from time to time to take into account the cost of production