ENG-1984 — Page 99

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商仁

Industry and Trade

OWING to its heavy dependence on exports, Hong Kong's manufacturing industry con- tinued to benefit in 1984 from the economic recovery in most of its major trading markets, in particular the United States. The value of domestic exports during the year amounted to $137,936 million - 32 per cent more than in 1983.

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

The manufacturing sector is the mainstay of the Hong Kong economy, accounting for 22 per cent of the gross domestic product and 38 per cent of total employment. It is estimated that up to 90 per cent of Hong Kong's manufacturing output is eventually exported. Light manufacturing industries, producing mainly consumer goods, predominate. About 68 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 1984, a pattern which is likely to continue, However, within industries, there have been considerable changes and improve- ments in the range of products made. Many new and sophisticated product lines have been introduced and many simpler product lines have been abandoned, partly because of com- petition from lower cost producers within the region and partly, as far as clothing and textiles are concerned, in response to pressures to move up-market resulting from the emergence of various forms of protectionism in some of Hong Kong's main markets.

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