ENG-1986 — Page 94

INDUSTRY AND TRADE

67

In August, Motorola Incorporated, which has its Asia Pacific Regional Head Office in Hong Kong, set up a large centre for the design of applications-specific integrated circuits to serve the needs of both Hong Kong and the region. This investment, together with similar facilities, constitutes a considerable reinforcement for an important industry upon which Hong Kong's electronics industry will depend in order to progress from assembly- intensive production to higher value added and more innovative output.

During 1986, the Industry Department and the Industry Development Board continued to monitor the supply of trained manpower. As a result of intensive studies of the electronics industry, proposals for launching a scheme of training grants to provide a pool of people trained in the design of applications-specific integrated circuits have been accepted in principle. Similar studies of the plastic conversion industry have led to proposals for setting up a plastic industry centre providing information and technical services.

As regards industrial land and accommodation, in 1986 the government put up for sale by auction or tender eight pieces of industrial land with a total area of 27 675 square metres. Developers completed 610 000 square metres of flatted factory space. Of the stock available in the market, 780 000 square metres had been taken up.

Industrial Estates

The Hong Kong Industrial Estates Corporation of which the Director of Industry is the chief executive, develops and manages industrial estates intended to accommodate in- dustries with a relatively high level of technology that cannot be operated in ordinary multi-storey factory buildings. The first two stages of the Tai Po Industrial Estate provide 55 hectares of industrial land. The third stage, now under construction, will produce a further 14 hectares by 1987. A second estate at Yuen Long provides 67 hectares of industrial land. Land on the industrial estates is sold by the corporation to applicants at premia based on cost. By the end of 1986, 133 of 271 applications received by the corporation had been approved and sites had been granted to 73 companies at the Tai Po and Yuen Long Industrial Estate, representing a growth rate for sales of 29 per cent over 1985. Besides providing sites to industrialists for the construction of their own purpose- built factory buildings, the corporation also provides pre-built factory premises for those who wish to begin production with a minimum of delay. These standard factories are fully serviced and provide maximum flexibility. Two blocks of four-storey standard factories and four blocks of single-storey standard factories at the Tai Po and Yuen Long industrial estates have been occupied.

External Trade

Total merchandise trade in 1986 amounted to $552,484 million, an increase of 18 per cent over 1985. Imports rose by 19 per cent to $275,955 million and re-exports by 16 per cent to $122,546 million while domestic exports increased by 18.6 per cent to $153,983 million. Domestic exports and re-exports together, valued at $276,530 million, registered an increase of 18 per cent. Appendices 11 and 12 provide summary statistics of external trade. Hong Kong is almost entirely dependent on imported resources to meet the needs of its population of more than 5.5 million and its diverse industries. In 1986, imports of raw materials and semi-manufactured goods totalled $119,518 million, representing 43 per cent of total imports. The principal items imported were transistors, diodes, semi-conductors and integrated circuits ($8,046 million); fabrics of man-made fibres ($13,506 million); iron and steel ($6,865 million); woven cotton fabrics ($7,632 million); plastic moulding materials ($6,892 million) as well as watch and clock movements, cases and parts ($7,193 million).