ENG-1991 — Page 106

INDUSTRY AND TRADE

forum inaugurated in 1989. The main objectives are to strengthen the multilateral trading system, to assess prospects for and obstacles to increased trade and investment flows within the Asia Pacific region and to identify a range of practical common economic interests. Apart from Hong Kong, current members include the United States, Canada, Australia, New Zealand, Japan, South Korea, China, Taiwan and the ASEAN countries. Hong Kong became a full member of the Pacific Economic Co-operation Conference (PECC) at its eighth General Meeting held in Singapore in May 1991. PECC is a non-governmental organisation seeking to develop closer co-operation on trade and economic policy issues.

In the industrial field, although total employment in manufacturing fell by 10 per cent in 1991 from the previous year's figure, the total value of Hong Kong's manufactured exports rose by two per cent, compared with an increase of only one per cent the previous year. Besides confirming its worldwide reputation as a manufacturer and exporter of manufactured consumer goods, Hong Kong also reinforced its growing role as a major service and sourcing centre for the Asian region. The value of the territory's re-exports grew by an impressive 29 per cent in 1991. Hong Kong's continuing success as a leading manufacturing and commercial centre is due to a simple tax structure and low tax rate, a versatile and industrious workforce, an aggressive and innovative managerial class, efficient transport facilities, a fine harbour, excellent international communications, and the government's firm commitment to free trade and free enterprise. These factors remained as important as ever during the year.

- - Faced with increasing competition from low-cost economies in the region, rising labour costs at home, and demand in its major export markets for ever-higher standards of quality, Hong Kong's manufacturers can no longer compete in the territory's major export markets on price and speed of response alone. Manufacturers are moving decisively away from labour-intensive production into the manufacture of high-value-added products which can compete on quality. This restructuring is supported by the government, which is implementing a comprehensive quality improvement programme to develop the territory's existing quality infrastructure and to encourage the greater use of quality assurance in manufacturing through a Quality Awareness Campaign.

Science and Technology

The trend towards the manufacture of higher-quality products has been accompanied by an interest in the use of sophisticated technology in industry. The government's industrial policies and programmes are designed to support this process of technology upgrading.

To keep abreast of the latest technological developments, the government in 1988 established the Committee on Science and Technology (CST). The committee has made detailed studies in a number of important areas and has tendered advice to government on various aspects of information technology, biotechnology, science and technology infrastructure, the promotion of science and technology, and technology safety.

The Industry and Technology Development Council when established will take over from the CST.

Electronic Data Interchange

International trade is still conducted through paper transactions. Customs declarations, bills of lading, letters of credit: these are but some examples. Their processing costs a great