ENG-1991 — Page 108

INDUSTRY AND TRADE

82

costs. Manufacturing is now the territory's second largest employer, and makes the third largest contribution to GDP after financial and business services.

There were 46 276 manufacturing establishments in Hong Kong in 1991, of which 39 868 employed fewer than 20 persons, and 43 886 fewer than 50 persons. The remaining 2 390 establishments nevertheless accounted for more than half Hong Kong's total manufacturing employment. Many smaller establishments are linked with larger factories through an efficient and flexible subcontracting network, which has enabled Hong Kong's manufacturing sector to respond swiftly to changes in external demand.

Clothing

The clothing industry is the largest employer and export-earner. In 1991, it employed 223 840 workers (34 per cent of total manufacturing employment), and earned $75,834 million in exports (33 per cent of Hong Kong's total domestic exports), making Hong Kong the world's second largest exporter by value of clothing after Italy. Hong Kong is one of the world's leading suppliers of clothing, and produces a wide variety of products, from simple accessories to expensive and high-quality fashion wear.

Electronics

The electronics industry (including the manufacture of electronic watches and clocks, and - electronic toys) is the second largest employer and export-earner. In 1991, it employed 71 466 workers (11 per cent of total manufacturing employment), and earned $58,617 million in exports (25.4 per cent of total domestic exports). The industry produces a wide range of sophisticated finished products and components, including radio and television sets, calculators, wired and cordless telephones, modems, photocopying equipment, micro- computers, computer memory systems, dot matrix printers, talk-back toys, switching power supplies, multi-layer printed circuit boards, electronic modules, liquid crystal displays, quartz crystals and semiconductor devices, and surface-mounted devices.

Textiles

The textiles industry is the third largest export-earner. In 1991, it employed 62 438 workers (10 per cent of total manufacturing employment), and earned $17,630 million in exports (7.6 per cent of total domestic exports). Besides manufacturing for export, the spinning, weaving and knitting sectors of the textiles industry also produce yarns and fabrics of various fibres and blends (mostly cotton) for the local clothing industry, and finishing services for locally-produced clothing are provided by the bleaching, dyeing, printing and finishing sectors.

Watches and Clocks

The watches and clocks industry is the fourth largest export-earner (7.2 per cent of total domestic exports). In 1991, it employed 23 935 workers (four per cent of total manufacturing employment), and earned $16,727 million in exports. Hong Kong has been the world's largest exporter of complete watches by quantity since 1978, and is the world's second largest exporter by value (after Switzerland). Besides complete electrical and mechanical watches and clocks, the industry also produces high quality components and accessories. In 1987, the world's first water watch was manufactured in Hong Kong.