ENG-1995 — Page 124

7 TRADE AND INDUSTRY

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DURING 1995, Hong Kong continued its evolution from a low-cost manufacturing entity towards a regional commercial centre and high value-added manufacturing base. A strong export performance resulted from sustained recovery in demand in the major export markets and the enhanced competitiveness of the territory's products as the Hong Kong dollar weakened along with the United States dollar, to which it is pegged.

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After two years of decline, Hong Kong domestic exports registered a 43 per cent increase, totalling $231,657 million in value in 1995. Total exports continued to register double-digit growth in the year, increasing by 14.9 per cent over the previous year. This was mainly due to the buoyancy of re-exports, given the territory's role as an entrepôt for trade with China. The gross total value of re-exports was $1,112,469 million, representing an increase of 17.4 per cent. Imports rose by 19.2 per cent to $1,491,120 million.

Trade and Industrial Policies

Hong Kong's continuing success as a leading commercial and manufacturing centre owes much to a simple tax structure and low tax rates, a versatile and industrious workforce, its excellent infrastructure, and the government's firm commitment to free trade and free enterprise. The government believes its task is to facilitate commerce and industry within the framework of a free market.

Its industry policies aim to promote industrial development by ensuring a business- friendly environment, and by providing support services. The government zones land for general and specialised industrial use, maintains and develops advanced education and training facilities, ensures a modern legislative and regulatory environment, and funds facilities to enhance productivity and quality and encourage applied research. It also encourages technology transfer through an investment-promotion programme. However, the government neither protects nor subsidises manufacturers.

Trade and industry policies are kept under review by the Trade and Industry Branch of the Government Secretariat. The Secretary for Trade and Industry is advised on industry matters by the Industry and Technology Development Council (ITDC), and on trade issues by the Trade Advisory Board and the Textiles Advisory Board. The members of these bodies include prominent industrialists and businessmen, representatives of major industry and trade organisations and relevant government officials.