ENG-2004 — Page 149

Commerce and Industry | 119

The manufacturing sector remains export-oriented and its excellent performance contributed to Hong Kong's ranking as one of the world's leading exporters of textiles, clothing, watches and clocks, toys and jewellery. Domestic exports amounted to $126 billion in 2004 with clothing, electronics, chemical products, jewellery and textiles being the major export items. Chart 2 shows the value breakdown of domestic exports in 2004.

Chart 2: Value of Domestic Exports of the Manufacturing Sector in 2004

Others

15.3% ($19.302 billion)

Printing and publishing

2.7% ($3.373 billion)

Textiles

4.2% ($5.325 billion)

Jewellery

4.7% ($5.880 billion)

Chemical products 5.3% ($6.661 billion)

Electronics

17.5% ($22.049 billion)

Clothing 50.3% ($63.392 billion)

The manufacturing sector is dominated by SMEs. Of the 15 750 manufacturing establishments in 2004, 15 530 (98.6 per cent) employed fewer than 100 persons, accounting for 62 per cent of Hong Kong's total manufacturing employment. Many SMEs are linked with larger factories through an efficient and flexible sub-contracting network. This arrangement has enabled the manufacturing sector to respond swiftly to market changes.

The Services Sector

The services sector has grown significantly in the past two decades. Its share of Hong Kong's Gross Domestic Product (GDP) rose from 67.2 per cent in 1984 to 88.5 per cent in 2003. In 2004, 85.6 per cent of total employment was in the services sector. Hong Kong has become one of the most service-oriented economies in the world. Much of this growth was fuelled by the demand for producer services by Hong Kong's globalised production network and the trend to source goods and services globally.