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Following is a speech by the Chief Executive, Mr Tung Chee Hwa, at the Presentation Ceremony of the 1998 Hong Kong Awards for Industry today (Wednesday):

Ladies and Gentlemen,

I am very pleased to be here this evening to take part in this award presentation ceremony.

This year marks the 10th anniversary of the Hong Kong Awards for Industry. Over the past decade the event has successfully brought out the critical importance of promoting excellence to the continued success of our manufacturing sector. The 200 entries this year cover a wide range of products, from electronics and electrical products to textiles and apparel; from construction materials to food and beverage; from toys to industrial coating; to quote but a few examples. This diversity underlines the dynamism of our manufacturing sector. The warm support of this annual event also highlights a shared commitment in our manufacturing sector to the promotion of productivity and technology upgrading.

Hong Kong, as you know, is a free market economy. But the Government does recognise that it has to play the role of a promoter and facilitator. The Hong Kong Awards for Industry is a good example of how the Government works with the private sector to encourage the industry itself to push forward the boundaries of innovation and quality.

The 21st century will be a knowledge-based world. In a knowledge-based global economy, innovation and technology are important drivers for economic growth. They are essential in adding value, increasing productivity and enhancing our overall competitiveness. Entrants in this year's awards need no reminding that we have to be able to respond to changing circumstances in order to stay competitive. We must strive to fully equip ourselves to seize new opportunities and to compete successfully in the global market as we enter this new era.

In fact, over the years the Government has developed a number of industrial support programmes and infrastructural support facilities. Just to quote a few examples. The Industrial Support Fund finances projects of benefit to the manufacturing sector. The Applied Research Fund provides seed capital for technology ventures. The Industrial Estates provide the sites for operations which cannot be housed in multi-storey buildings. The Science Park, which will come on stream in year 2001, will provide a focal point for research and development of technology businesses.

All these initiatives show that the Government has done a lot to promote technological development. We now need to look critically at these various initiatives and redefine our goals and objectives. To this end, the Commission on Innovation and Technology chaired by Professor Tien Chang Lin has proposed in its first report to me a number of recommendations. The policy objective is clear, namely, to enhance the capability of our firms to innovate, and to stimulate technological development and encourage its commercialisation and application in Hong Kong.

In my Policy Address last month, I outlined a number of new initiatives that the Government will adopt to sustain and sharpen our competitive edge as we move into the 21st century. These initiatives include an Innovation and Technology Fund to provide a secure source of funding for technology-related projects; an Applied Science and Technology Research Institute to strengthen our capability in mid-stream research; and a Small and Medium Enterprises Office in the Industry Department to provide one-stop information service to our small and medium sized enterprises. To ensure that we stay ahead in the competitiveness race, I would encourage all interested parties to work with us for the success of these and other initiatives.

I warmly congratulate the winners of this year's awards. You have done a fine job, and have exemplified the creativity and entrepreneurial spirit of our manufacturing sector. At the same time, I also wish to congratulate all the other entrants for their dedication to the pursuit of excellence.

My thanks go to the organizers and sponsors of this event. And of course my sincere appreciation goes to the members of the judging panels, especially the chairman of all the panels, Mr Denis Chang, for their hard work in picking the winners from so many deserving entries.

Thank you very much.

End/Wednesday, November 4, 1998

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