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The following is the speech by the Acting Chief Executive, Mr Donald Tsang, at the Hong Kong Awards for Industry Presentation this (October 31) afternoon:

Distinguished guests, ladies and gentlemen,

It is always a pleasure to be involved in an award ceremony that recognises the ingenuity and innovation of Hong Kong people and companies. Adam Smith once wrote : "The machines that are first invented to perform any particular movement are always the most complex; and succeeding artists generally discover that, with fewer wheels the same effects may be more easily produced". Here in Hong Kong, we do have our fair share of people who are producing those new "machines". And tonight's Hong Kong Awards for Industry Presentation ceremony is proof of that.

This ceremony also highlights the fact that while most of our manufacturing industries have moved across the border into the Pearl River Delta - where there is an abundance of land and labour - manufacturing still remains an important sector of Hong Kong's economy. Indeed, last year it was our fourth largest employer with a workforce of just under 250,000 people.

However, with this relocation to the Mainland, we have been able to accelerate the development of more knowledge-based and high value-added manufacturing. This is where our future lies. Increasing technological application and innovation in manufacturing industries have resulted in more specialisation and distribution processes on a global scale. But, I would like to make the point that as we switch from a manufacturing base to a centre of an increasingly globalised production network, a large part of the service activities created, in fact, relate back to manufacturing.

I know it has been said before, but I always think it is worth repeating - Hong Kong entrepreneurs are renowned for their ability to quickly adapt to changing trends. It is a hallmark of the way they operate to come up with an idea one day and to have that new product made and marketed almost in the blink of an eye. They haven't lost that ability although in today's highly competitive global market it is becoming increasingly difficult. But I believe our people have the drive and hard-nosed competitive edge to keep up with the world's innovators, so we can maintain our reputation as a city - and a people - that get things done. The quality and standing of the companies receiving the awards tonight reflected this attitude.

Having a short-sighted view of creative possibilities is not something we should subscribe to. I'm reminded of a story about an employee of the famous Western Union telegraph company who gave an appraisal of a new communication device - it happened to be the telephone - in an internal memo back in 1876. He said in his memo, and I quote: "This apparatus telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us." I don't know what happened to the employee, but I'm sure, if given the opportunity, our entrepreneurs would not have seen that device in quite the same light!

Ladies and gentlemen, you'll be pleased to know that I am under strict instructions to keep my speech short. But I won't conclude my remarks without congratulating the organisers of the Hong Kong Awards for Industry scheme or without paying a special tribute to the dedication and hard work of the winners and, indeed, all those who entered the competition.

The awards are amongst the most prestigious of their kind in Hong Kong. They give due recognition to firms in the local manufacturing sector for their relentless pursuit of excellence. To the winners, I give you my warmest congratulations. You exemplify the creativity and entrepreneurial spirit of our community. You have demonstrated what can be achieved through the application of innovation and technology.

I would like to express my gratitude to members of the judging panels, particularly to the chairman Professor Edward Chen. I am sure you had a difficult, but most rewarding task in selecting the winners from so many deserving entries. And finally, I wish to thank all the sponsors for their continued support. Without you, this 12th annual presentation ceremony would not have been so successful.

Thank you very much.

End/Tuesday, October 31, 2000

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