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Following is a speech by the Secretary for Education and Manpower, Mrs Fanny Law, at a luncheon meeting of the Hong Kong General Chamber of Commerce today (November 23):
Dr Woon, members of the General Chamber,
Thank you for this opportunity to share with you some findings from a recent manpower projection study, and exchange views on how we can collectively upgrade the quality of our workforce and in so doing enhance the competitiveness of Hong Kong. I have asked for this meeting as I see the importance of small and medium enterprises to Hong Kong. You make up 98% of the total establishments and employ about 40% of the total workforce of 3.3 million.
Manpower Projection to 2005
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Earlier this year, the Government carried out a manpower projection study to assess the impact on employment arising from Hong Kong's economic re-structuring due to rapid development in information technology, globalisation of trade and investment, and China's impending accession to the World Trade Organisation.
Today, I would like to share with you the major findings of these two studies, and their implications for manpower planning and development:
(a) With continual economic growth, we expect an increase of 433,000 new jobs by 2005. This outnumbers the projected increase in labour supply which is 270,000. In other words, the unemployment situation should improve over time.
(b) Analysed by economic sector, the biggest growth is in the financing, insurance, real estate and business services sector, followed by transport, storage and communications, and construction.
(c) Four specific economic groups are expected to grow in strategic importance, namely, IT, tourism, financial services (e.g. banking and insurance), and import/export.
(d) Analysed by occupation category, the biggest increase in demand is in respect of managers, administrators, professionals and associate professionals. The increase in demand for elementary workers is expected to be much slower. As to clerks, there will be a surplus of manpower.
(e) Analysed by educational level, the demand for workers with post-secondary education or above outstrips the supply by 110,000. Whereas, workers with secondary education or below registers a surplus of 150,000. This is not very different from the existing number of unemployed persons at this education level, which is about 145,000.
These statistical results are consistent with the views collected from establishment surveys and industry consultations.
Policy response
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To fully capitalise on the benefits of economic growth, we must address the projected mismatch in manpower demand and supply, and between job requirements and the qualification of workers. At present, out of the workforce of about 3.2 million, about 1.2 million (37%) have lower secondary education or below. Among this group, about 430,000 are under 40 years of age. These workers should be encouraged to upgrade their education level as soon as possible. We are now reviewing the scope, mode of operation and curriculum of adult education, so as to ensure that it provides the necessary generic skills, meets practical job requirements, and is flexible enough to suit individual needs.
To upgrade the educational level of the population generally, the Chief Executive has announced in his Policy Address that from 2002/03 school year, all Secondary Three leavers will have the opportunity to progress to S.4 provided they are able and willing to do so. Furthermore, the Chief Executive has communicated his vision of a 60% participation rate for tertiary education in ten years, and has called on the entire community to support and work towards achieving this vision.
Some people have questioned whether quality would be compromised in setting quantitative targets. In response, I would like to make a few points:
(a) We should not judge our young people by their academic achievements alone. We made a mistake of not diversifying the curriculum to suit diverse interests and aptitudes when we introduced comprehensive education in 1978, and expanded tertiary education in 1994.
(b) What we have in mind in further expanding tertiary education is to redress the mismatch in the demand and supply of associate professionals. The emphasis will be to provide more diploma, higher diploma and associate degree places, which provide broad-based learning but with a vocation orientation, e.g. IT, hospitality services, financial services, creative media and entertainment
(c) We shall develop a qualifications framework so that every person can work out a progression ladder for their own development in the era of lifelong learning. We shall also work with the HK Council of Academic Accreditation to develop a quality assurance mechanism.
To minimise the mismatch at the lower end of the scale, there is an urgent need to upgrade the education and skills level of elementary workers. The Chief Executive has allocated $400 million for skills upgrading purposes, and I have set up a Steering Committee to advise on the design of the scheme. At the first meeting of the Steering Committee, members agreed that we should focus on three areas:
(a) upgrade the skills of working in industries which will go through re-structuring as high technology processes are introduced, e.g. printing, import/export, manufacturing;
(b) step up training in growth areas where a shortage of manpower is expected, e.g. IT, tourism, banking and insurance;
(c) in-service training of workers in small and medium enterprises which will require new skills and modernisation of practices.
I must emphasis that $400 million is a small sum, in view of the scale of the problem that we face. However, we hope it will provide a catalytic effect, arousing awareness of the manpower mismatch which threatens Hong Kong's economic development, and helping those who are most in need of help. In the final analysis, no one can help those who do not help themselves.
Members of the Steering Committee will consult individual industries to find out their problems and needs. Different approaches may be necessary to suit individual circumstances. For example, we would welcome industry leaders to provide in-service training for their workers. The Government can facilitate in the process by designing tailor-made programmes with industry input and, where necessary, providing some form of subsidy.
Views sought
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I welcome views on how the Education and Manpower Bureau can work with small and medium enterprises to upgrade the quality of our human capital, so as to increase the competitiveness of Hong Kong. We must work together to achieve this goal.
End/Thursday, November 23, 2000
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