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Following is the speech made by the Chief Executive, Mr Tung Chee Hwa, at the opening ceremony of the Hong Kong Design Centre today (September 13):
Victor, Ron, distinguished guests, ladies and gentlemen,
It gives me great pleasure to officiate at this Opening Ceremony today. The establishment of the Hong Kong Design Centre marks a significant milestone in the promotion of design and the development of the design industry here in Hong Kong. It also adds a new and essential component to our supporting infrastructure for industry and business, and contributes to the fulfilment of our vision to make Hong Kong a world class design centre.
At present, Hong Kong is facing serious economic challenges. The cyclical downturn of the world economy has yet to show clear signs of picking up. The deepening of globalisation and the rapid development of the economy on the Mainland have given us both opportunities and challenges. To maintain our competitiveness and provide the impetus for our continued economic growth, we must move up the value chain. For us to move up the value chain, we must apply innovation and technology to improve the quality and the design of the products or services we provide to the local market, to the market on the Mainland or to markets around the world. To move up the value chain, we must develop our own branding, and good design is essential for successful branding.
Design plays a vital role at every stage in product development. Take the case of a telephone or a palm computer, the IC chip requires design, the liquid crystal display panel requires design, the casing requires design, and finally the packaging of the product requires design. In each of these components, a good design makes a world of difference, not only to the customer but also to the value of the product and ultimately to the profits of the producer. A manufacturer who has moved up the value chain from original equipment manufacturing (OEM) to original design manufacturing (ODM) can certainly tell the difference.
Hong Kong's design capability is clearly demonstrated by the many successful cases of local manufacturers marketing their products with their own or acquired brand names, particularly in fashion, and generally in apparel, consumer electronics, toys and games, watches and so on. Innovative design, solutions and branding raise the competitiveness of our industry, and the global reputation and international standing of goods made by Hong Kong.
Hong Kong designers, many of you are here today, have established yourselves over the years with your professionalism, creativity, cosmopolitan outlook and ability to integrate western and Chinese culture in your masterpieces. You have contributed to our economy by adding value to, and enhancing the competitiveness of our products and services. You are also contributing to our exports of services. According to a survey conducted by the Trade Development Council last year, 68% of the design firms exported their services, with the Mainland being the biggest market. We are proud of our designers' achievements so far, but we cannot stand still. Much needs to be done to stay in the forefront.
The world is focusing on the growing business opportunities generated by China's accession to the WTO. Demand for design services in the Mainland is set to take off rapidly in future. Capitalising on our unique geographical location in Asia and our close economic relationship with the Mainland, there is considerable scope for Hong Kong to become a hub of design services in the region. The design industry has tremendous potential to become one of our engines of growth.
The Government is committed to promoting the successful development of the Hong Kong design industry. Indeed, we have many competitive advantages. Hong Kong people are creative. We have a vibrant art and cultural sector. Our film, media, advertising and publishing industries are dynamic and innovative. The design schools and faculties of our universities and vocational education institutes are among the best in the region. They have produced many local design talents, including some of the world renowned fashion designers. But we must continue to make them even better because, as I said earlier, the others are catching up fast. What we need to do more is to provide a focal point to promote design as a strategic value-adding tool, to raise design standards and foster design-related education, and to raise the profile of Hong Kong as an innovative and creative hub in the region.
With the support of the universities, the Vocational Training Council and the industrial organisations, the Secretary for Commerce, Industry and Technology is overall responsible in Government for promoting the Hong Kong design industry. I am glad that the Hong Kong Designers Association, the Hong Kong Chartered Society of Designers, the Hong Kong Interior Design Association, and the Hong Kong Fashion Designers Association have joined efforts to initiate the proposal to set up this wonderful Hong Kong Design Centre. The Hong Kong Design Centre is one big step forward in bringing together the Government, the industry and the educational institutes to make Hong Kong the design hub in the region. The Government fully supports this project and has provided a $10 million grant and this heritage building to facilitate their start-up operation. I should also thank the Hong Kong Jockey Club Charities Trust, as represented here by Ron, which has pledged its support by providing a $6 million donation for the setting up of the Centre. With our concerted efforts, here we are today to witness and celebrate the opening of the Hong Kong Design Centre, an important milestone of the development of Hong Kong's design industry.
I take this opportunity to wish the Hong Kong Design Centre and the Hong Kong design industry the very best in the future.
Thank you.
End/Friday, September 13, 2002
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