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Following is the speech by the Secretary for Commerce, Industry and Technology, Mr Henry Tang, at the 20th Anniversary cum Inauguration Ceremony of the 13th Executive Committee of the Hong Kong Optical Manufacturers Association and the Hong Kong Optical Fair Gala Dinner tonight (November 6):

Mr Hui [Leung-wah], Mr [Michael] Ng, Ladies and Gentlemen,

Good evening. I am delighted to be present at this meaningful event to mark the 20th anniversary of the Hong Kong Optical Manufacturers Association and the inauguration of its 13th Executive Committee. This Gala Dinner also provides an invaluable opportunity for the over 300 exhibitor and buyer participants at the 2002 Hong Kong Optical Fair to build rapport and exchange views on the industry's development.

Hong Kong is the largest exporter of optical frames in Asia, second only to Italy worldwide. Last year, our total export of optical frames and related accessories amounted to HK$6.76 billion. Our optical products, including many carrying designer brand names, are known for their excellent quality and innovative design, and have won the hearts of consumers and buyers the world over. It is an industry Hong Kong can justifiably take pride in.

Just like many other sectors, the optical industry has had to brace itself up against the downturn in international trade in recent years. However, if one takes a careful look at the history of the optical industry, one will be amazed at the ability of the industry to withstand challenges. Back in the 70s, the optical industry faced the threat of survival from the then newly developed contact lenses. The growing popularity of the latter has given rise to doubts as to whether traditional spectacles would become out of fashion. But it turned out that contact lenses did not replace traditional spectacles however popular they may have become. Similarly, the introduction of optical laser treatment in recent years has not hampered the development of the optical industry either. On the contrary, thanks to the relentless efforts of the industry to improve product design and comfort, you have successfully transformed the image of optical products from a mere sight-corrective tool to an exquisite accessory reflecting personal taste and character.

The resilience of the industry certainly has much to do with efforts you devoted to upgrading product design. Since 1999, the Hong Kong Optical Manufacturers Association has been organising annually the Hong Kong Eyewear Design Competition in conjunction with the Trade Development Council, the Vocational Training Council and the Hong Kong Polytechnic University. The competition goes a long way towards promoting the long-term development of the local optical industry by promoting creativity in eyewear design, nurturing design talents and upgrading design standards in Hong Kong.

With Government support, the Association also spares no effort in enhancing the technology standards of manufacturing. The earlier grant of about $3.7 million from the Innovation and Technology Fund has enabled you to set up a data base on spectacle frames, develop computer numerically controlled production technology, introduce a quality management improvement programme, as well as launch a safety testing kit. The amount constituted but a small part of the over $13 million under the Innovation and Technology Fund for upgrading the technology of the industry.

Recently, the Small and Medium Enterprises (SMEs) Development Fund has also approved funding of about $1 million to your Association for setting up an interactive 3-dimensional virtual product circulation and promotion system on the Internet for the industry. With this system in place, Hong Kong manufacturers will be able to make use of the computer virtual technology to display 3-dimensional product designs to overseas buyers.

In addition, the Government also supports the development of SMEs in the optical industry through the Business Installations and Equipment Loans Guarantee Scheme, the Training Fund and the Export Marketing Fund. So far, some 50 SMEs in the optical industry have obtained funding or credit guarantees under such schemes, with Government subsidies/guarantees amounting to $3 million. I would like to encourage all SMEs in the industry to make full use of the funds we provided to boost your competitiveness, provide better training for both employees and employers, as well as open up more markets.

The Government will continue to provide a business-friendly environment and the necessary support to help the industry develop and expand. But the key to maintaining your global competitiveness will be your hard work and creative endeavours. I am confident that the local optical industry will flourish with your continued efforts to enhance product quality, promote brand names, explore new markets and improve overall productivity.

Finally, I wish this year's optical fair a great success. To members of Hong Kong Optical Manufacturers Association, I wish you all a prosperous future. Thank you.

End/Wednesday, November 6, 2002

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