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Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at the opening ceremony of the Innovation Centre and Photonics Centre of the Hong Kong Science Park at Sha Tin this afternoon (December 2):
Guests, ladies and gentlemen,
It was in this same place less than 18 months ago I was here to witness the official opening of the Science Park. It is extremely satisfying to learn that within this relatively short period of time, around 76% of the space of Phase I of the Science Park has been allocated to approved tenants or reserved for prospective tenants with their keen interest to take advantage of the Science Park environment and support. Of the 40-plus companies already moved into the Science Park, I have been advised that in aggregate terms they plan to create 2,500 additional jobs and invest about $1.8 billion during the first three years of their operation. It is also extremely gratifying to see the formation of industrial clusters within the Science Park, led notably by the integrated circuit design sector.
This encouraging situation is not the result of chance, but that of a vision supported by meticulous and competent execution by the Board of Directors and the management of the Science Park. In this process we are seeing the collaboration between industry and universities, the availability of first class technical infrastructure support within the Science Park, the convergence of leading companies and institutions, notably the Applied Science and Technology Research Institute (ASTRI) on this campus, and the spawning of technology start-ups. These developments have provided a solid foundation for the Science Park to move on to strengthen its support for industry, get on with new technology focuses, and pursue the development of Phase II of the Science Park itself.
Today we are seeing the opening of two centres in the Science Park, namely the Innovation Centre and Photonics Centre. I commend the Science Park for it has taken an excellent formulation to support technology development. First you pick the right technology focuses, namely IC design and photonics. They have wide industrial application and are therefore quite generic in this sense. Hong Kong also has considerable strength and foundation to benefit from this support. Second, you seek to deliver your support and services to small and medium enterprises through the availability of otherwise expensive equipment and facilities on a time-sharing basis.
The electronics industry is Hong Kong's largest merchandise export earner, accounting for nearly 40% of our total merchandise exports or some $610 billion in value in 2002. IC design is obviously a high value-added segment in supporting the production of critical components for our vibrant electronics industry. It is also a high value-added and knowledge-based industry on its own as witnessed by the potential of "fabless" design operations in Hong Kong that offer design solutions and outsourced manufacturing for clients. With the vast need of Pearl River Delta's industrial activities and our robust legal and enforcement regime for the protection of intellectual property, IC-design based activities are playing to Hong Kong's strength.
What I have said about electronics may also be said about photonics, bearing in mind those electrons and photons are very basic matters with a lot of parallels in their scientific, technological and industrial applications. Photonics, with its applications in telecommunications, data-communications, consumer electronics, interconnect, packaging and display, offers good opportunities for Hong Kong industries. Indeed our industrial base in some of these areas is non trivial. And with the respectable expertise of the local scientific community in the different areas of photonics, I am quite optimistic about the successful development of a photonics based industry in Hong Kong.
I am confident that the two centers, which provide one-stop, mission critical services and facilities to support the design, development, evaluation and testing of IC design and other photonics-related components and sub-components, will lower the entry barriers to our small and medium enterprises and help our entrepreneurs start their business and create their own intellectual property.
Ladies and gentlemen, we have faced very challenging times in our economy in the last few years. As a result of the Asian financial crisis in 1997 and the bursting of the asset bubble as well as SARS in Hong Kong, our property prices have fallen 70% to date. Also, as an inevitable result of globalisation, Hong Kong, like other developed economies, has seen jobs migrate to lower cost developing economies. This has meant that our unemployment rate, customarily below 3%, has risen to a recent high of over 8.5%. These have been difficult times for painful economic restructuring. However, with the strong support of the Central Government and the determination of the Hong Kong people, we are seeing positive signs of recovery recently.
The latest economic indicators are certainly encouraging. Our exports are recording double-digit growth. There has been a noticeable upturn in the services sector. Unemployment is edging downwards. The stock market is buoyant. Property prices are edging up. GDP growth rose robustly by 4% in real terms in the third quarter of 2003, reversing the 0.5% decline in the second quarter.
These are all very positive developments. Indeed, I believe there is now light at the end of the tunnel. Although the process of economic restructuring in our transition towards a knowledge-based economy that can compete effectively in an increasingly global environment will continue for some time, I believe we are laying the foundation for our future.
I am convinced that innovation and technology, complementing other competitive advantages of Hong Kong, holds the key to the success of our restructuring. Our vision remains that technology will expand our innovative capability, increase productivity and enhance our competitiveness. Technology manifesting itself in products, services, processes and infrastructure will also offer tremendous opportunities for our economy.
We, therefore, are determined to continue to invest in education. We have also been investing significant resources to promote innovation and technology, notably in the research facilities of our universities, the research and development programmes of the Research Grants Council and the Innovation and Technology Fund, the Applied Science and Technology Research Institute, industry-university collaboration programmes, incubation programmes, technology entrepreneurship programmes, technology infrastructure such as the Science Park and the Cyberport, so on and so forth. These are very major policy and financial commitments from the Government. Each and every one of these efforts are making essential contributions to our move towards a knowledge- based economy.
The pursuit of technological development cannot be a quick fix. There is no quick fix, but through the sustained and steadfast efforts from all concerned, I am glad to see promises in our efforts, whether they be in IC design, photonics, biomedical research, and, yes, even aspects of applied nanotechnology. In all these areas, all these efforts, the Science Park is in the middle of it. I know, today, this very day, is the day for the Science Park. Indeed what the Science Park has achieved to date has given ample testimony to our progress. I am extremely grateful to the Board of Directors and the management of the Science Park for their contribution in the transformation of our economy.
I wish the two centres every success in their future endeavours.
Thank you.
Ends/Tuesday, December 2, 2003
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