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The following is the speech by the Chief Executive, Mr Donald Tsang, at the Federation of Hong Kong Industries 45th anniversary dinner at the Hong Kong Convention and Exhibition Centre tonight (September 15).
Mr. Ting, Distinguished Guests, Ladies and Gentlemen,
Good evening. It gives me great pleasure to join all of you here to celebrate the 45th anniversary of the Federation of Hong Kong Industries.
The past 45 years have seen remarkable changes on our industrial scene. In the 1960s when the Federation was just founded, low-skilled low-tech products were the key components of Hong Kong industries. Production orders were small and manufacturing relied mainly on unskilled manual labour. The rapid pace of industrialisation since then, coupled with the hard work of both our entrepreneurs and the labour force, has led to our phenomenal economic take-off. Factories grew in size, products diversified, and markets expanded. In the 1980s, faced with rising production costs locally and encouraged by the enormous prospects offered by the opening up of the Mainland, our industrialists were among the first to set up operations across the border. Today, Hong Kong businessmen have set up over 60 000 factories in the Mainland, with worker numbers far exceeding that of the entire population of Hong Kong.
We have indeed progressed a long way since the 1960s. While manufacturing is no longer the mainstay of our economy, the services industries in Hong Kong have expanded exponentially, gradually transforming Hong Kong into a high value-added and knowledge-based business hub underpinned by a strong production base in the Mainland. We must never forget that much of these services have prospered because of the upstream and downstream work generated by our own manufacturing in the Mainland.
Our past success has laid a firm foundation for further growth. But it should give us no room for complacency. In the keenly competitive global market, a simple cost advantage making use of our Mainland hinterland is definitely not good enough. It is important that we continue to enhance our competitiveness, move up the value chain, adopt innovation and technology, and develop our own products and brand names. In this regard, I am glad to note that our industries have started to engage in the entire production chain: from research, product development, design, all the way to packaging, marketing and brand building. There is now division of work between the two sides of the boundary, each focussing on areas it is best at. Our products are climbing up the value added ladder from the low-end, labour-intensive type to high IP-content, brand name products. Manufacturing has moved on from OEM to ODM and we are now venturing into OBM as well. I encourage you to keep up with these efforts. The Government will continue to do what we can to facilitate your endeavours.
With the Mainland emerging as the economic steam engine of the world, our entrepreneurs would also have to work even harder to tap this growing market of 1.3 billion people. Our social and cultural affinity with the Mainland gives us a natural edge. At the same time, CEPA has come in at an opportune point in providing our industries preferential treatment in the Mainland market. It not only guarantees zero tariff for Hong Kong products, but also allows easier and wider access for Hong Kong service suppliers. I need not remind you of the benefits CEPA could bring, and I am sure you will be trying your best to make good use of this framework. The Pan-PRD regional co-operation initiative, which was launched in 2004 and expands Hong Kongˇ¦s economic catchment area more than five-fold, is another opportunity for us to establish our position in leading the growth of the 9+2 members. The potential is great, so is the competition. It is incumbent on the Government and the business community to work closely together and rise to this challenge.
During the past four decades, the Federation of Hong Kong Industries has been in the forefront leading our industrial development. I am impressed with your work in promoting quality products and original design, and in providing various services relating to intellectual property. You have also facilitated exchanges between our industrialists and the Mainland government, and conducted studies on economic development in the Pearl River Delta. The PRD Council with a network of nine local Chapters in major PRD cities recently set up by the Federation has provided a useful platform for interaction between Hong Kong manufacturers and the Mainland authorities. At the same time, you have not overlooked social responsibility and have been supporting environmental projects in both Hong Kong and the Mainland. These projects have gone a long way in helping Hong Kong manufacturers to meet the ever-rising requirements for green manufacturing and in contributing to environmental protection on the two sides of the boundary. It is encouraging to see that the Federation has moved on with the times in broadening its vision for the better socio-economic fabrics of Hong Kong and the PRD region.
Ladies and Gentlemen, as we can see this evening, the Federation has adopted a new logo that features its link with tradition as well as its progressive spirit. Our industrialists are well-known for their perseverance, versatility and creativity. I have no doubt that with the concerted efforts of the Federation and the trade, you will be able to build on what you have achieved and seize greater opportunities.
In closing, let me congratulate the Federation most warmly on its 45th anniversary. Let me also extend my heartfelt appreciation for the contributions of the members of the Federation, past and present, in spearheading Hong Kongˇ¦s industrial transformation. I am sure that under the able leadership of Kenneth and others at the helm, the Federation will continue to scale new heights in the years to come.
Thank you.
Ends/Thursday, September 15, 2005
Issued at HKT 21:02
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