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Following is a question by the Hon Jeffrey Lam and a written reply by the Secretary for Commerce and Economic Development, Mrs Rita Lau, in the Legislative Council today (July 8):
Question:
It has been reported that some tenants of the Hong Kong Science Park (Science Park) have surrendered their tenancies recently as a result of the economic slowdown caused by the impact of the financial tsunami. In this connection, will the Government inform this Council whether it knows:
(a) the number of tenants of the Science Park that surrendered their tenancies, as well as the occupancy and vacancy rates of the property concerned, in each month since September 2008;
(b) the rent exemption and rent freezing measures introduced by the Hong Kong Science and Technology Parks Corporation (HKSTPC) for the Science Park in the current financial year; whether these measures are applicable to renewing tenants as well as new tenants; the estimated amount of rental income foregone because of the implementation of these measures; and whether HKSTPC will consider further extending the rent freezing period or reducing rents, so as to help tenants tide over the difficulties; and
(c) the measures of HKSTPC to attract more enterprises, start-up companies in particular, to move into the Science Park?
Reply:
President,
(a) Between September 2008 and June 2009, 85 companies moved into the Science Park while 42 companies moved out. The occupancy rate of Science Park Phase 1 during this period increased from 90.3% to 91.7% while that of Phase 2 increased from 58.6% to 61.1%. Phase 2 of Science Park started to accept tenants in May 2007.
Monthly figures on tenantsˇ¦ movement in the Science Park between September 2008 and June 2009 are below.
No. of outgoing tenants No. of new tenants
September 2008 2 17
October 2008 5 12
November 2008 9 6
December 2008 3 9
January 2009 8 9
February 2009 2 8
March 2009 4 9
April 2009 2 4
May 2009 4 4
June 2009 3 7
Total 42 85
(b) Taking into account the prevailing economic situation, HKSTPC announced a rent relief programme to its partner companies in February 2009 to tide over the financial crisis. The relief measures include the followingˇG
- rental freeze in 2009;
- two months rent free in April and October 2009 for all tenants; and
- extension of rent free period up to a maximum of six months for incubatees
The HKSTPC estimated that the relief programme would involve a rental forgone of $33 million in 2009-10.
The HKSTPC conducts regular reviews of its rental rates to ensure the rentals are in line with market situation. It will continue to keep in touch with partner companies to understand their situation and offer assistance as appropriate.
(c) The HKSTPC has provided state-of-the-art technological infrastructure and various programmes to attract technology companies, including start-ups, to set up their research and development (R&D) bases in Science Park. These include:
(i) Incubation Programme
The incubation programme assists technology start-ups in their inception stage. It provides low cost accommodation as well as management, technical, marketing and financial assistance to start-up companies in their first three to four years of inception.
(ii) Biotech Centres
To encourage more biotech companies to enter the Science Park, two new laboratory buildings designed for life science R&D offering 200,000 sq ft lettable area were opened in April 2009. The buildings are designed for R&D laboratories and each unit is well equipped with laboratory utility provisions. There is also the Biotechnology Support Laboratory to support general biopharmaceutical R&D projects.
(iii) New Cluster
Further to its four clusters, namely, Electronics, Information Technology and Telecommunications, Biotechnology and Precision Engineering, the Science Park has since early 2009 been developing a new cluster on Green Technology which include renewable energy and environmental technology (including energy management) with a view to attracting more companies to benefit from the clustering effect in Science Park.
(iv) Small and Medium-sized Enterprise (SME) Programme
Small units (ranging from 400 ˇV 1,200 sq ft) of high quality furnished office space with full range facilities and amenities are targeted at SMEs wishing to set up their offices in the Science Park.
Ends/Wednesday, July 8, 2009
Issued at HKT 16:10
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