Speech by the Financial Secretary, Mr Donald Tsang,
at the opening ceremony of the
Hong Kong Watch and Clock Fair 1997

Wednesday, September 10, 1997


Ladies and Gentleman,

I am delighted to be here to open the Hong Kong Watch and Clock Fair 1997. As a leading watchmaker in the world, Hong Kong is honoured to have the opportunity to launch this Fair which is the largest of its kind in the world.

Watches and clocks are time-telling instruments. But people at different times in history have attached different values to them. They used to regard well-designed watches and clocks as work of art or valuable gifts. Today, consumers expect watches not only to be accurate timepieces but also fashionable products. Watch-makers have to be highly innovative and responsive to changes of market needs and trends.

In meeting the challenges of this fast-changing market, our watchmakers have to face strong competition from both the producers in the low-end market and those from Switzerland and Japan in the higher-end market. Many manufacturers in Hong Kong respond by increasing investment in technology to upgrade their product design and quality, and to increase the value-added of their production. The use of computer aided design systems to shorten response time and to enhance productivity has already become a common practice in the industry.

Our manufacturers have also been striving to ensure competitive pricing by lowering production cost. Like many other producers, our watchmakers have shifted their assembly-type operations to areas where the costs of land and labour are lower, notably Mainland China and Southeast Asia. Their operations in Hong Kong have become the strategic headquarters of their offshore manufacturing facilities, focusing on higher-value added and intelligence-based activities such as product design, quality control and marketing.

Our manufacturers have succeeded in taking on these challenges. Our watch and clock industry remains in excellent shape. It is the third largest manufacturing industry in Hong Kong. In the international market, we are the world's second largest exporter of watches, both by value and quantity, and the world's largest exporter of clocks by value and second largest by quantity. Such achievements are the result of the hard work and the enterprise of our watch and clock manufacturers. As many of them are with us today, I wish to take this opportunity to pay tribute to their efforts over the years.

The Government of the Hong Kong Special Administrative Region is committed to providing the best support for the further development of our manufacturing sector. Since the inception of the Industrial Support Fund in 1994, we have approved many projects designed to promote and develop new technologies. Many of these new technologies developed are particularly useful to the watch and clock industry, such as the development of palladium plating, metal injection moulding, and surface treatment for titanium alloy. We also provided $9 million to establish the Watch and Clock Technology Centre in 1996 to assist local watchmakers in acquiring technology and information.

Last year, we commissioned consultants to conduct a techno-economic and market research study on Hong Kong's metal and light engineering industries. The watch and clock industry represents one of the industries. This study, when completed later this year, will no doubt provide useful pointers for enhancing the competitiveness of the industries.

Hong Kong was known as a centre for mass production of medium to lower-end watches. Our manufacturers have come a long way in upgrading the image of Hong Kong-made watches and developing the higher-end market. I am confident that our dynamic and experienced watch and clock manufacturers will continue to lead and shine in the world market.

I congratulate the organisers of the Hong Kong Watch and Clock Fair '97 for successfully launching this event and wish all participants a most enjoyable time.

Thank you very much.