Press Release



Record Growth for Trading Fund


The Electrical and Mechanical Services Trading Fund (EMSTF) has recorded another year of growth in 1999/2000, with a return on revenue at 10.9 per cent.

According to EMSTF's annual report for 1999/2000 published today (Wednesday), the Fund recorded $336 million of after-tax profit, against a total revenue of $3.06 billion, a record high since the Fund's inception in 1996.

This was achieved despite phase one "untying" which began in August 1999. Under a phased "untying" programme, existing public sector clients of EMSTF have a choice to stay with EMSTF or to choose alternative electrical and mechanical services providers. Phase two "untying" began in August 2000.

The Fund's General Manager and Director of Electrical and Mechanical Services, Mr Leung Cham-tim, said the Fund recorded positive business performance during the year whilst also making significant progress and improvements in customer service, productivity and quality.

"New business gained has far outweighed the limited amount of business lost to competitors," said Mr Leung.

Mr Leung reported that the Fund had already achieved the targeted 15 per cent cumulative productivity gain in the first three years of trading fund operations since August 1996.

On its latest developments, Mr Leung noted that the Fund had provided both engineering and business solutions to clients to support their efforts to achieve productivity and efficiency improvement.

One example is the introduction of long-term Service Level Agreements whereby customers can enjoy services at very attractive prices as a result of better economies of scale and improved resource management.

The Fund became the first government department in Hong Kong to obtain the ISO 9001 corporate certificate awarded in August 1999. It is on its way to achieving ISO 14000 certification with regard to its environmental practices.

EMSTF staff won the Internal Support Services Group Championship in the Civil Service Bureau's Customer Service Award 1999 for their outstanding service to customers. Customer service training had become mandatory for all the Fund's 3,000 front-line staff.

To help build a better community for Hong Kong via engineering solutions that are more environment-friendly, more energy efficient and safer, EMSTF is launching an Indoor Air Quality pilot programme for clients. It has also been helping hundreds of schools to install IT rooms and multi-media learning centers for students.

"Looking forward, we were confident that EMSTF will continue to see steady growth," said Mr Leung.

"Whilst there has been some business lost, affected employees demonstrated very positive attitudes and lost no time in learning new skills for new assignments, a sign that our cultural change has truly taken root," he said.

The EMSTF's services are provided via seven business units which cover special areas of expertise. Some of the specialised areas are essential to the safety and well being of the community.

These include airport sector services, health sector services, municipal sector services, project services, general engineering services, vehicle engineering services, transport and security services.

End/Wednesday, October 18, 2000