Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (July 2):
 
Question:

     In collaboration with the Census and Statistics Department (C&SD), the Innovation, Technology and Industry Bureau has earlier devised a domain of economic activities comprising manufacturing and new industrialisation-related industries in Hong Kong and released statistics on the economic performance of relevant activities, so as to reflect the economic performance of Hong Kong's new industries more precisely. In addition, as stated in the 2024 Policy Address, the Government plans to commence a study on "the medium to long-term development plan for new industrialisation in Hong Kong" (the study) within this year to accelerate the promotion of "new industrialisation" with Hong Kong's competitive edges. It is learnt that members of the industries expect that the Government will release more statistics and study reports on the relevant industries, in particular, statistics on the operating situations of Hong Kong manufacturing enterprises operating outside Hong Kong. In this connection, will the Government inform this Council:

(1) whether the aforementioned economic performance statistics will also cover Hong Kong manufacturing enterprises operating outside Hong Kong; if not, of the reasons for that;

(2) of the expected completion time of the study, and whether the scope of the study will cover the operating situations of Hong Kong manufacturing enterprises operating outside Hong Kong; if so, of the details; if not, the reasons for that; whether the authorities will engage consultants to conduct such a study on a regular basis in the future; if so, of the details; if not, the reasons for that;

(3) whether it will compile more industrial statistics and conduct more studies at different levels in future, e.g. whether it will, by drawing reference to C&SD's statistical methodology for the statistics on offshore trade and merchanting activities, conduct a comprehensive survey on Hong Kong manufacturing enterprises operating in the Mainland and overseas, and develop regular statistical indicators on the offshore industrial sector for Hong Kong; if so, of the details; if not, the reasons for that; and

(4) as it is learnt that at present, the Key Statistics on Business Performance and Operating Characteristics of the Industrial Sector include statistics on import and export firms engaged in sub-contract processing arrangement and providing manufacturing-related technical support services, of the reasons why offshore sales are not covered in the aforementioned economic performance statistics?

Reply:

President,

     Our response to the question raised by the Hon Jimmy Ng, in consultation with the Census and Statistics Department (C&SD), is as follows:

(1) The statistics measuring the economic performance of Manufacturing and New Industrialisation-related Industries are compiled based on the statistical framework of Gross Domestic Product (GDP) which covers resident producing units only. According to international statistical standard, as offshore enterprises are not resident producing units of Hong Kong, their economic activities are not included in Hong Kong's Manufacturing and New Industrialisation-related Industries. However, Hong Kong enterprises that are engaging in data services, software development, and other related professional technical services for supporting Hong Kong-owned offshore manufacturing enterprises are included in Manufacturing and New Industrialisation-related Industries for measuring their contribution to the GDP of Hong Kong.

(2) To further enhance the systemic development of new industries with a view to realising the top-level design and developmental direction set out in the Hong Kong Innovation and Technology Development Blueprint, we will launch a study on the medium to long-term development plan for new industrialisation in Hong Kong, in order to better understand the current development of new industrialisation in Hong Kong and demands from the industry, and systematically analyse existing policy measures, thereby more effectively encourage traditional manufacturers to employ innovation and technology to undergo upgrading and transformation, support the development of strategic and emerging industries, as well as start-ups and future industries, strengthen support for relevant professional services, and expeditiously drive new industrialisation with Hong Kong advantages. We will launch the study within third quarter of this year. Thereafter, we will ask the consulting institution to conclude the study within 2026, and will, taking into full account the recommendations set out in the consultancy study report and Hong Kong's local conditions, enhance and implement policies and measures that can drive new industrialisation, to support high quality development. As the tendering process is about to begin, we are unable to provide too much information at this stage. We will continue to closely monitor the development of new industrialisation in Hong Kong, and inspect existing measures or devise new ones in accordance with practical need, including but not limited to considering to launch further studies on new industrialisation. As of now, we do not have plans to regularly conduct relevant studies.

(3) Regarding the offshore business of Hong Kong companies, in addition to compiling statistics on offshore trade and merchanting activities, the C&SD also compiles statistics (e.g. number of establishments, number of persons employed, value added of the industry and sales revenue) relating to the sub-contracting of manufacturing processes by Hong Kong import/export trading companies to the mainland of China (the Mainland) and other regions, in respect of Hong Kong companies which sub-contract their production processes to the Mainland and other regions according to contractual agreement.

     As regards business situation of non-local Hong Kong-funded companies, including those located on the Mainland and other regions, the  C&SD has practical difficulties in conducting statistical surveys outside Hong Kong to directly collect their data. As for the local companies related to these non-local companies, as the two are independent entities, the local companies concerned are often unable to provide the detailed operating data of the relevant non-local companies. Hence, the C&SD has no plan to compile detailed business statistics of non-local Hong Kong-funded companies.

(4) As the global value chain continues to evolve, more sub-contracting manufacturing processes and related offshore activities have emerged. The compilation of related statistics is a challenge to the international statistical community. The United Nations Statistical Commission is reviewing and updating the current international standards on relevant macroeconomic statistics. The C&SD is also conducting research on related topics and reviewing the latest international statistical developments with a view to enhancing the relevant statistical systems.

Ends/Wednesday, July 2, 2025
Issued at HKT 16:36

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