FHKI 60th Anniversary Commemorative Album

Hong Kong industries came across a window of transformation in the late 1970s and early 1980s when the Mainland introduced the economic open-door policy. At that time, Hong Kong industries encountered serious bottlenecks: labour shortages, soaring wages and restrictions on industrial land use. The abundant land and manpower resources in the Pearl River Delta region provided quick solutions to these problems and resulted in the explosive expansion of Hong Kong industrial enterprises. Given the achievements, some Hong Kong manufacturers were not complacent about the remarkable profits gained and were instead aware of the need to upgrade and transform. They invested the sizeable capital gained from their businesses in Mainland China in the high-tech industries. Many of these early movers have been rewarded with the advantageous leading position in the area. For those who are reluctant to change with the times, as time passes they will realise the business environment is becoming increasingly difficult. Their failure to catch up with the technology advancement means that they will be trapped in the vicious cycle of “soaring costs – relocation to lower- cost area – lower production costs – soaring costs – relocation again”. If they do not want to be “nomadic”, upgrading and transformation would be inevitable. export-oriented, the Shanghainese manufacturers understood the foreign market well. As they developed their businesses in Hong Kong, they brought with them orders from overseas buyers, benefitting not only the textile industry, but also the plastics, toy, electrical appliance, enamel and food industries. The large-scale industrial enterprises established by Shanghainese manufacturers needed parts and semi-finished products such as buttons, zippers and packaging materials, which provided numerous business opportunities, established an excellent breeding ground for local SMEs, and diversified the development of local industries. The close cooperation between large and small industrial enterprises greatly increased the production efficiency and lowered the operating costs, enhancing the competitiveness of Hong Kong industries. Although Hong Kong’s colonial government then adopted the laissez-faire policy, it recognised that industrialisation would be a new economic growth engine for Hong Kong and implemented facilitative measures to help boost the industrial sector, including setting up industrial zones in Cheung Sha Wan, Kwai Chung and Tsuen Wan where manufacturers could buy land at a cheaper price to build factories. The government also lowered the electricity charges for industrial use and provided vocational training to supply skilled workforce to the industrial sector. The Federation of Hong Kong Industries was founded at that time to provide a new platform for the industry to voice out their concerns from the perspective of the industrial sector regarding their overall interests, contributing to a solid foundation for Hong Kong industries to grow and flourish. Federation of Hong Kong Industries 60 th Anniversary Commemorative Album 21