Industrial (Second)-The Hon. Lam Tai Fai

Over the years, Hong Kong has overcome numerous difficulties, such as crisis of confidence before 1997, Asian financial crisis, SARS and financial tsunami; all of these crises came of all a sudden and caused Hong Kong's economy to tumble. However, even in adversity, the manufacturing industry strove continuously to make new progress. With strong wills and flexible business strategies, they surmounted the obstacles and opened up a new path to contribute to Hong Kong economic development.

After the hard hit by financial tsunami, the European and US economy contracted at slower pace and traditional exporting market shrank. Meanwhile, we recognized the importance of expanding market diversification and the necessity of home sales; therefore, to enhance our competitiveness, we have put great efforts on industrial upgrading and transformation.

However, while endeavouring to foster the industrial development, we continue to meet obstacles. According to Hong Kong's tax regime, the Government offers apportionment of profits on sale of goods concerned on a 50:50 basis and allowance of machinery depreciation for contract processing. Unfortunately, the measures would not be applicable once the enterprises transformed into import processing. Besides, brand development involves huge investment on manpower and resources, which inevitably increase cash flow pressure to Hong Kong's SME.

As a part of the industrial teams, I realize their difficulties and concerns. The Government is duty-bound to assist the industry. As the Legco Representative of CMA, I promise to make steady efforts to express our concerns to the Government. Besides requesting revision on the above tax regime and support on brand development, to improve the operation environment of the industry, I will make a claim to urge the Government to formulate comprehensive policies towards industrial development and measures on industrial buildings revitalization.

I hope that I can receive continuing advices and support from you and we could cooperate and endeavour together to establish a better industrial environment in Hong Kong.