We know we can't compete effectively in those economic activities that require enormous labour resources and supply of land. The giant factories covering hundreds of hectares of land and employing assembly-line operations are simply not an option for Hong Kong. We must concentrate on the things we can do best. In manufacturing, for instance, we need to concentrate on high value operations which are not land or labour intensive. We have established a strong foothold as an international financial and services centre and we need to continue to improve our quality, efficiency and to diversify our services.
Information technology is a linchpin for the development of high value-added services.
In recent years, Hong Kong has invested heavily in this sector, and while the excitement over the dotcom 'e-volution' has evaporated, we must not confuse the speculative trading of IT stocks with investment in IT infrastructure. Two are very different animals. Information technology is changing the way we live, we play and work. There is no going back. It is the way of the future and we need to stay at the cutting edge of market trends.