Figures on Hong Kong electronic products exports show a general view of the performance of the industry. According to the Trade Development Council, total exports of electronic products only increased by 0.9 per cent in the first half of this year, of which exports to the Mainland accounted for 50.8 per cent, down 2 per cent from last year. Exports to the United States and Japan made up a greater proportion, up 6.8 per cent and 6.3 per cent respectively. The figure on exports to Vietnam is worth noting, it accounted for 0.3 per cent of the total exports, a tremendous increase of 131.9 per cent from last year. This shows that the country is a market with huge potential. Of the various kinds of electronic products exported, telephones, televisions and electronic games recorded the greatest increase in volume.

The industry is facing numerous challenges, including surging production cost, dwindling profit margins and the emergence of many new regulations. Attention should therefore be given to exploring ways to enhance product value and improving product design with technology. I believe the FHKI should continue its efforts in strengthening communication with the Government and PRD authorities, helping Hong Kong manufacturers respond to the changes in the business environment. I also hope that the FHKI could solicit Government support for the development of the industry. Nurturing local talents and attracting more IT talents to Hong Kong would help advance Hong Kong electronics industry further.