Since 28 July 2006, the EU’s anti-dumping tax on Mainland-made shoes at a rate of 16.5 per cent has significantly impacted the industry. And it is believed that the US and Canada will follow suit. Other types of footwear will likely to face the same measure. In addition, instability in oil price, increasing cost of raw materials and power shortages all affect our operations.

There are many external uncertainties; therefore industry should make use of technology in product development - such as by using nanotechnology, improve product quality and incorporate ‘healthy elements’ to enhance competitiveness.

The FHKI will continue to attend to members’ opinions and consult with related authorities. Frequent communications with the Mainland Ministries to let them understand the difficulties faced by Hong Kong SMEs is crucial. Also issues important to industry development should be further promoted, such as quality, IP and environmental protection.