The printing and paper industry has experienced a difficult time in the first half of 2007, with the surge in pulp price being the major cause. The appreciation of the RMB, increase in labour cost and the Mainland’s policy adjustment to processing trade are all putting the industry under great pressure.

Driven by rising demand around the world, pulp price hit a new high, with the price of long fibre pulp recorded a 30 per cent increase from the fourth quarter of 2006 to the second quarter of 2007. Pulp price will see further increases amid the robust global economic growth. The strong demand will drive paper price up 10 to 15 per cent.

Issues regarding industry moving back to Hong Kong are worthy of attention. The FHKI should call for the Government to adjust its policy on the use of industrial parks, urging it to allow the logistics industry to use facilities there and lower the portion designated for manufacturing. Moreover, I wish to see the FHKI organise more cost-effective activities that address members’ needs and concerns.