Good evening, John, distinguished guests, ladies and gentlemen,

It’s my utmost pleasure to welcome everyone to this annual dinner of the Federation of Hong Kong Industries. This 48^th annual dinner falls on the Year of the Rat, start of a new cycle. For industry, it certainly heralds a new era.

This new era hasn’t come from out of the blue; in fact the writing was on the wall for some time now. The past 12 months has been eventful and the sober reality is that now Hong Kong industries in the PRD face unprecedented challenges with an increasingly austere Mainland business environment. Surging production costs, changes to processing trade policy and a wave of new Mainland legislations force a rethink on how we conduct business.

However challenges naturally bring about opportunities, this new era we are entering is marked by value-based and efficient production. Many of our industries are already climbing up the value chain with high-tech and innovative products, but we must advance as a whole with not only premium products, but with clean and efficient processes.

Whether industrialists move up or move out, the foreseeable road ahead is a bumpy one. Yet it is said that greatness is born out of difficulty. The peaks and troughs that we have experienced in the past decades is a testimony that we have conquered challenges and difficulties again and again, and this time shall be no different. Every trough has propelled us to new heights.

To reach these new heights, we need to remain resolute. Industrial changes is not confined to our manufacturers in the PRD, the changes affects us all, everyone along the supply chain feels the ripples; thus is not just a matter of how manufacturers respond to the changes, but how Hong Kong together pulls through to create a better tomorrow.

So let us not lose sight of the bigger picture, we are blessed to be in a sophisticated open economy on the back of mainland China’s phenomenal growth – perhaps the greatest economic growth story in modern history. We have to decide right now whether to be part of this growth or let it slip through our fingers.

As we are creatures of habit, taking advantage of the opportunities and changing for the better are always easier said than done. But in Hong Kong, we are no strangers to change, in fact we have thrived on it. With mutual support, we can make things much smoother. Greater communications and greater unity among our members add voice to our convictions.

As we have stood by Hong Kong industries for nearly half a century, we shall continue to stand by our members at this important hour. Many of our members have joined our Q-Mark Schemes, Triple-One Programme and Green Manufacturing Alliance, and I believe these initiatives can help companies transform into efficient, competitive, value-based businesses. Ultimately, these initiatives as well as others cannot achieve the goal of advancing Hong Kong industries without your active participation; I urge all of you to get involved with our activities and make that important difference.