As reported by Mainland media, power transmission from other provinces to Guangdong has been substantially reduced due to damage sustained by power infrastructure during the snowstorm.  According to Li Xiangming, deputy director of Guangdong Economic and Trade Commission, the maximum capacity usage in Guangdong amounted to 40.56 megawatts of electricity with deficiency standing at 5.58 megawatts of electricity at 26 February 2008.  It is estimated that the maximum capacity usage will reach 49.5 megawatts of electricity with deficiency standing at 12 megawatts of electricity in March 2008.  

The Guangzhou municipal authority has implemented measures for alternate suspension of electricity. Enterprises that engage in high-energy consumption and high-pollution processes or use outdated equipments are required to halt operations.  Power supply will be cut by half for users with voltage capacity of 110 kilowatt and above and industrial users with voltage capacity of 10 kilowatt.  Power supply will also be cut by 30 per cent for those enterprises in industries which have priority in electricity while tertiary enterprises should reduce their power usage by 10 per cent.  The Dongguan municipal authority has implemented these measures for alternate suspension of electricity from 19 February 2008, and enterprises which were originally supplied with electricity for five days a week can now expect three days a week without electricity.

In addition, labour shortages in PRD cities like Guangzhou and Dongguan remain acute, despite the fact that many migrant workers have stayed in Guangdong during the Chinese New Year. In Dongguan, enterprises suffer from a lack of ordinary, mid- and high-end workers, engineers are in particular shortage.  Even the top 500 global enterprises have failed to recruit all required workers.  According to the Guangdong Provincial Labour and Social Security Bureau, only 51.6 per cent of the total demand for labour was satisfied and vacancies amounted to 464,000 on 20 February 2008.  The survey conducted by the Guangdong Human Resources Market Service Center shows 70 per cent of enterprises surveyed have failed to recruit all the workers they need, with the garment, shoes and toys industries experiencing severe shortages. 

Furthermore, members should pay due attention to the following issues:

1.            Shortage of raw materials – Some members indicated that quite a number of Mainland raw materials suppliers had closed down their business recently.  Hence, members should stay alert with developments and adopt precautionary measures to avoid delivery delay.

2.            Payment ability of overseas buyers – As the economies of Hong Kong major export markets are expected to slow, overseas buyers who face tight liquidity may delay or even fail to pay for their shipments.

Given such circumstances, the FHKI has just organised a job fair in Huizhou and will hold another one in Dongguan.  Moreover, the FHKI intends to invite experts in power generation, energy saving and credit assessment to advise members during FHKI causal luncheons.  Members are asked to pay close attention to FHKI circulars for further details.