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Better Management of
Our Best Resources

In addition to our harbour and advantageous geographic location, Hong Kong has one other major resource: our people. Hong Kong has built -- with little in the way of minerals, farmland or other natural resources -- one of the world's most dynamic and prosperous societies. However, to remain competitive in the 21st century we need to continue to develop our people, particularly through nurturing those who will contribute to our society and economy in the coming decade.

As we all know, Hong Kong is a very densely populated place and now, with low birth rates, our numbers are growing very slowly. This leaves us with only one clear strategy: to upgrade significantly the capabilities of those entering our workforce to ensure we maintain our position in an increasingly competitive world.

Immigration is clearly one way to enhance our human resources.  And we are glad to see the Hong Kong Government now doing that with more liberal policies towards Mainland professionals as well as professionals from elsewhere.  We think the government needs to do a better job advertising our policies, and we in the business community must still monitor these policies carefully, lest they get caught in the bureaucracy once again or retreat in the face of domestic political pressure.

But for the long run, education of our children is the key.  Over 21 percent of public expenditure is already devoted to education, and that figure has been rising steadily for five years. But, this is not just a problem to be addressed with more money for teachers and schools. Certainly business -- one of the main beneficiaries of the results of education -- should not begrudge the amount spent on training the next generation. What we would suggest is that there are areas where we might do a better job of preparing for the future.

One area is languages. The government's stated policy is to provide biliterate and trilingual education, and -- particularly in Putonghua -- we have come a long way toward that goal. Yet every survey and anecdotal report points to a steady decline in language skills, particularly in English.

The Chief Executive's mid-September commitment to improve substantially primary education in mathematics and language is a step in the right direction. This focus will better allow specialised teachers to concentrate on these core subjects. That is a worthy goal in itself, although we'll need to keep an eye on the students' progress as well.

In this regard parents also need to do more. Children learn best from those who care about them the most. To put it another way, students are taught at school, but they learn at home. They learn by example, and their embrace of learning is directly related to the support shown by their parents. Extra study time or special tutoring can only go so far toward improving a child's chance for personal and professional success. The challenge facing us, as parents, business and as a society is one of creating an educational environment that instils a strong desire for excellence and a commitment to life-long learning.

Once those values take hold, students will reach their potential if they are given the chance. In our tertiary education, we can see progress and we would encourage both government and our higher education institutions to continue working toward providing the opportunities students crave. One example of this is in enhanced cooperation among institutions. The Joint Centre for Advanced Study, to be established by three universities, will contribute toward a better utilisation of resources. Initially, these schools will share staff and course materials on-line, but in short order they plan to cooperate more directly. This is exactly the kind of leverage we need, and one that would be particularly useful in a dedicated business studies program.

The international character of our society is essential to Hong Kong's future as a world city with great strength in trade, tourism and a variety of sophisticated services. In addition to training our children in the basics, we also need to bring to them an appreciation of other cultures, societies and points of view. One way to do this is to internationalise more our tertiary student bodies. This can be done in two ways. First by giving more of our students a chance to spend part of their degree course studying overseas and partly by encouraging more students from abroad to our universities. There is an immense value in a multi-ethnic student body, particularly in business studies where our graduates may expect to interact with people from different cultures on a daily basis.

From next year, the quota for non-local students at University Grants Committee-funded institutions is slated to double, to 8 percent. While there is some justifiable concern that significantly increasing the number of international students may affect the opportunities for those from Hong Kong, it should be appreciated that the additional in-take will be privately funded.

Other areas, however still need work. One of the frequently cited prospects for Hong Kong's future growth is that of medical services for non-residents. Certainly our comparative advantage in healthcare is an industry that should be encouraged, not only for the benefit of our own community but also as an export. It is unfortunate, therefore, that the number of students admitted to medical schools is to be reduced by 10 percent over the next three years. We sincerely hope that this is only a temporary setback, and that the period of constrained admissions may be shortened.

Over many decades, your Chamber has encouraged and facilitated a multitude of classes for employees, student internships and office visits, education-focused roundtable lunches and tailored in-house training seminars. We believe strongly in the merit of adult education programs and in this respect have been a strong supporter of the Workplace English Training program. The latest figures show that more than 17,000 employees have completed training courses and a further 3,500 are currently working to better their skills. These working students have been supported by over 1,200 companies -- including many of our own members -- from a wide range of industries.

The Workplace English Training program has cost taxpayers only $37.2 million, or $1,800 per successful course completed. As it is phased out over the next few months, other programs such as the $5 billion Continuing Education Fund will pick up the slack. This new arrangement supports adults regardless of employment status, and covers a broader range of studies. As our society adjusts to new challenges, rethinking the mix of education opportunities available in Hong Kong makes sense.

Anthony Nightingale
Chairman
HKGCC