Corruption, red tape big concerns: study

PUBLISHED : Saturday, 11 March, 2006, 12:00am
UPDATED : Saturday, 11 March, 2006, 12:00am

Corruption, red tape and law and order are among the most critical concerns of Hong Kong and Taiwanese businessmen investing in the Pearl River Delta, according to a study released yesterday.

Combating official corruption and government inefficiency scored 8.01 and 8.58 respectively on a scale of one to 10, with 10 representing the most urgent issue that needs to be addressed.

The study, jointly conducted in 2003 by Lingnan University and Sun Yat-sen University in Guangzhou, covered 101 factories invested in by Hong Kong or Taiwanese businessmen.

Findings showed law and order scored 7.85, while energy supplies scored 7.75 on the list of urgent issues.

In presenting the findings yesterday, Professor Chen Guanghan , director of the Centre for Studies of Hong Kong, Macau, and Pearl River Delta of Sun Yat-sen University, also warned investors to avoid labour-intensive industry in the region.

'With the development of inland provinces and cities, migrant workers are less willing to travel to Guangdong to work, thus the labour shortage problem in the past two years,' said Professor Chen.

The centre's deputy director Professor Yuan Chiping said: 'The problem was especially serious for the managerial posts. The government is starting to organise training sessions to train managerial level staff.'

By the end of 2003, there were about 76,000 firms and factories in the region invested in by Hong Kong businessmen.

Professor Nyaw Mee-kau, vice-president and director of Lingnan University's Institute of Business Studies, said Hong Kong could benefit a lot if it could take advantage of the rapid development of the Pearl River Delta.

A researcher of the Sun Yat-sen University, Dr Zhao Daying, , said there would be seven airports in the Pearl River Delta by 2010 and better co-ordination would be needed to avoid a waste of resources.