Hong Kong policy change sought to allow Pearl River Delta firms to return to city

The Federation of Hong Kong Industries has called on the government to provide more support to manufacturers that want to move their research and development activities back to the city from the Pearl River Delta region.

The group said that although there were only a handful of factories which indicated this intention in its latest poll, more would be interested to return if polices were in place.

Only 12 of the 641 manufacturers who responded to the questionnaire said they were planning to shift research and development activities back to Hong Kong, but the lack of land and high operating costs make it difficult.

One third of the respondents also said the government should increase more sites for industrial use. And around 40 per cent of them said the administration should provide tax concessions to those who engage in research and development.

"Old-style industrial buildings may not be able to solve all the problems … If you want to attract high-end or value-added industries, places are needed for them to build the image of their brands," Stanley Lau Chin-ho, chairman of the federation, said.

But Lau noted that fighting for land for industrial use would be a problem due to the strong demand for housing. He said it was important the city had "balanced" development to provide career choices for young people.