At a time when the city's economy is set for a slowdown for the remainder of 2010, the electronic industry looks pretty steady. Experts said at the Hong Kong Electronic Industry Summit Wednesday that demands for high-end items are rising, particularly on the mainland.

According to Wing Chu, an economist at the Hong Kong Trade and Development Council (HKTDC), the electronic industry is the luckiest, for the rate of its decline is relatively lower.

Chu predicted "a steady export performance". The industry, he said, has fared better than any other sector in the past few months as the economy is recovering from the global recession.

After dropping 19 percent last year, Hong Kong's exports bounced back with a 26 percent increase in the first eight months of the current year.

In Chu's view, the strong comeback of the export sector is due "mainly to a robust growth in the electronic industry".

Of the total exports for the January-August period, exports of electronic goods account for around 56 percent. "What the electronic industry has achieved is more than a recovery," he averred.

Challenges abound as the US and European markets remain weak. Yet, the electronic industry is likely to sustain its growth momentum with rising and sustained demand, particularly from the mainland for high-end products like computers and smart phones, Chu explained.

He presented data which says almost 64 percent of Hong Kong's exports go to the mainland market.

Andy Lau, vice president of SAS Dragon Holdings Ltd, a Hong Kong-based electronic components provider, agreed that the mainland market is a major contributor to the growth.

"As China has become the world's second largest economy after the US, there will be a lot of business for the local (electronic) industry," said Lau.

Lau also believed that high-end products are the major drivers of future growth. As people are going looking for more powerful multimedia features, products like smart phones and LED panel TV constitute new growth areas, Lau said.

The summit was held concurrently with the four-day Hong Kong Electronics Fair organized by HKTDC. Touted as the world's largest electronics event, the fair this year has attracted 2900 exhibitors. Highlights of this year's event include the Hall of Fame that features some 400 brands and group pavilions displaying products from Japan, South Korea and Taiwan.

China Daily

(HK Edition 10/14/2010 page3)