ABSTRACT
This chapter examines how the changing environment and the domestic institutional factors continued to shape the divergent paths of industrial development in Hong Kong and Singapore respectively. It illustrates how Hong Kong's industries cope with the pressures for industrial restructuring. The chapter reviews the historical development of Hong Kong's manufacturing, or more precisely the garment and electronics industries, from the 1960s to the late 1980s. It describes that both garment-making and electronics production have done little in terms of technological upgrading. The chapter discusses different strategies of production in connection to relocation. In particular, the active role of the government in urban development and mass public housing was of great significance in supporting the manufacturing strategy of labor-intensive, low-wage production, Concomitant with the process of industrial development, new towns were rapidly developed. By the late 1980s, it is quite clear that the major strategy is that of industrial relocation, particularly to the Pearl River Delta of southern China.
