HKU Bulletin May 2009 (Vol. 10 No. 2)

14 15 Breaking the Boom and Bust Cycle Academics try to find a new pattern for the construction industry. I f any industry understands the profits and pains of boom and bust cycles, it’s Hong Kong’s construction industry. It experienced phenomenal growth in the 1990s, spurred by the airport development, then became depressed during the Asian financial crisis, in 1998. Mini booms and busts have become the norm but the industry, and those who study it, are anxious to achieve a more stable and sustainable pattern. The Department of Civil Engineering and the Hong Kong Polytechnic University completed a 15-month joint study on this question, last November, for the Construction Industry Institute- Hong Kong, and called for better co-ordination of public and private construction activities. “We need a better balance to help reduce the competition for manpower and materials and make the industry more stable,” Dr Thomas Ng, Associate Professor in Civil Engineering, says. “When the private sector plummets, the public sector should move projects forward more swiftly.” That is happening to some extent with the government’s plans to build 10 major infrastructure projects over the next decade or so, but Ng said that horizon was still not forward looking enough. Currently, more than half of the local construction market is made up of maintenance and repair work, rather than new orders. Resources planning is also needed to meet market demand. He suggested the government outline more transparent medium to long term strategic development plans and monitor the construction activities of the private sector systematically, as is done in other countries. “The government has pushed forward qui te a lot of construction projects to counteract the impacts of the recent financial meltdown and there will undoubtedly be a big surge in volume, especially in public infrastructure works. But when that’s completed, the prospects for the industry are still uncertain. “We might go back to the case of 1998 when there was a severe drop in construction volume. This fluctuation would be most unhealthy for the Hong Kong construction industry, both in terms of prospective investment and manpower training,” he says. Ng has also been commissioned by the government’s Development Bureau to conduct a separate study on construction and related engineering professional resources, and he predicts fewer young people will be willing to study in these fields in the long run if uncertainty persists. “With such a high volume of civil engineering works coming up in the next few years, there is a big question of how to meet this immediate demand,” he says. The industry and educational institutions could do more to sharpen the competitive edge of the local industry so as to attract new talent, he says. University research in areas such as energy efficiency, sustainable buildings, heritage preservation, innovative materials and novel construction technologies could help the industry to diversify. Ng added that the timing was right for working towards achieving greater stability and sustainability in the industry. While other industries have been hit hard by the current recession, strong growth in construction activities is expected in the immediate future. Helping Students Cope M ost students are still positive despite the economic downturn, according to the Dean of Student Affairs, Dr Albert Chau Wai Lap. “There have been reports of more than a 40% drop in job vacancies, yet we are still very confident that HKU students will be successful in their job search. Of course we should never be complacent,” says Chau. Indeed, the Centre of Development and Resources for Students (CEDARS) has launched a number of reach-out programmes with this in mind. A series on dealing with adversity is equipping students with the personal qualities and coping strategies necessary to face the hardships of economic recession, such as adopting a positive at t i tude, and explor ing areas for psychological growth. COVER STORY In May and June, the Leadership and Life Skills Training Programme will help students manage and face up to the challenges ahead. “In terms of careers and placement, job finding is a major concern,” says Chau. “So we are stepping up our support for students by engaging companies to come to campus and conduct recruitment talks and interviews. “We have a wider careers education programme to direct students’ attention to some non-traditional areas such as social enterprise, or gaining jobs in NGO’s. ” CEDARS i s a l so p romo t i ng volunteerism, or service learning, as one way to prepare for future careers. “This is a good way to develop different competencies and, in t ime, gain knowledge of the needs of the community. This will be useful in their job search, or even in the formulation of their career goals,” Chau says. Not all doom and gloom However, there are positive. Siu says, “One blessing in Hong Kong is that our economy is quite stable. The typical household is quite rich because, after the last financial crisis, of 1997-98, we have had 10 years of building up our financial nest egg. “Hong Kong people are used to this swing in the stock market and the economy, and many have been able to hold onto their assets, they still have their homes. A lot have seen their investment portfolios shrink, but life goes on. “There’s hope here because we have China. The whole world may be shrinking but China’s economy, based on projections, is still expanding - not at 13 per cent, but the latest forecast by the World Bank is 6.5 per cent. So there are still growth opportunities.” Another plus, he says is that Hong Kong’s service economy depends on ski l led workers, “And unless you are absolutely desperate you will not want to lay off your workers, you want to hold onto them for as long as possible.” Chow also believes there’s a lesson to be learnt from this economic turmoil. “The root of the problem,” he says, “is greed. Obama has been saying this for months. We are all responsible. “But, I think, we have placed too much emphasis on excel lence and achievement. By all means we should try to excel but when you stress it so much people may use all sorts of means to achieve it, and sometimes those means are not so honest. “Material achievement has become the epitome of achievement. A lot of people get into debt to try to present this image of achievement. This recession is an occasion for us to rethink our values. Perhaps, we have forgotten how to be responsible, fair and honest. We have put the emphasis on the wrong values. Now, we need to exercise the spirit of self-discipline. “It’s time to prioritize our values – what should come first? Happiness, mental and spiritual peace? Are these more important than material goods? We are talking about global health here – if we are less extravagant then this will have an impact on our global health. People say we have damaged the Earth so badly that nothing can repair it. But I hope not, I hope we can still do something for ourselves, our families and for the whole world.”