Press Release

Human Resources Committee appeals

for more international exchanges for undergraduates

Friday, February 16, 2001

The Advisory Committee on Human Resources Development in the Financial Services Sector (the Committee) has submitted its First Report to the Government. Included in the Report is the recommendation to increase the number of exchange programmes and corporate internships for undergraduates.

The Committee is chaired by Mr Peter Clarke and includes 21 members drawn from senior levels of the private sector, government departments, regulatory bodies and leading tertiary educational institutions. Industries represented include commercial and investment banking, securities companies, fund management and insurance as well as the accounting and legal professions. The terms of reference and membership of the committee are attached.

The Committee surveyed 49 firms in the financial services industry ranging from major multinationals to local companies.

"Our work has confirmed that wherever possible, employers prefer to recruit locally and develop their own pool of human resources. While local graduates are highly graded in terms of technical abilities, work ethic and reliability, the employers we have interviewed told us very clearly that there is considerable scope for improvement in terms of language abilities (both Chinese and English), creativity and innovative thinking, communication and social skills," said Mr Clarke. "The lack of international outlook and perspective is also an area of major concern."

Recognising that the problems identified are not unique to graduates joining the financial services sector, the Committee noted that the Government is seeking to address the cross sector problems through measures such as education reforms.

However, the Committee is concerned that it could take some time before the relevant measures could be implemented and their effects felt.

The Committee emphasised that interim measures were needed to enable employers, in particular multinational financial corporations, to recruit the employees that meet their corporate needs without having to resort to overseas talent or by moving their operations to alternative centres where suitable human resources were available.

The Committee suggested as an interim measure a significant increase in exchange programmes and corporate internships for undergraduates in the financial services sector noting that a surprisingly low number of Hong Kong students currently benefit from exchange programmes.

"We see tremendous value in giving more students an opportunity to participate in exchange programmes, to experience different cultures, improve their language skills through practice, build up their character and widen their international perspective. The Committee appreciates that exchange programmes have financial implications but such programmes are in fact a form of investment which would ultimately benefit Hong Kong." Mr Clarke said. "A few multinational corporations already work with tertiary institutes to finance both exchange progrmames and internships because they can see the benefits of investing in our students. We appeal to other multinationals as well as local companies to consider participating as well."

The Committee's interviews also suggested that the importation of more talents should also be considered as an interim measure to meet the present shortfall of staff of the right calibre. There were specific suggestions that talents from the Mainland are sought after.

"The relatively low relocation costs, the possibility of sending such talents back to the Mainland to take up managerial posts and the relatively smaller language gap might well explain such demands from employers." Mr Clarke suggested.

The Committee therefore recommended that the importation of an increasing number of suitably qualified Mainland Chinese talents should be considered as an interim measure. To minimise the chances of the system being abused, the committee highlighted that careful entry criteria should be developed." It would be important to ensure that the imported talents and local candidates compete on a level playing field, in particular in terms of compensation and conditions of service." Mr Clarke cautioned.

"In the next phase of our work, the Committee will set up a forum drawing together training institutes, student representatives, policy makers and employers in the financial services sector with a view to matching employers' expectations with the supply of graduates." Mr Clarke concluded. "This forum would be an ongoing dialogue aimed at better preparing graduates for the demands of a global industry."

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Advisory Committee on Human Resources Development in the Financial Services Sector

Membership List

Chairman

Mr Peter Clarke

Deputy Chairman

Mr Roger Luk, JP

Managing Director and Deputy Chief Executive

Hang Seng Bank Limited

Members

Mr Kevin Chan

The President

Hong Kong Society of Financial Analysts Limited

Mr T C Chan

Country Corporate Officer

Citibank, N.A.

Prof Chan Yuk-shee

Acting Vice President for Academic Affairs

Hong Kong University of Science & Technology

Prof Eric Chang

Chair of Finance, School of Business

University of Hong Kong

Mr Edward Chow

Council Member

Hong Kong Society of Accountants

Mr C F Choy

Chairman

The Hong Kong Federation of Insurers

Mr Mark Dickens

Executive Director, Supervision of Markets

Securities and Futures Commission

Mr Tim Freshwater

Chairman - Corporate Finance (Asia)

Goldman Sachs (Asia) L.L.C.

Miss Susie Ho, JP

Deputy Secretary for Financial Services (2)

Financial Services Bureau

Dr Bill Kwok

Managing Director

Wocom Holdings Ltd.

Mr K C Kwong

Chief Executive

Hong Kong Exchanges and Clearing Ltd.

Mr Edwin Lau

President of the Executive Committee

Hong Kong Institute of Bankers

Dr Y Z Lian, JP

Member

Central Policy Unit

Mr Andrew Lo

Chief Executive - Asia Pacific

Invesco

Dr Paul McGuinness

Chairman of the Department of Finance

Business Faculty

The Chinese University of Hong Kong

Mr Paul Tan

Vice President

The Law Society of Hong Kong

Mr Benjamin Tang, JP

Commissioner of Insurance

Office of Commissioner of Insurance

Mr Simon Topping

Executive Director (Banking Policy)

Hong Kong Monetary Authority

Mr Alan Wong, JP

Deputy Managing Director

Mandatory Provident Fund Schemes Authority

Mr Raymond Young, JP

Deputy Secretary for Education and Manpower (2)

Education and Manpower Bureau

Secretary

Miss Maureen To

Principal Assistant Secretary for Financial Services

Financial Services Bureau

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Advisory Committee on Human Resources Development in the Financial Services Sector

Terms of Reference

Mission

To develop a visionary view on the human resources development in the financial services sector; to pursue the longer term benefits of the sector as well as the Hong Kong economy as a whole in the respect of human resources development; and to cultivate a sense of partnership in the financial services sector in the pursuit of the common goal of enhancing the competitiveness of Hong Kong as a premier international financial centre.

Terms of reference

(a) To advise the Government on the strategic development of human resources in the financial services sector;

(b) To serve as a forum for both financial services practitioners (users) and training providers (suppliers) to exchange views on the needs of human resources development programmes for the financial services sector;

(c) To liaise with the training providers including academic institutions, vocational training bodies and other relevant organisations on the provision and development of training programmes to meet the needs of the financial services sector;

(d) To co-ordinate training efforts in the financial services sector as far as possible to avoid duplication of resources;

(e) To examine the immediate and future needs for human resources development in the financial services sector and to commission relevant researches, where appropriate and necessary;

(f) To set up sub-committees, where necessary, to look into and reflect the detailed training needs in the financial services sector to cater for market and business developments; and

(g) To consider and recommend measures to meet the demand for human resources development needs in the financial services sector.