The number of construction projects in the city has shrunk drastically over the past 10 years, architectural and engineering academics said yesterday.

In the long run, the government needs to map out a sustainable-development strategy to ensure the stable development of the construction industry, they suggested. And in the short term, the government should launch more minor works to increase job opportunities and simplify procedures for large infrastructure projects.

Prof Lee Chack-fan, chair professor of the University of Hong Kong (HKU)'s Department of Geotechnical Engineering, said the construction industry enjoyed a boom in the 1980s and 1990s. A huge number of private and public housing units were built to meet the annual target of 85,000 flats, together with world-class infrastructures such as Tsing Ma Bridge and the new airport.

But in the wake of the financial turmoil in 1997, the number of construction projects has shrunk drastically, dropping by 30 percent from their peak in 1997, said Thomas Ng, an associate professor in HKU's Department of Civil Engineering.

The construction industry has contributed greatly to the economy and labor market, Ng said. In 2007, the construction industry produced HK$93 billion worth of work, equivalent to 5.7 percent of the GDP. In the second quarter of 2008, it employed 260,000 people, representing 7.4 percent of the total workforce in Hong Kong.

"The construction industry deserves greater attention from the government," he said.

An increasing number of construction companies and professionals are participating in overseas projects. In Ng's opinion, the government shall help them explore overseas markets and offer them export credit guarantees. In the long term, the government shall formulate a sustainable development strategy to ensure stable development of the construction industry to avoid drastic ups and downs.

Offering short-term solutions, Prof Albert Chan, associate head of Polytechnic University's Debarment of Building and Real Estate, suggested the government inject more resources into minor works, as well as maintenance and refurbishment of old buildings. Such works can be launched more quickly than the top-10 infrastructures, he said. Besides, they employ more construction workers, as opposed to large infrastructures that require a great deal of machinery.

(HK Edition 11/21/2008 page1)