under review, we have exceeded all our financial and productivity targets while providing more cost-effective and
improved value-for-money services for clients. Staff are increasingly more positive and customer focused as a
result of a successful culture change. We are also one year closer to the phased "untying" programme
commencing in August 1999. Under the programme, existing public sector clients will have a choice to stay with
EMSTF services, or to choose alternative E&M service providers, which is a change we have been preparing for
over the past three years.
"Untying" and its Opportunities
Indeed, "untying" and its business implications for the Trading Fund have become a valuable opportunity for us to focus on ways to retain all our existing customers, grow existing business and secure new business. After three years of preparation, we believe the Trading Fund is well equipped to enter a more competitive phase without any compromise in our service quality and professional standards. The EMSTF performed well in 1998/99. We achieved a return on revenue of 11.2 per cent, which is 6.7 percentage points higher than our target.
Productivity Gains Passed onto Clients
As in the previous year, we have exceeded our financial targets through an effective combination of cost savings, productivity improvements, focused business development initiatives and business process improvement measures. As a result of these productivity gains, clients have enjoyed cost savings of five per cent in real terms in the past year. They will continue to benefit from further cost savings in future years as we achieve further productivity improvements and pass them on in the form of price reductions. We are confident we will achieve or surpass our planned 15 per cent productivity improvement by the year 2000.
These achievements would not have been possible without the total dedication of staff and their positive attitude, evidenced by encouraging client feedback. Staff fully appreciate the vital importance of being competitive. They share a sense of ownership of the Trading Fund, and are fully committed to the generation of new business.
For example, the Trading Fund took on overall E&M services for the Hong Kong Stadium in mid-1998 and have since significantly improved the entire E&M service quality at the Stadium to the clientÕs great satisfaction. Our various E&M services at the Hong Kong International Airport, both for the Airport Authority and government departments stationed at Chek Lap Kok, were of such high quality and competitiveness that we won several tenders, including those for the maintenance of electrical, air-conditioning and pumping systems, aerobridges, and vehicles.
