he year under review saw major changes in the business environment of the Municipal Sector Division. The former Regional Services and Urban Services Departments were among the first EMSTF customers to be "untied" last August, and their functions were taken over in January 2000 by the new Leisure and Cultural Services Department and the Food and Environmental Hygiene Department.

With thorough planning and preparation, the division has successfully supported these clients through the change. Achieving healthy business growth despite the "untying", the division now provides services to new venues such as the Yuen Long Theatre, Kwai Tsing Theatre, Hong Kong Heritage Museum and Sheung Shui Slaughterhouse. A series of charge reduction plans, tailored to meet client's specific needs, have contributed to the maintenance of the strong client base. Initiatives to help clients save costs and enhance efficiency have also yielded results.

To help clients achieve the productivity gain stipulated by the Government, the division has upgraded technology and re-deployed staff to ensure that clients enjoy further cost savings. Discussions are underway for longer-term Service Level Agreements whereby customers will benefit from special premium prices and certain reinvestments by EMSTF. The new arrangements offer significant and predictable productivity gains for clients, which are only possible in long-term partnerships.

A number of business process improvement initiatives have also taken place to ensure that the division's services are more customer focused. These include taking over services for the Marine Department and Hongkong Post, leveraging the division's specialised knowledge of postal equipment services and its existing network of depots throughout the territory. As a result, response times have become shorter and the control of spare parts more effective.

In addition, the division won the Civil Service Bureau's Customer Service Award for Internal Support Category, a much coveted honour.

Looking ahead, business prospects are excellent. New venues such as the Hong Kong Central Library and the Hong Kong Film Archive offer exciting opportunities. Change has been a catalyst for progress in the past year, and the division will aim for further growth in the next year.