Trade Department Circulars

Chamber Press Releases

The Bulletin - The HKGCC monthly magazine

Speeches from Chamber Events

Can we keep up with the e-commerce revolution?

July 1999

Almost every presentation or magazine article on e-commerce and the World Wide Web projects exponential growth of all aspects of the Internet and the business being conducted on it.

Social transformation is stated as inevitable and companies that cannot adapt to the new paradigm will rapidly go the way of the dinosaurs.

Amid such hype and enthusiasm, will Hong Kong be able to keep the pace?

The bad news is that Hong Kong is well behind other regional centres on the information highway.

According to Mr Sin Chung-kai, Legislative Councillor for IT,Hong Kong must develop e-commerce and information technology so to revitalise and sustain the economy, but the Government's plans may not be enough.

"Unlike Singapore and Taiwan, there has been no long-term plan to develop IT for Hong Kong. Hong Kong is lagging behind Singapore and Taiwan. Even with the present economic turmoil the two countries continue to enjoy moderate economic growth because of their wise IT vision that we did not have a decade ago," he said.

"In Singapore, government online services are already available for civil service recruitment, child care information and registration, the National Library and the provident fund. They launched the Civil Service Computerisation Progamme and began to design the online government service in 1981 and the National IT Plan in 1986. Plus, the Taiwanese government has done a great deal in encouraging citizens to obtain personal certificates for secured online transactions," he said.

Mr Sin said that the SAR Government's position on Internet policy is somewhat obscure.

"On the one hand, the Government claims to want to develop Hong Kong into an Internet hub; while on the other it is reluctant to open up the telecommunications market, even under the global economic climate of liberalisation. It will not be able to achieve its Internet hub status without liberalisation," he said.

Asia's Internet users will balloon to 40 million in 2001 and Internet commerce transaction volume will increase to a whopping US$220 billion. Anderson Consulting has forecast that e-commerce will overtake traditional means of conducting business in the US in five years time.

However, Hong Kong maybe a bit slower - maybe seven to eight years time.

Mr K C Kwong, Secretary for Information Technology and Broadcasting, said that there will be progressive liberalisation of the telecommunications market and that the Government was encouraging e-commerce by taking the lead in providing government services online starting in late 2000.

"We are continuing liberalisation of the telecommunications market at a pace much faster than others in the region. By 2010 you should be able to apply for a driving license, pay bills and submit your tax return to the Inland Revenue online. We are looking at solutions for security and authentication to do this and we aim to provide legal support to e-commerce transactions. Hopefully our leadership will encourage business to conduct e-commerce.

"I think Hong Kong is not that far behind other regional centres, we are looking at solutions for security and authentication where Hongkong Post is taking the lead with Public Key Infrastructure (see P.17). The technology is available today with the use of encryption and certification and we aim to provide legal support to e-commerce transactions. Once we put Government services online this will provide confidence to the private sector to use e-commerce," he said.