SMEs urged to take immediate action over Y2K problem

October 12, 1999

With just 80 days remaining until the new millennium, Principal Assistant Secretary for Information Technology and Broadcasting, Mr William Tang, today (Tuesday) reminded all companies, especially small and medium sized enterprises (SMEs), to get well prepared for potential Y2K problem.

He warned that the Y2K problem affected not only large companies; SMEs would be equally vulnerable.

Mr Tang said that by now most major companies were well prepared to deal with any Y2K failures, but he noted that some SMEs might not be so as far as contingency plans were concerned due to various factors.

"Although a recent survey by the Hong Kong Productivity Council showed the awareness level of SMEs of the Y2K problem and the overall progress of their compliance work were satisfactory, it is still too early to be complacent," Mr Tang said.

"Of the 3,014 companies surveyed (which are mostly SMEs), 42 per cent indicated that they had devised contingency plans for the problem.

"For these companies, I would congratulate their management on their foresight and leadership in preparing their companies for the unprecedented problem. They will be in a much stronger position to capitalise any new business opportunities than their less well prepared competitors in the new millennium."

Mr Tang urged all companies, no matter their sizes, to take immediate action to ensure that all their mission-critical systems were Y2K compliant, and to check with their key business partners on their compliance status and draw up appropriate contingency plans. Y2K compliance and adequate contingency planning will be their ticket to business survival, he said.

The following are some basic steps for SMEs to address the Y2K problem :

* compile an inventory of all types of system, machinery, equipment and software that may be affected;

* check with equipment and software suppliers to see if the computer systems and embedded systems are Y2K compliant and identify appropriate solutions; and

* draw up contingency plans for mission-critical systems and critical business processes.

The Principal Consultant of the Information Technology Division of the Hong Kong Productivity Council, Mr Roy Ko, said the Council was ready to offer SMEs any technical assistance that they might need.

"We have set up a Y2K Service Centre to help SMEs to check computer hardware and software for Y2K compliance. We have also issued a Guideline on Y2K Contingency Planning to assist SMEs to formulate contingency plans," said Mr Ko.

"With the financial support from the Government, we are very happy to be able to offer our service at cost. SMEs may call the Council's Y2K hotline, 2788 6060, for assistance."

Mr Tang concluded that the Government would be stepping up publicity on television to remind the business sector to take immediate action to ensure a smooth transition to year 2000.

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