SMEs encouraged to embark on e-commerce
08 - 03 - 2000

Local small and medium sized enterprises (SMEs) were encouraged to grasp the golden opportunity of entering into new markets and expanding business by adopting e-commerce in a forum held today (Wednesday).

Speaking at the E-commerce Forum for SMEs organised by the Information Technology Services Department today, the Director of Information Technology Services, Mr Lau Kam-hung, said,"E-commerce is a major force driving Hong Kong's overall economic growth".

"The Government recognises the importance of promoting the development of e-commerce in Hong Kong to retain its competitive edge in the Information Age of the 21st century," he said.

Mr Lau noted that the Government is committed to promoting e-commerce among local businesses, especially SMEs which represent more than 95 per cent of all the companies in Hong Kong.

The forum held today is aimed at empowering SMEs to start engaging in e-commerce by providing them with the knowledge about the adoption of e-commerce and how to select suitable solutions available in the market.

Sharing with the participants the merits of e-commerce to SMEs, Mr Lau said,"The adoption of e-commerce helps SMEs enter into new markets and brings new business opportunities because the world of e-commerce is not confined to any geographical and time constraints."

"Through the Internet, SMEs can enter into new markets that cannot be opened up in the past with the traditional mode of business operation.

"Besides, the expenditure on sales and marketing can be reduced," he said.

Mr Lau pointed out that, to expand their sales, SMEs only needed to enlarge their computer networks' capacity in handling sales, needless to be involved in a large amount of unnecessary expenditure.

"Thirdly, the size of stock can be reduced because SMEs, through establishing a closer and more direct linkage with their customers and suppliers through the Internet, will be able to enhance the efficiency level throughout the sales process and shorten its time required," said Mr Lau.

"The adoption of e-commerce helps SMEs improve the service quality and enhance the efficiency because SMEs will be able to provide their customers with information on their products and support services on the Internet," he added.

To encourage local SMEs to embark on e-commerce, the Government is launching a series of publicity events to enhance SMEs' knowledge of e-commerce. The forum held today is an example.

The Government will continue to cooperate with other organisations like Hong Kong Productivity Council, Hong Kong Trade Development Council and chambers of commerce to hold seminars for SMEs, providing them with knowledge of e-commerce, reference cases on successful adoption of e-commerce and technical support services.

"Announcements of public interests will be produced and broadcast on television and radio, and presented in various kinds of exhibitions to promote e-commerce," said Mr Lau.

Mr Lau said that the Government had established a public certification authority (CA) through the Hongkong Post to provide a secure environment for the conduct of e-commerce in Hong Kong.

The Electronic Transactions Ordinance which provides a clear and supportive framework for the conduct of e-commerce in Hong Kong was enacted by the Legislative Council on January 5.

"The Government will lead by example in adopting e-commerce, and will demonstrate to members of the public the benefits brought by this new mode of trade," said Mr Lau.

"The Government will launch the first phase of the Electronic Service Delivery (ESD) scheme this October, providing convenient, time-saving and secure services to the public through electronic means," he said.

It is expected that the launch of the ESD scheme will help promote the wider use of electronic transactions within the community.

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