Speech by Mr. Stephen Mak, Acting Government Chief Information Officer, at the "Canadian Innovation and Technology Partnering Forum of the International ICT Expo 2009"
14 April 2009

Mr. (Keith) Parsonage, Ms (Shalini) Anand, Distinguished Guests, Ladies and Gentlemen,

Good Afternoon! I’m pleased to share with you some of Hong Kong’s information and communication technology (ICT) capabilities and the business opportunities here because of our unique position as a gateway to the Mainland of China.

Over the years, Hong Kong has established a solid ICT foundation including an excellent infrastructure and a professional workforce. The International Telecommunication Union (ITU) ranked Hong Kong the 3rd in the 2007 ICT Opportunity Index amongst over 180 economies. Hong Kong ranked 1st in Asia and 2nd globally in the Economist Intelligence Unit's e-readiness survey 2008, indicating Hong Kong’s advanced position in connectivity and technology infrastructure, consumer and business adoption, legal environment and government policy and vision.

Regarding ICT infrastructure, our broadband networks cover virtually all commercial buildings and households. Our household broadband penetration rate is over 77 per cent, which is among the highest in the world. Hong Kong's mobile phone penetration is also one of the world’s highest, standing as high as 160%. The recent launch of the world’s fastest All-IP mobile broadband network has now enabled Hong Kong people to enjoy download speeds up to 21 Mbps.

Hong Kong’s broadband wireless infrastructure is also developing rapidly. Through the Government's GovWiFi Programme, together with the Wi-Fi networks of telecommunications operators, the public is able to access Wi-Fi broadband services in about 7,900 Wi-Fi hotspots all over Hong Kong.

Hong Kong has also got a sizeable pool of ICT talents. Over 64,000 professionals are working in the IT sectors and around 45% of them are engaged in software design and development. In 2009, there will be about 6,500 IT graduates from universities and IT-related programmes. The Government is working closely with industry to facilitate the continued upgrading of our ICT workforce to meet demand and future challenges.

To promote lifelong learning and increase the competitiveness of our IT professionals, the Education Bureau has developed a Qualifications Framework (QF) under which an Industry Training Advisory Committee has been established for the ICT industry to formulate a set of competency requirements and standards for various functional areas of the ICT industry. These competency standards will enable training providers to design education and training programmes in line with the requirements of the industry.

Hong Kong enterprises and people are prone to make innovative use of technologies where they are effective and convenient. Over the years, we have launched a number of remarkable projects. For example, the Immigration Department introduced e-Channels in 2004 for the public to perform self-service immigration clearance by deploying fingerprint verification technology for authentication of a person’s identity. The installation of e-Channels has significantly increased the overall passenger throughput at control points.

On the commercial side, the Octopus was initially launched to facilitate payment of fares on public transport in Hong Kong. It has since extended its reach into simple payments for purchase in retail outlets, access controls to buildings and personal identification. The Octopus is now the world’s leading and most extensive contactless smartcard system. It has the highest penetration, the highest transaction volume and the widest scope of application.

Indeed, Hong Kong has received many prestigious awards in the ICT field during the years. Our Immigration Department won the Asia Pacific Information and Communications Technology Awards (APICTA) for four consecutive years from 2004 to 2007, including the "e-Passport System", the "e-Channel", the "Face Recognition System" and the "Smart Identity Card System". The Octopus also won the 2006 Chairman’s Award at World Information Technology and Services Alliance Global IT Excellence Awards. Besides, the World Weather Information Service website operated by the Hong Kong Observatory on behalf of the United Nations World Meteorological Organization won the Stockholm Challenge Award 2008 in the environment category. Looking ahead, the launching of the Electronic Health Record initiative in Hong Kong will no doubt give rise to new e-business processes, applications and technologies.

Hong Kong is a unique place for tapping the huge market in the Mainland of China. Hong Kong has the advantages of physical proximity to the Mainland, established robust legal system, bilingual capabilities and close business relationships with Mainland companies. These advantages have made Hong Kong a good place for overseas companies to establish their regional headquarters here to manage their businesses in the Asia Pacific region, including those in the Mainland.

The Mainland’s ICT market is growing quickly together with its economy. It is a vast market for the consumption of ICT services/products and a significant source of technically capable talents. We have maintained a business environment conducive for Hong Kong ICT industry to foster technological cooperation with Mainland and international partners. These include the availability of excellent professional and financial services, stringent intellectual property rights protection and enforcement, and a level-playing field.

We have established channels for cooperation with the Guangdong Province and relevant Mainland authorities in areas such as innovation, technological development and informatisation. The "Guangdong-Hong Kong Expert Group on Cooperation in Innovation and Technology" has been established to promote technological cooperation and exchanges between the two places. To capitalize on the synergy between the technology development of Hong Kong and Shenzhen, the governments of the two cities signed an agreement in May 2007 to take forward the “Shenzhen/Hong Kong Innovation Circle” arrangement. And the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) further enhances our position in attracting overseas technology providers to tap into the Mainland market.

Looking ahead, the Government will continue to provide an enabling environment for the development of the local ICT industry, to keep in close touch with the industry on the latest developments and matters of business interest, and to establish a business-friendly policy framework and a regulatory environment to encourage innovative applications to flourish.

We will work closely with the local ICT industry and Mainland partners to define a collective "brand proposition" for Hong Kong and the Mainland as a source of innovative ICT products, services and software development. Hong Kong’s business friendly environment and familiarity with international best practices combined with the Mainland’s abundant supply of inexpensive talents will enable us to become a perfect destination for such partnerships. We will also collaborate with our industries to participate in the 2010 Shanghai Expo, which will be an excellent opportunity to showcase Hong Kong’s strengths in ICT and creativity in the international arena.

Leveraging on Hong Kong’s mature legal system, stringent piracy law, low and simple tax system, excellent telecommunication infrastructure and close business affinity with the Mainland, I believe that Hong Kong can play a key role in facilitating the Canadian ICT industry to expand your businesses in this part of the world.

Before I close, I should mention that an ICT trade mission comprising Hong Kong and Mainland ICT companies will be visiting Vancouver early next month to explore partnership opportunities with their Canadian ICT counterparts. I am sure the mission will generate a lot of interest and opportunities for partnerships on both sides. Finally, may I wish you a fruitful and enjoyable stay in Hong Kong!

Thank you.

- ENDS -