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Revised IT strategy to position HK as a leading e-business community

May 4, 2001

To build on Hong Kong's early success in establishing a solid foundation for the use of information technology (IT), the Government today (May 4) published a revised Digital 21 IT Strategy with a view to positioning the territory as a leading e-business community and digital city in the globally connected world.

At a press conference launching "The 2001 Digital 21 Strategy: Connecting the World", Secretary for Information Technology and Broadcasting, Mrs Carrie Yau, said Hong Kong had become one of the best connected cities in the world since the Government published its first Digital 21 Strategy in November 1998. "All commercial buildings and nearly all households have broadband coverage. All schools and tertiary institutions are connected to the Internet and more than one third of our total population are Internet users today," she said.

"Our people have readily embraced new technologies just as they have always embraced new challenges of all kinds," she added. "But we cannot stand still. E-business is rapidly developing and evolving worldwide and it has become the primary driver for the information age."

She expected that the wider application of IT in future would open up tremendous new business opportunities and pave the way for exciting developments in the way people communicate and share information.

It also provides new and challenging prospects in the way governments, people and businesses interact. And the impending accession of China to the World Trade Organization (WTO) also presents Hong Kong with new opportunities in serving as the gateway to the Mainland of China.

"Now with our revised Digital 21 Strategy, we are preparing to ride the next wave of the e-revolution," Mrs Yau said.

The 2001 Strategy covers five key result areas, with associated objectives and initiatives, that need to be achieved:

(a) to enhance the world class e-business environment in Hong Kong, e.g. - issue 3G mobile communications licences in 2001
- open the Cyberport in phases from early 2002 to end 2003
- drive the adoption of e-business in the private sector, especially SMEs
- position Hong Kong for China's access to the WTO

(b) to develop e-government, e.g.
- establish a dedicated E-government Coordination Office to drive Government online
- target to provide e-option for 90 per cent of public services which are amenable to the electronic mode of delivery by end 2003 for round-the-clock access by the community
- target to conduct 80 per cent of Government procurement tenders electronically by end 2003
- actively outsource Government IT projects to foster a strong IT industry

(c) to develop Hong Kong's IT workforce, e.g.
- admit IT professionals from the Mainland and overseas
- develop IT in education to nurture local talents and equip young people for the information economy
- maintain bilingual capabilities of students and enhance their competency in English - the international IT and business language - for strengthening Hong Kong's competitiveness
- facilitate world renowned training institutions to provide accredited IT training courses for boosting local IT manpower supply

(d) to strengthen the community for digital exploitation, e.g.
- provide IT awareness courses to socially disadvantaged groups
- expand public computer facilities for free use by the community
- enhance Government web sites for universal access, including people with disabilities

(e) to exploit Hong Kong's enabling technologies, e.g.
- develop leading edge mobile applications
- one of the first in the world to issue mobile digital certificates to support secure mobile commerce
- earmark over HK$3 billion to roll out smart identity cards with multi-application capacity to all population starting from 2003
- establish linkage between local universities and the Internet2 network for conducting research in the next generation of Internet technologies over a high-speed network

The focus of the 2001 Strategy is on results and outcomes, Mrs Yau stressed. "The world of e-business is moving very quickly. We will be on constant lookout for improvement opportunities and to make suitable enhancements to our initiatives so that they offer the best potential for our cause.

"In doing so, we will take into account our overall positioning vis-a-vis other leading economies. We will continue to review the Digital 21 Strategy to ensure that it is visionary, forward-looking and meets the aspirations of the Hong Kong community and the challenges we face in the globally connected world.

"We hope that successful implementation of this Strategy will drive economic growth and bring about new employment opportunities and create wealth. We must not lose sight of the need to ensure the fruit of success is to be shared by all hence we attach much emphasis to strengthen our community including socially disadvantaged groups in the exploitation of information technology," said Mrs Yau.

As regards the 1998 Digital 21 Strategy, Mrs Yau noted that most of the planned initiatives had now been successfully completed. Major achievements include a liberalized telecommunications market, the enactment of the Electronic Transactions Ordinance to develop a legal framework for e-business, a local public key infrastructure that lays down the necessary infrastructure for e-business to flourish, development of Cyberport, improved public sector efficiency and leadership especially through the implementation of the Electronic Service Delivery Scheme to provide Government services online, and improved public awareness and knowledge of the use of IT.

As a result of these achievements, about 80 per cent of Hong Kong's population are using mobile phones, all commercial buildings and over 95 per cent of households have broadband coverage, 50 per cent of households have computers installed, over seven million smart payment cards are in use for a population of around the same number, and Hong Kong has become a premier venue for holding major international IT and telecommunications events, e.g.the 10th International World Wide Web Conference this week, ITU Telecom Asia 2000 in December last year etc. The economic contribution from ITU Telecom Asia 2000 is estimated to be HK$200-260 million. It was described as ITU's biggest ever regional event held to date and the ITU has decided that Hong Kong would again host ITU Telecom Asia 2002 in December 2002.

Mrs Yau continued, "These achievements have no doubt set Hong Kong as one of the leading economies in Asia today connecting the world, and with the best environment for e-business and e-culture to flourish."

She also appealed for public support to drive the 2001 Digital 21 Strategy. "Government alone cannot do this on its own. We look forward to active cooperation and collaboration with the industry, academia and the community and our international partners to jointly drive the strategy forward. With these concerted efforts, Hong Kong will be the premier digital city, connecting the world," she added.

"The 2001 Digital 21 Strategy: Connecting the World" booklet is available on the web site of the Information Technology and Broadcasting Bureau at http://www.info.gov.hk/itbb.

Suggestions and comments on the revised Strategy are welcomed and they should be sent to the Bureau at Murray Building, second floor, Garden Road, by fax (2511 1458), or via e-mail to: itbbenq@itbb.gov.hk.



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