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E-commerce development in Hong Kong

International Council of Electronic Commerce Consultants Seminar on “Embracing the E-Commerce Development E-commerce development in Hong Kong Sin Chung Kai Legislative Councillor (IT) 30 August 2007 Content Why does Hong Kong need to enhance e-commerce adoption? Obstacles?

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E-commerce development in Hong Kong

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  1. International Council of Electronic Commerce Consultants Seminar on “Embracing the E-Commerce Development E-commerce development in Hong Kong Sin Chung Kai Legislative Councillor (IT) 30 August 2007

  2. Content • Why does Hong Kong need to enhance e-commerce adoption? • Obstacles? • What has our government done? • Way forward

  3. How often do you use e-commerce? B2B C2C B2C B2G G2C

  4. Increasing trend in e-commerce adoption in business Source: Science and Technology Statistics Sections, Census and Statistics Department, HKSAR

  5. Increasing business receipts via electric means Source: Science and Technology Statistics Sections, Census and Statistics Department, HKSAR

  6. Increasing trend in using online purchasing services Source: Social Survey Sections, Census and Statistics Department, HKSAR

  7. Increasing trend in use of IT in business PC usage (in %) Internet usage (in %) Source: Report on 2001, 2002, 2003, 2004, 2005 & 2006 Annual Survey on Information Technology Usage and Penetration in the Business Sector, Census and Statistics Department, HKSAR

  8. Increasing trend in IT adoption in business Website usage (in %) Revenue generated via e-commerce Source: Report on 2001, 2002, 2003, 2004, 2005 & 2006 Annual Survey on Information Technology Usage and Penetration in the Business Sector, Census and Statistics Department, HKSAR

  9. Key Statistics in Hong Kong (May 2007) Source: OCGIO

  10. E-readiness rankings 2007 Source: The 2007 e-readiness rankings Raising the bar, Economist Intelligence Unit

  11. In Asia-Pacific Region Source: The 2007 e-readiness rankings Raising the bar, Economist Intelligence Unit

  12. Networked Readiness Index 2006-2007 • Measure the degree of preparation of a nation or community •  to participate in and benefit from ICT developments Source: Global Information Technology Report 2006-2007, World Economic Forum

  13. High Broadband penetration rate 3rd Highest in the World! Source: ITU Internet Report 2006: digital.life, (Dec 2006) , International Telecommunication Union, (data as at 31 Dec 05)

  14. Digital Access Index • Measures the overall ability of individuals in an economy to access and use ICT • 4 main indicators: • Affordability • Internet access price • Knowledge • School enrollment • Literacy • Quality • International internet bandwidth • Actual usage of ICTs • Mobile cellular subscribers Source: ITU

  15. Content • Why does Hong Kong need to enhance e-commerce adoption? • Obstacles? • What has our government done? • Way forward

  16. Technology Crime Statistics in HK (02 -06) *Others include traditional offences such as criminal intimidation, using a false instrument etc. Source: http://www.police.gov.hk/hkp-home/english/tcd/overview.htm

  17. Technology Crime • 【星島日報報道】 • 一青年盜用他人無線網絡頻道上網，並利用假信用卡購買逾三萬元電子產品，被控不誠實取用電腦及欺詐罪 • 不法分子以非法渠道上網後，會再利用他人或虛假信用卡資料在網上購物，以易轉手賺錢的物品 • 使用WiFi無線上網電腦用戶，需在電腦進行加密，可免除被盜用網絡頻道危機

  18. Content • Why does Hong Kong need to enhance e-commerce adoption? • Obstacles? • What has our government done? • Way forward

  19. What has our government done? • Electronic Transactions Ordinance (ETO) • Unsolicited Electronic Messages Ordinance and Evidence Ordinance (Section 22A) • Electronic Service Delivery (ESD) • Public Certification Authority and e-Cert • Centre for E-Commerce Infrastructure Development • Collaboration with the industry • Sector-specific Programme

  20. What has our government done? • Electronic Transactions Ordinance (ETO) • Enacted on 5 January 2000 • Modelled on the UN Commission on International Trade Law Model Law on Electronic Commerce • Aims: • Provides a clear legal framework for conducting e-transactions • Enhances public confidence in adopting e-transactions • Major content: • Enables e-records and digital signatures to enjoy the same legal status as their paper base counterparts • Establishes a voluntary recognition scheme for Certification Authorities (CAs)

  21. Electronic Transactions Ordinance (ETO) • Writing (Section 5) • Information can be given by means of an electronic communication • Signature (Section 6) • Digital signature of the person is acceptable if it is supported by a recognized certificate and is generated within the validity of that certificate • Original form (Section 7) & Electronic records (Section 8) • Information can be presented or retained in e-form • Contracts (Section 17) • Context of the formation of contracts, may be in whole or in part expressed by means of electronic records • Contracts shall not be denied validity or enforceability solely because of the contract is in e-form

  22. Voluntary Recognition Scheme for Certification Authorities (CAs) • Government Chief Information Officer (GCIO) • Grants recognition to CAs • Publishes Code of Practice for CAs • Maintains on-line and publicly accessible record of each CA • Currently, 3 CAs: • The Postmaster General • Recognized in ETO, Section 34 • Personal / organizational / server e-cert, Bank-cert, Mobile-cert • Two private CAs • Digi-Sign Certification Services Limited • Cert required for electronic submission of trade-related documents • HiTRUST.COM (HK) Incorporated Limited • Server cert

  23. Electronic Transactions (Amendment) Ordinance 2004 • ETO was revised on 30 June 2004 • Aims: • Facilitates e-transactions not involving government bodies • Removes unnecessary legal impediments for encouraging e-services and e-business • Streamlines and improve the operation of voluntary recognition scheme of CAs

  24. New Electronic Signature Requirement Digital signature ONLY ANY form of e-signature Use a kind of electronic signature which can identify himself That method is reliable & appropriate Consents to the use of the method used Major amendment Note: Review on ETO will be conducted this year!

  25. What has our government done? ALLOW • person-to-person telemarketing calls • survey or religious messages (not in business uses) • messages sent in response to the recipient’s requests • messages to confirm a commercial transaction that the recipient has previously agreed PROHIBIT • a pre-recorded voice message (in business nature) sent to a HK mobile number • a fax advertisement sent to a company in Hong Kong • an email (for offering any products or services )sent to an email address which the registered user is in HK • Unsolicited Electronic Messages Ordinance • Enacted in May 2007* • to strike the right balance between respecting the rights of recipients and allowing the development of legitimate e-marketing • Evidence Ordinance (Section 22A) • making documentary evidence from computer records acceptable in criminal proceedings

  26. What has our government done? • Electronic Service Delivery (ESD) • Enable society to use public services via the Internet • Provide infrastructure for private companies to conduct e-commerce • Promote and educate the public • Public Certification Authority • the Hongkong Post (HKPCA) • launched in January 2000 • Provide electronic certificates (e-Cert) • Ensure security • Boost business and consumer's confidence

  27. e-Cert • Hongkong Post e-Cert for Smart ID Card • Hongkong Post e-Cert (4 types) • Personal • Organisational • Encipherment • Server • Hongkong Post Bank-Cert (3 types) • Bank of East Asia-Corporate • Shanghai Commercial Bank • Personal • Corporate Source: HongKong Post

  28. What is e-Cert for? Online Government Services Online Banking Services Electronic Services ESDSL’s contract with the Government will be expired by January 2008 All e-government services can be accessed through the GovHK website Online Stock Trading and Custodian Services Online Entertainment Services

  29. Low usage rate for the past 7 years 1.55 million personal & organisational e-Certs 1.26 millionfree personal e-Certs embedded in smart ID cards • E-Mice Solutions (HK) Limited • Become the operator of Hong Kong post e-Cert services from April 1 2007 for 4 years • Responsible for the full operating cost in providing the e-Cert services • To receive subscription and renewal fees from e-Cert subscribers

  30. Launch of the e-Cert File Card by E-mice • The latest chip card technology development • A smart card embedded with an e-Cert • Alternative and a more reliable e-Cert storage medium • Smaller size • Less affected by fluctuations in humidity and temperature • Encourage the increasing adoption of e-Cert Source: HongKong Post

  31. What has our government done? • Centre for E-Commerce Infrastructure Development • Computer Science Department, The University of Hong Kong • Work with HKSAR government • Research and Development project • Project Phoenix • Project Plumber • Project Pyxis • Project Spinner • "Extending Web 2.0 to Deliver E-Commerce Services” Funded by Innovation and Technology Commission Funded by Innovation and Technology Fund Website: http://www.cecid.hku.hk/researchndevelopment.php

  32. Collaboration with the industry • To promote a wider adoption of e-commerce • A policy booklet published by my office and HKITF in 2003 • Strategies and initiatives recommended were adopted by the Administration

  33. Collaboration with the industry • Sector-specific Programme (SSP) • To help industries adopt IT in their business • By providing training, seminars and roadshows • will expand the SSP to cover more traditional sectors 2004 2005 2006

  34. Collaboration with the industry • IT Self-Assessment Ware for Hong Kong SME • http://www.hkiol.org/itassessment/ • The Information Technology Services Department and the Hong Kong Productivity Council • Provides self-assessment tool for SMEs • to compare IT adoption level in the respective industry • Provides practical recommendations and useful information

  35. Collaboration with the industry • Hong Kong Trade Development Council (HKTDC) • Updates SMEs with the latest business information, E-Commerce services, technologies and trends • Provides opportunities to local industries to meet Overseas and China companies • > 12,000 Hong Kong companies • promote their products and services via the online product catalog • Vocational Training Council (VTC) • Provides “The New Technology Training Scheme” to the staff • Like website design and development, local and wide area network implementation etc

  36. Collaboration with the industry • Support and Consultation Centre for SMEs (SUCCESS) • Run by the Trade and Industry Department • Provides SMEs with useful business related information • Like services and facilities offered by various government departments and major industry support organisations • GS1 Hong Kong • Provides professional support • About global electronic identification of goods and services • Supply chain communication • Encourages all sectors to adopt E-Commerce technologies

  37. Content • Why does Hong Kong need to enhance e-commerce adoption? • Obstacles? • What has our government done? • Way forward

  38. Way forward • Marco trend in Mobile-commerce • 2.5/3G mobile services accelerate the growth of m-commerce • = 10% of e-commerce • Asia-Pacific m-commerce, excluding Japan (International Data Corp) • Short Message Service (SMS), Enhanced Message Service (EMS) and Multi-media Message Service (MMS) • increasingly important function in mobile communication estimated US$ 557 million 2001 US$ 12.4 billion 2005 Source: Hong Kong Trade Development Council

  39. Way forward • Concerns about security and the protection of personal data • Security infrastructures is important • to address • the identities of the parties involved • the integrity and confidentiality of the information transmitted • and the non-repudiation and legal status of the electronic transactions

  40. Way forward • The role of government • Further promote the e-commerce adoption among the public • Boost citizens to use e-government services • Enhance protection from fraud • Protection of consumers’ right to privacy • Legal protection against cracking

  41. Way forward • Public private partnership • Disseminate information to SMEs about e-commerce policies • Develop stable and reliable infrastructure • WiFi? • Strengthening Consumer Protection • Unsolicited Electronic Messages Ordinance?

  42. Useful links related to E-Commerce • Business Entry Portal • http://www.business.gov.hk • Business Licence Information Service • http://www.licence.tid.gov.hk/ • GS1 Hong Kong • http://www.gs1hk.org • Hong Kong Industry On-Line • http://www.hkiol.org • Hong Kong Productivity Council • http://www.hkpc.org • Hongkong Post • http://www.hongkongpost.gov.hk/ • Hong Kong Trade Development Council • http://www.tdctrade.com/ • Small & Medium Enterprises (SME) Information Centre • http://www.sme.gcn.gov.hk • Vocational Training Council • http://www.vtc.edu.hk/

  43. Thank you! http://www.sinchungkai.org.hk

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