HONG KONG 2004 - Communications, the Media and Information Technology

The Government is committed to keeping Hong Kong at the forefront of information technology (IT) development. The Digital 21 Strategy, first issued in 1998 and revised in 2001, is the blueprint for IT development in Hong Kong. Since the launch of the strategy, great strides have been made in putting in place the right environment, infrastructure, skills and culture to encourage the development and adoption of IT by the whole community.

After reviewing implementation of the 2001 Strategy and taking into account views received from a public consultation, the Government published an updated Digital 21 Strategy in March 2004. The aim of the 2004 strategy is to sustain the momentum created since the strategy was launched, continue to harness the benefits of IT for businesses and the community, and strengthen Hong Kong's position as a leading digital city in the world.

The Government is committed to providing the necessary infrastructure for e-business to prosper. To keep the legal framework up to date with technological advancements and international e-business developments, the Government reviewed the Electronic Transactions Ordinance in 2003 and subsequently introduced amendments to the ordinance, which became effective in June 2004.

There are now one public and two private certification authorities (CAs) recognised under the ordinance, which issue digital certificates for use by the community to conduct electronic transactions in a secure manner. Since 2003, the public CA, the Hongkong Post Certification Authority (HKPCA), has offered smart identity card holders one-year free use of its digital certificates. As at year-end, 702 520 free e-Certs have been issued to smart identity card holders. A critical mass of digital certificate holders is being built up, providing incentive for the industry to develop further applications and services using digital certificates.

The Government launched two sector-specific programmes in collaboration with information technology and relevant trade associations in 2004 to encourage the wider adoption of IT to enhance the competitiveness of small and medium-sized enterprises (SMEs) in Hong Kong. Travel agents and private medical practitioners were the first two target sectors. Similar efforts will be expanded to other sectors in the coming year. The Government also works with industry support organisations to provide generic programmes including technical support, advisory services, financial support and training to encourage and assist the business sector, especially SMEs, to adopt e-business to enhance efficiency and productivity.

The Government is committed to fostering a vibrant, competitive and innovation driven IT industry in Hong Kong. The local IT industry is an important segment of Hong Kong's economy, and IT is a major driver of economic growth. The Government has a wide range of measures in place to promote the development of the local IT industry. These measures aim at expanding business opportunities, improving quality of service, building capability, and providing financial and infrastructural support.

By outsourcing government IT projects and promoting IT adoption by businesses and the community, a market of sufficient size has been created to support and encourage the growth of the local IT industry. In addition, the Government will continue to assist the industry to explore business opportunities in the Mainland and overseas markets. Funding schemes are established to assist local software companies to achieve international quality standards and support research and development projects.

Under the second phase of CEPA concluded in August 2004, it was agreed that Hong Kong service suppliers be allowed to apply for the computer information system integration qualification certification in accordance with the provisions of the relevant regulations and rules of the Mainland with effect from January 1, 2005. A one-year transitional period, during which certain application criteria under the existing regulations and rules will be relaxed for Hong Kong service suppliers, will also take effect on January 1, 2005. The Government will continue to consult the industry on further liberalisation of trade in IT-related services in the next round of CEPA discussions between Hong Kong and the Mainland.

E-government is an integral component of the Government's overall IT strategy. Building on the solid foundation laid down in the past few years, Hong Kong has launched the next wave of e-government under the 2004 Digital 21 Strategy. The Government will deepen the e-government programme to create more visible value for its customers and transform government business and culture.

The Office of the Government Chief Information Officer (OGCIO) was established in July 2004 to provide a stronger and more visible leadership within the Government to drive the development of e-government among government bureaux and departments to implement changes in business processes. To provide sponsorship for the e-government programme at the most senior level, the E-government Steering Committee (EGSC), chaired by the Financial Secretary, was established in September 2004.

To drive forward the next wave of e-government development, the EGSC endorsed a new vision to use information technology to provide customer-centric services that promote an accessible, accountable and efficient government, and contribute to Hong Kong becoming a leading digital city.

The new vision seeks to deepen a commitment to 'Serving the Community' by highlighting the use of IT to provide integrated and customer-centric public services; promote business process re-engineering to improve service delivery and enhance efficiency and productivity; and promote a more pervasive e-environment to raise the e-literacy of the community and drive the adoption of e-commerce and e-business.

Under this vision, the next wave of e-government programmes will focus more sharply on service quality and effectiveness, encourage the adoption of customer relationship management to enhance user-friendliness of services, identify and migrate customers to the most customer-desired and cost-effective channel of service delivery, and facilitate the joining-up of bureaux and departments to provide integrated and one-stop e-services in a customer-oriented manner. Key initiatives include e-procurement, new strategies for electronic service delivery, customer relationship management, channel management and measuring the benefits of e-government initiatives.

Major e-government projects undertaken in 2004 that demonstrate the focus under the vision:

The ESD Scheme provides a one-stop portal (www.esd.gov.hk) to deliver integrated public and commercial services in a customer-centric way. As at late 2004, the ESD portal provided some 200 online public services from over 50 government departments/public agencies. Its service scope has been broadened and service quality enhanced as follows:

The Immigration Department started issuing the smart identity (ID) card in 2003 as a joined-up project that offers a number of public services through the single interface of the smart identity card. In addition to using the card for traditional immigration functions (as a means of identification), holders of smart ID cards may also choose to use them for library services and opt to embed in their ID cards a digital certificate (the personal e-Cert) issued by HKPCA to carry out secure online transactions. Moreover, the smart ID card can be used for automated immigration clearance in phases starting from the end of 2004. It may also be used to replace the driving licence from around 2006. The smart ID card aims to create a critical mass of citizens who are ready to make use of e-services and will serve as a population-wide platform for the further development of e-government and e-commerce in Hong Kong.

The Government is undertaking a number of other joined-up projects, such as the Property Information Hub, which aims to provide one-stop access to property-related information kept by the Rating and Valuation Department, Land Registry, Lands Department and Buildings Department; and the Integrated Criminal Justice Processes to enhance efficiency and accuracy in transferring information among a number of departments and agencies involved in the criminal justice process.

The 'Common Look and Feel' (CLF) website design initiative was introduced to all bureaux and departments in March 2003. By end 2004, about 40 bureaux/ departments have adopted CLF to their departmental websites. By providing a more consistent navigation experience to surfers, the CLF aims to enhance the online brand image and improve the public's accessibility to information as well as improve the user-friendliness of government websites.

In 2004, Hong Kong continued to gain international recognition for its e-government efforts and the excellence of its IT industry. The Smart ID Card System won the renowned Card Technology Breakthrough Award in the Implementation Category by Card Technology Magazine in April, for its use of biometric technology, multiple application and coverage of the whole Hong Kong population. It also won the Gold Award in the Application Category of the 6th IT Excellence Awards organised by the Hong Kong Computer Society in August for its comprehensive functions, creativity and security, and the top prize in the e-Government & Service Category of the Asia Pacific Information and Communications Technology Awards (APICTA) in December. The ESDlife brand of the ESD Scheme gained the Super Brands Award and Web Care Award in May, and 'Policing Disease' won the Stockholm Challenge Award in the same month for its innovative application of the Police Force's IT system to track the chain of human transmission of SARS. Moreover, HKedCity's i-Classroom was awarded the Medal of Achievement of the Computerworld Honors Collection and Global Junior Challenge Award in November, with its comprehensive educational resources and interactive services enabling classes beyond the classroom.

The Government is committed to providing adequate and quality IT manpower to meet the demand in the community. The Government implemented a number of new initiatives in collaboration with the IT industry and academia during the year, including a sponsorship scheme for IT exchange programmes aimed at exposing our students to the digital world and encouraging tertiary institutions to organise IT-related exchange programmes with overseas or Mainland institutions; and an IT Internship Programme to give our young IT talent opportunities to learn about the advanced IT/telecom practices in countries with which the HKSAR has signed memoranda of understanding on information and communications technology, widen their international exposure and outlook, and sharpen their language, inter-personal and other job-related skills and capability.

The Government will continue to work with the academic sector and the IT industry on longer term measures to ensure that the IT workforce meets the local manpower needs and enhance the competitiveness of Hong Kong in the globalised market. Where necessary, talented persons and professionals in IT from elsewhere, including the Mainland, may be admitted to Hong Kong to fill gaps or shortages in specific areas.

The Government encourages citizens to embrace and use IT to enhance their quality of life. It will continue to organise various activities and initiatives to promote wider adoption and raise public awareness of IT in the community. The Digital Solidarity Fund was set up in December under the collaboration of the Government, the social services sector and the private sector. The fund aims to provide financial support for digital inclusion programmes and engage different stakeholders in designing and implementing digital inclusion strategies for Hong Kong. The Government injected $1 million into the fund in 2004. The Government also helped raise donations from the private sector and by year end, the fund received an additional $650,000 from commercial sponsors. Other initiatives to bridge the digital divide included district IT promotion activities, a dedicated website and 'infotainment' TV programmes that disseminate information on the Government's IT initiatives and latest developments in IT. Free IT awareness courses also provided basic training to different sectors of the community. Over 5 300 public computers with Internet connection are available across Hong Kong for free use by the public. There is also a free public enquiry service on the use of basic IT applications called IT Easy Link. Moreover, all government websites are in compliance with universal accessibility guidelines to facilitate access and navigation by people with visual disabilities.

Hong Kong has concluded cooperative arrangements in information and communications technology with 12 countries — Canada, Finland, France, Germany, India, Ireland, Israel, Italy, Japan, the Republic of Korea, the Netherlands, and the United Kingdom. The Government has been working closely with these partners to promote and support inter-governmental exchanges, business partnerships, investment cooperation and joint research and development in the areas of IT and telecommunications. It will continue to explore opportunities to foster cooperation in the field of information and communication technology with these partners.

Located at Telegraph Bay in the Southern District of Hong Kong Island, Cyberport aims to create a strategic cluster of quality IT and IT-related companies and professionals. Cyberport is wholly owned by the Government through three private companies set up under the Financial Secretary Incorporated.

Cyberport comprises a comprehensive commercial development with about 95 000 square metres of Grade A office space, a shopping arcade and a five-star hotel. The commercial portion was completed in June 2004. An ancillary residential development, will be completed between 2004 and 2008.

Tenants of Cyberport are admitted based on the advice of a committee comprising local and international experts. By the end of 2004, 33 tenants have signed leases with Cyberport, taking up 42 per cent of the available office space. These include local, Mainland and overseas companies specialising in IT applications, information services and multimedia content creation.

Since its opening in November 2003, the Cyberport Institute of the University of Hong Kong, together with six corporate/industry partners, has been providing market-driven IT training programmes to both IT professionals and graduates from non-IT-related disciplines. Apart from formal education and training provided by the Cyberport Institute, Cyberport is becoming one of the major venues for IT and digital entertainment related conferences in Hong Kong and Asia. From 2002 to 2004, over 190 events were held at Cyberport, with almost 15 000 participants taking part. These include 95 regional and local conferences and 38 product launching and ceremonies. Some of the more prominent events held in 2004 were the first Digital Entertainment Leadership Forum, the Global ICT Summit, the Cyberport Venture Capital Forum and the 'ICT Day at Cyberport'. These events gave IT and digital entertainment professionals valuable opportunities to exchange views with local and overseas experts.

Cyberport also contributes to technological development in Hong Kong and provides the necessary infrastructure and technical support for SMEs. The Hong Kong Wireless Development Centre was opened in December 2003 to provide central testing and demonstration facilities for wireless developers in Hong Kong. The Digital Media Centre (DMC), opened in March, provides high-end production and post-production facilities and technical support for the digital entertainment industry. To complement the DMC, the iResource Centre was opened in May to provide a wide range of IT and multimedia resources, including a digital content library, industry research reports, business information and numerous sound tracks. This infrastructure and these services are essential to supporting the continuous development of the local IT and digital entertainment industries, in particular the SMEs that cannot afford the initial investment in expensive equipment and lack access to useful resources and business information.