Hong Kong 2006 - Communications, the Media and Information Technology

The Government is committed to keeping Hong Kong at the forefront of information and communications technology (ICT) development. The Digital 21 Strategy, first instituted in 1998 and updated in 2001 and 2004, is the guideline for ICT development in Hong Kong. Since the launch of the strategy, good progress has been made in bringing about the right environment, infrastructure, skills and culture to encourage the development and adoption of ICT by the whole community.

To keep in step with the advances in technology and the changing needs of the community, the Government embarked on the latest round of review of the Digital 21 Strategy in 2006. The consultation document on the draft 2007 Digital 21 Strategy was released in mid-October for public consultation. After considering the public's comments, the Government will publish the 2007 Digital 21 Strategy during the first half of 2007.

The Government is committed to providing the necessary infrastructure for e-business to prosper. To do that, the Electronic Transactions Ordinance (ETO) was enacted in 2000 and updated in 2004 to provide a legal framework for the conduct of secure electronic transactions.

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 safe manner. Since 2003, the public CA, or the Hongkong Post Certification Authority (HKPCA), has offered smart identity card holders free use of its digital certificates for a specified period. At year-end, 1 261 000 free e-Certs had 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.

Since 2004, the Government has conducted sector-specific programmes in collaboration with the ICT sector and relevant trade associations for the small- and medium-sized enterprises (SMEs) in six business sectors — travel agencies, private medical practices, pharmacies, accounting, logistics, and beauty services. These sector-specific programmes have raised the skill of practitioners in using ICT as well as facilitated the wider adoption of ICT among SMEs in the target sectors. In November, the Government received proposals from the industry concerning its proposal for commissioning new projects under the 2006-07 sector-specific programmes. The new projects will address the challenges faced by the specific sectors and are expected to strengthen the competitiveness of SMEs with the help of ICT.

The local information technology (IT) industry is an important part of Hong Kong's economy and a major driver of economic growth. The Government has introduced a wide range of measures to make ICT a vibrant, competitive and innovative industry. These measures will help to increase business opportunities, improve service quality, build expertise and provide financial and infrastructural support.

The Government has been adopting an aggressive outsourcing policy for its IT projects. This, together with programmes aimed at promoting the use of IT in business and the community, has created a good environment for the local industry's growth. The Government will continue assisting the industry to explore business opportunities on the Mainland and overseas markets. It has also established funding schemes to help local software companies to achieve international standards and to support research and development projects.

Under the second phase of the Closer Economic Partnership Arrangement concluded in August 2004, it was agreed that Hong Kong service suppliers should be allowed to apply for computer information system integration qualification certification in accordance with the provisions of the relevant Mainland rules and regulations with effect from January 1, 2005. A one-year transitional period, during which certain application criteria under the existing regulations were relaxed for Hong Kong service suppliers, took effect on January 1, 2005, and was extended for another year until the end of December 2006. The Ministry of Information Industry of the Central People's Government has granted the System Integration Qualification Certificate to four Hong Kong companies. Further liberalisation measures will go into effect on January 1, 2007. Because of circumstances in Hong Kong, the Ministry of Information Industry has agreed to make permanent some of the transitional arrangements for computer information system integration qualification certification.

E-government is an integral part 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 stage of e-government under the 2004 Digital 21 Strategy.

Following its aim to use IT to provide customer-centric services that promote an accessible, accountable and efficient government, and contribute to Hong Kong's position as a leading digital city, the Government is pursuing the following key priorities under the next stage of e-government development:

In 2006, Hong Kong continued to gain world recognition for its efforts in promoting e-government. In the e-Readiness rankings released by the Economist Intelligence Unit (EIU) this year, Hong Kong was ranked second in Asia-Pacific.

The Government is committed to creating an environment where a well-qualified IT workforce can flourish and meet the needs of the community. It has run an annual sponsorship scheme for an IT exchange programme since 2002 to expose Hong Kong students to the digital world and to encourage tertiary institutions to organise IT-related exchange programmes with overseas or Mainland institutions. A government-funded pilot digital entertainment programme for interns was launched by the Cyberport in April for graduates to gain practical experience by working for a period in local digital entertainment companies. The Government also provided sponsorship for the Hong Kong Cyberport Management Company Limited to work with the British Council to organise a programme called 'Digital Pioneers — Young Creative Entrepreneur Network' to encourage contact and exchanges between digital media entrepreneurs in Hong Kong and their opposite numbers in United Kingdom.

The Industry Training Advisory Committee for the IT industry was formed to develop, maintain and update training procedures and Specification of Competency Standards. It will also strengthen the link between the industry and the vocational education sector to create a better equipped and more productive and competitive workforce. The Government sponsored the Hong Kong Computer Society to conduct a study on the IT Professional Certification System and IT Manpower Roster to recognise the capability and experience of IT practitioners. 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 local manpower needs and enhance Hong Kong's competitiveness in the world market. When needed, talented people and IT professionals from elsewhere, including the Mainland, may be admitted to Hong Kong to offset shortages in specific areas.

The Government encourages citizens to use IT to boost their competitiveness and quality of life. It will continue to organise various activities and initiatives to promote wider adoption and greater public awareness of IT. Since 2005, the Government has injected $2 million into the Digital Solidarity Fund (DSF) to get designers and other people in the digital industry to help draw up IT strategies for Hong Kong. The fund also received $1.3 million from commercial sponsorship. So far, 13 projects have been funded by the DSF. Other initiatives included district IT promotion activities, a dedicated website and radio programmes. Over 5 300 computers with Internet connections are available across Hong Kong free of charge. All government websites comply with internationally recognised guidelines to facilitate access and navigation by people with disabilities.

As at 2006, Hong Kong had cooperative arrangements such as Memoranda of Understanding (MOU) on information and communications technology with nine countries: Canada, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, and the United Kingdom.

The MOU with Canada was amended in December to extend the effective term for another five years. The MOU with Israel and the Republic of Korea expired at the end of 2006, and arrangements will be made to renew them in early 2007. The Government has organised reciprocal visits, information exchanges and cooperation programmes with these countries to promote and support inter-governmental exchanges, business partnerships and investment cooperation in the areas of IT and telecommunications.

Located at Telegraph Bay in the southern district of Hong Kong Island, Cyberport aims to set up a strategic centre there for quality IT and IT-related companies and professionals. Cyberport is wholly owned by the Government through three private companies established under the Financial Secretary Incorporated.

Cyberport is 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. The final phase of the ancillary residential development is due to be completed by 2008.

Companies are admitted as tenants of Cyberport on the advice of a committee of local and international experts. By the end of 2006, 65 tenants had signed leases, taking up 73 per cent of the project's available office space. The tenants include local, Mainland and overseas companies specialising in IT applications, information services and multimedia content creation.

Cyberport is becoming one of the major venues for IT and digital entertainment-related conferences in Hong Kong and Asia. By year end, over 651 IT-related events had been held at Cyberport, with more than 97 200 participants taking part. These included 387 regional and local conferences, 112 product launching ceremonies, exhibitions and entertainment events. The third Digital Entertainment Leadership Forum, the third Cyberport Venture Capital Forum and the first Cyberport Animation Camp were among the more prominent events held in 2006.

Cyberport also contributes to technological development in Hong Kong and provides the necessary infrastructure and technical support for SMEs. The facilities at Cyberport include Hong Kong Wireless Development Centre, Digital Media Centre, the iResource Centre, the Digital Entertainment Industry Support Centre and the Digital Entertainment Incubation and Training Centre. They provide vital support for the continuous development of Hong Kong's ICT industries, which include the digital entertainment and wireless application development industries. These are particularly important for SMEs that cannot afford the initial investment in expensive equipment and lack access to useful resources and business information. In addition, the Hong Kong Wireless Development Centre established the Hong Kong TD-SCDMA Service Development Centre in November 2006 to facilitate entry into the China market of Hong Kong companies involved in wireless applications.