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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 l.jpg

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 l.jpg

Content

  • Why does Hong Kong need to enhance e-commerce adoption?

  • Obstacles?

  • What has our government done?

  • Way forward


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How often do you use e-commerce?

B2B

C2C

B2C

B2G

G2C


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Increasing trend in e-commerce adoption in business

Source: Science and Technology Statistics Sections, Census and Statistics Department, HKSAR


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Increasing business receipts via electric means

Source: Science and Technology Statistics Sections, Census and Statistics Department, HKSAR


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Increasing trend in using online purchasing services

Source: Social Survey Sections, Census and Statistics Department, HKSAR


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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


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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


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Key Statistics in Hong Kong (May 2007)

Source: OCGIO


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E-readiness rankings 2007

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


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In Asia-Pacific Region

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


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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


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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)


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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


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Content

  • Why does Hong Kong need to enhance e-commerce adoption?

  • Obstacles?

  • What has our government done?

  • Way forward


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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


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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


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Content

  • Why does Hong Kong need to enhance e-commerce adoption?

  • Obstacles?

  • What has our government done?

  • Way forward


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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


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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)


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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


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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


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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


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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!


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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Content

  • Why does Hong Kong need to enhance e-commerce adoption?

  • Obstacles?

  • What has our government done?

  • Way forward


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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


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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


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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


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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?


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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/


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Thank you!

http://www.sinchungkai.org.hk


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