ENG-2004 — Page 458

396 Communications, the Media and Information Technology

Driving E-business

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.

Vibrant IT Industry

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