ENG-2005 — Page 428

370 Communications, the Media and Information Technology

made in putting in place the right environment, infrastructure, skills and culture to encourage the development and adoption of ICT by the whole community.

To keep pace with the rapidly changing technological developments, the Government will embark on a review in 2006, with a view to publishing the fourth Digital 21 Strategy in early 2007.

Driving E-business

The Government is committed to providing the necessary infrastructure for e-business to prosper and, to that end, 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 secure manner. Since 2003, the public CA, the Hongkong Post Certification Authority (HKPCA), has offered smart identity card holders a year's free use of its digital certificates. As at year-end, 1 232 000 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.

In 2004, the Government launched sector-specific programmes in collaboration with the information technology (IT) sector and relevant trade associations to enhance IT capabilities and hence the competitiveness of small and medium-sized enterprises (SMEs) in six business sectors travel agents, private medical doctors, drugstores, logistics, accounting and beauty services providers. The programmes will be expanded to cover other sectors in the 2006. 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 for better efficiency and productivity.

Driving the IT Industry

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 introduced a wide range of measures to promote its development into a vibrant, competitive and innovative industry. These measures aim to expand business opportunities, improve the quality of service, build capability and provide financial and infrastructural support.

By outsourcing government IT projects and promoting the use of IT in business and the community, a market of sufficient size has been created to support and encourage the growth of the local industry. The Government will continue to assist the industry to explore business opportunities on the Mainland and in overseas markets. It has also established funding schemes to assist local software companies to achieve international standards and 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