350 Communications, the Media and Information Technology
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 critica! 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.
Driving the IT Industry
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
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