1. Hong Kong E-commerce Readiness

2. APEC E-commerce Readiness Assessment Guide 2 The assessment helps identify actions needed to improve e-commerce environment and facilitates dialogue between government and businesses A self-assessment tool for use by economies in the Asia Pacific Economic Co-operation in assessing their e-commerce readiness

3. APEC strongly encourages member economies to make use of the Guide on a voluntary basis So far, Australia, China, Chinese Taipei, Hong Kong, Japan, Korea, Malaysia, New Zealand, Peru, the Philippines, Thailand, the US, etc. have committed to use the Guide Hong Kong has conducted the self-assessment in June 2000 3 APEC E-commerce Readiness Assessment Guide

4. E-commerce Readiness is assessed in terms of six broad indicators - 4 Readiness Assessment telecommunication infrastructure and technology base access and supporting services current level and type of use of the Internet promotion and facilitation activities skill and human resources policy positioning for the digital economy

5. HK’s telecomm market is characterised by open and effective competition, industry-led standards and wide consumer choices high teledensity at 56% 5 Telecommunication Infrastructure and Technology Base High mobile penetration rate at 64%, up from 49% a year earlier 33% of population has Internet access home PC penetration rate at 50%, up from 34% in 1998

6. Broadband access widely available for both businesses and consumers The maximum connection speed supported is 1 Gbps The average connection speed available is 1.5 Mbps 6 Telecommunication Infrastructure and Technology Base

7. Competitive Internet service market and consumers enjoy wide range of access services at affordable prices Over 180 Internet Service Providers Sophisticated IT support and distribution services readily available 7 Access and Supporting Services

8. Number of Internet users exceeded 2 million Internet traffic increases from 0.8 billion minutes per month in May 1999 to 1.3 billion minutes per month in May 2000 35% of businesses use the Internet in their operation Value of e-commerce projected to increase from US$145 million in 1999 to US$ 5.3 billion by 2004* Government is taking the lead : E-government initiative * Source : International Data Corporation 8 Level and Type of Use of the Internet

9. The Government has a comprehensive promotion programme Close co-operation between Government and industrial support organisations in providing practical assistance to local businesses SMEs are the focus 9 Awareness and Promotion

10. High projected demand for IT professionals Government is strengthening both basic education and professional training All primary and secondary schools to have IT/computer as part of curricula and over 80% have been connected to the Internet Local tertiary and vocation training institutions are rising to the challenge 10 Skill and Human Resources

11. Favourable e-commerce policies in areas such as legal framework, taxation, tariffs, regulation of encryption technology and copyright protection Further development to focus on the adoption of self-regulation mechanisms for the protection of privacy and consumer interests 11 Policy Positioning

12. We have strong telecommunication infrastructure and favourable policies for e- commerce Access and support services widely available Plenty of room for growth in Internet use Important to continue with efforts in education and promotion To focus on self-regulation in the protection of privacy and consumer interests 12 Conclusion