3. Potential of E-commerce Worldwide Market Number of Internet users mid-1999170 million now378 million Value of e-Commerce revenue 2000US$657 billion 2002US$2.2 trillion 2004US$6.8 trillion

4. Potential of E-commerce HK Market H.K. Number of Internet users mid-19980.6 million mid-19991.1 million now over 2 million Value of e-Commerce revenue 2000US$1.9 billion 2002US$12.2 billion 2004US$69.6 billion 4

5. Government’s Role in the New Economy “… IT is not a panacea that allows government to avoid doing all the hard stuff, such as opening up markets to foreign trade and investments, liberalising telecommunications, protecting intellectual property rights, improving education, and ensuring an effective legal system and efficient financial market. Indeed, IT makes it even more important for governments to do all these basic things, because it increases the rewards for doing so...” The New Economy Survey The Economists 23 September 2000

6. Business Environment 6

7. Financial Centre 7

8. Logistics Centre 8

9. Telecommunications Infrastructure 9

11. To create a favourable environment for e- commerce to flourish in Hong Kong To take the lead by example in the adoption of e-commerce To develop Hong Kong into an e-commerce hub in the Asia-Pacific Region Government E-commerce Policy 11

12. Key Initiative - Electronic Service Delivery (ESD) 12

15. Electronic Payment Infrastructure PC or Internet appliances ESD Operator Acquiring Financial Institution Internet Kiosk Electronic Fund Transfer Network Issuing Financial Institution Electronic Payment Gateway User Bank/ Card Account Merchant/ Government Bank Account Transfer of Fund 15

16. Electronic Payment Methods of ESD Wide variety of electronic payment methods Credit Card Debit Card Visa Cash 16

23. Innovative Service Delivery ESD aims to deliver public services in an innovative manner Customer-oriented Convenient channels for service delivery Availability of service anytime Wide variety of payment methods Ease of use Safety and Security 23

24. To include other Government services which are amenable to the electronic mode of delivery To allow private sector to make use of the ESD information infrastructure for the delivery of commercial services Further Development of ESD 24

29. Consultancy services for adoption of e- commerce Information systems security audit services Web trust services Services to be Provided by the Accounting Profession 29