Progress and achievements in ICT development in Hong Kong have received international recognition. The Economist Intelligence Unit ranked Hong Kong fourth in the world and first in the Asia Pacific region in 2007 in terms of e-readiness. With market liberalization, which generates healthy competition, Hong Kong offers the world's most affordable Internet connection and mobile phone service according to a survey conducted by the International Telecommunication Union (ITU) in 2005. Hong Kong ranked third in the world according to the 2007 ICT Opportunity Index developed by the ITU, which measures maturity of infrastructure, skills and ICT utilization in society. The Government's leadership in developing electronic applications in the delivery of public services has also received international recognition.

Major Facts

• Hong Kong - one of the best connected cities in the world:

  • Broadband can be reached by all commercial and residential buildings;

  • Equipped external telecommunications capacity: 1,596 Gbps (June 2007);

  • Mobile phone penetration rate: 139.8% in 2007 (104% in 2003);

  • Broadband household Internet penetration: 74.8% in 2007 (50% in 2003);

  • PC penetration in business: 63.8% in 2007 (54.8% in 2003);

  • Internet penetration in business: 59.8% in 2007 (47.5% in 2003);

  • 59.3% of establishments had undertaken transactions of one type or another through electronic means in 2007

  • 96.7% of primary and secondary school students have computers at home in 2007, of which 97.6% have access to the Internet

• The Digital Media Centre opened in Cyberport in March 2004 to provide hardware, software, technical and marketing support to the digital entertainment industry.

• All four phases of Cyberport were completed by June 2004, creating an environment for a cluster of ICT companies dedicated to developing new technologies, applications, services and content.

• The implementation framework for digital terrestrial television was announced in July 2004.

• The second IT in Education Strategy, entitled "Empowering Learning and Teaching with Information Technology", was published in July 2004.

• Since December 2004, Hong Kong permanent residents holding the smart Identity Card can perform self-service immigration clearance at control points installed with e-channels, where the fingerprint verification technology is deployed for authentication of a person's identity.

• The Digital Solidarity Fund was set up in 2004 to sponsor worthwhile digital inclusion projects.

• Since 2004, nine different industry sectors have benefited under the Sector-Specific Programmes to promote e-commerce adoption.

• Special arrangements for Hong Kong IT service suppliers in respect of Computer Information System Integration Qualification Certification under the Mainland and Hong Kong Closer Economic Partnership Arrangement started in January 2005.

• A collection of guidelines on the selection and adoption of open source software and management issues relating to its usage were issued for reference by government bureaux and departments in July 2005.

• An Industry Training Advisory Committee was established in July 2005 to oversee the development of a Qualifications Framework for the ICT industry.

• The "Three Smart Tips to Clean PC" and the "Clean PC Day" campaigns were launched in 2005 and 2006 respectively to enhance public awareness of information security.

• Anti-spam measures were launched in 2005.

• In 2005-06, about 93% in value of our new IT projects were outsourced. The hosting services for departmental information systems of the Central Computer Centre were also outsourced in 2006.

• Five research and development centres were set up in April 2006 with strategic focus in five areas, automotive parts and accessory systems, logistics and supply chain management enabling technologies, nanotechnology and advanced materials, ICT, and textiles and clothing.

• A three-year pilot scheme to open up intellectual property ownership in government IT systems was implemented in 2006.

• The "3G Cyberport" Project to support the development of innovative 3G applications was completed in 2006.

• The Unsolicited Electronic Messages Ordinance was enacted in May 2007.

• The GovHK one-stop portal, the main Internet gateway to government information and services, was soft launched in September 2006 and officially introduced in August 2007 to provide user-friendly e-government services.

(I) Background

The Digital 21 Strategy was first published in 1998 by the Government of the Hong Kong Special Administrative Region to set out our vision of developing Hong Kong into a leading digital city. As a living document, updated in 2001 and 2004, it has taken into account the evolving needs of the community and technological advancements.

In the 2008 edition, we note that Hong Kong offers the world's most affordable Internet connection and mobile phone services with penetration rates among the highest in the world. Cyberport and Hong Kong Science Park have been developed as strategic hubs bringing together clusters of high-tech information and communications technology (ICT)¹ companies and professional talent from all over the world. The Government is pursuing a vigorous e-government program that has achieved good progress over the years.

(II) The Challenge

• There are opportunities and challenges ahead for Hong Kong to strengthen its position as a leading digital city. Technology and innovation will continue to play a key role in helping Hong Kong to compete by enabling businesses to transform and provide goods and services of increasing value. With regard to the experience in advanced economies, creativity and business opportunities unleashed through connectivity and data sharing over cyberspace are expected to emerge as new economic drivers. Harnessing our strategic role as the two-way platform assisting Mainland enterprises to bring in foreign investment and participate in the global economy is a critical opportunity and challenge that underlines Hong Kong's positioning as a source of competitive advantage.

• Moving towards the goal of an inclusive, knowledge-based society, we need to ensure that the benefits of ICT adoption are widely available to different segments of the community. Issues relating to data standards, information management and intellectual property rights protection become areas of increasing focus. The vision is an ultimate information society, under which everyone can create, access, utilise and share information and knowledge, thereby empowering individuals and enterprises to achieve their full potential and improve their quality of life.

(III) Moving Ahead

ICT applications are prevalently used in Hong Kong to support and further Hong Kong's role as an international financial, trading and aviation centre. Pressing forward on ICT development will contribute towards the policy areas in the Chief Executive's policy blueprint, in particular in facilitating progressive development and raising the quality of life.

The vision underpinning the 2008 Digital 21 Strategy is "advancing our achievements and seizing new opportunities: building on Hong Kong's position as a world digital city". To lay the foundation for ICT-enabled development in Hong Kong in the next decade, the Government has identified the following key action areas in 2008 Digital 21 Strategy for implementation between 2008-2010.

(i) Facilitating a digital economy

• We will continue our leadership and commitment for bringing relevant stakeholders in the community together through a consultative process to work out a blueprint for ICT development.        

• The Government will continue to play a significant role as an investor in the e-government program, a sponsor of research and development (R&D) and innovation, a champion of digital inclusion, a facilitator of cross-boundary technological cooperation and a regulator of the relevant ICT sub-sectors.

(ii) Promoting advanced technology and innovation

• We will strengthen Cyberport and Science Park, with their technological talent and excellent infrastructure, as hubs for innovation and technology.

• We will facilitate intellectual property transfer and commercialization of innovation through the newly established R&D Centres.

• The Government through the ICT industry will provide focus and support (where appropriate) to important technology domains including: (i) communications technologies; (ii) development of digital content; (iii) sensor and identification technologies; (iv) software development and packaging; and (v) next-generation Internet.

• We will position Hong Kong as a regional test-bed and launching pad of innovative technologies.

(iii) Developing Hong Kong as a hub for technological cooperation and trade

The Government

• has established channels to cooperate with Mainland authorities and Guangdong Province on innovation, information management and the development of technology standards.

• is facilitating the continued upgrading of the ICT workforce through developing competency standards to strengthen training and is paving the way for professional recognition.

• is engaged in regular exchanges with the ICT industry to listen to industry opinions and raise the transparency over formulation and implementation of ICT policies and initiatives.

• will ensure the continued presence of an environment that is conducive to technological business.

• Reliable telecommunications network: the Government will play a coordinating role to ensure transparency and responsiveness in the event of disruptions to the telecommunications networks.

• Information security: we have recently published a risk assessment and electronic authentication framework for public reference and will continue to promote the framework in 2008.

• Privacy safeguards: vigorous efforts will continue to be made to safeguard personal data privacy.

• Protection of intellectual property rights: building on safeguards for intellectual property rights through legislation, we will put in place the necessary digital rights management infrastructure to cultivate a legal download culture in the community.

• Development of data standards: we will collaborate with different sectors to develop industry-specific data standards to facilitate the provision of joined-up, value-added services.

• Regulatory framework: we will establish the Communications Authority as the single regulator for the entire electronic communications sector.

(iv) Enabling the next generation of public services

• The Government is committed to leading by example in the use of e-business, for both internal and public services.

• The focus of the e-government program is a citizen-centric mode of service delivery emphazising customer engagement, information management and the development of simple yet secure means of authentication. Increased efforts will be made to integrate services across government bureaux, departments and agencies.

• The new government portal, GovHK, officially launched in August 2007 as the single entry point to online government information and services provides the necessary platform for transformation to a citizen-centric mode of service delivery. We will explore opportunities for private sector participation to provide value-added services on GovHK.

• As e-channels grow, we need to examine the possibility of rationalizing different delivery channels according to what customers need and value. A Channel Management Strategy will be developed in 2008 for this purpose.

• We have embarked on the electronic procurement pilot program and will consider further roll-out in the Government so that we can encourage private sector suppliers to adopt electronic commerce, thereby improving their competitiveness.

• We envisage the existing e-government investment as a basis for the development of a next-generation Government where the program becomes fully engrained in policy-making and the daily business of all government bureaux and departments. Healthcare and transportation are potential areas for the provision of highly integrated and personalized services to citizens across both public and private sectors.

(v) Building an inclusive, knowledge-based society

(IV) Conclusion

• The Digital 21 Strategy sets out our vision of building on Hong Kong's position as a world digital city through advancing our achievements and seizing new opportunities. It is in alignment with the Chief Executive's policy blueprint set out in his Manifesto. The realization of the Digital 21 Strategy vision requires the participation of the entire community including the ICT industry, business sectors, academia and the general public.

• As an integral part of the Strategy, key indicators of Hong Kong's ICT development will be measured and tracked over time for public reference.

• The Office of the Government Chief Information Officer (OGCIO) is the focal point in the Government for dialogue with the public on the Strategy, for coordinating with all parties within the Government on its implementation and for tracking progress on an annual basis.

More on "Digital 21 Strategy"

CYBERPORT

The Project

• The Cyberport is an information infrastructure project to create a strategic cluster of leading IT companies and a critical mass of professional talents in Hong Kong.

• These companies specialize in the application of advanced IT to the development of services and multimedia content to support businesses and industries ranging from finance, trading, advertising and entertainment, to communications.

• The Cyberport provides a world-class working and living environment so as to provide an ideal place for overseas companies to set up their regional base and also a niche position for promising local companies. The environment will be conducive to creative thinking among like-minded people.

• The Cyberport is a flagship project to firmly put Hong Kong on the global Information Technology/ Information Services map.