Information Technology

Hong Kong's role as Asia's leading logistics, communications and financial hub has made it a natural location for the development of a sophisticated IT infrastructure. Today it is home to most of the world's leading IT companies.

Government Leadership

Office of the Government Chief Information Officer (OGCIO)

The OGCIO was set up on 1 July 2004 to provide leadership for the development of information and communications technology (ICT) within and outside the Government.

The OGCIO provides a single focal point with responsibility for ICT policies, strategies, programmes and measures under our 2004 Digital 21 Strategy, in addition to providing information technology (IT) services and support within the Government. The GCIO will be accountable for the Government's investment in ICT. 

Digital 21 Strategy

Drawn up in 1998, the Digital 21 IT Strategy aimed to drive Hong Kong's development as a leading digital city in the globally connected world of the 21st century. The latest 2004 Digital 21 Strategy aims to sustain the momentum created in the last five years and to continue to harness the benefits of IT for the entire community. New initiatives include fostering the development of wireless technologies and services, digital entertainment, and promoting the use of open-source software technologies and solutions. The Strategy is set to be revised in early 2007.

A Sophisticated Market

Hong Kong is among the world's most advanced users of IT. PC, Internet and mobile phone penetration rates are high. The broadband network now reaches all commercial buildings and virtually all residential buildings. Hong Kong ranked fifth globally in Digital Opportunity Index (ITU, 2006).

Over 12 million smart payment cards are in use in a city with a tech-savvy population of around 6.99 million. The smart ID card with multiple-application capability was rolled out in June 2003.

IP Protection

With a view to enhancing strict protection of intellectual property rights, a stringent new intellectual property law was introduced in 2001. It put Hong Kong among the leaders in this regard in Asia. Infringements of intellectual property rights associated with computer software, films and music are now a criminal offence.


Multi-national Talents and Infrastructure

On top of local talent, the government encourages hiring foreign nationals with the appropriate skills and qualifications. It is also increasingly easy to source talent globally under the Quality Migration Scheme introduced in June 2006.

Special facilities equipped with the requirements of IT sector companies include:

Hong Kong Applied Science and Technology Research Institute (ASTRI)
Cyberport
Hong Kong Science and Technology Park

Government Support

The following support schemes are available in Hong Kong:

Innovation and Technology Fund HK$5 billion (US$640 million) fund supports projects that contribute to innovation and technology upgrading in local industry, including joint R&D projects between the private sector and local universities.

New Technology Training Scheme This reimburses up to 50 percent of staff training costs in new technology and is administered by the Vocational Training Council.

Research & Development Centre Program Aims to strengthen collaborative applied research activities between industry and research organization.  As part of the program, R&D Centres are set up for logistics and supply chain management enabling technologies and information and communications technologies respectively.

Growing Consumer Demand

E-government

In 2005-06, government IT expenditure was HK$3.55 billion (US$455 million). The estimated expenditure for 2006-07 will reach HK$5.24 billion (US$671 million). Since April 1998, the government has adopted an active outsourcing strategy. In 2005-06, around 96% of government IT projects were outsourced.

The government has also taken the lead in promoting e-commerce with the launch of the Electronic Service Delivery Scheme in 2000. More than 1,200 public services are now provided with an e-option.

High Growth Mainland Market

Industry analysts predict that the IT market in China will grow at a compound annual growth rate of 13.1% from 2004 to 2009 and will reach US$50.83 billion by then.

CEPA

The Closer Economic Partnership Arrangement (CEPA) , , signed in June 2003 by the Central People��s Government and the Government of the HKSAR opens up new and exciting opportunities in the Mainland for both local and international companies. According to CEPA and its Supplements, the Mainland has agreed to provide preferential treatment to Hong Kong service suppliers in 27 service areas including IT as well as applying zero import tariffs for Hong Kong origin products in 1,407 Mainland tariff codes. As an enabling industry, the IT sector will also benefit from the expanded opportunities now available to industries directly covered by the CEPA.

Future Opportunities

Hong Kong-based companies will have distinct advantages in exploiting the huge potential in the Mainland. For example, the Central People's Government has outlined ambitious goals for the high-tech sector in the five-year plan (2006-2010) covering Linux operating system, advanced wireless technologies and RFID. In Hong Kong itself, the HKSAR Government��s outsourcing initiative and the continued expansion of e-commerce will provide substantial opportunities.