| Critical mass1,
paradigm shift2, virtual
community3 ... these words
flow effortlessly from Sin Chung-Kai, functional representative
for the IT constituency in the Legislative Council. But
what do they mean to Hong Kong people?
As a lawmaker representing the IT industry, Sin is
in a unique position to contribute to Hong Kong's digital
future. Sin is the legislator representing the Information
Technology Functional Constituency in Hong Kong. He
has served Hong Kong people for over a decade as an
elected Legislative Councilor and elected District Board
member. Sin is one of the best known advocates for democracy
and IT development in Hong Kong.
Sin has been involved in Hong Kong politics for seventeen
years and has been an elected representative at all
three tiers of the government-Legislative Council (Legco),
Regional Council (abolished by the SAR government in
1999) and District Board.
The Digital 21 IT Strategy for Hong Kong - contains
ideas similar to those articulated in Sin's Digital
Hong Kong 2005 plan.
Sin says that the government can only play a supplementary
role in making Hong Kong digital. "Though a slow
starter, the government is sincere about pushing IT
development in Hong Kong. The drafting of the Electronic
Transactions Bill and the programmes and activities
we have seen are all to this end. But all they can do
is create a favourable environment in which the number
of companies involved in IT will increase to a 'critical
mass', attracting enough users of the Internet or broadband
for e-commerce to become viable."
Help from Government and Business
Organisations
Sin sees the advent of the millennium as a good opportunity
to launch public education activities. "I am considering
such themes as IT in Finance, in Healthcare, in Education.
Through public education, we can hope to create a truly
virtual community. We should not strive to concentrate
a lot of IT companies in a particular place - as long
as business flows in Hong Kong's direction, that's fine.
We can then source the best place to process and to
produce. That's one of the ways that small- to medium-sized
companies will conduct e-commerce in a virtual community."
To offer these companies access to venture capital,
the government opens the Growth Enterprise Market. While
acknowledging this as a positive step, Sin suggests
that the government should set an example by offering
more public services electronically, making it easy
to pay bills and obtain forms via the Internet, and
providing a better online telephone directory service.
The increase in quality and number of government online
services will have a knock-on effect in the private
sector and convince those unwilling to pay for online
services to change their minds.
Addressing the question of whether a special organisation,
formed along the lines of the Hong Kong Electronic Commerce
Association, can be effective in promoting local IT
application, Sin says that the concept is similar to
the global non-profit organisation CommerceNet. Member
companies can commission an independent organisation
to research a particular product or service, and share
the results.
"There are several advantages to this," continues
Sin. "The companies can share costs. They can also
set industry standards and offer suggestions to the
government when it formulates related policies. It's
a way for the industry to help itself, rather than relying
on the government - and it can even offer the research
to the government. I am willing to take part in it,
but it will need a leader from industry as it would
essentially be an organisation for industry."
E-commerce: An Unstoppable Trend
Faced with the global trend of e-commerce and local
economic change, many small- to medium-sized businesses
are overwhelmed by a sense of crisis. But Sin believes
that Hong Kong still has a competitive edge in the financial,
trade and service industries, as well as in its well-developed
legal system. "In the garment industry, for example,
we have a very efficient system with a chain of supply
services. Everything can be done with just a few phone
calls.
"But nowadays price is not always what competition
is all about. Speed can matter just as much. If you
are quick at understanding the fashion trend in Manhattan,
and know how to use the Internet to provide prototypes,
place orders, arrange production and close the deal
- all in a short time - then you win! You have to be
one step ahead to grasp the business opportunities that
arise. The alternative is to be left behind."
For Hong Kong to succeed, Sin reminds businesspeople
that they need a complete change of mind-set. "The
bosses of many companies have already earned their first
pot of gold. They are probably in their 40s and 50s
and it may be hard to make them use the computer or
the Internet, let alone take advantage of IT for e-commerce.
They may feel unsure about investing money in the Net
before seeing any tangible benefits. They may even enjoy
a very stable clientele, with whom they have maintained
a good business relationship for perhaps 20 years, and
who are willing to deal with them, even at a higher
price. But IT will change all this. With increased accessibility,
clients have more choices and can easily find another
supplier or change business partners based on very small
differences in price," he notes.
"Hong Kong businesses need to make a paradigm
shift - eliminating the common practice of putting their
money into real estate in the hope of a quick return.
Also, they need to let go of the traditional mode of
business management and consider tapping the venture
capital market and letting professional managers help
them expand their business."
Making Hong Kong the IT Hub
Although other regional centres already have a fairly
well-established IT culture, Sin is confident that Hong
Kong can become the IT hub for the Asia-Pacific region.
"It is true that the governments of Taiwan, Singapore
and Malaysia have taken action ahead of the Hong Kong
government in fostering IT development. But Taiwan's
IT development has focused on its local Chinese environment,
whereas Hong Kong is a bilingual city with a lot of
potential for markets in mainland China and the West,
as well as locally. Relying on its government's active
involvement, Singapore has installed more than 10,000
broadband lines, but Hong Kong, with no government intervention,
has achieved over 20,000," he says.
"The number of Internet users in Hong Kong now
exceeds one million, or 15% of the population. However,
this is still behind Taiwan in absolute numbers. The
same is true for web sites - Hong Kong is behind Taiwan
but ahead of Singapore. But thanks to the innovation
of Hong Kong people, some of the web sites are quite
successful in attracting page views from all over the
world.
"Hong Kong may not be good at developing IT, but
it is very inventive in applying technology in e-commerce.
The government should do its part by providing sensible
policies and a legal framework for the industry, and
further open up the telecom market to promote the use
of broadband. Then we can hope to see the critical mass
reached sooner and the use of e-commerce grow exponentially."
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