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

Potential of E-commerce

Worldwide Market

Number of Internet users

mid-1999 170 million

now 378 million

Value of e-Commerce revenue

2000 US$657 billion

2002 US$2.2 trillion

2004 US$6.8 trillion

Potential of E-commerce

HK Market

H.K.

Number of Internet users

mid-1998 0.6 million

mid-1999 1.1 million

now over 2 million

Value of e-Commerce revenue

2000 US$1.9 billion

2002 US$12.2 billion

2004 US$69.6 billion

4

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 SurveyThe Economists

23 September 2000

Business Environment

6

Financial Centre

7

Logistics Centre

8

Telecommunications Infrastructure

9

• To create a favourable environment for e-commerce to flourish in Hong Kong• To take the lead by exampl

e in the adoption of e-commerce• To develop Hong Kong int

o an e-commerce hub in the Asia-Pacific Region

Government E-commerce Policy

11

Key Initiative - Electronic Service Delivery (ESD)

12

Electronic Payment Infrastructure

PC or Internet

appliances

ESDOperator

AcquiringFinancial Institution

Internet

Kiosk

Electronic Fund Transfer

Network

IssuingFinancialInstitution

Electronic Payment Gateway

User Bank/Card

Account

Merchant/Government Bank Account

Transfer of Fund

15

Electronic Payment Methods of ESDWide variety of electronic payment methods

Credit Card

Debit Card

Visa Cash

16

Innovative Service DeliveryESD 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 Security23

•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

• Consultancy services for adoption of e-commerce

• Information systems security audit services

• Web trust services

Services to be Provided by theAccounting Profession

29