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Following is a speech by the Permanent Secretary for Commerce and Economic Development (Communications and Technology), Mr Duncan Pescod, at the opening ceremony of the GS1 Hong Kong Supply Chain Management Excellence Summit today (October 10):
Mr (Philippe) Giard, ladies and gentlemen,
Good morning. It gives me great pleasure to join all of you this morning to explore how best the RFID (radio frequency identification) technology could help achieving business sustainability in face of the increasingly complex operating environment and very fierce global competition in your industry.
There is no need for me to tell you about the importance of the RFID technology in our daily lives. I am sure you are all aware of the tremendous contributions that the track-and-trace capability of this technology has brought to the industrial sector. But we are all here today with the same goal: to find new ways to utilise this technology for the benefit of the community as a whole, so that we can better enjoy our life and further enhance the efficiency of our business activities. I am pleased to say that some of our leading companies are taking steps to address these issues proactively. Indeed, the Hong Kong RFID Awards to be announced today will highlight the work of some of our logistics operators who have taken a number of innovative measures to demonstrate supply-chain excellence in their quest for business sustainability. I want to congratulate them on winning the awards.
The HKSAR Government is keen to support and promote the development of RFID technology and to facilitate its adoption. Indeed, we see it as our mission to make Hong Kong a platform for developing RFID technology and applications in the region. As J K Galbraith said ¡§Technology means the systematic application of scientific or other organised knowledge to practical tasks¡¨. I believe this is particularly important in the context of RFID technology.
Consistent with this approach, in 2006, as one of the key elements of the Government¡¦s new strategy to promote innovation and technology, we established the Hong Kong R&D Centre for Logistics and Supply Chain Management Enabling Technologies, or ¡§LSCM¡¨ in short, to foster the development of core competencies in applied R&D in logistics and supply chain related technologies. The LSCM is hosted by three of the leading universities in Hong Kong, the University of Hong Kong, the Chinese University of Hong Kong, and the Hong Kong University of Science and Technology.
Since its establishment, the LSCM has kick-started and managed more than 20 research projects, with funding amounting to more than HK$100 million, all designed to facilitate core RFID technology developments. Six foundation projects have already been completed and a range of enabling technologies has been developed. The LSCM would very much like to work with more industry players to build on such successes and develop them into daily applications, and I urge you to look into the opportunities LSCM present.
Meanwhile, the Innovation and Technology Fund also supports innovative RFID-related projects that are initiated by the universities or industry. One of the exciting projects which is worth mentioning here is the ¡§Establishment of an Electronic Product Code (EPC) Network¡¨, commissioned by GS1 HK in 2005 with Government¡¦s funding support. This project has successfully developed a local infrastructure to enhance supply chain information visibility for manufacturers, logistics providers and other supply chain users. The RFID technology, together with this infrastructure, has made possible seamless information flow among different business partners including raw material suppliers, manufacturers, distributors, retailers and after-sale services along the whole supply chain, heralding a new era of the so-called ¡§Internet of things¡¨.
The Mainland has seen rapid development in the last decade: not least the area that forms the large manufacturing base in the Pearl River Delta. Much of the logistics support for business is related to the "Factory of the World" in this area and hence it is of significant importance for developing new technologies/standards. Hong Kong has established collaboration mechanisms with relevant Mainland authorities at all the national, regional, provincial and municipal levels to enhance technology co-operation. We have agreed with the Ministry of Science and Technology to strengthen co-operation in various areas, including RFID technology, and are discussing with the Ministry of Industry and Information Technology on how to encourage enterprises, research institutes and experts from Hong Kong to participate in the formulation of national standards.
In addition, we have provided funding in conjunction with the Guangdong and Shenzhen governments to support R&D projects on key technology areas, one of which is RFID technology. This funding scheme aims to enhance the level of collaboration on R&D between organisations in Hong Kong and in Guangdong Province as a whole. Between 2004 and July 2008, the Government has invested HK$453 million to support a total of 111 projects. Among these, 13 projects are related directly to the use of RFID. We will continue to seek opportunities to co-operate with the Mainland on developing RFID manufacturing technologies and application models.
On the home front, we also push hard to speed up the adoption of the RFID technology in the public service sector. For example, the Hong Kong International Airport is the world¡¦s first airport to fully utilise this technology to ensure the efficient flow of passengers and cargo. The RFID tags attached to the luggage allow access to information and real-time tracking more easily and more quickly than traditional barcode tags. Meanwhile, we are also actively exploring the feasibility of deploying RFID technology in other areas such as library services, public health care and food safety. A key driver for this has been the fact that Government has provided the spectrum for RFID use in Hong Kong, which can be used by the public on a licence-exempt basis.
We are keen to encourage the community to learn more about the many possibilities brought to us by the RFID technology, and its significance to the future economic and social development in Hong Kong. Just yesterday, we commissioned the Hong Kong RFID Centre at Hong Kong Science Park. The new centre, which is the largest of its type in the Asia Pacific Region, will serve two purposes: first of all, it is intended to encourage more commercial applications of this technology. Secondly, it will target at the general community, with a specific focus on youth. It is hoped that through the interactive displays and demonstrations, the centre can enhance awareness and understanding of the next generation of the RFID technology - its applications, benefits and significances to the future development of Hong Kong.
The HKSAR Government will continue to foster the development of RFID technology, to encourage R&D activities in the public and private sectors and to facilitate technology transfer to the relevant industries. But our efforts alone cannot ensure success. We count on the continued support from technology associations like GS1 Hong Kong, the hard work of our technical experts, and contribution from the commercial and industrial sectors.
I am absolutely delighted to see so many business leaders and technology experts at today¡¦s summit. I wish you all a fruitful exchange of experiences and a productive day ahead.
So let me end with two thoughts:
Albert Einstein once said ¡§I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.¡¨
The second comes from Marcel Pagnol. He said ¡§My advice is to look out for Engineers ¡V they begin with sewing machines and end up with the Atomic bomb!¡¨
Can I just plead that the engineers in our midst stay firmly focused on the project of hand and not get carried away!
Thank you.
Ends/Friday, October 10, 2008
Issued at HKT 12:30
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