The theme of the Conference is New IT (Information Technology) Paradigms for Business Exploration and Societal Enhancement.

Ladies and Gentlemen,

I am delighted to be here today to address such a distinguished audience of computer professionals and business executives. The theme for this year - New IT Paradigms for Business Exploration and Societal Enhancement - is indeed well-chosen. It highlights the increasing importance of information technology (IT) in today's business and society. As we are moving towards the 21st Century, advances in IT have direct impact on every facet of our life, changing the way we work, communicate, learn and entertain. Already our children are surfing on the Internet, banking is increasingly done electronically, and we are able to watch the World Cup qualifying matches live via satellite link. These conveniences are just a few of the many fruits of fast-advancing information technology.

When IT is applied in business, it streamlines information flow, reduces response time, improves productivity, ensures quality and enhances tradability of services. The deep penetration of IT into Hong Kong's banking and transportation industries has contributed greatly to our reputation as a leading financial and transportation centre in the Asia-Pacific Region. For example, Hong Kong's container port, which is the world's busiest in terms of both cargo and passenger throughput, has developed extensive automation in processes like terminal management, ship movement planning, tractor traffic control, and cargo tracking. The result is a high degree of real-time optimisations for cargo handling and storage, saving valuable time and space, and increasing the overall efficiency of the terminal.

The Government has long recognised the importance of the development of IT and the relevant infrastructure to the maintenance of Hong Kong as a leading world service and financial centre. Much effort has been expended in facilitating the applications of IT by the community. For example, we have provided funding to the Chinese University of Hong Kong for upgrading the Hong Kong Internet Exchange, so that it could become the backbone of our local Internet. Funding has also been provided to the Hong Kong University of Science and Technology for the establishment of a Cyberspace Centre, to promote the use and business exploitation of the Internet. It is remarkable to note that the number of Internet Service Providers in Hong Kong has increased from a few in 1995 to over 100 today. There are currently 400,000 Internet users in Hong Kong.

In addition, we actively promote the implementation of electronic data interchange (EDI) through the development of the Community Electronic Trading Services (CETS). The first phase of the CETS for restrained textiles export licenses was launched in January this year, and that for trade declarations in April.

The Government is also committed to providing financial support to encourage research and development in IT. Since 1994, we have provided, through the Industrial Support Fund, over $160 million to support 30 projects in IT and telecommunications. The Applied Research Council also offer support to private sector ventures in IT and telecommunications in the form of loan or equity injection. Besides we will commission a consultancy study to formulate long-term strategies for promoting the use of IT in Hong Kong.

To maintain and enhance our competitiveness, we have to ensure that Hong Kong is a leader in the information world of tomorrow. To this end, the Chief Executive has stated in his Policy Address that the IT related responsibilities which are now divided among several Government Bureaux will be re-grouped so that the portfolio may be entrusted to one Bureau Secretary. This significant step should ensure a more focused and orchestrated approach by the Government in promoting the future development of IT in Hong Kong.

Furthermore, we will strive to achieve our objective in four areas :-

(a) First, we need the hardware of a high capacity communications system. This is an area where Hong Kong has made a head-start. We already have excellent telecommunications facilities, and the private sector has shown its willingness and commitment to continue to invest substantially in this field. To date, some 300,000 km of optical fibre has been laid to provide the backbone for our high capacity communications network, making Hong Kong the first city in the world to have fully digitalised public telephone networks.

(b) Second, we need to develop a common software interface which allows more application and greater use of the hardware. If we are going to make good use of the hardware, we need the software which enhances applications. The software developed needs to run on a platform which allows interoperability of the various systems used by individuals, business and Government. We have had some success in the development of applications for greater exploitation of the hardware already. For example, Hong Kong will likely earn another world's first - the first commercial launch of Video-on-demand service, which is a type of multimedia service through where customers connected to the network may call up films and video material onto their TV screen from digital databases any time of the day or night.

(c) Third, it is vital that we have the human resources that understand IT. We will launch a five-year strategy for IT in education to promote the use of IT in teaching and learning. The main tasks of the strategy are to equip our teachers with the necessary IT skills; to apply computer-assisted teaching and learning across the curriculum; and to place students in an environment where they can use this technology as part of their daily lives and grow up to use it creatively.

(d) Last but not least, we should develop a culture conducive to the development of IT. We need a culture within our community which stimulates thinking and creative action in the world of information. With such a culture, we will be able to provide a strong impetus to promote the use of information technologies and a readiness to innovate.

The Government alone will not be able to accomplish this important task of developing Hong Kong into a leader in the information world of tomorrow. Whether or not we can bring that vision into reality will very much depend on your participation and support. We look forward to close cooperation with professionals in the field and end-users alike.

I wish the Hong Kong International Computer Conference '97 every success. Thank you.