Speaking to the Hong Kong - Canada Business Association in Vancouver this week, Mrs Yau said that in the past two years Hong Kong has experienced a revolution of e-commerce systems such as online stock trading, Internet banking, and Internet shopping. And the most recent addition is the Government-to-citizen (G2C) and Government-to-business (G2B) online service.

The Electronic Service Delivery scheme aims to be a user-friendly service that will provide innovative, efficient and high quality public services on-line to the community. The scheme will allow access to a wide range of services like filing tax returns and renewal of driving licences through computers with Internet connection at home, in the office, at conveniently located public information kiosks or Government public computer facilities.

In her address, Mrs Yau stressed that Hong Kong was internationally recognized as one of the foremost jurisdictions with the best environment to support e-businesses, thus Hong Kong has the potential to become the hub of e-commerce for the Asia Pacific region. She stated: 'The Economist Intelligence Unit ranks Hong Kong's e-business readiness as ninth in the world, and second in Asia. And, according to Forrester Research, Hong Kong will be among the lead group of economies in Asia-Pacific to register e-business hyper-growth, with the value of e-business surging to US$70 billion in 2004.'

Mrs Yau explained that the success of Hong Kong's e-commerce development was down to its 'traditional strengths', which include its established efficient business environment, world-renowned physical infrastructure such as the airport and port facilities, open market economy, free flow of information, freedom of speech and the rule of law.

Furthermore, Hong Kong has developed an advanced telecommunications infrastructure with 100 per cent full broadband coverage for commercial buildings; over 90 per cent coverage for domestic households; 31 external connectivity operators are licensed or about to be licensed to operate satellite and cable facilities; 70 per cent cell phones penetration rate; and the introduction of 3G services next year. All of which, said Mrs Yau, 'have provided us with an excellent foundation for developing an information-based economy.'

In support of such an economy, Mrs Yau reiterated the Hong Kong government's initiatives of establishing a clear legal framework for electronic transactions and a public certification authority to ensure local access to good quality and high trust certification services. Both initiatives were instituted under the Electronic Transactions Ordinance earlier this year.

Mrs Yau, who is heading a Hong Kong IT delegation in Canada to promote co-operation and exchange on IT between the two places, spoke of the many successful partnerships that have been established since the signing in 1998 of the Memorandum of Understanding on Co-operation in Information and Communications Technology between the two governments.

She also reminded her audience of the merger between Canada's Multiactive Software and Hong Kong's ABC Data & Telecom; and the multimedia technologies alliance between CML Global Capital of Canada and CML Capital of Hong Kong among many others. In her speech she emphasised the vital importance of the Hong Kong/Canada partnerships: 'These and other partnerships clearly demonstrate the emergence of a winning business strategy by combining Canadian technology with Hong Kong's entrepreneurial spirit and marketing expertise ... Canadian technologies and expertise in IT and e-commerce will continue to be an important resource for Hong Kong in this development.'

In conclusion, Mrs Yau spoke of China's forthcoming accession to the WTO, which would create huge opportunities for the development of cross-border e-commerce to and from China: 'With our excellent financial, telecommunications and transportation infrastructure, our expertise in doing business with the mainland of China and language proficiencies in both English and Chinese, Hong Kong is ideally placed to be the hub and fulfilment centre of these electronic transactions.'