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Current and Future Development of

e-Commerce in Brunei Darussalam

ByAng Kian Guan

Ministry of Communications

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National IT Strategy 2000 and BeyondNational IT Strategy 2000 and Beyond The various

infrastructure and infostructure required

The stakeholders to ensure implementation of the strategy

Awareness on ICT across all agencies and societies

Implementation plan on integrating the various efforts required

Identify the monitoring methods

Identify quality standards

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E-Asean

The e-ASEAN work program is grouped along the following tracks :

a. Facilitation of the Establishment of ASEAN Information Infrastructure

b. Facilitation growth e-Commerce c. Liberalisation of trade in ICT products and ICT services, and

investmentsd. Facilitation of trade in ICT products, services and investmentse. Capacity building and e-Society

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Enhancing the NIIEnhancing the NII Telephone household penetration of over 95%.Telephone household penetration of over 95%. Mobile phone penetration of 30%.Mobile phone penetration of 30%. PC penetration 10% - Internet Penetration 7%.PC penetration 10% - Internet Penetration 7%. Liberalization of ISPs.Liberalization of ISPs. Nationwide Broadband digital Network (RAGAM 21). Nationwide Broadband digital Network (RAGAM 21). Introduction of IT services in Government, Schools, Introduction of IT services in Government, Schools,

community centres and remote villages.community centres and remote villages. International Connectivity through Digital Fibre Optic International Connectivity through Digital Fibre Optic

Submarine and Satellites.Submarine and Satellites.

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Connecting to the Global Information Infrastructure: Connecting to the Global Information Infrastructure: SEA-ME-WE 3 Submarine Cable SystemSEA-ME-WE 3 Submarine Cable System

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EFFECTIVE PARTICIPATION IN GLOBALEFFECTIVE PARTICIPATION IN GLOBALE-COMMERCEE-COMMERCE

GOOD BANDWIDTH

FULFILMENT SYSTEMS AND LOGISTICS

EFFICIENT AND TRUSTED PAYMENT SYSTEMS

STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT

USER FRIENDLY, AFFORDABLE ACCESS DEVICES & INTERFACES

PRECONDITIONS FOR PARTICIPATION

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PILLARS FOR COMPETITIVENESSPILLARS FOR COMPETITIVENESS

INNOVATIONINNOVATION CONTENTCONTENTIP

PROTECTIONIP

PROTECTION DISTRIBUTIONDISTRIBUTIONMARKETACCESSMARKETACCESS

BRANDIDENTITYBRAND

IDENTITY

QUALITYPRODUCTS& SERVICES

QUALITYPRODUCTS& SERVICES

TRUSTEDSERVICE

INTERFACES

TRUSTEDSERVICE

INTERFACES

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THE IDEAL ENVIRONMENTTHE IDEAL ENVIRONMENT

E-COMMERCE

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USER FRIENDLY, AFFORDABLE ACCESS DEVICES & INTERFACES

EFFICIENT AND TRUSTED PAYMENT SYSTEMS

FULFILMENT SYSTEMS AND LOGISTICS

GOOD BANDWIDTH

STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT

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Commonly Perceived Barriers Commonly Perceived Barriers to Electronic Commerceto Electronic Commerce

Lack Of Access To Capital Lack of infrastructure Lack Of Training In Information Management Lack Of Access To Information Lack of R& D resource Lack Of Access To Support Networks Disincentives in Government Regulation

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Inhibitors to the Adoption of E-Commerce

APEC SME E-Commerce Study (Final Report - Sep 99):

–Low use of e-commerce by customers and suppliers–Concerns about security aspects–Concerns about legal and liability issues–High costs of technologies–Limited knowledge of e-business

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Brunei SMEs - structureBrunei SMEs - structure

Micro-enterprises

– 1,716 (43% of SMEs) (1-5 employees)Small enterprises

– 2,133 (53% of SMEs) (6-50 employees)Medium enterprises

– 141 (4% of SMEs) (51-100 employees)Source: 1999, 1996-1997 Brunei Darussalam Statistical Yearbooks, Department of Economic Planning and

Development

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SMEs - Contribution to Employment & GDPSMEs - Contribution to Employment & GDP

1988 1994

Employment 97 97

GDP 61 86

% of total business establishmentsSource: 1999, 1996-1997 Brunei Darussalam Statistical Yearbooks, Department of Economic Planning and Development

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SMEs - Main problemsSMEs - Main problems

MANAGEMENTHUMAN RESOURCEFINANCEMARKETINGTECHNOLOGYSource: Entrepreneur’s Clinic’s Survey of Entrepreneurs Problems 1998.

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SMEs look to GovernmentSMEs look to Government

Computerization Access & reliabilityLegal frameworkSecurity framework Authentication frameworkBanking frameworkConsumer protection laws

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SME IssuesSME Issues

“I’m too small for a computer”“The Internet isn’t reliable”“I’m afraid I will get ripped off”“We don’t have consumer laws”“We are a cash society”“Our banks don’t support SMEs”

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How best to support SMEsHow best to support SMEs

Advice based on understandingHelp them become usersScaled implementationsProvide appropriate platformsAddress ‘learning curve’ issues; provide

continuous learning opportunities

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BIZbrunei.com.bnBIZbrunei.com.bnA NEW Business Resource Centre A NEW Business Resource Centre

for Brunei SMEs and MNCs…for Brunei SMEs and MNCs…

HOW?

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Key Features and FunctionsKey Features and Functions

BIZbrunei.com

Trading Zone

Browse by category

Results page

Post up ads

Biz News

International

Regional

Local

Events

Event Calendar

Post up events

On-line registration

Company Listings

Browse by category/Name

Detail Listing

Proactive

On-line Catalogu

esBrowse by

Category

Web site alternative

Live updates

Govt Listing

Hyperlink

One-stop solution

Foreign interest

Marketplace

myOHQ

Personal Tools

Office ToolsBusiness

Tools

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Education for allEducation for all

Educate ourselvesEducate our governmentsEducate our business leadersEducate our educatorsEducate our telecom providersEducate our technologistsEducate our legal system

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The Government’s EffortThe Government’s Effort

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The Government’s EffortThe Government’s Effort The Vision

– Eco-Cyber Park and Cyber hub Develop and build infrastructure

- Upgrade existing infrastructure- H-speed telecommunications gateway – RaGAM 21- Incubation for IT hub- Initiate and attract ICT enterprises and activities- Aid for Brunei SMEs - Brunei IT Council – exploit ICT’s potential

Increase computer literacy and competency

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Government incentivesGovernment incentives

The companies are wholly or partly foreign-owned Unrestricted employment of foreign talented and

knowledge workers Duty –free importation of multimedia equipment R & D grants for SMEs

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The Brunei IT CouncilThe Brunei IT Council

Serves to set the National policy direction in ICT development in Brunei Darussalam

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Private Sector IT PoliciesPrivate Sector IT Policies

Ensure Government policies and regulations support the thrust of National IT Strategy

Ensure IT Institutional Infrastructure and the linkages with the Private Sector are within the scope of the Government policies

Ensure that policies regarding trade, finance and industries are integrated to facilitate the Electronic/Cyber Business regime

To launch and sustain Private Sector Awareness campaign to exploit Electronic/Cyber Business

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Core IT StrategiesCore IT Strategies

National IT Strategy National Drive Towards Paperless Society**Paperless governance and information/data exchange through multimedia technologies

Public Sector IT Strategy Public Sector Drive Towards Electronic

Government

Private Sector Strategy Private Sector Drive Towards Electronic Business

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Private Sector Other Key StrategiesPrivate Sector Other Key Strategies

Provide IT literacy programs on regular basis Provide IT linkages with Government, Private

Sector, Regional and Global Information and Business Networks

Provide support mechanisms and incentive programs to promote and attract IT Industries or IT-lead non-IT Industries

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Action Plan 2000-2004Action Plan 2000-2004

NATIONAL DRIVE TOWARDS PAPERLESS SOCIETY PUBLIC SECTOR Electronic Government2000/1 Institutional Infrastructure 2001 Base Infrastructure 2001 30% Electronic Government2002 60% Electronic Government 2003/4 100% Electronic Government

Implementation Plan

PRIVATE SECTOR Electronic Business Electronic Mail / Marketing Electronic Education / R&D Electronic Health / Entertainment Electronic Commerce / Shopping Cyber Business

SchoolsPublic Places

National

OfficesBusiness Places

Regional

HomesMarket Places

Global

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E-Commerce Development in E-Commerce Development in Brunei DarussalamBrunei Darussalam

Formation of National Task Force on E-Commerce:

Physical Infrastructure enhancement and value-adding.Physical Infrastructure enhancement and value-adding. New regulatory & legislative framework.New regulatory & legislative framework. Security matters,eg. Authentication & CAsSecurity matters,eg. Authentication & CAs HRD.HRD. Promotion and adoption of e-TechnologyPromotion and adoption of e-Technology

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Current Developments in ICTCurrent Developments in ICTrelated legislationrelated legislation

Copy Right Order Computer Misuse Order Broadcasting Acts and Code of Practice.

New Telecommunications Act. Regulatory Regulations. Electronic Transaction Order

Enacted

Being Drafted

301/8/01 36

Schools Offices HomesPublic Places Business Places Market Places

National Regional Global

Institutional Framework Vision, Mission and Goals

Public Sector

Private SectorPolicies

Strategies

Action PlanImplementation Plan

National IT Strategy 2000 and Beyond

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e-mail: Kianguan_ang@mincom.gov.bn