EC in Brunei

1
Current and Future Development of e-Commerce in
Brunei Darussalam
By Ang Kian Guan Ministry of Communications
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National 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
• Facilitation of the Establishment of ASEAN
  Information Infrastructure
• Facilitation growth e-Commerce
• Liberalisation of trade in ICT products and ICT
  services, and investments
• Facilitation of trade in ICT products, services
  and investments
• Capacity building and e-Society

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Enhancing the NII

• Telephone household penetration of over 95.
• Mobile phone penetration of 30.
• PC penetration 10 - Internet Penetration 7.
• Liberalization of ISPs.
• Nationwide Broadband digital Network (RAGAM 21).
• Introduction of IT services in Government,
  Schools, community centres and remote villages.
• International Connectivity through Digital Fibre
  Optic Submarine and Satellites.

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Connecting to the Global Information
Infrastructure SEA-ME-WE 3 Submarine Cable System
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EFFECTIVE PARTICIPATION IN GLOBALE-COMMERCE
PRECONDITIONS FOR PARTICIPATION
GOOD BANDWIDTH
FULFILMENT SYSTEMS AND LOGISTICS
EFFICIENT AND TRUSTED PAYMENT SYSTEMS
STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT
USER FRIENDLY, AFFORDABLE ACCESS DEVICES
INTERFACES
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PILLARS FOR COMPETITIVENESS
TRUSTED SERVICE INTERFACES
QUALITY PRODUCTS SERVICES
INNOVATION
CONTENT
IP PROTECTION
DISTRIBUTION
MARKET ACCESS
BRAND IDENTITY
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THE IDEAL ENVIRONMENT
E-COMMERCE
INNOVATION
CONTENT
IP PROTECTION
DISTRIBUTION
MARKET ACCESS
BRAND IDENTITY
QUALITY PRODUCSTS
SERVICES
TRUSTED SERVICE
INTERFACES
GOOD BANDWIDTH
EFFICIENT AND TRUSTED PAYMENT SYSTEMS
FULFILMENT SYSTEMS AND LOGISTICS
USER FRIENDLY, AFFORDABLE ACCESS DEVICES
INTERFACES
STABLE AND SUPPORTIVE INSTITUTIONAL ENVIRONMENT
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Commonly Perceived Barriers to 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 - 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 GDP

• 1988 1994
• Employment 97 97
• GDP 61 86
• of total business establishments
• Source 1999, 1996-1997 Brunei Darussalam
  Statistical Yearbooks, Department of Economic
  Planning and Development

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SMEs - Main problems

• MANAGEMENT
• HUMAN RESOURCE
• FINANCE
• MARKETING
• TECHNOLOGY
• Source Entrepreneurs Clinics Survey of
  Entrepreneurs Problems 1998.

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SMEs look to Government

• Computerization
• Access reliability
• Legal framework
• Security framework
• Authentication framework
• Banking framework
• Consumer protection laws

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SME Issues

• Im too small for a computer
• The Internet isnt reliable
• Im afraid I will get ripped off
• We dont have consumer laws
• We are a cash society
• Our banks dont support SMEs

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How best to support SMEs

• Advice based on understanding
• Help them become users
• Scaled implementations
• Provide appropriate platforms
• Address learning curve issues provide
  continuous learning opportunities

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BIZbrunei.com.bnA NEW Business Resource Centre
for Brunei SMEs and MNCs
HOW?
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Key Features and Functions
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Education for all

• Educate ourselves
• Educate our governments
• Educate our business leaders
• Educate our educators
• Educate our telecom providers
• Educate our technologists
• Educate our legal system

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The Governments Effort
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The Governments 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 ICTs potential
• Increase computer literacy and competency

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Government 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 Council

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

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Private 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 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 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 2000-2004

• NATIONAL DRIVE TOWARDS PAPERLESS SOCIETY

PUBLIC SECTOR
Electronic Government 2000/1 Institutional
Infrastructure 2001 Base Infrastructure
2001 30 Electronic Government 2002
60 Electronic Government 2003/4 100
Electronic Government
PRIVATE SECTOR Electronic Business Electronic
Mail / Marketing Electronic Education / RD
Electronic Health / Entertainment Electronic
Commerce / Shopping Cyber Business
Implementation Plan
Schools Public Places National
Offices Business Places Regional
Homes Market Places Global
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E-Commerce Development in Brunei Darussalam

• Formation of National Task Force on E-Commerce

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

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Current Developments in ICTrelated legislation
Enacted

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

Being Drafted

• New Telecommunications Act.
• Regulatory Regulations.
• Electronic Transaction Order

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National IT Strategy 2000 and Beyond
Institutional Framework
Vision, Mission and Goals
Policies
Public
Private Sector
Strategies
Sector
Action Plan
Implementation Plan
Schools
Offices
Homes
Public Places
Business Places
Market Places
National
Regional
Global
1/8/01
36
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Thank you
e-mail Kianguan_ang_at_mincom.gov.bn