ELECTRONIC COMMERCE IN SINGAPORE

Dr Lee Tsao Yuan asked the Minister for Trade and Industry (i) what is the current status of the development of electronic commerce in Singapore and (ii) how this compares with that in the United States.

Mr Lee Yock Suan: Status of EC Development in Singapore

The National Computer Board (NCB) has been working with other Government agencies and the industry to promote electronic commerce (EC). For a start, it launched the Electronic Commerce Hotbed (ECH) programme in August 1996, with the following objectives :

(a) To deploy infrastructural services to enable EC;

(b) To address policy and legal issues associated with EC;

(c) To showcase EC applications; and

(d) To promote acceptance of EC by industry and the general public.

An ECH Policy Committee was formed in January 1997 to address policy issues and concerns affecting the conduct of EC in Singapore. The committee has recently completed its work and its recommendations have been accepted by the National IT Committee chaired by Minister Teo Chee Hean. We will proceed to carry out the recommendations. Security of Transactions

For EC to flourish, transactions must be secure and obligations of contracting parties must be legally recognised. Each transacting party must be assured of the identity of the other party, that the transactions are verified and that information flow is secured. Digital certificates, digital signatures and encryption keys serve these functions.

In July 1997, NCB and the Network for Electronic Transfers (NETS) jointly set up Netrust to issue digital certificates and manage them for individuals and organisations. Netrust is Southeast Asia's first certification authority.

For on-line payment, NCB has set up the Secure Electronic Transaction (SET) system with VISA and MasterCard. The NETS Cash Card for Internet payment is now being piloted.

Legal & Policy Framework to Support EC

We will enact new legislation to recognise contracts formed electronically and protect the rights of the transacting parties. We are also reviewing existing laws against computer crimes in order to ensure that penalties are proportionate to the damage caused.

EC Applications

NCB has been working with industry to develop EC applications. To date, we have more than 120 local EC applications. Several directory services have also been developed.

Promote Acceptance of EC

NCB has been working with other Government agencies and industry to promote EC through seminars and workshops. For example, NCB and the Singapore Tourism Board organised the "Shop On The Net" event in July 1997.

Comparison of EC Development with the United States

In the US, EC development is spearheaded by the private sector. The US Administration's EC framework is based on the following five principles:

(a) Private sector should lead;

(b) Governments should avoid undue restrictions on EC;

(c) Where governmental involvement is needed, its aim should be to support and enforce a predictable, minimalist, consistent and simple legal environment for commerce;

(d) Governments should recognise the unique qualities of the Internet; and

(e) EC on the Internet should be facilitated on a global basis.

The Singapore Government has adopted a more promotional approach involving both the private and public sectors. EC is a strategic area and Singapore should take advantage of its headstart to build up its capabilities quickly in this new area.