Current and Future Development of e-Commerce in Brunei Darussalam

1. Current and Future Development of e-Commerce in Brunei Darussalam By Ang Kian Guan Ministry of Communications

2. 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

3. 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

4. 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.

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

6. 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

7. PILLARS FOR COMPETITIVENESS TRUSTED SERVICE INTERFACES QUALITY PRODUCTS & SERVICES INNOVATION CONTENT IP PROTECTION DISTRIBUTION MARKET ACCESS BRAND IDENTITY

8. 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

9. 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

10. 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

11. 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

12. 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

13. SMEs - Main problems • MANAGEMENT • HUMAN RESOURCE • FINANCE • MARKETING • TECHNOLOGY Source: Entrepreneur’s Clinic’s Survey of Entrepreneurs Problems 1998.

14. SMEs look to Government • Computerization • Access & reliability • Legal framework • Security framework • Authentication framework • Banking framework • Consumer protection laws

15. SME 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”

16. 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

17. HOW? BIZbrunei.com.bnA NEW Business Resource Centre for Brunei SMEs and MNCs…

18. myOHQ BIZbrunei.com • Personal Tools • Office Tools • Business Tools Marketplace Biz News Govt Listing Trading Zone Events • International • Regional • Local • Hyperlink • One-stop solution • Foreign interest • Browse by category • Results page • Post up ads • Event Calendar • Post up events • On-line registration Company Listings On-line Catalogues • Browse by category/Name • Detail Listing • Proactive • Browse by Category • Web site alternative • Live updates Key Features and Functions

19. 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

20. The Government’s Effort

21. The 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

22. 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

23. Serves to set the National policy direction in ICT development in Brunei Darussalam The Brunei IT Council

24. 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

25. 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

26. 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

27. 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 / R&D Electronic Health / Entertainment Electronic Commerce / Shopping Cyber Business Implementation Plan Schools Public Places National Offices Business Places Regional Homes Market Places Global

28. 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 E-Commerce Development in Brunei Darussalam

29. Copy Right Order Computer Misuse Order Broadcasting Acts and Code of Practice. New Telecommunications Act. Regulatory Regulations. Electronic Transaction Order Current Developments in ICTrelated legislation Enacted Being Drafted

30. National IT Strategy 2000 and Beyond Institutional Framework Vision, Mission and Goals Policies Public PrivateSector Strategies Sector Action Plan Implementation Plan Schools Offices Homes PublicPlaces BusinessPlaces MarketPlaces National Regional Global 1/8/01 36

31. Thank you e-mail: Kianguan_ang@mincom.gov.bn