The Utilization of Information Systems in the Pacific Rim A study of China & Hong Kong, Indonesia, Japan, North & South Korea, Singapore and Taiwan Team Three Cindy Branon Zach Evans Melissa Holder Kendall Joseph Brandon McLain Shane Morgan

The Utilization of Information Systems in the Pacific Rim Government Economy Labor Market IS Infrastructure & Utilization Hardware & Software Telecommunications & Internet Usage Imports/Exports Strengths & Weaknesses Foreign Investment & Outsourcing Cutting Edge Technologies

Government

Economy

Labor Market

IS Infrastructure & Utilization

Hardware & Software

Telecommunications & Internet Usage

Imports/Exports

Strengths & Weaknesses

Foreign Investment & Outsourcing

Cutting Edge Technologies

China and Hong Kong Melissa Holder

China – Quick Facts 1.28 billion people Population growth of 0.87 percent Land area of 9.6 million square kilometers GDP grew 7.3 percent

1.28 billion people

Population growth of 0.87 percent

Land area of 9.6 million square kilometers

GDP grew 7.3 percent

China – Government Regulations Government regulates each section of IT Software cannot be published by foreign firms Recently joined the World Trade Organization to include the Information Technology Agreement

Government regulates each section of IT

Software cannot be published by foreign firms

Recently joined the World Trade Organization to include the Information Technology Agreement

China – Economic Infrastructure Recession in China’s economy GDP grew 7.3 percent, among the highest in the world in 2001 China manufactured $23.9 billion in computer products in 2001 Mainland China’s government plans to spend $120 billion on the technology infrastructure

Recession in China’s economy

GDP grew 7.3 percent, among the highest in the world in 2001

China manufactured $23.9 billion in computer products in 2001

Mainland China’s government plans to spend $120 billion on the technology infrastructure

China – Skill Set and Job Market Over 400,000 college graduates annually in the Engineering and Computer Science fields Most graduates speak English as a second language Science and Technology Parks Internships/Assistantships Job market is declining

Over 400,000 college graduates annually in the Engineering and Computer Science fields

Most graduates speak English as a second language

Science and Technology Parks

Internships/Assistantships

Job market is declining

China – IS Infrastructure/Utilization Second largest production of PCs in the world with over 7.5 million sold in 2000 Telecommunications are semi-regulated. ISP’s- 3 (in 2000); Internet users- 45.8 million Government officials monitor website for information that is not welcomed by the government Market Size Information Technology 15.0 29.8 Total 26.9 4.9 Information Service 21.3 3.4 Software 11.7 21.5 Hardware Growth Rate Sales Volume (in billions USD) Market Share

Second largest production of PCs in the world with over 7.5 million sold in 2000

Telecommunications are semi-regulated.

ISP’s- 3 (in 2000); Internet users- 45.8 million

Government officials monitor website for information that is not welcomed by the government

China – Import/Exports Exports are mainly to Hong Kong and the United States and total $20 billion Imports mostly include products of higher technology such as automation equipment Shenzhez and Shanghai are the innovators of Chinese information technology

Exports are mainly to Hong Kong and the United States and total $20 billion

Imports mostly include products of higher technology such as automation equipment

Shenzhez and Shanghai are the innovators of Chinese information technology

China – Outsourcing Opportunities IT employees have knowledge of English language Cheaper labor costs Government regulations a downside

IT employees have knowledge of English language

Cheaper labor costs

Government regulations a downside

China – Cutting Edge Technology Adoption of E-Commerce and E-Government initiatives Implementing ITA regulations in accordance with the World Trade Organization

Adoption of E-Commerce and E-Government initiatives

Implementing ITA regulations in accordance with the World Trade Organization

Hong Kong – Quick Facts 7.3 million people Population growth of 1.26 percent Land area of 1,092 square kilometers GDP grew 1.5 percent

7.3 million people

Population growth of 1.26 percent

Land area of 1,092 square kilometers

GDP grew 1.5 percent

Hong Kong – Economic Infrastructure Recession in Hong Kong’s economy Free-trade for IT products Computer manufacturing is limited to computer peripherals and accessories Hong Kong is in the process of deregulating the last part of telecommunications-voice communications

Recession in Hong Kong’s economy

Free-trade for IT products

Computer manufacturing is limited to computer peripherals and accessories

Hong Kong is in the process of deregulating the last part of telecommunications-voice communications

Hong Kong – Skill Set and Job Market Most graduates speak English as a second language Government officials have implemented a five-year plan to introduce IT into secondary schools Science and Technology Parks Internships/Assistantships Job market is declining

Most graduates speak English as a second language

Government officials have implemented a five-year plan to introduce IT into secondary schools

Science and Technology Parks

Internships/Assistantships

Job market is declining

Hong Kong – IS Infrastructure/Utilization Hardware production is limited to computer parts and accessories, and data storage units Software development is produced locally Telecommunications are very advanced ISP’s- 250; Internet users- 4.35 million

Hardware production is limited to computer parts and accessories, and data storage units

Software development is produced locally

Telecommunications are very advanced

ISP’s- 250; Internet users- 4.35 million

Hong Kong – Import/Exports Exports are mainly to China, Europe, Singapore, the United States, and Japan Exports have increased by 15 percent Imports are limited to domestic goods, and a limited amount of software products

Exports are mainly to China, Europe, Singapore, the United States, and Japan

Exports have increased by 15 percent

Imports are limited to domestic goods, and a limited amount of software products

Hong Kong – Outsourcing Opportunities Government deregulation is a plus One of the most advanced technology infrastructures IT employees speak English Labor is cheaper

Government deregulation is a plus

One of the most advanced technology infrastructures

IT employees speak English

Labor is cheaper

Hong Kong – Cutting Edge Technology Octopus E-Cash cards (Smart Cards) E-Government initiatives

Octopus E-Cash cards (Smart Cards)

E-Government initiatives

China and Hong Kong Comparison E-Government initiatives Job market and skill sets of IT employees Government Regulations Advancement of IT infrastructure Imports and Exports of IT Similarities Differences

E-Government initiatives

Job market and skill sets of IT employees

Government Regulations

Advancement of IT infrastructure

Imports and Exports of IT

China and Hong Kong Comparison Data: Business Week Up to $180/mo. Up to $390 /mo. Commercial Broadband $24 $48 Taxi to Airport from Downtown $24 $51 Business Lunch for Two $17,000-20,000/yr. $14,500-16,000/yr. International School $500/ mo. $3,500/ mo. Personal Assistant $1,000/ mo. $3,500/ mo. Two-bedroom apartment $1.90/ sq. ft. $6.30/ sq. ft. Prime Office Space (Rent) China (Shanghai) Hong Kong

Indonesia Zach Evans

Indonesia – An Introduction Population: 215 million – 4 th largest nation in the world World’s largest archipelago with over 17,000 islands Five main islands are: Java, Kalimantan (Borneo), Sulawesi, Sumatra, & Papua 300 ethnic groups speaking over 350 languages 2001 GDP: $143.3 billion US Basic life principles: mutual assistance, deliberations, and consensus

Population: 215 million – 4 th largest nation in the world

World’s largest archipelago with over 17,000 islands

Five main islands are: Java, Kalimantan (Borneo), Sulawesi, Sumatra, & Papua

300 ethnic groups speaking over 350 languages

2001 GDP: $143.3 billion US

Basic life principles: mutual assistance, deliberations, and consensus

Indonesia – Government Regulation Two state-owned telecom companies: PT Telkom and PT Indosat Monopoly over long distance until 2005 and over domestic service until 2010 1994: Government passed law allowing private-company involvement in telecom industry Companies are required to collaborate with state-owned companies State-owned companies regulate private firm’s activities

Two state-owned telecom companies: PT Telkom and PT Indosat

Monopoly over long distance until 2005 and over domestic service until 2010

1994: Government passed law allowing private-company involvement in telecom industry

Companies are required to collaborate with state-owned companies

State-owned companies regulate private firm’s activities

Indonesia – Economic Infrastructure Ten year trend has been away from agriculture towards industry and manufacturing

Ten year trend has been away from agriculture towards industry and manufacturing

Indonesia – Labor Market 2001 Unemployment Rate: 8.1% 1,400 institutes of higher learning Illiteracy is down, school enrollment is up since 1980

2001 Unemployment Rate: 8.1%

1,400 institutes of higher learning

Illiteracy is down, school enrollment is up since 1980

Indonesia – IT Infrastructure - Hardware 200 domestic companies that product PCs and peripherals Most of these products are exported 11 out of 1,000 people have access to a PC at home or at work 58,500 computers installed in schools

200 domestic companies that product PCs and peripherals

Most of these products are exported

11 out of 1,000 people have access to a PC at home or at work

58,500 computers installed in schools

Indonesia – IT Infrastructure - Telecom Most of country connected with copper wires Fiber optic cables available in large cities but ‘last mile’ connections are copper wires 2002: 7.6 million main phone lines installed 2002: 11.7 million cellular phone lines Meteoric rise due to dramatic reduction of import taxes on handsets

Most of country connected with copper wires

Fiber optic cables available in large cities but ‘last mile’ connections are copper wires

2002: 7.6 million main phone lines installed

2002: 11.7 million cellular phone lines

Meteoric rise due to dramatic reduction of import taxes on handsets

Indonesia – IT Infrastructure – Cutting Edge Technologies Internet transmission speeds limited to 19,200 kbps or even 9,800 kbps Limited bandwidth due to the fact that ISPs buy their bandwidth from PT Indosat in US dollars but get paid in Indonesian Rupiah 4 million total Internet users in 2001 Many access through Internet Cafés 80% of Internet users live on Java or Bali

Internet transmission speeds limited to 19,200 kbps or even 9,800 kbps

Limited bandwidth due to the fact that ISPs buy their bandwidth from PT Indosat in US dollars but get paid in Indonesian Rupiah

4 million total Internet users in 2001

Many access through Internet Cafés

80% of Internet users live on Java or Bali

Indonesia – IT Infrastructure – Cutting Edge Technologies (cont.) Factors that have limited e-commerce initiatives: Lack of a certificate agency (SSL) No domestic banks will guarantee Internet transactions Package delivery infrastructure is extremely weak SPAM complaints in January 2003: 249

Factors that have limited e-commerce initiatives:

Lack of a certificate agency (SSL)

No domestic banks will guarantee Internet transactions

Package delivery infrastructure is extremely weak

SPAM complaints in January 2003: 249

Indonesia – IT Strengths & Weaknesses Economy still recovering from Asian Financial Crisis of 1997 If government continues loosing ownership restrictions, investors stand to reap big gains Remember: Indonesia is the 4 th most populous country in the world State of telecom infrastructure a big problem Further deregulation is needed

Economy still recovering from Asian Financial Crisis of 1997

If government continues loosing ownership restrictions, investors stand to reap big gains

Remember: Indonesia is the 4 th most populous country in the world

State of telecom infrastructure a big problem

Further deregulation is needed

Japan Shane Morgan

Japan – Quick Facts Total Population (2002)—126,974,628 Race—Japanese 99% Median Age—33.2 years old Land Area—377,835 sq km Literacy Rate—99% Currency—yen (JPY) ¥ GDP (2002)—$3.55 trillion (USD) GDP per capita (2002)—$28,000 (USD)

Total Population (2002)—126,974,628

Race—Japanese 99%

Median Age—33.2 years old

Land Area—377,835 sq km

Literacy Rate—99%

Currency—yen (JPY) ¥

GDP (2002)—$3.55 trillion (USD)

GDP per capita (2002)—$28,000 (USD)

Japan – History & Government Founded in 660 BC United in 400 AD as Yamato Japan Following WWII: 2 nd most powerful economy Government reformed–constitutional monarchy Emperor is figurehead Executive branch—Prime Minister and cabinet Legislative branch—Bicameral Judicial branch—Supreme Court & lower courts

Founded in 660 BC

United in 400 AD as Yamato Japan

Following WWII:

2 nd most powerful economy

Government reformed–constitutional monarchy

Emperor is figurehead

Executive branch—Prime Minister and cabinet

Legislative branch—Bicameral

Judicial branch—Supreme Court & lower courts

Japan – Govt. Regulations of IS Information-Technology Promotion Agency (IPA) established 1970 I nformation-technology SE curity C enter (ISEC) established 1997 e-government & e-municipalities Basic Law on the Formation of an Advanced Information and Communications Network Society (IT Basic Law) passed 2000 e-Japan Priority Policy Program and e-Japan 2002 Program

Information-Technology Promotion Agency (IPA) established 1970

I nformation-technology SE curity C enter (ISEC) established 1997

e-government & e-municipalities

Basic Law on the Formation of an Advanced Information and Communications Network Society (IT Basic Law) passed 2000

e-Japan Priority Policy Program and e-Japan 2002 Program

Japan – Economic Infrastructure Free-market economy adopted following WWII Economy grew at unprecedented rates during 1960-1990 Major economic recession in 1990’s Negative growth in IT between 1996-1999 IT investment increased to ¥20.8 trillion (21.7% increase) in 2000

Free-market economy adopted following WWII

Economy grew at unprecedented rates during 1960-1990

Major economic recession in 1990’s

Negative growth in IT between 1996-1999

IT investment increased to ¥20.8 trillion (21.7% increase) in 2000

Japan – IS Skill Sets & Job Market Information and communications industry employed 3.82 million people in 2000 Kyodo News survey of 150 Japanese companies: 90% planned to increase IT investments in 2003 31 companies indicated their total investment to be ¥343.5 billion (up 11.8% from 2002)

Information and communications industry employed 3.82 million people in 2000

Kyodo News survey of 150 Japanese companies:

90% planned to increase IT investments in 2003

31 companies indicated their total investment to be ¥343.5 billion (up 11.8% from 2002)

Japan – IS Infrastructure Hardware: Shipments of UNIX servers grew 30.0% in the first half of 2001compared to 2000 Shipments of PCs increased 28.3% in the same period Software: Software market was ¥1.7 trillion in 2000 Expected to reach ¥2.9 trillion by 2004 ERP market at ¥38.5 billion in 2000

Hardware:

Shipments of UNIX servers grew 30.0% in the first half of 2001compared to 2000

Shipments of PCs increased 28.3% in the same period

Software:

Software market was ¥1.7 trillion in 2000

Expected to reach ¥2.9 trillion by 2004

ERP market at ¥38.5 billion in 2000

Japan – IS Infrastructure Telecommunications: Telecommunication Business Law (TBL) privatized NTT and introduced competition in 1985 Deregulation in 1996 Mobile phones outnumber fixed phone lines Subscriber Optical Fiber Network to be completed by 2010

Telecommunications:

Telecommunication Business Law (TBL) privatized NTT and introduced competition in 1985

Deregulation in 1996

Mobile phones outnumber fixed phone lines

Subscriber Optical Fiber Network to be completed by 2010

Japan – IS Infrastructure Imports/Exports of IT: IT exports fell 11.6% in 2001 IT import growth fell from 32.1% to 8.1% from 2000 to 2001 Internet usage: 55.93 million by the end of 2001 44.0% penetration of total population 60.5% penetration of households

Imports/Exports of IT:

IT exports fell 11.6% in 2001

IT import growth fell from 32.1% to 8.1% from 2000 to 2001

Internet usage:

55.93 million by the end of 2001

44.0% penetration of total population

60.5% penetration of households

Japan – Foreign Investment Foreign direct investment equals 1% of Japanese GDP Number of foreign firms increasing by 15% yearly Current foreign investors include: Thai Bank, Morgan Stanley Dean Witter, General Electric, Chanel, Ford, Microsoft, Wal-Mart, Deloitte & Touche, Caterpillar, Solo Cup and Cabot Microelectronics

Foreign direct investment equals 1% of Japanese GDP

Number of foreign firms increasing by 15% yearly

Current foreign investors include: Thai Bank, Morgan Stanley Dean Witter, General Electric, Chanel, Ford, Microsoft, Wal-Mart, Deloitte & Touche, Caterpillar, Solo Cup and Cabot Microelectronics

Japan – Adoption of Technology Strong curiosity in new technology Japanese are not sophisticated customers Japan Center for Economic Research survey Japan ranked 14 th out of 31 countries Behind Singapore (5 th ) and Hong Kong (10 th ) Japan leads Asian nations in IT mfg Losing ground in overall IT industry

Strong curiosity in new technology

Japanese are not sophisticated customers

Japan Center for Economic Research survey

Japan ranked 14 th out of 31 countries

Behind Singapore (5 th ) and Hong Kong (10 th )

Japan leads Asian nations in IT mfg

Losing ground in overall IT industry

North & South Korea Cindy Branon

North and South Korea – Reunification Efforts began in 2000 Family members can reunite for the 1 st time in 50 years Railways connected in 6/03 Gaesung Industrial Complex groundbreaking in 6/03 Bilateral inter-Korean trade increased 22% for first 5 months of 2003 vs. 2002 CDMA telecommunications system in the planning stage

Family members can reunite for the 1 st time in 50 years

Railways connected in 6/03

Gaesung Industrial Complex groundbreaking in 6/03

Bilateral inter-Korean trade increased 22% for first 5 months of 2003 vs. 2002

CDMA telecommunications system in the planning stage

South Korea – Government Regulation of IS Korean Intellectual Property Office- 50% Piracy rate “Cyber Korea 21” - Promote E-Commerce KOSDAQ – Stock Exchange for high-tech – 1996 Telecommunications – 1990 Privatized and Deregulated

Korean Intellectual Property Office- 50% Piracy rate

“Cyber Korea 21” - Promote E-Commerce

KOSDAQ – Stock Exchange for high-tech – 1996

Telecommunications – 1990 Privatized and Deregulated

South Korea – Economic Infrastructure 13 th Largest Economy – 54% Services, 42% Industry and 4% Agriculture IT exports $11.2 billion in’01 Major IT Exports – semiconductors, mobile phones, LCDs, PCs, monitors, satellite broadcast receivers IT Imports – large computers, transmission equipment, software

13 th Largest Economy – 54% Services, 42% Industry and 4% Agriculture

IT exports $11.2 billion in’01

Major IT Exports – semiconductors, mobile phones, LCDs, PCs, monitors, satellite broadcast receivers

IT Imports – large computers, transmission equipment, software

South Korea – Information Systems Infrastructure Hardware -2 nd in memory semiconductor production Mobile phones – CDM technology, GSM mobile phone Exports $7.2 billion in ’01 Software – imported, foreign support Demand for ERP and E-Commerce doubled number of software companies from ’99 to ‘00

Hardware -2 nd in memory semiconductor production

Mobile phones – CDM technology, GSM mobile phone

Exports $7.2 billion in ’01

Software – imported, foreign support

Demand for ERP and E-Commerce doubled number of software companies from ’99 to ‘00

South Korea – Telecommunications and Internet Korea’s IT industry greatest strength 70% broadband usage in ’02, VDSL technology 25.6 mill Internet users, 23.2 mill can access by phone E-Commerce – B2B- 89.8%, B2G - 7%, B2C - 2.8% $30 mill in 1 st qtr of ’02 E-Commerce transactions

Korea’s IT industry greatest strength

70% broadband usage in ’02, VDSL technology

25.6 mill Internet users, 23.2 mill can access by phone

E-Commerce – B2B- 89.8%, B2G - 7%, B2C - 2.8%

$30 mill in 1 st qtr of ’02 E-Commerce transactions

South Korea – IT Strengths and Weaknesses Superior telecommunications infrastructure Low entry barriers and telecommunications cost Major shortage of IT workers, 40,000, 2006 est. 140,000

Superior telecommunications infrastructure

Low entry barriers and telecommunications cost

Major shortage of IT workers, 40,000, 2006 est. 140,000

South Korea – Cutting Edge Technology ITM-2000 wireless service VPN market, 34% increase in ’02 Advanced to 12 th in world for global Informatization level

ITM-2000 wireless service

VPN market, 34% increase in ’02

Advanced to 12 th in world for global Informatization level

North Korea 90% of companies owned by the government 30% agriculture,32% industry and 37% services $1.048 billion trade deficit Computer networks in government and manufacturing Optical fiber cable installed nationwide in ‘00

90% of companies owned by the government

30% agriculture,32% industry and 37% services

$1.048 billion trade deficit

Computer networks in government and manufacturing

Optical fiber cable installed nationwide in ‘00

North Korea – Information Infrastructure Pentium and Celeron class CPU production in ’01 1 internet provider, government Korea Linux OS system “Hana 21”- PDA Cellular phones- GMC in ’02

Pentium and Celeron class CPU production in ’01

1 internet provider, government

Korea Linux OS system

“Hana 21”- PDA

Cellular phones- GMC in ’02

Singapore Kendall Joseph

Singapore – Quick Facts 4.16 million people 3.38 million citizens & permanent residents Chinese, Malay, Indian Speak English, Mandarin, Malay, Tamil GDP 2001 $106.3 billion Per capita GDP $24,700

4.16 million people

3.38 million citizens & permanent residents

Chinese, Malay, Indian

Speak English, Mandarin, Malay, Tamil

GDP 2001 $106.3 billion

Per capita GDP $24,700

Singapore – The 5 National Shared Values Nation before community & society above self Family as the basic unit of society Community support & respect for the individual Consensus, not conflict Racial and religious harmony

Nation before community & society above self

Family as the basic unit of society

Community support & respect for the individual

Consensus, not conflict

Racial and religious harmony

Singapore – Government Regulation of IS Small island with no abundant natural resources Recognizes most important resource is its people Low-cost manufacturing to high-tech services Transforming into information-driven global hub Economic Development Board – maintain global competitiveness Infocomm Dev. Authority – create digital future

Small island with no abundant natural resources

Recognizes most important resource is its people

Low-cost manufacturing to high-tech services

Transforming into information-driven global hub

Economic Development Board – maintain global competitiveness

Infocomm Dev. Authority – create digital future

Singapore – Economic Infrastructure & Impact on IS Global success story of economic growth Averaged 8% growth since independence in 1965 Only three downturns – 1985, 1997 & 2001 Highly developed financial services center All major markets of Asia nearby – 2.8 billion people within 7 hour flight Ranked #1 business environment in Asia in 2002 Venture capital firms and the government provided $8 billion (US) by 2001

Global success story of economic growth

Averaged 8% growth since independence in 1965

Only three downturns – 1985, 1997 & 2001

Highly developed financial services center

All major markets of Asia nearby – 2.8 billion people within 7 hour flight

Ranked #1 business environment in Asia in 2002

Venture capital firms and the government provided $8 billion (US) by 2001

Singapore – IT Skill Sets – Lifelong Learning Level 1 - Infocomm Literacy : Promoting e-lifestyle Level 2 - Infocomm Competency : Office applications & PC skills Level 3 - E-Business Savviness : Non-infocomm professionals Level 4 - Conversion : Conversion to programmers, systems analyst, network & DB admins Level 5 - Infocomm Specialization : Critical and emerging skills

Level 1 - Infocomm Literacy : Promoting e-lifestyle

Level 2 - Infocomm Competency : Office applications & PC skills

Level 3 - E-Business Savviness : Non-infocomm professionals

Level 4 - Conversion : Conversion to programmers, systems analyst, network & DB admins

Level 5 - Infocomm Specialization : Critical and emerging skills

Singapore – Job Market Characteristics Ministry of Manpower reports 2,128,500 in labor force (2002) Majority completed secondary education – 17.8% college degree and 20.9% technical diploma or post-secondary schooling 106,100 positions defined as IT, expected to grow to 250,000 by 2010

Ministry of Manpower reports 2,128,500 in labor force (2002)

Majority completed secondary education – 17.8% college degree and 20.9% technical diploma or post-secondary schooling

106,100 positions defined as IT, expected to grow to 250,000 by 2010

Singapore – IS Infrastructure & Utilization: Hardware Manufacturing Electronics account for 10% of GDP & 40% of all manufacturing output 3 key sectors: Hard Disk Drives, Printed Circuit Board Assembly & Semiconductor Wafer Fabrication 40% of the world’s hard drives Future prosperity threatened by neighbors

Electronics account for 10% of GDP & 40% of all manufacturing output

3 key sectors: Hard Disk Drives, Printed Circuit Board Assembly & Semiconductor Wafer Fabrication

40% of the world’s hard drives

Future prosperity threatened by neighbors

Singapore – IS Infrastructure & Utilization: Software Development 1981 – National Computer Board established to train software developers S$80 million invested in 3 training centers Project partners were IBM and NEC Nixdorf, Hewlett Packard, Digital Equipment and Sperry joined by 1984 Future software development efforts focus on e-commerce

1981 – National Computer Board established to train software developers

S$80 million invested in 3 training centers

Project partners were IBM and NEC

Nixdorf, Hewlett Packard, Digital Equipment and Sperry joined by 1984

Future software development efforts focus on e-commerce

Singapore – IS Infrastructure & Utilization: Telecommunications 1.9 million telephone lines & 2.7 million cell phones SingTel publicly traded – government owns 78% Industry liberalized regulations in 2000 5 ISPs – dial-up, Cable Modem, DSL and ISDN Island is completely wired for broadband Singapore connected to outside world Submarine cable to 100 countries 4 satellite land stations with access to 80 countries

1.9 million telephone lines & 2.7 million cell phones

SingTel publicly traded – government owns 78%

Industry liberalized regulations in 2000

5 ISPs – dial-up, Cable Modem, DSL and ISDN

Island is completely wired for broadband

Singapore connected to outside world

Submarine cable to 100 countries

4 satellite land stations with access to 80 countries

Singapore – IS Infrastructure & Utilization: Import & Exports of IT Imports few IT products in relation to what is exports Exports hard drives, circuit boards and computer chips Exports Knowledge

Imports few IT products in relation to what is exports

Exports hard drives, circuit boards and computer chips

Exports Knowledge

Singapore – IS Infrastructure & Utilization: Internet Usage Singapore – “Internet Island” 59.4% have internet access at home 24.2% broadband connections – DSL, Cable or LAN Internet access in computer labs of the housing projects

Singapore – “Internet Island”

59.4% have internet access at home

24.2% broadband connections – DSL, Cable or LAN

Internet access in computer labs of the housing projects

Singapore – IS Strengths & Weaknesses Strengths: Government – Using technology to reshape the nation Citizens – Highly educated and ready for new economy Funding – From government & private venture capital Industry – Traditional industry open to new technology Network Infrastructure – Fast Internet connectivity Weaknesses: Competition threat from neighbors with lower labor costs

Strengths:

Government – Using technology to reshape the nation

Citizens – Highly educated and ready for new economy

Funding – From government & private venture capital

Industry – Traditional industry open to new technology

Network Infrastructure – Fast Internet connectivity

Weaknesses:

Competition threat from neighbors with lower labor costs

Singapore – Opportunities for Foreign Investment Outside investment welcomed Recent major investments: XML training center – Microsoft (USA) Configure to Order UNIX Server production – Hewlett Packard (USA) Wireless R&D center – Siemens (Germany) Security R&D – GemPlus (France)

Outside investment welcomed

Recent major investments:

XML training center – Microsoft (USA)

Configure to Order UNIX Server production – Hewlett Packard (USA)

Wireless R&D center – Siemens (Germany)

Security R&D – GemPlus (France)

Singapore – Adoption of Cutting Edge Technologies Singapore defines cutting edge Government is forward thinking and encourages industry to be innovative Technopreneur fund in 1999 - $1 billion (US) for high-tech startups Industry 21 initiative Encourage industry to use new technologies Foster fast changing environment Become a global hub of high-tech innovation

Singapore defines cutting edge

Government is forward thinking and encourages industry to be innovative

Technopreneur fund in 1999 - $1 billion (US) for high-tech startups

Industry 21 initiative

Encourage industry to use new technologies

Foster fast changing environment

Become a global hub of high-tech innovation

Taiwan Brandon McLain

Taiwan: Republic of China

Taiwan – Internet Usage

Taiwan – Hsinchu Science-Based Industrial Park Built in 1980, center of Taiwan's high-tech industrial development Contributes to 10% of Taiwan’s GNP Over 290 Companies; 90,000 employees Integrated-circuit production, PCs and peripherals, telecommunications, optic-electronics, precision machinery, and biotechnology

Built in 1980, center of Taiwan's high-tech industrial development

Contributes to 10% of Taiwan’s GNP

Over 290 Companies; 90,000 employees

Integrated-circuit production, PCs and peripherals, telecommunications, optic-electronics, precision machinery, and biotechnology

Taiwan – Continue IT Success Overall R&D funding will reach 3% of GDP by 2010 Establish a world-class academic environment over next 10 years Continued development of existing high-tech industries ; and continue cultivating existing industries Improvement in citizen knowledge and use of high tech products

Overall R&D funding will reach 3% of GDP by 2010

Establish a world-class academic environment over next 10 years

Continued development of existing high-tech industries ; and continue cultivating existing industries

Improvement in citizen knowledge and use of high tech products

Taiwan – IT Hardware World’s 3 rd largest supplier of IT hardware Local firms produce 25% of World’s desktop PCs Notebook PC’s command 58% of World Market; expected to hit 60% by 2004

World’s 3 rd largest supplier of IT hardware

Local firms produce 25% of World’s desktop PCs

Notebook PC’s command 58% of World Market; expected to hit 60% by 2004

Taiwan – IT Software Average annual compound growth rate of around 25% Development of potential export markets Diversified range of better quality products, using international collaboration to promote the image of “First-rate Taiwanese software”

Average annual compound growth rate of around 25%

Development of potential export markets

Diversified range of better quality products, using international collaboration to promote the image of “First-rate Taiwanese software”

Taiwan – IT Software: 5 Goals Product development Technology development Personnel training Development environment Integration (using Hsinchu Science-based Industrial Park )

Product development

Technology development

Personnel training

Development environment

Integration (using Hsinchu Science-based Industrial Park )

Taiwan – IT Exports Japan accounts for 44.9% of Taiwan’s software exports USA accounts for 33.4% of software exports Companies exporting to the USA are Trend, Acer, Sertek, Ulead, Newsoft and Springsoft Growing export opportunities in China

Japan accounts for 44.9% of Taiwan’s software exports

USA accounts for 33.4% of software exports

Companies exporting to the USA are Trend, Acer, Sertek, Ulead, Newsoft and Springsoft

Growing export opportunities in China

Taiwan – Foreign Investment Offer telecommunications enterprise services with no investment restriction Enter joint ventures with local consortia to run telecom business Providing consulting services to local carriers in fields such as management skills, technological know-how, operational supports, etc Forming strategic alliances with domestic operators to explore the international telecom market

Offer telecommunications enterprise services with no investment restriction

Enter joint ventures with local consortia to run telecom business

Providing consulting services to local carriers in fields such as management skills, technological know-how, operational supports, etc

Forming strategic alliances with domestic operators to explore the international telecom market