Transcript Issues on E-Commerce Development in Asia Pacific Region

Issues on
E-Commerce
Development in
Asia Pacific Region
1998. 3
Jin Ho Hur ([email protected])
Chair of Board of Directors
Asia & Pacific Internet Association
Agenda
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Internet Development in AP
Reality Check
Issues
Remarks
1998, APIA
Asia & Pacific Region
1998, APIA
AP Internet Market
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ASEAN (Singapore, Malaysia, Thailand, Indonesia, Philippines)
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Australia and New Zealand
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the largest, rapidly developing market
Korea
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lack basic infra, innovative with good-skilled resources
Japan
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regulated, greatest possibilities in sheer volumes
India and Sri Lanka
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well-developed, 12 months behind US
Greater China Group (China, HK, Taiwan)
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diverse, highly regulated, infrastructure developing rapidly
the second largest in Asia, rapidly developing market
Indochina (Vietnam, Cambodia, Laos)
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just beginning, weak infra, highly regulated (no online access)
1998, APIA
Stages In Internet Growth
Singapore
Taiwan
Australia
Japan
Hong Kong
Korea
Malaysia
China
Philippines
India
Indonesia
Thailand
Vietnam
Source: Lotus AP
1998, APIA
Number of Hosts
95.1
pan
Japan
96,632
a
Australia
161,166
Taiwan
14,618
New Zealand
31,215
Korea
18,049
Hong Kong
12,437
ngapore
Singapore
5,252
Malaysia
1,606
China
569
Thailand
1,728
a
Indonasia
177
India
359
Philippines
334
Totall
344,142
95.7
159,776
207,426
16,166
43,863
23,791
15,392
9,208
1,087
1,023
2,481
848
645
365
482,071
96.1
96.7
97.1
97.7
98.1
CAGR(%)
269,327 496,427 734,406 955,688 1,181,991
130.41
309,562 397,460 514,760 707,611 742,064
66.36
25,273
30,645
34,650
40,706 178,914
130.45
53,610
77,886
84,532 155,678 174,406
77.45
29,306
47,973
66,262 132,370 127,903
92.08
17,693
24,133
49,162
48,660
67,359
75.61
22,769
38,376
28,892
60,674
58,313
123.09
4,194
8,541
25,200
40,533
32,448
172.36
2,146
11,282
19,739
25,594
16,482
207.11
4,055
6,362
9,245
12,794
14,583
103.59
2,351
5,262
9,591
10,861
10,426
289.09
788
2,176
3,138
4,794
7,451
174.81
1,771
3,117
3,628
4,309
4,370
135.64
742,845 1,149,640 1,583,205 2,200,272 2,616,710
96.64
(Source : Net Work Wizards)
1998, APIA
Number of Hosts
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
95.1 95.7 96.1 96.7 97.1 97.7 98.1
Japan
Australia
a
Taiwan
New Zealand
Korea
Hong Kong
Singapore
ngapore
Malaysia
China
Thailand
Indonasia
a
India
Philippines
1998, APIA
Europe
Macro Map - 1993
Japan
Mongolia
Korea
U.S.A.
China
Taiwan
Macao
Pakistan
India
U.S.A.
Hong Kong
Nepal
Bangladesh
Thailand
Hawaii
Guam
Vietnam
Malaysia
U.S.A.
Philippines
U.S.A.
Brunei
U.S.A.
Sri Lanka
Singapore
Papua New Guinea
Indonesia
U.S.A.
Fiji
Australia
Legend
Leased Line
Dial-up or X.25
New Zealand
Europe
Macro Map - 1994
Japan
Mongolia
Korea
U.S.A.
China
Taiwan
Macao
Pakistan
India
U.S.A.
Hong Kong
Nepal
Bangladesh
Thailand
Hawaii
Guam
Vietnam
Malaysia
U.S.A.
Philippines
U.S.A.
Brunei
U.S.A.
Sri Lanka
Singapore
Papua New Guinea
Indonesia
U.S.A.
Fiji
Australia
Legend
Leased Line
Dial-up or X.25
Copyright (C) 1995 Asia Pacific Networking Group
New Zealand
Available via anonymous ftp from ftp://apng.org/apng/010.map.p
Europe
Macro Map - 1995
Japan
Mongolia
Korea
U.S.A.
China
Taiwan
Macao
Pakistan
India
U.S.A.
Hong Kong
Nepal
Bangladesh
Thailand
Hawaii
Guam
Vietnam
Malaysia
U.S.A.
Philippines
U.S.A.
Brunei
U.S.A.
Sri Lanka
Singapore
Papua New Guinea
Indonesia
U.S.A.
Fiji
Australia
Legend
Leased Line
Dial-up or X.25
Copyright (C) 1995 Asia Pacific Networking Group
New Zealand
Available via anonymous ftp from ftp://apng.org/apng/010.map.p
Europe
Macro Map - 1996
Does not include International NSP
Backbones
Japan
Mongolia
Korea
U.S.A.
China
Taiwan
Nepal
Pakistan
India
U.S.A.
Hong Kong
Laos
Macao
Guam
Vietnam
Bangladesh
Thailand
Hawaii
U.S.A.
Philippines
Cambodia
Malaysia
U.S.A.
Brunei
U.S.A.
Sri Lanka
Singapore
Papua New Guinea
Indonesia
New Caledonia
Europe
U.S.A.
Fiji
Australia
Legend
Leased Line
Dial-up or X.25
New Zealand
Europe
Macro Map - 1997
Does not include International NSP
Backbones
Japan
Mongolia
Korea
U.S.A.
China
Taiwan
Nepal
Pakistan
India
U.S.A.
Hong Kong
Laos
Macao
Guam
Vietnam
Bangladesh
Thailand
Hawaii
U.S.A.
Philippines
Cambodia
Malaysia
U.S.A.
Brunei
U.S.A.
Sri Lanka
Singapore
Seychelles
Papua New Guinea
Indonesia
New Caledonia
Europe
U.S.A.
Australia
Fiji
Tonga
Vanuatu
Solomon Islands
Legend
Leased Line
Dial-up or X.25
New Zealand
Reality Check
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Internet infrastructure development
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Is getting stronger, but still needs further development, especially on
regional backbone
Has been largely in sync with economic development stages
Regional hubs :Japan, Hong Kong, Singapore, Australia
E-Commerce efforts
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Are emerging; not yet a significant market driving force, but mostly
entrepreneurial efforts or long-term investment
Most efforts are targeting at domestic market with a few regional ones
Few, if any, success stories yet
Many are still confused on the proper business model
Many eyes on business-to-business, rather than business-toconsumers. Few actual developments in reality
1998, APIA
E-Commerce Examples
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Cases
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Aggregation: eg. asia-online.com
News services: eg. Pointcast Asia
Online shopping: numerous
Feature services
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Real estate information, stock information, entertainment, ...
Local information: eg. Digital city guide
Remarks
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A number of trial/speculative services
Few, if any, mission critical services yet: eg online stock trading
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Reality Check
Immature market
Low Internet penetration
Lack of confidence
Lack of infrastructure
- Financial, telecom
Few business cases
Limited services/apps
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Reality Check
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Financial infrastructure
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Lack of readily-available payment system
Lack of credit analysis and notary system applicable
Telecom infrastructure
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Low Internet penetration ratio :
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Insufficient regional backbone
Confidence of consumers and providers
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AU/NZ highest per capita world-wide, Japan reaching 10%
Lack of real world utilization of information: distribution, trading, realestate, stock, ….
Concern on security
Concern on dispute resolution and liability issues
Building business Cases
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Task of mapping real world applications vs creating new apps
Task of making success cases
1998, APIA
Observations
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Prioritization is needed to handle diverse issues.
In short term, market development is of higher priority than
policy/regulatory issues, assuming some changes to current
impediments, especially limitations in the financial system.
Immediate study for policy/regulation is needed for facilitating
E-commerce development in longer term.
In mid-to-long term, a consistent and transparent policy
framework is essential for continued market growth.
Policy framework is to facilitate the realization of the real world
systems on Internet consistently and transparently.
Some thoughts are to be given to the policy framework to
address peculiarity of commerce over Internet, eg. Global
nature of trades over Internet.
1998, APIA
Issues- Immediate
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Mostly, market development issues
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Financial infrastructure
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Building business cases
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Readily-available and interoperable credit card payment
Pilot projects : maybe government initiation
e.g. singapore.com
Study on legal, policy, and regulatory issues
1998, APIA
Issues- Mid-Term
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Financial infrastructure
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Security
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Interoperable e-payment systems/standards
Credit analysis/information for individuals/incorporations
Building certification infrastructure: e.g. CA
Interoperable standards for cryptography, e-signature, ...
Transparent policy, not impeding private sector efforts
Legal and regulatory issues
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Legal status of e-documents, e-signatures, …
Taxation and customs
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Issues- Long-Term
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Uniform “Commercial Code”
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Legal status of electronic contracts, electronic documents,
electronic signatures,…
Dispute resolution and liability
Reflection of real world practices
Trans-border issues are of particular importance.
E-Payment
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Interoperable, diverse payment methods
Considerations for common currency for intra- and interregional trades
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Remarks
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Proper policies and standards are required, but
market development is of higher priority initially.
“We are not creating an entirely new animal.”
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Most issues are closely tied to real world economic issues.
Financial infrastructure
Policies and regulations
Infrastructure is to be institutionalized as soon as
possible to facilitate private sector efforts
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Especially, financial infrastructure
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Remarks
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Policy and regulations are not to restrict
market development
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Consistent and transparent
Issues specific to each economy/region
should be considered
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Different standards on value
Currency
1998, APIA