Following is a speech by the Permanent Secretary for Commerce and Economic Development (Communications and Technology), Mr Duncan Pescod, at the Opening Ceremony of the Microsoft Bizspark Creativity Centre on March 9 (English only):
Mr (Simon) LEUNG, Nick (YANG), Distinguished Guests, Incubatees, Ladies and Gentlemen,
Good morning!
I am delighted to have the opportunity to attend the opening ceremony of the Microsoft Bizspark Creativity Centre. I am particularly pleased to see that incubatees from the Cyberport Digital Entertainment IncuTrain Centre (IncuTrain Centre) are joining us today.
First of all, I would like to congratulate Microsoft and Cyberport for successfully launching the Microsoft Bizspark Creativity Centre. This is an excellent example of collaboration, which will help to build the ICT industry cluster at Cyberport.
The MBCC will focus on providing assistance to SMEs and incubatee companies to foster robust, self-sustaining local software development, to help build business and generate a pool of creative professionals in the digital entertainment industry. I believe the timing of this initiative is right - while the current turmoil is undoubtedly affecting the ICT industry, we must put more effort into building a strong base for the future. The MBCC will help us to do so.
SMEs are the cornerstone of Hong Kong's economy. They constitute about 98% of the business establishments and provide 50% of the total employment in the private sector. Their vitality and business performance underpins the development of our economy. This is why the Government places great emphasis on supporting SMEs to develop business and enhance competitiveness. An example of our support measures is the SME funding scheme that helps SMEs in respect of financing, marketing and manpower training. Here in Cyberport, we also facilitate the development of IT and digital media SMEs and I am delighted to say that SMEs are a significant part of the core tenants. As of this January, SMEs in Cyberport make up over 36% of the total office tenancies.
In view of the current economic downturn, the Government is strengthening its measures to help SMEs in the IT sector weather the storm. We will continue the existing aggressive outsourcing approach of the Government IT projects, and accelerate projects where possible, to create a local market of sufficient size to support the local IT industry.
In addition, we will launch a sector specific IT training programme for SMEs to help them embrace IT as a strategic tools for business, and enhance their operational efficiency and competitiveness through the application of IT. We plan to inject $6 million to the programme and estimate that the programme will create some 50 temporary jobs for the IT industry in areas of IT training, consultancy and advisory services.
Back in Cyberport, the IncuTrain Centre provides the ideal environment to incubate companies in the digital entertainment and digital multimedia sectors, and it has been making good progress since its first intake of incubatees. To date, 62 incubatee companies have been admitted to the IncuTrain Centre, from where 28 incubatees have already graduated. In order to benefit more SMEs and new start-ups, the Finance Committee recently approved an additional injection of $25.2 million from the Innovation and Technology Fund to extend the programme for the coming 3 years.
While the Government will continue to invest in helping SMEs, we do encourage the industry to join us in this important effort. I must thank Microsoft for their continuous support to the development of the local ICT and digital entertainment industries. Back in 2004, the Xbox Incubation Programme, which was also a joint effort of Microsoft and Cyberport, helped enhance the professional and technical skill of the local game design talents. Today, I am very pleased to see that Microsoft is making further investment through the setting up of the MBCC. This is another vote of confidence in the local ICT and digital entertainment industries. The new network of facilities to be provided by the MBCC will definitely give a boost to the local software and digital media industries, and help nurture creative talents as well as innovative IT and business solutions.
Talking about creativity and innovation, you may wish to know that the Information Technology and Broadcasting Panel has recently supported the setting up of a dedicated office, namely CreateHK, to drive the development of the creative industries in Hong Kong. We are planning to set up CreateHK through integrating and realigning resources from various departments. With a better focus on industries' needs and initiatives to suit their needs, CreateHK will play a key role driving our creative economy. We will be giving out more information on this exciting initiative in the weeks ahead. I believe this will be a positive step to help boost the creative industries in Hong Kong.
Before I close, I would like to thank Microsoft and Cyberport again for their unfailing support to the development of the ICT and digital entertainment industries in Hong Kong. The founder of the Ford Motor Company, Henry Ford once said, "Coming together is a beginning; keeping together is progress; working together is success." Well let me wish the Microsoft Bizspark Creativity Centre every success!
Thank you.