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1. Ma On Shan Rail on track for 2005 start: KCRC

2. Government urged to help kick-start recycling trade

3. Landfills may hit capacity in 8 years

4. Smart IDs plan gives a lifeline to e-Cert

5. IT automation key to SME survival

6. FileMaker success built on easy control

7. Fujitsu claims data management makes storage cents

1. Ma On Shan Rail on track for 2005 start: KCRC
Matthew Lee, The Standard 25 March 2003

Ma On Shan residents will be able to travel by train to Tai Wai in early 2005, according to Kowloon-Canton Railway Corporation chairman Michael Tien.

Speaking yesterday at the topping-out ceremony for Wu Kai Sha station, Tien said construction work for the Ma On Shan Rail was more than 75 per cent complete.

``I am confident that Ma On Shan Rail will be completed by the end of 2004 to provide residents living along the line [with] a fast and efficient service,'' he said.

Commuting from Wu Kai Sha to Tai Wai past the seven stations in between will take 15 minute.

Permanent Secretary for the Environment, Transport and Works Rita Lau said railway projects would be given priority in transport development.

``One railway extension is due every year until 2009,'' she said. ``Around 70 per cent of the population will then live within a one-kilometre radius of a railway system,'' Lau said.

To fund future construction projects, KCRC chief executive Yeung Kai-yin said HK$1 billion in local bonds, bonds in US dollars and floating-rate notes would be issued over the next few months. As much as HK$40 billion was needed for the Sha Tin-Central line and Kowloon Southern Link, he said.

2. Government urged to help kick-start recycling trade
HEIKE PHILLIPS, SCMP 25 March 2003

While Hong Kong continues to dump more than 520,000 tonnes of plastic in landfills and exports industrial plastic waste worth $280 million each year, a local company is forced to rely on imports of recycled plastic to stay in business.

The absence of a local processing plant for plastic waste means that Jets Technics International has to import plastic pellets to make its range of "plastic wood" furniture and playground equipment - which it then re-exports to the mainland, Japan and elsewhere. The company uses about 6,000 tonnes of plastic waste each year.

Shirley Wong Ying-lee, deputy chairwoman of Jets, said: "We need the equivalent of 1,000 plastic bottles to make one recyclable plastic-wood garden bench."

The company believes the government should do more to promote the establishment of a local recycling industry. "We hope the government can support recycling industries by providing land and setting up a policy that would require producers to collect [packaging] waste from their products," Ms Wong said.

The company draws on local sources for a second product range - rubber mats and synthetic surfaces for playgrounds and recreational areas, made from old tyres. Daniel Cheng Man-chung, managing director of Dunwell Enviro-Tech Holdings and chairman of Friends of the Earth, plans to build a recycling plant for plastic waste but is hampered by the high cost of land and the system of short-term tenancies.

"We're looking at US$20 million (HK$155.6 million) to start a plastic recycling plant, or about US$40 million to take it to the next level - to build a plant that could handle the garbage of about one million people," he said. "We're looking for the government to give us a good piece of land to do this, either to sell to us at a good price or provide to us on a low-rental, long-term lease."

Mr Cheng says it is contradictory for the government to fund the taxi trade's switch to environmentally friendly fuel while not doing the same to help recyclers.

However, Donald Tong Chi-keung, Deputy Secretary for Environment, Transport and Works, argues taxis are a one-off subsidy. He added: "We are providing short-term tenancies to the recycling industry at industrial estates at lower premiums or rentals and, in the long-term, we will provide space at a recovery park to be built in Tuen Mun. This is a form of indirect help in terms of reduced expenditure to help recyclers get a business up and running."

Apart from land grants, recyclers say government initiatives that would boost the growth of a local recycling industry include the implementation of landfill charges and the adoption of a "polluter pays" principle. "If consumers were charged for all the packaging they throw away, they would soon be shopping for items with minimum packaging," Mr Cheng said. "Charging for waste has to be implemented regardless of having an efficient recycling system. People comply because they have to."

However, the government's proposed $125-per-tonne landfill charge will apply only to the construction and demolition sector. It has been suggested that the scheme should be expanded to the municipal sector, which accounts for more than half of the waste going to landfill.

The charge is lower than in many countries, with Japan charging $730 per tonne. Most countries also levy a tax in addition to landfill charges. Hong Kong's three landfills cost $400 million a year to run.

3. Landfills may hit capacity in 8 years
HEIKE PHILLIPS, Environment Reporter, SCMP 25 March 2003

Hong Kong's landfills will reach capacity in as little as eight years despite increased recycling efforts, a senior government official has warned.

"Our estimation that landfills will be full in eight to 13 years assumes that we are able to reach recovery target of 20 per cent for domestic waste and an overall recovery rate of 40 per cent for municipal waste by 2007," said Donald Tong Chi-keung, the Deputy Secretary for Environment, Transport and Works.

"That also assumes we continue to find outlets for construction and demolition materials, of which we currently recycle 11 million tonnes out of a total production of 14 million. If that fails, the landfills will fill up more quickly."

Hong Kong recycles just 8 per cent of domestic waste and options for the disposal of construction waste at reclamation sites are running out.

If the targets are not met and the rate of waste production and recovery is maintained, Hong Kong can expect to run out of landfill space even faster. The remaining space - capable of accommodating 105 million tonnes of waste - could be used up in just five years, Mr Tong's bureau has warned.

In a paper presented to the Legislative Council's environmental affairs panel in December last year, the government warned that if no measures were taken to tackle the problem, more than 73 million tonnes of construction waste could be generated by the end of 2005. This material could fill the Happy Valley racecourse to a height of 96 storeys.

Previously, almost 80 per cent of such waste was used to fill in reclamation sites, but delays in several planned projects have temporarily closed this avenue. To encourage the re-use and recycling of such materials, the government plans to implement a $125-per-tonne landfill charge for construction and demolition waste from next year, with a proposal to be tabled to the legislature before July.

Mr Tong said the government was also working on a long-term strategy for Hong Kong's waste management and had invited expressions of interest for future large-scale waste treatment facilities.

The Advisory Group on Waste Management Facilities, chaired by Rita Lau Ng Wai-lan, is evaluating 59 submissions against 100 criteria.

"The group will advise on the options and a public debate will follow in the second half of this year. It will be a very controversial discussion," said Mr Tong.

Measures to support recycling initiatives include a proposal to build an industrial park devoted to recycling in Tuen Mun, which the government hopes will handle up to 648,000 tonnes of waste a year.

The park, planned for 20 hectares of reclaimed land near the Tuen Mun River Trade Terminal, would be developed in two phases, with the first to be completed in 2005. But recyclers say Hong Kong may have lost its opportunity to build such a park as the mainland has already started building what will be the country's largest waste-recycling project in Nanhai, Guangdong. Backed by the State Environmental Protection Administration, the $3 billion park will be completed in three to four years.

The government provides land on short-term (three-year) tenancies for the exclusive use of the recycling industry. At present, 24 sites (about five hectares) have been leased and a further three sites will be made available in the next few months.

Hong Kong produces 507kg of municipal waste per capita from the domestic, commercial and industrial sectors each year, compared to 360kg in Germany, 500kg in Canada and 690kg in Australia. However, Hong Kong's domestic sector is growing at a rate of more than 4 per cent and only recycles 8 per cent of its waste, compared to up to 32 per cent in Germany, 47 per cent in Canada and 48 per cent in Australia.

4. Smart IDs plan gives a lifeline to e-Cert
CAROLYN ONG, SCMP 25 March 2003

Hong Kong's certification authority, Hongkong Post, is taking another shot at popularising e-Cert, its digital signature service which enables secure electronic commerce transactions, by offering it free for downloading to the new smart ID card.

Hongkong Post will offer every smart ID card holder an option to embed an e-Cert in the card's memory chip for one year at no charge. From July, Hong Kong identity card holders will be issued smart ID cards to replace existing ID cards. The process will take four years.

While Hongkong Post has only sold 110,000 e-Certs since it was introduced in 2000, it recently spent HK$10 million to upgrade its public key infrastructure in anticipation of three million to four million new e-Cert users, Hongkong Post general manager of Electronic Services Allen Mok said.

Mr Mok said Hongkong Post would step up its marketing efforts to instil more understanding of the benefits of the e-Cert over other security methods such as personal identification numbers (PINs).

There is urgency to accelerate e-commerce and e-government in Hong Kong. Last week, the Legislative Council passed the Inland Revenue amended bill which lets Hong Kong residents submit their tax returns electronically by using a six-digit number.

The aim of the amended bill is to encourage taxpayers to file taxes online through the Electronic Services Delivery Scheme by providing the more convenient password system.

On Friday, ESDlife began accepting individual and property tax returns through its Web site. ESDlife is the government-backed joint venture between Hutchison Whampoa and Hewlett-Packard that manages most of the government's ESD services.

However, there is concern in the information technology (IT) industry that the government will implement the password system, which is not considered a secure method, across all ESD services.

"The amendment will hurt the competitiveness of Hong Kong . . . it will hurt the adoption of e-commerce and e-government. You can use a digital signature to sign a document and the recipient can use the certificate to prove who signed it. Digital signatures enable an electronic marketplace by enabling trading between parties. A population that understands digital signatures can enter the global electronic marketplace faster and more smoothly," said Allan Dyer, president of the Association of anti Virus Asia Researchers.

Since January 2001, residents have been able to file their tax returns online by using e-Cert. Residents now can choose to either use e-Cert or password to file taxes using the ESD scheme.

"The government is giving individuals and companies a choice - password or e-Cert - in choosing the security level they are comfortable with," Information Technology Legislative Councillor Sin Chung-kai said. "The problem is that the awareness of using e-Certs versus passwords is quite low in Hong Kong. People still do not know the benefits of using a digital signature in an open network environment."

Although more convenient, passwords are inherently weak because people often mismanage them - by writing them down, choosing an obvious password, or using the same one more than once.

"A digital signature is preferable to PINs because it is still the most technically mature technology, ensuring integrity and non-repudiation in an open electronic environment like the Internet," Mr Sin said.

"I think the more important implication here is that legally, as a result of the amended bill, PINs have the same legal weight as digital signatures."

Dion Wiggins, research director at Gartner Group, said: "Passwords are far less secure than a digital certificate. They are often easy to guess numbers, such as birth dates. While the certificate will not identify a citizen, it will encrypt the data used by the citizen. When used in conjunction with a biometric ID, such as a thumbprint on the upcoming ID card, they offer a reliable and secure infrastructure for enabling e-commerce.

"There is very poor awareness today. The government is not doing enough to enable end-users and enterprises to understand the benefits that will be available and the way the new certificates can be used to offer effective and streamlined e-business and e-government initiatives," he said.

Mr Wiggins said the Inland Revenue amended bill did not mean the death of e-Cert, but that passwords would be used more widely until everyone had a smart ID card in four years.

5. IT automation key to SME survival
BIEN PEREZ, SCMP 25 March 2003

Small businesses in Hong Kong are being called on to implement enterprise-automation systems to keep afloat and prosper in a weak economy.

"To stay competitive in the global market, small- and medium-sized enterprises (SMEs) must take advantage of advanced, low-cost solutions that are widely available," local entrepreneur Bernard Chan said.

Mr Chan is director at electronics chip-design specialist Mutual Fit, a Tsuen Wan-based firm that uses Microsoft technologies to strengthen its computing infrastructure.

"Microsoft convinced us that we could realise our business potential and improve both revenue and profits by using Office, Windows, and a simple server set-up," he said.

Many SMEs, he said, were deterred from pursuing enterprise-automation projects because of tight, or virtually non-existent, IT budgets.

But tough times called for better infrastructure to keep these firms aware of business opportunities and enhance customer service, he explained. Improving the IT infrastructure of SMEs would be critical to the way the Hong Kong economy fared over the next few years.

The SAR is home to more than 300,000 SMEs, according to the Hong Kong Trade Development Council. These firms represent more than 98 per cent of companies doing business in Hong Kong, and they provide jobs for 1.4 million people, or 60 per cent of the workforce.

Like other local SMEs, Mutual Fit built its computing infrastructure piecemeal while keeping less efficient manual systems for a significant part of its operations.

Mutual Fit's small network of 12 four-year-old personal computers running on Windows 98 yielded a poor return on investment, Mr Chan said.

As a small company Mutual Fit had to "spend wisely" on IT, he said. The firm called on Microsoft to demonstrate how its services technologies could help with operations.

Norris Chung, partner development manager for SMEs at Microsoft Hong Kong, said many SMEs were unaware of Microsoft's advanced product features.

Mutual Fit decided to upgrade to Windows XP and Office XP last September.

Other systems deployed with the aid of systems integrator Asian TAT included Exchange 2000 Server and the Outlook 2002 e-mail system, as well as the Windows 2000 Active Directory program.

The Microsoft upgrade, which employed a range of Hewlett-Packard computers, also used the SQL Server database and an enterprise resource planning (ERP) system from Hong Kong-based Grandmass.

Mutual Fit calculated that it would save up to HK$4.4 million over a three-year period on its initial IT investment of HK$450,000, a sum equal to all its computer infrastructure investments over the previous three years.

Mr Chan said the new IT set-up had helped the company meet the stringent requirements of customers who also wished to cut their operating costs.

Founded in 1995, Mutual Fit supplies an array of custom electronic circuit design, speech and sound effect coding, and microchip programming to consumer electronics goods makers and toy manufacturers, such as Mattel.

With SQL Server and the Grandmass ERP system, Mutual Fit has automated procurement and inventory controls. The firm can now process a customer order in under five minutes, compared with the 12 to 20 hours previously required.

"We estimate we can reduce inventory by 40 per cent, which translates into a gain of HK$1.6 million," Mr Chan said.

6. FileMaker success built on easy control
DANYLL WILLS, SCMP 25 March 2003

The most distinguishing feature of the database software FileMaker is its user-friendliness, according to Steve McManus, FileMaker's general manager for Asia-Pacific.

Oracle might be big among enterprises and Microsoft's Access might come bundled with Microsoft's Office suite, but no database allowsedthe user as much ease of control as FileMaker, he said.

"The essence of FileMaker has not changed since 1992. What motivates people to do things is that they sense they are 'getting somewhere'. FileMaker makes you think you are getting somewhere."

Computers might be confusing and sometimes downright frustrating, but FileMaker was relatively easy on the nerves, he said.

"FileMaker was designed from the ground up to be user friendly."

FileMaker, as an application, was created in 1992 by Claris, a subsidiary of Apple. FileMaker has since become a company unto itself and remains a wholly owned subsidiary of Apple.

Mr McManus was one of the first to see the original program.

"In 1992, I was called in to the Claris office in Sydney because of my project manager experience. They gave me a look at FileMaker and I immediately saw its potential.

"I said: You guys are going to make a killing. So I joined the company and have been there ever since," he said.

To back up FileMaker's case for ease of use, Mr McManus described retrieving data from a database.

"In FileMaker there is a Find command that people easily understand. In other database systems, there is Query. Who knows what that means? Most customers are business people who know their business but are less familiar with the arcane language of a database."

Companies such as Oracle were trying to bring their products "down to the desktop", he said, but that was arduous.

"Engineering something like Oracle or any other big database to come down to the desktop is really difficult. It is, in fact, far easier for us to scale upwards than it is for them to try to scale downwards," he said.

FileMaker was targeted at what Mr McManus called those who dealt in knowledge, not technology.

"Our target market is knowledge workers or subject-matter experts. They understand the little bits of data they need, but they are not IT experts."

FileMaker had even been used in life-or-death situations, he said.

"In Australia, we have doctors in Sydney controlling a transplant database with FileMaker," Mr McManus said.

The company has developed a server version of the database for Linux but not yet for any other forms of Unix.

"We have a FileMaker version for Linux on the server, but not the client. There is not a lot of Linux on the desktop," he said.

Unfortunately, there is no Chinese version. Mr McManus was unable to comment on whether FileMaker would release a Chinese version because company policy prohibited employees from discussing products other than those already available.

In fact, a Chinese version was released in Taiwan a few years ago but it was discontinued. A Japanese version still exists, so the ability to display Asian languages is not the issue.

A plausible reason for not releasing a Chinese version is the likelihood of piracy, but Mr McManus declined comment.

Version 6, the latest FileMaker program, supports Microsoft Windows, Apple's OS 9 and OS X, and Linux.

7. Fujitsu claims data management makes storage cents
DANYLL WILLS , SCMP 25 March 2003

As companies begin to accumulate more storage, managing the complex and often varied systems has become critical.

But storage management software can guarantee a 50 per cent increase in storage, according to Scott Kennedy, vice-president of strategic business development for Fujitsu Softek.

"As soon as my software is installed, I know exactly what you have. We had a customer a while ago who retrieved 522 gigabytes - that's half a terabyte - of data after installing our software," he said.

Mr Kennedy said the most important aspect of good storage management was the software.

The hardware could be anything a company could have bought over the past few years and often was.

The problem was that many companies had no real idea of the amount of storage they had access to.

Fujitsu guarantees prospective customers that the first 20 assessments, evaluation and use of Fujitek software will be free if the software does not increase storage by at least 50 per cent.

"I would like to lose one of these 50 per cent offers. It would mean that somebody was using their systems extremely well.

"Right now, we have people banging our doors down to get to our product," Mr Kennedy said.

Fujitsu hopes that the 50 per cent guarantee will be an incentive for companies to test their systems.

"It's a no-lose opportunity. For nearly two years, we have been demonstrating there is a powerful alternative to traditional hardware-based storage management practices through open automated storage management software. Now we guarantee it," said Mr Kennedy.

Another area where Softek can save companies money is in storage acquisition.

If you use the software to predict when you are likely to need more storage, you can better plan for it.

Storage costs are constantly going down. A company that buys all its storage at once could use Softek to wait and buy the storage later in the year when it is cheaper.

Mr Kennedy said ideally there should be no need to worry about all the hardware needed for storage. It should be transparent.

"That's our mission - to make it disappear," he said.

Yau Kan, Fujitsu's Hong Kong director, said China would soon be ready, but was not quite there yet.

"Chinese companies and organisations do not have all that legacy hardware that exists elsewhere," he said.

Their storage needs were increasing, and it would soon be a good market as well.