Gates sees HK, Singapore, Malaysia as software hubs

Gates sees HK, Singapore, Malaysia as software hubs

HONG KONG (Reuters): Microsoft Corp chairman Bill Gates said
on Tuesday there was room for Hong Kong, Singapore and Malaysia
all to become Asian software centers, despite their competition
to attract high-technology businesses.

"I am fairly optimistic...there is enough demand here that
Malaysia, Singapore, Hong Kong could all be successful in
(becoming) great software centers," Gates told a news conference
in Hong Kong.

"This is not a zero sum game where only one wins and everybody
else doesn't do well. We need more software people. There is an
incredible shortage and that is part of the reason why we are so
committed to help with the success of the whole project," he
said.

Hit by the Asian financial turmoil, Hong Kong is trying to
climb out from the recession and rebuild its economic base by
developing an information technology industry and attracting
high-tech services firms.

A centerpiece of the strategy is the HK$13 billion "Cyberport"
project, a proposed high-technology campus of buildings equipped
with high-speed telecommunications access and multimedia
facilities designed to attract information services companies
such as software developers.

Some critics have called the initiative too late, saying that
Singapore, Taiwan and Malaysia started targeting such industries
years ago.

But Gates said it was important for Hong Kong to develop the
Cyberport, and added that Microsoft would participate in the
project and encourage software activities in the territory.

"It is a signal that there is a great opportunity for
entrepreneurial businesses. The software business is going to be
a very fast growing business with a variety of different
companies coming into it," he said.

The Microsoft chairman was in Hong Kong to announce plans to
develop high-speed broadband online services with Hong Kong
Telecommunications Ltd.

The proposed service, called "Zoom", would allow Hong Kong
subscribers with personal computers or televisions to be able to
choose movies on demand, chat with friends in live video
conferences, check the latest news, shop, send and receive e-mail
and conduct electronic commercial transactions.

Hongkong Telecom chief executive Linus Cheung told the news
conference that Hong Kong must transform itself to become an
information society in order to compete on the high-tech front.

"Hong Kong must transform itself...from being over reliant on
one or two sectors of the economy to an information society," he
said.

Currently, Hongkong Telecom offers subscribers a variety of
Internet services that include home banking, home shopping and
videos and music on demand. The company has said it wants to
become an Asian Internet powerhouse, with more alliances and
possibly some acquisitions expected soon.

Microsoft, meanwhile, is angling for a stronger presence in
China.

Gates said development of Hong Kong into a hub for electronic
commerce would require the involvement of businesses of all types
and sizes to participate and sell their wares on-line.

"E-commerce really requires getting a critical mass of
companies to get involved. One of the things we'd really like out
of this announcement is to really get more companies here
thinking about their e-commerce strategy," he said.