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.