IDA Seeks Views on Building Trust and Confidence in Electronic Commerce for Business and Consumers

The Infocomm Development Authority of Singapore (IDA), in consultation with other government agencies1, has released a consultation paper today to invite views from the industry and members of the public. Entitled "A Proposed Framework on Building Trust and Confidence in Electronic Commerce", the consultation...

Singapore, 26 September 2000 | For Immediate Release

The Infocomm Development Authority of Singapore (IDA), in consultation with other government agencies¹, has released a consultation paper today to invite views from the industry and members of the public. Entitled "A Proposed Framework on Building Trust and Confidence in Electronic Commerce", the consultation paper seeks comments on the proposed strategies and initiatives that will raise the level of trust and confidence among businesses and consumers so as to facilitate Electronic Commerce (EC) growth.

With globalisation and the advent of EC, a secure and trustworthy environment is vital for both businesses and consumers. For EC adoption to take off even faster, it is essential that trust and confidence are instilled among users, so that they will embrace online EC technologies with ease. As there is always the possibility of network fraud in electronic transactions, IDA recognises the need to develop strategies to build an environment of trust and confidence. If developing a trusted EC environment is left uninitiated, resistance to online purchases by e-consumers will persist. Besides, e-businesses will continue to face the need to distinguish between legitimate shoppers and fraudulent users, in addition to high processing fees associated with online transactions. This may eventually deter EC growth in Singapore. Building an environment of trust for EC is therefore viewed as the intermediary element that determines the willingness of businesses and consumers to adopt EC.

The issuance of this consultation paper is part of IDA's on-going efforts to provide a platform for industry and members of the public to share their views on the appropriate frameworks to be put in place, taking into account industry trends and EC developments. To build an environment of trust and confidence so that EC will flourish, the Government has identified four key strategic thrusts and accompanying initiatives. In developing this framework, the Government is seeking the industry and public feedback on the following proposed strategies and initiatives:

(i) Establishing a secure EC environment - adopting a secure public key infrastructure and introducing risk assessment and profiling;

(ii) Building confidence in E-businesses - introducing EC insurance, escrow services, credit bureau services and making available alternative dispute resolution mechanisms;

(iii) Building confidence in consumers to transact on the Internet - introducing trustmarks and addressing privacy concerns; and

(iv) Educating and increasing awareness of the benefits of EC - programs to be expanded or added.

Additional ideas are also welcomed. All views and comments should be submitted in writing to reach IDA on or before 20 October 2000. Based on the comments received, IDA together with other government agencies will make the appropriate modifications or additions to the proposed framework, which is targeted for release by first quarter of 2001.

The consultation paper may be downloaded from the "E-Commerce Development" section of the IDA website at www.imda.gov.sg.

ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE

Notes to Editor:

¹ These government agencies include the Economic Development Board, Inland Revenue Authority of Singapore, Ministry of Communications and Information Technology, Ministry of Finance, Ministry of Trade & Industry, Monetary Authority of Singapore, National Science & Technology Board, Singapore Productivity and Standards Board, Singapore Tourism Board and Trade Development Board.

About Infocomm Development Authority of Singapore

The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, visit www.imda.gov.sg.

For media clarifications, please contact:

Ms Jennifer TOH
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: (65) 6211-0508
Fax: (65) 6211-2227
Email: jennifer_toh@imda.gov.sg