The investment bank also stated that China's B2B market would accelerate
SYDNEY, 30 Jun 2000 (Asia Pulse) - A new report by investment bank Goldman
Sachs shows that Australia is among the leaders of the e-commerce revolution
in the Asia-Pacific region. According to the survey, business-to-business transactions
are expected to reach $US76 billion ($A126.67 billion) by 2005.
The Goldman Sachs report found that Australia, along with Korea, was one of
the first movers in B2B for the region with strong Internet penetration among
consumers and a relatively proactive government approach towards e-commerce.
"We believe companies have become much more active over the past six months
in establishing e-commerce strategies and that the next 12 months will see a
focus upon these strategies," the report said.
"Australia's largest telcos, Telstra (Corp Ltd) and Cable & Wireless Optus
Ltd are driving B2B adoption with a broad range of initiatives." According to
the report, other factors helping Australia's competitive edge included access
to a broad range of connectivity options including dial-up, leased lines and
broadband. Deregulation of the telco market, meanwhile, had caused prices for
these services to decline and new players to enter the market.
"Relative to other Asian governments, the Australian government has been proactive
in encouraging the adoption of e-commerce," it said. Goldman Sachs added that
other leaders in the region included Hong Kong Singapore and Taiwan, while China's
B2B market would accelerate in 2003-2004. "We expect the remaining ASEAN economies
to lag further behind - hurting their competitiveness," it said. "Execution
of e-commerce plans and needed e-frastructure improvements will take several
years to implement but we expect e-commerce to begin accelerating in 2002, led
by Asia's more developed economies."
According to the report, B2B transactions for the whole of Asia-Pacific were
expected to reach $US440 billion by 2005. "Over the next decade we expect B2B
to boost the economic growth of individual Asian economies by 0.2 per cent to
0.8 per cent per annum," it said. Demand for Asian exports was also expected
to increase because of the region's role as a supplier of hardware for the new