Spring Internet World '99
The Asian Internet Market
Thursday April 15, 1999
11:15-12:45 am

To many, the financial crisis in Asia does not make for an enticing Internet environment. Others, however, feel that Asia should not be ignored. Mr. Hanson Cheah, Executive Director of AsiaTech Ventures, a venture capital firm investing only in Internet companies, shared his views on the nascent Internet market in Asia.

The challenges in the Asian Internet Market are:

• slow speed bandwidth
• lack of content in local language (95% English)
• lack of venture funding and capital markets
• no e-commerce infrastructure

At present, some of these challenges are being met. Singapore, Taiwan, and Hong Kong are forging ahead with broadband initiatives. Chinese bookstores and toy retailers have made entries into e-commerce. Government initiatives include flying in Internet illuminaries for training and counselling of local staff and the establishment of special funds such as the Applied Research Fund in Hong Kong and the Asia Java fund in Singapore. As a result of the financial crisis, costs of labor and infrastructure are coming down. Investment companies that in the past would only invest in chicken farms are now catching on to the Internet companies.

Who's Who in the Asian Internet Market

• CNET
• Yahoo!
• N2K, CDNOW

Hot in Asia:

• Online Stock Trading, Financial Portals
• High End Web Hosting and Location Services
• Web Design Consulting Services (the ones that can integrate business processes into design )
• Wireless Applications
• Advertising Services (in Asia, one-to-one marketing is not common)

Not Hot:

• Auction Sites (not a trusting culture)
• Online Car and Furniture Sites-(these are very high cost items and controlled by cartels
• Pure Web Design Firms
• Narrow band ISP's