All Hong Kong's 6.8 million residents will be offered free digital IDs for use in secure online transactions when a new "smart" national identity card is introduced in mid-2003.

Hong Kong's Secretary for Information Technology and Broadcasting, Carrie Yau, announced the optional inclusion of a digital certificate on the national ID card last week. At the same time Yau was proposing amendments to Hong Kong law to prepare for the introduction of the electronic ID card. The controversial, "smart" ID card will replace existing national identity cards held by all Hong Kong residents for immigration and foreign travel purposes. The new chip card is controversial because it will contain other applications in addition to identity details, raising privacy concerns. Yau said in a statement that these applications - including driving license, library card and even an electronic purse - would now be optional. She also said the government would legislate for the protection of the data privacy of ID card holders, including new offenses for the unauthorized access, use, storage and disclosure of personal information held on the card. The offer of a free digital certificate with each ID card is part of the government's e-business and e-government drive. An e-certificate issued by the Hongkong Post Certification Authority would be embedded into the card's memory chip. The digital certificate allows the holder to transact securely with government Web sites, e-commerce merchants and banks through a unique digital signature. The government says a new card is necessary in the first place as the computer system supporting old ID cards is becoming antiquated. It also wants to introduce a "smart" ID card that offers more protection against forgery and allows secure authentication of the card holder's identity.