Legislation on the way to protect electronic transactions: PM Goh

[SINGAPORE] Prime Minister Goh Chok Tong yesterday announced the setting up of a certification authority that will enable secure transactions on the Internet and said legislation is on the way to protect electronic transactions.

The National Computer Board (NCB) will team up with Nets, which is jointly owned by POSBank and the six local banks, to form Netrust, the first certification authority in Singapore which will electronically establish the identify of both individuals and organisations for communication and commerce over the Internet, said Mr Goh. He was speaking at POSBank's 25th anniversary dinner at the Westin Hotel.

The move is timely because "a major challenge facing electronic commerce today is the security of electronic commerce transactions", Mr Goh said.

"A pre-requisite for secure electronic commerce is the ability to establish the identity of the parties you are transacting or communicating with over the Internet." Setting up Netrust will boost confidence in electronic commerce over the Internet as participants can be assured of the identities of their counter-parties. Netrust will issue electronic identification certificates -- the equivalent of one's signature or thumbprint in cyberspace -- for communication and commerce over the Internet.

Mr Goh said Netrust will initially enable individuals and entities located in Singapore to electronically identify each other.

Eventually, Netrust will be linked to overseas certification authorities to facilitate cross-certification for cross-border transactions. The move by NCB and NETS will help make Singapore a global electronic commerce hub.

At the same time, introducing legislation would provide the business community with greater certainty when conducting electronic commerce and promote its development.

"In order to give electronic transactions the full benefit of the law, the government would be introducing legislation to support digital signatures and digital transactions," Mr Goh said.

Some economists have forecast that commercial transactions on the Internet will rise to US$70 billion by 2000 from less than US$1 billion (S$1.4 billion) today.

POSBank, among the local banks, has taken the lead in offering Internet banking by year-end, said its chairman, Moses Lee. He said by the end of 1997, POSBank depositors will be able to bank via the Internet from the home or the office or anywhere in the world, at any time of the day.

He also announced the retirement of POSBank chief executive officer, Bertie Cheng, and the appointment Dileep Nair from tomorrow.