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04-05-2023 11:25 |
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It is a great pleasure to be addressing today’s Technology Summit, the first event of its kind in Cyprus and a truly unique opportunity to bring together some of the most influential people, to share views on a critical issue for our country’s future: Cyprus’ digital transformation. One of the top
priorities of the Deputy Ministry of Research, Innovation and Digital
Policy is to exploit Cyprus’ potential to emerge as a technology and
innovation hub in the Mediterranean. To this end, we
are committed to implementing the National Digital Strategy which
sets- forth the aspirational vision for Cyprus to become
a fit-for-the-future society, a competitive regional
player and a knowledge-based economy, enabled by digital
technologies. Targeted action towards
digitizing Cyprus across three dimensions - government-society-economy -
is at the heart of this strategy. In the area of eGovernment, projects
in excess of €300 million are in progress. These include citizen-friendly
services that respond to their real needs and facilitate their daily life,
such as the digital platform gov.cy which will comprise all
government websites and digital services, the European personal digital
wallet, which will enable the citizen to securely request and receive, store,
select, combine and share certificates issued by government agencies , the
digitization of the judicial system,
electronic identities and signatures as well as the
installation of modern information systems in key government services, such
as public hospitals, the Registrar of Companies, Land Registry, Urban
Planning, for the reliable and easier operation of the digital economy. These new information systems
in vital government services and the digitization of the relevant processes
and services will significantly upgrade the operation of the public
sector as well as user experience, and also drastically reduce the
processing time of tasks. As far as digital
infrastructure is concerned an array of projects are being implemented. To
this end, the Government is financing the coverage of all remote areas of
Cyprus with ultra-highspeed broadband networks, as well as the
implementation of smart-city solutions in all municipalities. In the area of digital economy,
actions aimed at facilitating the digital transformation of businesses and
encouraging innovative activity are being implemented. For the period
2021-2027, a financing scheme with a total budget of 30 million euros will
support the digital transition of businesses, including the use
of cutting-edge technologies such as artificial intelligence,
blockchain and cloud computing. Moreover, The Deputy Ministry co-finances the
Cyprus Digital Innovation Hub, aiming, among others, to accelerate the
digital transformation of small and medium enterprises and the public sector. Additionally, to create
a truly digital society, the Deputy Ministry implements actions to
upgrade the skills of the entire population, for an
economy without social exclusions. In the context of the National Action Plan
for Digital Skills, it is envisaged to develop the Citizens’ Digital Academy
platform where citizens will have free access to educational material. A
number of actions aim at reshaping school curricula, promoting science and
technology careers and cultivating an entrepreneurial mindset. Meanwhile, a comprehensive
framework of measures has been adopted to attract high-tech
companies. A particularly strong incentive is the new intellectual property
tax regime, the so-called 'IP Box'. According to this, every company
that owns intellectual property and transfers its rights to Cyprus gets an
80% tax relief on the corporate tax, which means that their taxable income is
reduced from 12.5% to 2.5%. Other tax incentives include
the extension and expansion of tax exemption for investment in innovative
companies, the expansion of the existing tax benefit applicable to non-domicile
employees and the incremental (compared to the actual) tax deduction for
research and development expenditure. In addition, a Business
Facilitation Unit has been established for companies operating or
wishing to operate in Cyprus. Through this unit we achieve
a significant reduction in the operational costs of businesses and
the state, while making the country an attractive destination for
international companies. To help these businesses increase their visibility
so as to attract investments, we are in the process of creating
an online platform for start-ups, innovative and high-tech
companies. It is worth noting that the
government itself is already utilizing high technology such as blockchain, AI
and cloud systems. Artificial intelligence will be used for fraud detection
mechanisms in social security systems. Blockchain is used in a pilot project
aiming at simplifying the certification of academic qualifications. Also,
Government IT systems will be running in a hybrid cloud environment in the near
future. Dear friends, The Deputy Ministry is
coordinating the development of the "CY Smart City Platform",
a project of €35 million, financed by the Recovery and Resilience Facility.
In the first stage, three smart solutions will be implemented: smart parking,
smart lighting, and smart waste management. The tender documents have been
submitted to the Public Procurement Department for the required approval, to
be followed by the request for proposals. The "Smart Cyprus"
project is expected to contribute to the optimal use of the country's
resources, the protection of the environment and the implementation of the
circular economy, always aiming to improve the quality of life of citizens.
The Permanent Secretary of the Deputy Ministry will elaborate on this project
later during the panel discussions. At the same
time, particular emphasis is placed on cybersecurity. In today’s
unstable geopolitical context, cyberattacks have been intensified. I
think we all agree that no organization or government is immune.
Our continuously growing reliance on digital technologies necessitates action
against cyberattacks, as their effects can be more damaging than ever before,
posing a viable threat for key areas of our lives. Hackers are now using AI,
machine learning, and other emerging technologies to launch increasingly
sophisticated attacks. According to
the World Economic Forum’s Global
Risk Report 2023, cybercrime and cyber insecurity are ranked among the
top 10 global risks in the next two to ten years. In 2020
alone, the FBI estimated more than $4 billion was lost to cybercrime in
the United States. Allow me
to quote the Prime Minister of Albania Edi Rama who stated that “if cybercrime was a state, it would
be the third largest economy in the world after the US and China.” It is
therefore crucial for both the private and public sectors
to strengthen our cyber resilience. I am afraid I
can confirm that over the last couple of months, we felt here in Cyprus
how imperative this need is. We have thus
embarked on an expanded yet practical program to enhance our
security capabilities in the entire spectrum of security processes and
controls. In the framework of the National Cyber Security Strategy, the National
Coordination Center has been established in December 2021 to finance
cybersecurity measures by Small and Medium Enterprises. In an effort
to close the education gap, the Deputy Ministry has recently launched a
campaign to raise awareness on cybersecurity by providing
guidelines to citizens and businesses for prevention against cyberattacks. One of the
lessons learned after the recent incidents is that: in order to ensure
resilience, collaboration is fundamental. The government is
forming strong partnerships at all levels. For instance, the Deputy Ministry
signed a memorandum of understanding with Poland to address common challenges.
We are also capitalizing on opportunities offered by the various European
funding programmes, such as Digital Europe and the Connecting Europe
Facility. Dear friends, To conclude, I would like
to congratulate the organizers and the sponsors of the 1st Cyprus
Technology Summit. I am sure that very interesting and fruitful conversations
will take place in the next few hours which will contribute to further
promoting and taking advantage of technology advancements in Cyprus. I can
reassure you that the government does recognize the pivotal role of
technology in the economy and will continue to put forward policies to
further support all relevant activities. Thank you. |
