The Government is considering drafting proposals to help nurture the fledgling digital entertainment industry in Hong Kong. Although the SAR has long been known as the 'Oriental Hollywood', its digital media lag behind development elsewhere in the region. An attempt to boost the sector is being made by the Information Technology and Broadcasting Bureau, which has set up a working group headed by industry experts. One of the committee members, Anthony Au, said the Government should be a facilitator to help the industry tap the lucrative China market. Hong Kong has more than 30 computer-graphic production houses and 600 animators. Most run on a small scale, which is constrained by the limited size of the domestic market. Eddy Wong, chief executive of Menfond Electronic Art and Computer design, which helped to produce the popular local cartoon Master Q last year, said Hong Kong had a pool of talent in the field of digital animation. The company was able to produce more than 40 minutes of animation in eight months, with a much higher efficiency than its Hollywood counterparts. However, Mr Au said the fragmented players failed to develop an economy of scale to work on big projects. After cartoon characters were shown on television or in films, they could be used in video games and the tourism business, he said. The bursting of the Internet bubble created doubt about the future of the information technology industry, as investors and venture capitalists suffered huge losses on start-ups. 'But it is the right way going forward. We cannot move two steps forward then one step back,' Mr Au said.