The Macau Special Administrative Region (SAR) is situated on the southeastern coast of the Chinese mainland. Set on the estuary of the Pearl River and some 60 km southwest of Hong Kong, it has total area of 30.5 sq km. As of the end of 2017, its population stood at 653,000 people. The Macau SAR comprises the Macau Peninsula, Taipa Island and Coloane Island. The Peninsula and Taipa are linked by three bridge crossings, while Taipa and Coloane are connected via the Cotai reclamation area.
Positioning
The gaming sector dominates Macau’s economy. Over the last 10 years, however, Macau’s economic development strategy has seen it shifting towards “an industrial structure with gaming tourism as the engine, complete with other service industries”. The still booming gaming sector, meanwhile, has continued to drive the growth of a number of associated industries, most notably the hospitality, wholesale and retail sectors.
Core Competencies
Macau’s Five-year Development Plan (2016-2020) prioritizes the diversification of its economy, while looking to further optimize its industrial structure. By 2020, it is also hoped that the percentage of non-gaming revenue, compared to total gaming revenue, will have increased from 6.6% in 2014 to more than 9%. Ultimately, it is believed that this will create greater synergy between the gaming and non-gaming sectors. At the same time, there has also been a focus on developing a number of industries relatively new to Macau, particularly the conventions and exhibitions sector, traditional Chinese medicine, and the cultural and creative industries.
In line with the Five-year Plan, continued efforts will also be made to transform the SAR into a world class tourism and leisure destination, a commitment that has also featured in China’s 12th and 13th Five-Year Plans. With the twin objectives of developing “quality tourism” and “premium tourism”, the city’s tourism resources are to be diversified, modernized and raised to an international standard.
In accordance with China’s overall 13th Five-Year Plan, Macau will also look to drive commercial co-operation between China and the Portuguese-speaking countries. In order to facilitate this, the overall number of Chinese-Portuguese bilingual personnel active in the financial, legal and accounting sectors is to be increased. Efforts will also be made to raise the total level of trade between Macau and the Portuguese-speaking countries by 10% by 2020. As of 2015, that trade was valued at MOP600 million (US$74 million).
Macau is an independent customs territory and also has its own, relatively low, taxation system. In line with the Basic Law of the Macau Special Administrative Region, no duty is payable on the vast majority of products of Macau origin exported to the mainland. Currently, the Chinese mainland, Hong Kong and Taiwan are Macau’s major trading partners. In terms of Hong Kong’s exports to Macau, consumer goods account for about 60% of the total in 2017, with food products second at 18.5%.
Macau participates in the key areas of the Greater Bay Area:
- Create an open cooperation bond
- Multi-party cooperation promotes moderate and diversified economic development
- Promote the construction of a quality living circle
- Promote cultural exchanges and promote cultural prosperity
- Promote two-way cooperation, support youth innovation and entrepreneurship, and expand the space for SME development
- Strengthen infrastructure construction and interconnection
- Actively cultivate innovative ecosystems to support the development of new economies, new technologies and new formats
- Strengthening the promotion of the GBA
For Macao’s key measures on taking forward the development of the Guangzhou-Hong Kong-Macao Greater Bay Area, please refer to the website of Macao SAR Government (in Chinese and Portuguese only).