The Macao Special Administrative Region is in a fast-forward development mode thanks to the “One Country, Two Systems” policy, a framework that allows the region to be part of the whole and, at the same time, to keep its differences and transform them into advantages.
Bearing in mind the main objective of the central government – to, by 2050, transform China into a great modern socialist country – this political formula has been supplemented with strategic long-term visions. And the rationale of it can be summarized as “One Center, One Platform and One Base”. Here, one center stands for the World Centre of Tourism and Leisure; one platform for the China-Portuguese-speaking Countries Commercial and Trade Service Platform; and one base for exchange and cooperation with Chinese culture as its mainstream.
This foundation is associated with three key development drivers: Integration, diversification and a cooperation platform.
Integration
The Macao SAR, as a part of China, is fully integrated into the central government’s vision. However, the SAR retains its own systems, namely the legal, taxation and economic systems. Furthermore, the SAR is incorporated in the Greater Bay Area, which is equipped with impressive infrastructure (six international airports, seven deep seaports, some of the longest bridges in the world and a state-of-the-art network of interconnected railways) as well as the desire of the central government to transform it into the world’s largest economic bay area.
There are three aspects contributing to this key driver: First, a number of singular characteristics of the SAR such as its international legal personality, the low taxation regime, separate customs territory, the number and quality of its universities, the blended culture and the easy access and the commercial and trade cooperation service platform between China and Portuguese-speaking countries (PSCs) and the Belt and Road Initiative; Second, the fact that in 2003, the Closer Economic Partnership Arrangement was signed, which facilitates the commercial and investment flows among the Macao SAR, the Chinese mainland and PSCs; and third the new Guangdong-Macao In-Depth Cooperation Zone in Hengqin, which has been designed to boost the process of Macao’s diversification.
Diversification
This process is being advanced according to the “1 plus 4” formula: “one center” and “four leading industries”. More specifically, “one center” for integrated tourism and leisure, while facilitating the development of four nascent industries, namely: first, the “big health” industry – attractive “tourism plus” and delivering high quality health and well-being services, as a result of cooperation between local and overseas medical institutions. The concept also encompasses traditional medicine.
Second, the modern financial services – covering four areas: banking, insurance, bond market and wealth management, with particular emphasis on setting up a Central Securities Depository. Macao is supposed to embrace an expansion to digital and green operations, e-payments, e-commerce, digital currencies and cryptocurrency, financial market integration, commodities trading services, with more offshore and cross-border business.
Third, the high and new technology – the 10 higher education institutions established in Macao (University of Macau ranks on Times Higher Education University Rankings top 200), side-by-side with four key state laboratories (Quality Research in Chinese Medicine; Analog and Mixed-Signal VLSI; Internet of Things for Smart City; Lunar and Planetary Sciences) and with the support of the Tax Incentive Scheme for Science, Technology and Innovation Business, the Science and Technology Development Fund and the Funding Scheme for Industry-University-Research Partnership for Enterprises, are supposed to operate a real technological transformation.
Fourth, exhibitions and conventions – the Macao SAR has some of the best infrastructures in Asia for large exhibitions and conventions.
In 2023, the International Association of Exhibitions and Events granted the Macao Commerce and Investment Promotion Institute the IAEE International Excellence Award. In addition, there is a significant development of e-commerce, mobile payments and cross-border e-commerce channels linking Macao with PSCs represented by companies in the SAR, and reaching consumers on the mainland. Meanwhile, the Macao Arts Festival, Macao International Music Festival, Art and Cultural Festival between China and PSCs are attracting a large number of tourists. The SAR also holds large sports events such as the Grand Prix, Macao International Marathon and WTT Champions Macao.
Concept of platform
This last driver is organized as “One Platform and Three Centers (1 plus 3)” – One platform for China-PSC cooperation composed of three centers, namely a PSCs food distribution center, a convention and exhibition center for PSC economic cooperation, and a small and medium-sized enterprises service center for PSC. In the meantime, measures including the building of a China-PSC financial service platform, a RMB clearing center for PSC, a China-PSC cultural exchange center, youth innovation and entrepreneurship exchange center, China-PSC bilingual training base are being gradually implemented.
In 2003, the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries was established in Macao. Now, the number of parties reaches 10.
The Macao SAR is part of one of the fastest growing regions in the world – the Greater Bay Area. The future of the SAR is moving fast-forward, for the benefit of the unborn generations.
*The author is an associate professor at the University of Macau (UM). The views don’t necessarily represent those of China Daily.
– Story courtesy of China Daily
