Page 136 - 2023 Special Report on the State of Business in South China
P. 136
Macao
The economy Implementation of the Chinese mainland and
Macau Closer Economic Partnership Arrangement
Macao is located on the southeastern (CEPA) and the Pan-Pearl River Delta Regional Co-
coast of China, along the operation Framework Agreement, the Framework
west bank of the Pearl River estuary. It is 60km for Development and Reform Planning for Pearl
and 145km away from Hong Kong and Guangzhou River Delta Region, the Framework Agreement on
respectively, and shares a border with Zhuhai to Co-operation between Guangdong and Macau,
the north. With a population of 683,100 in an area and the Framework Agreement on Deepening
of 32.9km2, it is the most densely populated region Guangdong-Hong Kong-Macau Cooperation in the
in the world. Macau was returned to China from Development of the Greater Bay Area will further
being a Portuguese colony in 1999. The region’s enhance the economic integration of the Pan-Pearl
economy is heavily relying on the tertiary industry, River Delta (PRD) region.
which accounts for 91.3% of the industry structure.
The Covid-19 situation in Macau remained volatile Recent policies and reforms
in 2021 but improved compared to 2020, with GDP
increase 18% to RMB192.9 billion85. Policy address for the fiscal year 202286
Market highlights The chief executive of Macau has released
the 2022 policy address, which reviews the
With respect to external demand, exports of government’s work in 2021, provides an overall
gaming and other tourism services surged by direction of administrative policies for 2022 and
45.0% and 127.2% YoY respectively, driven by a highlights the main development tasks in the
rebound in the number of visitor arrivals to Macau following years. Specifically:
in 2021. As a result, exports of services leapt by
62.1%. Meanwhile, exports of goods showed an Main tasks:
uplift of 91.0%.
- Consolidate anti-pandemic mechanism
In terms of economic structure, Macau has and promote stable economic recovery: Increase
been rated by the World Trade Organization (WTO) the overall vaccination rate among Macau
as one of the most open trade and investment residents, and implement multiple measures –
regimes in the world. It is a free port and an including increasing investments, cutting taxes,
independent tariff zone, with a corporate profit supporting businesses, and stabilizing employment
tax rate of no more than 12%, and a far-reaching – to facilitate stable economic recovery, safeguard
international marketing network with close ties local employment and livelihood stability, and
to Portuguese-speaking countries. Macau ’s role keep society operating normally with a healthy and
as a trade and economic co-operation service stable financial system
platform between China and Portuguese-speaking
countries has received increasing recognition over - Foster and develop various industries to
the years. expedite adequate economic diversification: Fully
85 The government fo Macau, https://www.dsec. 86 Government site of Macau, https://www.gov.
gov.mo/getAttachment/8311b8c9-e835-4599-9975- mo/en/wp-content/uploads/sites/2/2022/01/2022_
3bacfd015102/E_MN_PUB_2022_Y.aspx policy_e.pdf
136
The economy Implementation of the Chinese mainland and
Macau Closer Economic Partnership Arrangement
Macao is located on the southeastern (CEPA) and the Pan-Pearl River Delta Regional Co-
coast of China, along the operation Framework Agreement, the Framework
west bank of the Pearl River estuary. It is 60km for Development and Reform Planning for Pearl
and 145km away from Hong Kong and Guangzhou River Delta Region, the Framework Agreement on
respectively, and shares a border with Zhuhai to Co-operation between Guangdong and Macau,
the north. With a population of 683,100 in an area and the Framework Agreement on Deepening
of 32.9km2, it is the most densely populated region Guangdong-Hong Kong-Macau Cooperation in the
in the world. Macau was returned to China from Development of the Greater Bay Area will further
being a Portuguese colony in 1999. The region’s enhance the economic integration of the Pan-Pearl
economy is heavily relying on the tertiary industry, River Delta (PRD) region.
which accounts for 91.3% of the industry structure.
The Covid-19 situation in Macau remained volatile Recent policies and reforms
in 2021 but improved compared to 2020, with GDP
increase 18% to RMB192.9 billion85. Policy address for the fiscal year 202286
Market highlights The chief executive of Macau has released
the 2022 policy address, which reviews the
With respect to external demand, exports of government’s work in 2021, provides an overall
gaming and other tourism services surged by direction of administrative policies for 2022 and
45.0% and 127.2% YoY respectively, driven by a highlights the main development tasks in the
rebound in the number of visitor arrivals to Macau following years. Specifically:
in 2021. As a result, exports of services leapt by
62.1%. Meanwhile, exports of goods showed an Main tasks:
uplift of 91.0%.
- Consolidate anti-pandemic mechanism
In terms of economic structure, Macau has and promote stable economic recovery: Increase
been rated by the World Trade Organization (WTO) the overall vaccination rate among Macau
as one of the most open trade and investment residents, and implement multiple measures –
regimes in the world. It is a free port and an including increasing investments, cutting taxes,
independent tariff zone, with a corporate profit supporting businesses, and stabilizing employment
tax rate of no more than 12%, and a far-reaching – to facilitate stable economic recovery, safeguard
international marketing network with close ties local employment and livelihood stability, and
to Portuguese-speaking countries. Macau ’s role keep society operating normally with a healthy and
as a trade and economic co-operation service stable financial system
platform between China and Portuguese-speaking
countries has received increasing recognition over - Foster and develop various industries to
the years. expedite adequate economic diversification: Fully
85 The government fo Macau, https://www.dsec. 86 Government site of Macau, https://www.gov.
gov.mo/getAttachment/8311b8c9-e835-4599-9975- mo/en/wp-content/uploads/sites/2/2022/01/2022_
3bacfd015102/E_MN_PUB_2022_Y.aspx policy_e.pdf
136
