As one of the world's outstanding minitype economies, Macao, despite some difficulties, still enjoys bright prospects for economic development owing to its return to China on December 20, local business people said.

Seng San Enterprises Ltd., Macao's largest textiles exporter, has recently tripled its workshops, getting ready for further development.

"No. 1 in Macao is far from enough, and we should turn to the world market. We need to transform our labor-intensive enterprises into capital and technology-intensive ones in a bid to participate in international competition," said Seng San's president Lionel Vai Tac Leong.

Macao's per capita gross domestic product (GDP) topped 17,000 U. S. dollars in 1996, ranking 21st among the 159 countries and regions in a World Bank survey, placing Macao among the group of high income economies in the world.

Its comprehensive strength and economic scale, however, are still weak and small. And moreover, its carrying capacity for population is limited, making it difficult to rapidly promote economy in a short period of time through increasing population.

"The key to escaping from current economic difficulties lies in cultivating a healthy environment and driving force for new economic growth, in addition to improving public order, administrative efficiency, and the legal system," said Ieong Wan Chong, a professor of economics at University of Macao.

Macao, as a minitype economy, is easier to adapt to market fluctuations. So, it should learn to fight as a guerrilla and timely restructure its economy, because Macao cannot be leading in a certain sector all the time by relying entirely on its own, Ieong said.

Another way out for Macao, which is short of resources, is to strengthen regional cooperation, especially with the inland areas, Hong Kong, Taiwan, and foreign countries, business people said.

Macao has wide-ranging economic and trade contacts with the outside world, and is economically heavily dependent upon the neighboring countries and regions, which have begun to recover from the Asian financial crisis, a guarantee for Macao to obtain new and more development space, Prof. Ieong said.

Macao witnessed its prime time for economic growth from the 1970s to the 1990s, reporting double-digit increases. Beginning in 1993, however, Macao's economy gradually slowed down, and even registered negative increases in the past three years. (Xinhua)