Macao: Return Brightens Economic Prospects

For Macao, return to the embrace of its motherland is expected to brighten economic prospects thanks to accelerated post-return exchanges between the region and the rest of China in economic, trade, technology and other fields, experts say.

Though Macao was one of the economically fastest-growing regions in the world in the 1980s, its economic growth has slowed down in the 1990s since its four pillar industries of tourism and gambling, export-processing, finance and real estate are vulnerable to external influences.The recent Asian financial crisis has had a negative impact on the local economy, and so have its internal problems in economic structure and public security.

In visualizing local economic prospects, economists refer to Macao's numerous advantages: Macao's status as a free port, enabling it to serve as a way station for Taiwan businesses with investment in the Chinese mainland; Macao's geographical proximity to Hong Kong and the Pearl River Delta, one of China's economic powerhouses; the unique role it plays as a trade and cultural link for the Chinese mainland and the West; its legally-run gaming industry; and special tariff treatment it receives from Western trade partners.

Recently-completed infrastructure projects such a deep-water dock, an international airport, the Friendship Bridge and the Lotus Bridge have improved the region's investment climate. More such projects are under construction, including an ocean park and a sightseeing tower.

Macao will face both opportunities and challenges after its return to China, but opportunities are expected to outweigh challenges, according to An Min, an aid to China's minister of foreign trade and economic cooperation.

In the first place, an improving external environment is expected to speed up Macao's development: economies impacted by the Asian financial crisis are recovering and Hong Kong is also enjoying healthier economic growth than expected.

The strongest support for Macao comes from the mainland, where reform of state enterprises is going in depth and the economy is healthy and expanding. China's impending entry into the World Trade Organization will also bring Macao more opportunities.

The future Macao Special Administrative Region Government, led by chief executive designate Edmund Ho Hau Wah,is expected to map out a new blueprint to better guide the region's economic development.

The Chinese mainland, Hong Kong and Macao are expected to become more active in exchanges after Macao returns to China, making it possible for Macao to better develop itself by relying on the other two parts of the country.

Introduction of technologies from the mainland to Macao is expected to receive a boost after Macao's return to its motherland; and mainland enterprises, research institutes, and institutions of higher learning may also set up branches or businesses in Macao, a free port, where they are likely to find it easier to raise funds and do trade.

Economists point out that, with an improving external environment and active support from the mainland, and with Macao's return to its motherland inspiring greater patriotism and work enthusiasm among the local people, Macao is assured of a better future.


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