Extensive application of the digital technology is the key to vitalizing Macao's economy and brightening its economic prospects, economists in Macao said at a recent seminar as Macao is ready to revert to Chinese rule on December 20.

At the special seminar held at the Macao Government Palace, experts proposed in unison, largely to the soon-to-be-established government of the Macao Special Administrative Region (Macao SAR), that a digital-technology-based economy be developed to make Macao economically competitive in the new century.

Speakers at the seminar maintained that Macao has various advantages in developing an economy with an extensive application of the digital technology: its cultural diversity, its openness to the rest of the world, its free trade policies, the free flow of capital into and out of its boundaries, and its geographical location. These, they said, combine to make Macao a bridge between the Chinese mainland and the outside world. Macao's comfortable living environment is attractive to talent -- the most important asset for developing a digital technology-based economy. In addition, Macao has had the necessary infrastructure in terms of technology and knowledge.

Economic restructuring has been a challenge for Macao, whose economy is heavily dependent on the tourism and gaming industry, export-oriented processing, real estate and finance. Macao's economy has slowed down since the early 1990s due to the Asian financial crisis and internal economic problems.

Going digital, therefore, is particularly important for Macao's economy. This is regarded as an important factor in enhancing the competitive edge of the region's industrial sector and diversifying its economy.

The government should encourage the use of digital technology in public institutions, grant policy incentives to the research of related technologies, and formulate regulations concerning industries that are heavily dependent on digital technology, including the telecom sector, a speaker from the Macao Productivity and Technology Transfer Center said.

Official guidance for the information industry is necessary and a special committee also needs to be established to spread the use of digital technology, according to speakers.

"Our package of proposals for developing a digital economy in Macao is a present of the Portuguese Macao government for the incoming Macao SAR government," said Dr. Eric T.M. Yueung, chairman of the Macao Productivity and Technology Transfer Center.

Extensive use of the digital technology will enable Macao to cement its role as a bridge between the Chinese mainland and the outside world and, at the same time, serve to brighten its own economic prospects, he said. (Xinhua)