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Friday, January 07, 2000, updated at 14:53(GMT+8)
China Taiwan Businessmen Encouraged to Use Macao as Springboard

Chen Chong-yung, president of the Macao Taiwan Chamber of Commerce, said that Chief Executive of the Special Administrative Region of Macao (MSAR) Edmund Ho Hau Wah had indicated that preferential measures would be adopted to encourage Taiwan businessmen to invest in Macao, Taiwan businessmen should seize this chance to seek commercial opportunities and take Macao as an important stronghold for investment.

What is more, products, processed in the hinterland of China, can be exported from Macao to Europe, thereby substantially reducing production cost.

Chen Chong-yung, who has been investing in barroom in Macao for nearly a decade, indicates that gambling, lottery and tourism have always been the focus of Macao's economy in addition to the manufacturing industry. In Macao, Taiwan businessmen need only to pay HK$1,570 worth of taxes a year, they do not need to pay personal income tax and business tax. Chen believes that after its return to the motherland, Macao will not switch to levying personal income tax or enterprise income tax, so factories and firms need not worry about this.

According to the analysis made by Chen, with the garrison troop of the Chinese People's Liberation Army in Macao, the region's public security should be improved, for this, future tourists would like to come to Macao for tour, gambling and the lottery business, which will therefore, give an impetus to the development of Macao's economy. He said that Portugal takes agriculture as its foundation, so it is not business-minded. After Macao's return, the Central Government and the MSAR government will devote their efforts to improving Macao's economy by adopting many new policies to encourage investments.

According to Chen, MSAR's Chief Executive Edmund Ho Hau Wah hopes that Taiwan businessmen can increase investments in Macao, particularly investment in hi-tech industry, so as to boost Macao's industrial development. After Macao's return, only 5 percent of customs duty are required for goods processed in the hinterland and to be transported from Macao to the European Common Market, this can save a lot of export cost, furthermore, the Taipei Bank in Macao can help Taiwan businessmen in matters related to documents and the opening of letter of credit. In the future, Taiwan businessmen should make more use of Macao as an important stronghold for investing in the mainland of the motherland.

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