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Roundup: Macao SAR Steps Out of Economic Recession
Economic resurgence in the Asia-Pacific region, and improving public security and more efficient government work in Macao has helped the local economy step out of recession.
Casting off economic recession of previous four years, the Macao Special Administrative Region (SAR) of China is expected to witness a growth rate of 4 percent this year.
In the beginning of the year, the government put forward the strategic policy of steady development, believing that the economy has to recover slowly after the long stagnation.
Priority was put on improving the overall economic environment. A number of economic laws have been revised in accordance with the realities in Macao and international practices. In the meantime, administrative efficiency has been raised to give business activities more freedom.
Thanks to simplified government formalities and better investment policies, more business people have decided to invest in Macao. In the first ten months, the Macao Trade and Investment Promotion Institute succeeded in approving 25 projects which involved a total investment volume of 120 million patacas (US$15 million).
Local and business people from outside have greater confidence in investing here. Official statistics show that 529 new companies were set up in the first three quarters this year, an increase of 45 percent over the same period last year.
Besides businessmen in Macao, bosses of the new companies came from countries and regions including Singapore, Japan, the United States, Russia and Hong Kong. They believe the economy in Macao is recovering and it is right the time to grasp business opportunities.
Acting as pillar sectors in the economy, tourism and gaming industries have demonstrated remarkable booming. Passenger arrivals to the SAR reached 7.6 million from January to October, which rose 24 percent over the same period last year.
Tourism officials estimate that the total number for this whole year may top 8.5 million, which is equal to 20 times of Macao's population. The record number of 8.15 million tourists was made in 1996.
The prosperity can be attributed to better public security and the hard work of tourism officials. Along with the foreign visits of the chief executive, official tourism delegations would go together to better publicize Macao and attract more prospecting tourists.
As a result of more tourists, the gaming industry is booming, too. Figures from the Macao Tourism and Amusement Company, which runs franchise casino business, show that the company's income in the first three quarters rose by 26.5 percent over the same period of 1999.
As to external trade, Macao's export and import volumes were 16.75 billion patacas (US$2.09 billion) and 14.8 billion patacas (US$1.85 billion), respectively, which rose 14.7 percent and 10.7 percent, respectively, over a year ago.
At the end of October, the region's trade surplus reached 1.95 billion patacas (US$243.75 million), which soared 57.9 percent over that of last year
The operation of banking sector has also turned for the better.Many banks have shaken off the stress caused by the Asian financial crisis and made more profits.
In the first half of the year, the banks' profits reached 499 million patacas (US$62.4 million). Their total assets exceeded 130 billion patacas (US$16.25 billion), which acts as a stronger booster of the economy.
Economic officials said that next year the government will work harder to promote the formation of a more efficient market mechanism and try to create an economic environment of fair competition.
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