Macao prepares for new opportunities for further development

To Hong Kong, Macao resembles a close sibling living side by side with us. As the Macao Special Administrative Region celebrates her 20th anniversary of establishment, we are glad to congratulate Macao residents for their admirable achievements in both economic and social development over the past 20 years. Over a period of two decades, Macao has grown its GDP by eight times from US$6.1 billion in 1999 to US$55 billion last year. The median monthly income of its residents has also more than tripled from about 4,800 patacas (US$600) in 1999 to nearly 17,000 patacas earlier this year. The unemployment rate stands at a low of about 1.8 percent, a level suggesting full employment. It is conceivable Macao is on track to achieve greater success in the years ahead, given that the city has political stability and social harmony, two of the cornerstones for development. With the visit of President Xi Jinping, the Macao Special Administrative Region is embracing not only her 20th birthday but also tremendous opportunities for development.

One of the topical issues concerning Macao’s development is the “moderate economic diversification of Macao,” which has been suggested for many years. However, Macao is like other cities in a way that it can hardly get rid of living off its established success. On one hand, as Macao is constrained by her small labor and consumer markets, it lacks the strength to transform its economy. On the other hand, although the city’s flourishing casino industry has made Macao the “gambling capital of the world” with a massive amount of revenue generated each year, it has become so dominant that it is crowding out other sectors or threatens the development of other sectors, particularly in nurturing talent.

The gambling industry is displaying further signs of weakness as figures in November show. This doesn’t bode well for the 57,000 staff employed by the city’s approximately 40 casinos as well as for the entire economy. What makes Xi’s visit a critical juncture for Macao’s development is that he is expected to announce a slew of new policies aimed at helping to diversify the city’s economy. The new policies will present a golden opportunity for Macao to break its reliance on the gambling industry and pursue development in some new economic fields.

The successful implementation of “one country, two systems”, especially in the aspect of national security, is undeniably the key to Macao’s development over the years. The Macao SAR enacted a local version of national security law in 2009, which has gone a long way in safeguarding national sovereignty while ensuring the stable development of the city. Moreover, national security is further facilitated by the successful implementation of national education in Macao. Before the handover, most Macao residents did not have a sense of national identity. It was not until China resumed the exercise of sovereignty over Macao that students were taught the Chinese national anthem and attended regular flag-raising ceremonies. National education has helped expedite the decolonization process. The enhancement of national security protection and national education is vital to strengthening political trust between Macao residents and the central government. With strong mutual trust, Macao will be able to play a more strategic role in national development which will, in turn, benefit the city’s development in future.

People are fond of comparing Hong Kong and Macao. And some have opined that the former sees its significance diminishing. Given the different historical and demographic backgrounds of the two special administrative regions, it is neither necessary nor fair to draw a direct comparison of the two. As a matter of fact, Hong Kong and Macao each plays a distinctive role, especially in the Guangdong-Hong Kong-Macao Greater Bay Area’s development. It is expected that the new measures introduced by the central government will focus on further integrating Macao with mainland cities in the Bay Area. They are expected to further facilitate the central government’s mega plan to connect Hong Kong, Macao and nine major cities in Guangdong province to form an economic powerhouse. Consequently, both SARs will certainly benefit more as key players in the Bay Area project.

Two years ago, when Xi visited Hong Kong, he cited a well-known Cantonese idiom to admonish Hong Kong not to miss the proverbial boat. Indeed, opportunity seldom knocks at the door twice. The “boat” is now on its way to Macao, and a wise move for Hong Kong would be to jump on to the boat, which is setting sail for a promising economic hinterland.

The author is research officer of the One Country Two Systems Research Institute.

The views do not necessarily reflect those of China Daily.