Policy Address 2019: Seize opportunities for balanced development

“In 2019, both internal and external economies will be complicated and volatile, but Macao’s economy is expected to continue growing steadily.” Chui Sai On, Chief Executive

Highlights from the Macao SAR Government policy document include support to develop the city’s financial industry and measures to encourage investment in innovation, research and development.

Chief Executive Chui Sai On delivered the Policy Address for 2019 entitled “Seize Opportunities for Balanced Development” to the Legislative Assembly in mid-November. According to the Policy Address for Fiscal Year 2019, the Macao SAR Government has unveiled a new tax incentive to promote local technology innovation, and a series of new measures to develop the city’s financial industry.

Mr Chui highlighted that in 2019, both internal and external economies will be complicated and volatile, but Macao’s economic situation is expected to continue growing steadily. The Macao SAR Government will remain cautiously optimistic to be vigilant and examine the situation while taking countermeasures to improve the business environment, make reasonable use of the macro policy of tax revenues and to ensure a timely increase in public investments.

Moreover, an innovative network to bridge education, scientific research and industries will be introduced to boost the formation of new industries, drive the reconstruction of firms, expand market size as well as improve quality and efficiency for the active growth of emerging industries.

Development of technological innovation

The Macao SAR Government emphasised the importance of technological innovation on an international scale. Therefore, the newly established Working Committee for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area will focus on the “Technological Innovation and Smart City Working Group”. Key areas “such as Traditional Chinese Medicine, computing chips, Internet of Things, artificial intelligence, space science and planetary exploration, will be strengthened,” said Mr Chui.

The Policy Address also highlighted that Macao will integrate into the technological innovation development of the Greater Bay Area through its own advantages making use of the “Centre and Platform” policies. Meanwhile, a strategy will also be put into place to drive technological innovation and develop an international innovative city. For enhancing all aspects of building a smart city, the first phase of a Government-owned cloud computing centre and big-data platform is expected to begin in 2019, with authorities also keen to initiate the preparatory work for rolling out a 5G communications network.

The Chief Executive unveiled a new Tax Concession Incentive Scheme for Scientific Research and Innovation to implement the development planning of the Greater Bay Area. This new scheme will offer a triple reduction in profit taxes for the first MOP3 million invested in joint venture research and development (R&D) as well as a double reduction in profit taxes for additional spending for up to MOP15 million.

Participation in the ‘Belt and Road’
and Greater Bay Area

The Chief Executive also stated that Macao will actively participate and contribute to the “Belt and Road” initiative as well as make full use of Macao’s role as a Commercial and Trade Co-operation Service Platform between China and Portuguese-speaking Countries. Through constant work on unimpeded trade, financial integration and people-to-people exchanges to co-ordinate political measures, Macao will aggregate resources and establish complementary strengths to achieve mutual development.

The Macao SAR Government will also continue to support the Greater Bay Area development and to further communication between Guangdong, Hong Kong and Macao to work closer on the development of the city cluster. In addition to participating in the development of Hengqin and Nansha sub-zones of the Guangdong Free Trade Zone, Macao will also join in efforts with Zhongshan to develop a “Guangdong-Macao Co-operation Display Zone”.

Meanwhile, the Macao SAR Government will also study the feasibility of forming collaborations with Jiangmen in the development of the Greater Bay Area. Another aim is to expedite interconnectivity of border crossing infrastructure.

Promoting Macao tourism in countries and places covered by the “Belt and Road” initiative, exploring opportunities within the Greater Bay Area and investigating the feasibility of marine industrial cluster and high-end services industrial cluster are also key points in the Policy Address. The former is designed to help the tourism industry launch products that better fit the market, to expand multi-destination travel while the latter involves facilitating the Individual Travel Scheme for Yachts and refining related services.