China's Macao Special Administrative Region (SAR) has seen substantial progress in economic diversification, with hi-tech, business and tourism industries prospering, since its return to the motherland 25 years ago.
One of the driving forces behind Macao's economic diversification is China's development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
In February 2019, China unveiled the outline development plan for the bay area, which is known as one of the country's most open and economically vibrant regions and consists of nine cities in Guangdong Province - Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing - and the two special administrative regions of Hong Kong and Macao.
According to the plan, Macao, as one of the four core cities in the GBA, plays a key role in driving regional development.
Zhuhai City's Hengqin, which is located just across the river from Macao but spans about three times the land area of the SAR, helps relieve the region's land shortage.
Since the Guangdong-Macao In-depth Cooperation Zone was established in Hengqin in 2021, it has become a hub for innovation and entrepreneurship, housing nearly 6,521 Macao-invested enterprises and providing a platform for emerging industries.
Lei Zhen founded Nanometals Technology in Zhuhai in 2014, focusing on innovative applications of new materials, with nano silver wire as the core product.
In 2018, Lei's project won global acclaim, taking first place in a prestigious startup contest. Three years later, Nanometals relocated to Hengqin, seizing opportunities in the cooperation zone.
He said Hengqin serves as a bridge between Macao and Chinese mainland.
"Through Hengqin, Macao can get access to the Chinese mainland's resources for the entire industrial chain, and there are also rich industrial supporting facilities and a low-cost industrial manufacturing environment, which can provide a broad stage for the development of Macao's diversified emerging high-tech industries," he said.
Last November, the Macao SAR government released a development plan for the region's economic diversification from 2024 to 2028, the first systematic industrial development plan issued in Macao.
The document outlines specific planning and arrangements for developing Macao's tourism and leisure sectors, traditional Chinese medicine (TCM) and big health, modern finance, new and high technologies, conventions and exhibitions, and culture and sports, based on the second five-year plan of the Macao SAR and the city’s economic diversification strategy.
Macao has made strides in boosting the development of tourism and leisure sector.
It established a world heritage monitoring center, and has introduced international cultural and artistic activities. At least two international sports events are held in the region every month.
International travelers said they are impressed by Macao's cultural diversity and inclusiveness.
"I'm very happy and enjoy [myself] here in Macao. It's very vibrant because all kinds of culture and tradition are being shown here in Macao," said a Philippines tourist.
Macao has also dedicated itself to boosting technological innovation, finance and international trade with four key state laboratories in the fields of TCM quality research, space science, healthcare science, and others.
In 2023, the total added value of Macao's four key industries including TCM reached 39.05 billion patacas (about 4.88 billion U.S. dollars), an increase of 6.9 percent from 2019.
In terms of finance, investment banks and financial asset trading platforms have been created from scratch, and as of the end of June 2023, the assets of Macao's financial industry amounted to more than 2.7 trillion patacas.
When it comes to international trade, Macao has established stable economic and trade relations with more than 120 countries and regions, and won recognition from the World Trade Organization as one of the most open trade and investment economies in the world.
Macao will continue to integrate into the overall development of the country and diversify its economic growth, according to local officials.
"The Macao SAR will seize the opportunities of the country's further comprehensive deepening of reform and high-level opening-up in the new era, align with the national development strategy, and make good use of the central government's various favorable policies to Macao. Macao will leverage its unique advantages brought by the 'one country, two systems' policy, its role as an international trade free port and a separate customs territory , its simple and low-tax system, and the blend of Chinese and Western cultures so as to promote the diversification of its economy and better integrate into the overall national development," said Cheong Chok Man, the director of the Macao SAR government’s Policy Research and Regional Development Bureau.
Macao sees substantial progress in economic diversification
