There is no slowing down the evolution and collaboration across the globe when it comes to economic growth.
China is a big influencer in such advancements and is currently focused on plans to boost the economy in Hong Kong and Macao.
The new system gives room for more growth and development which will boost the economy.
Masterplan in Motion
The administrative organisations for the Guangdong-Macao In-depth Cooperation Zone were inducted earlier this week. According to a Nanfang Media Group report, it is a rather unique step to take, to involve a Special Administrative Region (SAR) in the governing of an area on the Chinese mainland.
This is all part of China’s plans to develop a Guangdong-Macao cooperation zone in Hengqin and then further develop a Shenzhen-Hong Kong cooperation zone in Qianhai. The idea is to provide more space to drive development in Hong Kong and Macao.
Hengqin is located within Zhuhai City, Guangdong which is just across from Macao. It covers 106 sq km and is three times the size of Macao.
The management committee co-led by the Macao Chief Executive and Governor of Guangdong will continue to make joint decisions on all the major planning, policies, projects, and personnel arrangements. The executive committee will on the other hand be in charge of managing the economy and the wellbeing of the people.
Macao vehicle owners who want to drive into Hengqin can now complete a license application process in Macao. A number of enterprises already received the first batch of business licenses and a group of Hong Kong and Macao physicians received certificates to work within the specified zones.
According to Wang Fuqiang from the China Center for International Economic Exchange, the new model is set to mobilise Macao allowing it to participate in Hengqin’s development. It will also allow for an integrated environment that will be much more suitable for both the Macao businesses and residents.
The priority of the Hengqin plan will be health, modern finance, hi-tech, exhibitions and trade, along with culture and sports industries. All eligible industries and enterprises in this zone will be subject to a reduced tax rate of 15% on business income tax.
Guo Wanda, Executive Vice President of China Development Institute, stated that the cooperation zone will keep the distinction of Macao by developing signature industries which include traditional Chinese medicine (TCM), tourism and convention.
The aim is to diversify the Macao economy which, according to Wanda, has been over-reliant on the gambling industry making it vulnerable to external risks.
Expansion of Qianhai
The plan for Qianhai is to expand the Shenzhen-Hong Kong cooperation zone from the current 14.92 sq km to 120.56 sq km. The reason being that it will give Hong Kong a chance to tackle a number of economic problems which stem from the lack of space.
According to Vice Chairman of National Development and Reform Commission, Cong Liang, the expansion offers more space for current companies while involving more industry categories. Thus, bringing Hong Kong’s full superiority into play.
It is clear that there has been extensive planning with the focus on driving the economy to provide more job opportunities and enhance the connection between Hong Kong and Macao.
What this means for the overall gambling industry in Macao remains to be seen but after a difficult time dealing with the fallout of the pandemic, there’s no doubt that those who lost work opportunities and job security will welcome any sort of support.