As many as 875 Macau companies have now registered their commercial operations in order to conduct business in the Hengqin pilot Free Trade Zone (FTZ), as new developments continue to incentivize investments on the island.
A report from broadcaster TDM found that up to 1,097 companies from Macau and Hong Kong have submitted their applications to operate in Hengqin.
The Hengqin Free Trade Zone is prioritizing businesses that promote industries such as tourism, leisure, health, culture, education, technology and financial services.
A series of recently introduced financial incentives are deemed at least partly responsible for the surge in registered parties.These measures include a preferential tax policy which states that companies established in Hengqin are entitled to a 15-percent reduction in income taxes.
Furthermore, products manufactured in mainland China and sent to the Hengqin New Area will be considered exports and, as such, will be eligible for tax rebates.
A simplified clearance system between Hengqin and Macau, known as a system of “hierarchical management,” has also been adopted. The system is being implemented along the principles of “easing first hierarchy, controlling second hierarchy, separating passengers from goods, and managing by classification.”
Hengqin authorities have asserted that these financial incentives, the majority of which have been rolled out across the last three years, have made investment on the island far more attractive to corporations from Macau and Hong Kong.
“In the past three years, the whole development – especially the facility development – in the free trade zone has been speeding up,” noted Niu Jing, the director-general of the Hengqin New Area Administrative Committee.
“The environment is much better compared to three years ago. Now enterprises have a strong motivation to register in the Hengqin Free Trade Zone,” Niu added, according to TDM.
The committee attributes the increase in the pace of registering organizations to the establishment of the FTZ, which they say has sped up the development’s progress.
Even outside the targeted industries, authorities have noted the success of the Henqgin Entrepreneurship Valley for Macau Youth project, which seeks the involvement of young entrepreneurs.
So far, two groups of 90 local companies have registered, totalling investment capital of around MOP45 million.
According to the committee that manages the Hengqin New Area, as of April this year, the seven leading projects in the Hengqin New Area were: Shizimen CBD; the Hengqin Finance Industry Service Base; Chimelong International Ocean Resort;Xiangzhou Culture Street; Guangdong-Macau Cooperative TCM Science &Technology Industry Park; the Combined Gas Energy Supply Project of Hengqin Island; and the New Campus of the University of Macau on leased land from Zhuhai. Staff reporter
