Analysis | Guangdong-Macau cooperation zone in Hengqin to bring great opportunities

The Chinese central authorities’ plan for building the Guangdong-Macau in-depth cooperation zone in Hengqin has been hailed as a “major good news” for the Macau SAR.
Bringing with it new opportunities and new space for Macau, a city rather small in terms of its land area, the plan, issued by the Communist Party of China Central Committee and the State Council and made public on Sunday, is expected to create new impetus for Macau’s development by facilitating its better integration into overall national development.
Experts from various sectors of Macau have told Xinhua that the plan will inject fresh vitality into Macau’s higher education, scientific research and development, the tourism and leisure industry, and finance.

GENERAL GUIDELINES, POLICIES
The plan defines the strategic position of the zone as a new platform to boost Macau’s appropriate economic diversification, a new space that provides convenience to Macau residents’ life and employment, a new model to enrich the practice of “One country, two systems,” as well as a new high ground for building the Guangdong-Hong Kong-Macau Greater Bay Area.
The plan prioritizes people’s livelihood with a set of concrete measures to build Hengqin into a new home for Macau residents to live and work in, such as exemption of income tax margins, lowering and gradually calling off charges for long-distance phone calls and cross-border internet connections between the two places, further facilitating Macau-registered vehicles into and out of Hengqin in a more convenient manner, and the joint building of regional medical centers by Guangdong and Macau.
Ho Teng Iat, president of the General Women’s Association of Macau, told Xinhua that the plan could bring opportunities for the SAR to share the land resources, the pool of professionals and large scientific and technological equipment with Guangdong under the mechanism of mutual discussion, joint construction, joint administration and shared benefits between the two sides.
“It will help enhance the sense of gain, happiness and security for residents at the Greater Bay Area, including Macau,” Ho said.
Ian Soi Kun, chairman of the Macau Jiangmen Communal Society, said Macau should step up its efforts to invite outside investments on major projects in the industries of health, high-tech, exhibition, modern finance and culture and sports, in accordance with the strategic positioning and overall planning of the in-depth cooperation zone and on the basis of the city’s practical situations.
Lao Chi Ngai, chairman of the Macau Economic Association, said the plan has set guiding policies on various fronts such as management system, industrial development, residential living and cross-border linkage, which gives clear directions coupled with maneuverability and flexibility.

OPPORTUNITIES FOR DIFFERENT SECTORS
Song Yonghua, rector of the University of Macau, said the plan will help Macau explore appropriate marketization for its higher education sector, which has long been held back by limited space and market.
“According to the plan, the cooperation zone will continuously improve the convenience of customs clearance between Macau and Hengqin, which will help promote cross-border personnel exchange and therefore, effectively stimulate the vitality of teaching, learning and scientific research,” said Song.
Experts from the tourism industry believed the plan will greatly benefit the SAR’s tourism and leisure industry with its simplification of the cross-border flow of goods and personnel, investments and financing.
Wong Fai, president of the Macau Leisure Tourism Services Innovation Association, said the cooperation zone will provide bigger development space for Macau’s leisure and tourism industry employers and help push for the upgrading and transformation of the industry.
“Measures such as exemption of investment income tax will attract more small- and medium-sized enterprises (SMEs) to invest in the zone,” Wong said.
Ip Sio Kai, president of the Macau Association of Banks, said the plan laid out major arrangements for supporting the development of modern finance and cross-border finance, with the new policy of free flow of cross-border capital and convertible capital accounts between Macau and Hengqin being a major innovation in the financial industry.
“This will provide a broad market and powerful policy support for the future development of Macau’s financial industry,” said Ip.
Ip Kuai Peng, pro-rector of the City University of Macau, said the city should take full advantage of the “One country, two systems” principle and its status as an international free trade port, as well as Hengqin’s advantages in geographical location, resources and space, to make utmost efforts to focus on prioritized sectors and develop new industries, in aligning with the Guangdong provincial government and the Zhuhai municipal government.
“Macau should endeavor to help build a new integrated high-level opening up system between Hengqin and Macau to make the cooperation zone a new demonstration of the practice of ‘One country, two systems,’” he said, suggesting efforts to start with hierarchical management and talent introduction. MDT/Xinhua