CEPA opens doors for local businesses diversifying into new markets in GBA

Chief Executive Ho Iat Seng, witnesses the signing of the second agreement on amendment to the Mainland and Macau CEPA

In the News

The Office of the Secretary for Economy and Finance (GSEF) has announced that an updated Closer Economic Partnership Arrangement (CEPA) with mainland China was signed earlier this week. This agreement aims to enhance economic exchanges and cooperation, marking a significant milestone as Macau celebrates the 25th anniversary of its handover to China.

Scheduled to take effect on March 1, 2025, the new CEPA introduces liberalization measures across various sectors, including technology, finance, and cultural enterprises. These changes are expected to facilitate easier access to the vast mainland market for local firms. Notably, tech companies certified under the ‘Technology Enterprise Certification Scheme’ will be treated equally to their mainland counterparts, gaining access to the same tax benefits from the start date.

In a significant shift, financial services providers will no longer be required to demonstrate five years of substantial commercial activity before entering the mainland market. This opens opportunities for newer businesses to expand their operations. Furthermore, cultural enterprises will benefit as co-produced films and television shows with mainland firms will be classified as domestically produced, easing broadcasting and distribution processes.

The agreement also eliminates a prior requirement for Macau service suppliers to have engaged in substantial business activity for at least three years before entering the mainland market. This change is particularly advantageous for younger Macau businesses looking to tap into new markets.

The signing ceremony was attended by key officials, including Macau’s Secretary for Economy and Finance Lei Wai Nong and Chief Executive Ho Iat Seng. This updated CEPA not only strengthens Macau’s integration with mainland China but also supports its broader economic diversification strategy within the Guangdong-Hong Kong-Macao Greater Bay Area.  MDT/NS