‘Economy diversification opens more opportunities for UK companies’

UK Trade and Investment (UKTI) has initiated another trade mission to Macau and Hong Kong as it aims to encourage more UK companies to forge business relations here. UKTI Hong Kong Trade Commissioner Frances Moffett-Kouadio said in an interview with the Times that Macau’s need to diversify its economy actually opens up more doors to British businesses. Creative companies are hoping to take part in casino resorts’ ventures into the non-gaming market segment.

Macau Daily Times (MDT) – What are the main goals of this UK trade mission to Hong Kong and Macau?
Frances Moffett-Kouadio (FMK) – Macau has currently around 80,000 people working on the construction of the various new phases of casinos. So the companies we’ve brought are involved in theatre design, experience economy, virtual reality, and a whole range of resources that support those specialized lifts, for example, for theatres.
So what we need to do is to talk to all those resort developers to see what the opportunities are going to be long-term for these companies. A few of them are already working here; they’ve done projects here. But we need to look much longer term so that we can introduce them to those companies now, before the infrastructures are even finished.

MDT – How many UK creative companies are already doing business in Macau?
FMK – In this sector we probably have a handful. We had a company that last year had an opportunity at City of Dreams to do some virtual reality work. Quite a few companies already work here. The wave pool, for example, at Galaxy – it was a UK company that put in the wave pool.

MDT – This is the second mission focusing on the creative sector. What strengths do UK companies have that could be of interest to Macau as a new wave of casino resorts takes shape on the Cotai Strip?
FMK – A lot of UK companies are working here on the construction; so that’s one of the things we’re good at in the UK: high-end engineering and architecture. The UK is a very creative and innovative nation, so we punch above our weight in terms of the film industry, television and music. But I think the diversification of Macau’s economy opens up even more opportunities for us beyond the resorts, and beyond retail, in healthcare, and education.

MDT – But do you believe that gaming revenue, which dropped again for the 12th straight month in May, will have an impact on the volume of business the UK does here?
FMK – Actually I don’t at the moment. Obviously profits are lower than they were a year ago but they’re still enormous. I think it’s relative. The flipside of that is the pressure on the Macau government to diversify, which creates a whole new raft of opportunities. And I am sure that over time the casino revenue will start to go back up again. But it’s forcing them to be more creative in how they approach providing for their customers; they are trying to bring in more entertainment, more attractions for people outside the casino. So the drop-in profit is making them think about how they create their resorts and I think that’s positive.

MDT – You’ve held a number of UKTI positions in other countries. Compared to other regions, what should UK companies bear in mind when attempting to do business here?
FMK – I think it’s the same around the world. Companies need to be agile, versatile; they need to be able to go with the flow of whatever is happening, particularly when developing in economic high-growth markets. Wherever you are in the world, you can’t replace having relationships. Companies need to be prepared to put in the time in building relationships with the right people, and then build those relationships until there’s trust.
The other thing I think companies need to have is real confidence: understand their market; understand their audience; and have the right products for the right people. For Macau, that means really understanding what Chinese consumers in particular want from the resorts.

MDT – What role has the UKTI been taking to help UK companies do business here?
FMK – Our job is to help UK companies set up and invest overseas, and we do it through a range of tailored services. We are very proactive in identifying big prominent infrastructure projects, and then we will, as a government, help lobby to get a consortium of UK companies in on that contract. For example, on the rail project in Hong Kong, we have a number of UK companies working on those big contracts. Once we’ve got the big companies, it’s easier for us to bring smaller companies in on the supply chain.
The other thing we help UK companies do is to help them find the right partner, because quite often you don’t want necessarily to set up a business by yourself – you want a local partner who understands Macau.