In its latest report on global investment climates, the U.S. Department of State continues to view the Macau SAR as an investor-friendly environment.
Praising government-led efforts to maintain a transparent, free-market economy, the report said that local laws generally do not impede investment.
“There are no restrictions placed on foreign investment in Macau as there are no special rules governing foreign investment. Both overseas and domestic firms register under the same set and are subject to the same regulations on business,” the report noted.
It also said that “Macau does not follow a forced localization policy in which foreign investors must use domestic content in goods or technology.”
Intellectual property rights are well respected, and local laws are compatible with World Trade Organization standards.
The Department of State noted that foreign firms and individuals are free to establish “companies, branches, and representative offices without discrimination or undue regulation in Macau” and that there are no requirements for company directors to be local residents, except in the fields of education, newspapers and magazines, and legal services.
Moreover, foreign judgments in civil and commercial matters may be enforced in Macau by the local courts, the Department of State wrote, adding that such enforcement is outlined in Articles 1199 and 1200 of the Civil Procedure Code.
However, the report also raised several issues with the investment climate.
Most notably, it says that that Macau has no agency for reviewing transactions for competition-related concerns, nor does it possess a competition law.
Although the local government “states that existing provisions are adequate and appropriate given the scale and scope of local economy,” such a lack of provisions is not conducive to preventing the formation of monopolies.
Another potential problem concerned unemployment in Macau, which has remained almost non-existent for the past decade. This has resulted in a shortage of available manpower and acts as a “top constraint” for the expansion of foreign businesses.
The U.S. government entity says that, over the last decade, American investment in Macau has amounted to an estimated USD23.8 billion.
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