Macau the Gambling Capital of the World Gets a ChinaBacked Makeover TIME

‘An Empty Shell of What It Used to Be’: Asia’s Gambling Mecca Gets a China-Backed Makeover

There are still lights along the popular Kotai strip, but there are no more people who have entered and exit many hotels and casinos in Macau. In Macau, the center of the world's gambling, many tables are currently vacant, and in some casinos, all sections are completely closed due to poor business.

This transformation overturned the lives of Macau residents. Groove Quock (33 years old) has not been working for a ful l-time job in recent months. For seven years, he worked in a company operating a VIP gaming room in the city, analyzing the winning rate of customers and earning about 40, 000 Pataka ($ 5, 000) per month. However, in December of last year, the company announced that it would stop working immediately through WeChat. "It was a blue sky," he told Time.

Kuok has been working on several side jobs, but is now attending IT skills and trying to increase the opportunity to be hired in a local employment market. He finds a job elsewhere in the nine major cities of Guangdong Province, Hong Kong and the special administrative district of Macau to foster his brother and mother. I am thinking of leaving Macau, as many people have already done last year.

On October 20, a gambling table of the Londonner Casino Resort on the Macau Cat Strip. Eduardo LEAL-AFP/Getty Images

The COVID-19 has hit the world's economy, especially a tourist industry. Macau, a popular gambling place, generally called the Orient Las Vegas, invited about 39 million tourists, including Chinese high rollers in 2019. However, due to the severe borde r-an d-expenditures in Beijing, the number of tourists in Macau in 2020 has dropped to only 5. 8 million, and new movements trying to multiply the economy of the Chinese sem i-autonomous area from gambling are also useful for Macau's recovery. Not.

With 80 % of Macau's tax revenue, local residents and experts have escaped from pandemic due to the current ongoing COVID zero policy and strengthening regulations on the local gambling industry. We are concerned that we will lose. The light is still lit along the popular Kotai Strip, but there are no more people who have entered and exit many hotels and casinos in Macau. In Macau, the center of the world's gambling, many tables are currently vacant, and in some casinos, all sections are completely closed due to poor business.

Gambling is in Macau’s ‘DNA’

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On October 20, a gambling table of the Londonner Casino Resort on the Macau Cat Strip. Eduardo LEAL-AFP/Getty Images

With 80 % of Macau's tax revenue, local residents and experts have escaped from pandemic due to the current ongoing COVID zero policy and strengthening regulations on the local gambling industry. We are concerned that we will lose. There are still lights along the popular Kotai strip, but there are no more people who have entered and exit many hotels and casinos in Macau. In Macau, the center of the world's gambling, many tables are currently vacant, and in some casinos, all sections are completely closed due to poor business.

On October 20, a gambling table of the Londonner Casino Resort on the Macau Cat Strip. Eduardo LEAL-AFP/Getty Images

Macau, a 3 2-square kilometers, is on e-tenth of Las Vegas, a city with only about 680, 000 people, but Macau made six times the profit of the Gambling capital in the United States before Pandemic. In 2019, it brought $ 36 billion. At present, monthly income in the industry has fallen to $ 300 million, compared to Las Vegas $ 659 million.

Economic diversification faces long odds

The history of the Portugal colony has been related to gambling dating back to the 16th century. Immigrant workers from China played gambling as entertainment, and on the streets of the city, there were moded fantan stalls. By 1847, the Portuguese government in Macau officially legally legally and taxed, due to gambling among workers.

After Portugal returned Macau to Chinese rule in 1999, Macau's gambling was booming. In 2002, Macau released the gaming division and opened the market to multinational companies such as MGM, Win, and Las Vegas Sands. By 2006, Macau became the world's largest game market.

However, it is notorious that the local revenue depends on the hig h-priced Better in China. VIP gamers occupy more than 43 % of the industry's revenue through a junket company, a broker in China, which is a broker in China. Junko operators can handle everything, from customers luxurious accommodation, travel to the provision of loans to play.

Gambling has been officially illegal in mainland China since 1949, but is not illegal in Macau. This fact has helped to form Macau's cultural identity, and also complicates the relationship with Beijing. Until the latter half of 2012, when Xi Jinping became the President of China, Macau's junket models were left untouched. The Xi Jinping administration has developed a strict antiproat campaign and reminded us of waste in casinos. Gambling income was hit.

In 2020, Xi Jinping embarked on the promotion of c o-prosperity. The vague policy principles of equality have been used to suppress how to earn wealthy in Japan and how to spend money. Tightening to Macau was a matter of time, as 1 trillion yuan ($ 147 billion) leaked from the Chinese economy ($ 147 billion). 32 square kilometers, which accounts for on e-tenth of Las Vegas, a city that has only about 680, 000 people, but Macau has made six times the profit of the American gambling capital before Pandemic. In 2019, it brought $ 36 billion. At present, monthly income in the industry has fallen to $ 300 million, compared to Las Vegas $ 659 million.

The future of Asia’s gambling Mecca

In 2020, Xi Jinping embarked on the promotion of c o-prosperity. The vague policy principles of equality have been used to suppress how to earn wealthy in Japan and how to spend money. Tightening to Macau was a matter of time, as 1 trillion yuan ($ 147 billion) leaked from the Chinese economy ($ 147 billion). Macau, a 3 2-square kilometers, is on e-tenth of Las Vegas, a city with only about 680, 000 people, but Macau made six times the profit of the Gambling capital in the United States before Pandemic. In 2019, it brought $ 36 billion. At present, monthly income in the industry has fallen to $ 300 million, compared to Las Vegas $ 659 million.

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Gambling has been officially illegal in mainland China since 1949, but is not illegal in Macau. This fact has helped to form Macau's cultural identity, and also complicates the relationship with Beijing. Until the latter half of 2012, when Xi Jinping became the President of China, Macau's junket models were left untouched. The Xi Jinping administration has developed a strict antiproat campaign and reminded us of waste in casinos. Gambling income was hit.
In 2020, Xi Jinping embarked on the promotion of c o-prosperity. The vague policy principles of equality have been used to suppress how to earn wealthy in Japan and how to spend money. Tightening to Macau was a matter of time, as 1 trillion yuan ($ 147 billion) leaked from the Chinese economy ($ 147 billion).
Last November, police arrested Alvin Chau, head of Suncity Group Holdings, the city's largest junket operator, on more than 200 charges related to illegally operating casinos, money laundering and running a crime syndicate. The warrant, seen by the Financial Times, ordered Chau's arrest for "seriously damaging the country's social order."
Hao Zhidong, a professor emeritus at the University of Macau who writes about Macau history and culture, said Chau's arrest was a big deal because it affects "the way gambling has always been conducted."
Chau's arrest came shortly after the Macau government proposed tightening laws on the city's gambling industry. Since then, the government has banned all junket rooms in casinos. It also halved the validity period of licenses issued to casino operators from 20 years to 10 years, required them to be reviewed for compliance every three years, and required them to invest in non-gaming initiatives and local talent, such as green technology, finance and entertainment.
As a result, the workforce has been devastated, with non-resident workers, who typically make up a fifth of the region's population, being hit the hardest.
And when that's taken away, Macau is frankly reduced to an empty shell of what it used to be, says Andrew W. Scott, vice chairman and CEO of Macau gambling magazine Inside Asian Gaming.
China has long been urging Macau to diversify its revenue sources and stop relying solely on gambling, but several factors have prevented it from doing so.

Southeast Asia, not Macau, to keep fuelling regional gaming growth

For one, Macau's limited size means it has no space to accommodate new businesses. In September 2021, China offered 106 square kilometers of land on Hengqin, an island three times the size of Macau across the river, to be jointly developed and managed by Macau and Beijing. The hope is that this will spark investment in industries unrelated to gaming, such as metaverse technology and traditional Chinese medicine (TCM).

A building (top) in Hengqin New District and a residence (bottom) in Macau, Aug. 17, 2021. Chen Shuoming-VCG/Getty Images

Macau's existing talent pool is also not well-suited for diversifying the economy. The IMF report noted that developed countries like the United States have large skilled populations. However, in 2021, nearly 45% of Macau's employees were clerical or service/sales workers, and about 24% were low-skilled. Only 18. 5% were professionals and technicians needed for the development of science, technology and traditional Chinese medicine industries.

Authorities have said they want to attract "high-end" to "senior professional" overseas talent that can help Macau expand into other non-gaming industries. Under the investment residency scheme, foreign experts can apply to reside in the region if they can contribute to diversifying local industries and improving their competitiveness. However, in 2021, only one of 33 applications for "managerial or technical positions" was approved.

"This talent exodus has pushed our capabilities further away from our vision, not closer," said Ben Lee, founder of Macau's iGamix gaming consultancy.

All of this doesn't necessarily spell the end of gaming in Macau. Despite the millions of dollars lost, Macau's six gaming concessionaires -- Las Vegas Sands, Sands China, Wynn Macau, Galaxy Entertainment, Melco Resorts and SJM Holdings -- have no plans to pull out anytime soon. "They've already lost interest in Macau," he said. "If they try to get new concessions, it means they're less committed than a completely new player."

Big, growing markets

Hao said Beijing's invasion may have put an end to the lucrative VIP gambling Macau was famous for, but table games for the masses can still make plenty of money. Before the pandemic, table games and slots brought Macau more than 141. 5 billion patacas ($17 billion) in revenue. Macau is set to resume group travel this month, and with China looking to issue e-visas for domestic travel in Macau, this market is likely to become even more active.

However, the six companies that have already been established may need to show a stronger commitment to the Macau government before the license expires at the end of the year. The seventh company related to Gentin Group, a multinational company in Malaysia, which is not currently operating in Macau, is also competing for one of the six business licenses. Gentin is led by the billionaire, Rim Kok Thai, and this Konglomalit is also involved in industries and theme parks other than gaming, so it is valuable in line with China's movements that promote the diversification of the Macau economy. It is a candidate.

On October 20, a pedestrian walking in front of Macau Casino Lisboa. Eduardo LEAL-AFP/Getty Images

In addition, the junket was not completely abolished, 46 operators have been licensed as of March, and at least 37 are open. The new gaming method imposes strict restrictions by the junket vendor, but for Hao, how these junket companies will survive will fill the VIP market blank rather than legal issues. That's why people are willing to take the risks of people. A jacket with Macau's current form may find a new boom in the basement. "If there is a central government's policy, there is always a way to avoid the policy," says Hao.

With China's tightening, the Macau game market is trying to find new bases in nearby Singapore and the Philippines. However, it is not easy for Macau to get new fame other than gambling. While other lively Chinese hub cities such as Shenzhen and Hong Kong are already excellent in fields such as technology, financial services, and trade, Macau is "problematic", but it can be differentiated. It is unlikely that you will be completely separated from the popular industries.

Casino resorts in bloom

"There is no doubt that Macau's gambling industry must be maintained," said Hao. "But you won't defend or boast it."

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Anyone who has seen a powerpoint presentation on Meltdown in the Asian economy in 1997 knows that Chinese, which means crisis, is composed of dangerous and opportunities.

Diversifying Macau

As Asian casinos may no longer be a crisis due to almost no Cobid regulation, Southeast Asia is the biggest chance in the regional gaming galaxy, existing casino descriptions, led by Macau. This is the biggest competitive crisis.

There is no doubt that Southeast Asia will lead the gaming growth in Asia for the time being. This area is the victory of economic growth, worl d-class gaming resort, attractive sightseeing spots as a destination after Kobid, and enthusiastic local players (even if they live in different jurisdictions like Macau). I have a hand.

"The ASEAN sphere will overtake Japan within the last 10 years, and will be smaller than the United States, China and the EU," said Daniel Chen, an industry veteran.

The Southeast Asian Unions (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Vietnam) have a population of more than 660 million, and the current GDP has a total of $ 33 billion (approximately 2. 7 trillion yen / 3. 1 trillion yen / 3. 1. More than trillion euro). This is the world's fifth largest after India, more than 50 % of Canada and Brazil.

According to ASEAN's annual report published in July, the economic growth rate of the block is expected to increase 5. 2 % last year, 4. 7 % this year, and 5 % in 2024.

Unfair fight

"Indonesia is the fourth largest population in the world, and GDP is nearly three times that of Singapore," said Chen's email to IGB. "Indonesians are in outbound travel forces, for example, Indonesia, both Singapore and tourists are competing with China."

"And it must be remembered Thailand, which has a population of more than 70 million and has a larger economic scale than Singapore. Thailand has recently been released from the dominance of the pure administration and aims for a new soft power wave. Vietnam. In addition, the relationship with the United States has been warmed and nearly 100 million people are becoming richer.

There is Malaysia, the most rich ful l-size nation in Southeast Asia, which newly upgraded resort World Gentin, the first integrated resort in Southeast Asia. Singapore is one of the most rich countries per capita, with two most attractive and profitable IRs in the world, and the market game revenue has already exceeded the previous level of Cobid.

The Philippines is the region's most dynamic gaming market, set to overtake Singapore in total gaming revenue as early as this year. GCG Gaming Advisory Services projects that the Philippines' total gaming revenue will reach US$5. 9 billion in 2023, with two-thirds of that coming from Manila's three Entertainment City IRs.

Unintended consequences

Manila's first IR operator, Travelers International Hotel Group, is significantly upgrading its flagship property, the former Resorts World Manila (now Newport World Resorts), and a long-awaited fourth resort is set to open next year.

Expansion is underway across the Philippine archipelago. Bloomberry is building a resort in the southern province of Cavite, which surrounds Metro Manila, following Solaire North in Quezon City. NuStar in Cebu City, located in the Philippines' second largest metropolitan area, opened its lodging and gaming facilities last year.

Clark, a weekend getaway with its own international airport and a two-hour drive north of Manila, has six new or newly improved casinos. Han Resorts is creating the region's first integrated resort in 2021 from its longtime Widus Casino, with plans for a multibillion-dollar expansion that will include a top-end hotel, golf course and luxury homes. Rival D'Heights is adding residences and a hotel, with plans for more of each.

The only ASEAN country that allows its citizens to enjoy casinos without entry restrictions, these local players are helping drive gaming growth in the country, along with a niche market of Korean and, to a lesser extent, Japanese tourists, as the closest tropical gaming destination. And the archipelago has another advantage:

Mass outweighs VIP

"The Philippines is now the only regulated online market in Asia," says David Leppo, president and CEO of FootballBet. com. "The retail market is bouncing back and the internet market has grown stronger over the last four years thanks to Covid. The Philippine offshore gaming operator (POGO) sector is back in the spotlight, while domestic online play expansion also appears planned.

New resorts are springing up all over Southeast Asia. Corona, which opened on the pristine beachfront of Phu Quoc island, was ahead of the pandemic and is Vietnam's only resort that doesn't require a foreign passport to enter the casino. Hoiana opened the first phase of its US$1 billion development along central Vietnam's famous coastline in June 2020. To the south, Ho Tram opened its long-planned second hotel tower early last year.

Thailand's casino legalization has been picking up steam in recent years. Hard Rock, which has hotels and cafes in the country, has been actively engaging with government officials. Las Vegas Sands has also been eyeing Thailand for some time.

Other international casino operators, local hotel groups and property developers have refrained from commenting or said it's too early, but no one is saying no to Thailand. "Tens of thousands of Thais cross the border every day to go to Cambodia and Laos to gamble," says Leppo, who entered the Southeast Asian gaming market in 2011.

2024 Investment Climate Statements: Macau

Regional incumbents aren't standing still, either. Southeast Asian gaming resort giant Resorts World Genting in Malaysia has completed a US$2 billion upgrade of its SkyWorld theme park, expanding its menu of accommodation, retail and entertainment options.

In Singapore, the region's twin gaming gorillas, Marina Bay Sands and Genting's Resorts World Sentosa, are in the early stages of a US$3. 5 billion expansion. These feature state-of-the-art arenas and new waterfront districts, respectively, under an agreement with the government to expand the casino monopoly. MBS is upgrading rooms in three hotel towers at a cost of US$1 billion ahead of the addition of a fourth tower with a rooftop pool.

Singapore's VIP gaming revenue and mass gaming revenue each surpassed 2019 levels in the second quarter of this year, according to DS Kim, head of Asia gaming and leisure research at JP Morgan Asia Pacific, et al. "It's easier for mainland Chinese players to get a Singapore visa than in Macau," Lepo said.

Seasonal Asia has always been on Macau's radar, but the official mandate for Macau to expand its visitor base outside of mainland China has brought Southeast Asia into the spotlight in a big way. "The big six (casino concessionaires) -- Sands, MGM, Galaxy, Wynn, Melco and SJM -- are working closely with various departments of the Macau government, including the MGTO (Macau Government Tourism Office) and IPIM (Macau Trade and Investment Institute) to support the government's initiative to increase foreign tourist visitation to Macau," said Mary Mendoza, managing director of gaming-hospitality consultancy The Platinum.

Sporting events such as last month's SJM Open golf tournament and December's MGM Macau Tennis Masters "will attract international attention, generate curiosity and attract visitors to Macau," said Mendoza, the Macau-based marketing consultant.

Mendoza expects international tourism numbers to exceed a record high of 8%, but the real work is yet to come. “Existing products and services were developed for the mainland China market, so there is a need for holistic market planning, development and execution to address the needs of Southeast Asian travelers,” Mendoza said.	Not everyone is convinced that these efforts will pay off. “Southeast Asia has only a small impact on Macau,” said an executive with long experience in Macau, who asked not to be named. “I don’t think Macau can become an international destination just because the government says it should.”	“Macau currently caters to a different demographic than ASEAN real estate,” Daniel Cheng said. “The new Macau in the post-2022 regulatory regime will still be heavily reliant on the mainland’s centralized outbound traffic. The exclave lacks the inherent hardware and software to compete on an equal footing with ASEAN jurisdictions.”	Similarly, Southeast Asia has yet to demonstrate that it can significantly challenge Macau. "There will no doubt be a certain amount of tourist drain from Macau due to regional competition, but it is unlikely to be a significant part of the business given the size of Macau's gaming market," says Andy Choi, a longtime Macau gaming veteran.
In fact, even in a sluggish year for Macau's recovery, Macau's projected gaming revenue of US$22 billion will be twice that of booming Southeast Asia. Macau's neighbor and major market, mainland China, has more than twice the population of Southeast Asia, five times ASEAN's nominal GDP, and twice ASEAN's GDP per capita.	2023	"Mainland Chinese customers are relatively familiar with Macau, plus Macau has a huge amount of venues and attractions that are very attractive compared to standalone venues in other countries," Choi says.	If mainland Chinese gamblers want to go to Thailand, they're already going to Singapore." Macau has arguably, and perhaps unchallenged, advantages over Southeast Asia to the mainland Chinese market in terms of language, food, proximity and familiarity. On top of that, Chinese authorities are threatening individuals and destinations with tough penalties for overseas gambling, while cracking down on illegal money transfers and gaming promotion activities.
In addition to China's current economic difficulties, it is no wonder that sightseeing in mainland China is not approaching the previous level in Asia, given that the resumption of overseas flights will not progress slowly. These new policies and reality have also influenced Macau, whether intentional or not.	2023	Unlike Singapore, the Philippines, and Las Vegas, Macau's gaming volume has been intermittent due to the outbreak of Kovid, but since September 2020, Chinese people in mainland China have been able to visit without quarantine. Nevertheless, it did not pop beyond the level before the occurrence of Kobid. Entering the Golden Week before and after the National Kingdom on October 1, the GGR this year became 58. 5%in 2019.	The arrest of SUNCITY boss Alvin Chau in December 2021 and the following Macau's junket business closure has effectively wiped out the Macau VIP sector, which accounted for 46 % of GGRs in 2019, about $ 16. 9 billion. 。 Many of these VIP players are currently lacking in the flow of the junket previously provided to supply gambling at the familiar level. Casino's credit is a great risk for the house because there is no legal means of collecting gambling debt in mainland China.
MORGAN STANLEY ASIA PACIFIC's analyst Praveeen Choudhary predicts that Golden Week's VIP income is 30 % in 2019, closer to 100 %. JP MORGAN predicts that Macau's passing GGR will be improved to 62%in 2019 and then stagnant at around 80%until 2025. The investment bank's industry's EBITDA forecast in 2025 is slightly exceeding the level before Cobid, but this is a larg e-scale investment that expands high profit margins and reconstructs Macau as a tourist destination. The result.	2022	Macau has invested billions of dollars to satisfy the regulatory authorities, but has been sprinting for a few years to catch up with the previous state. On the other hand, the largest market in Southeast Asia has surpassed the benchmarks before Cobid, accelerating recovery in other areas.	As the Letto says, "In short, the Southeast Asian market is stronger and stronger, even if there are no travelers from mainland China and the population of the Chinese ethnic groups."
In the next few months, look forward to the detailed report of IGB focusing on the main destinations in Southeast Asia.	2022	Macau is a special administrative district (SAR) of the People's Republic of China (PRC), and its status is stipulated in the 1987, declaration of the middle grave and a de facto constitution of SAR. The People's Republic of China gave Macau's advanced autonomy of 50 even after Macau returned to the sovereign of the People's Republic of China in 1999, under the philosophy of the "System Two System". I promised not to change the year. Macau is an independent tariff area from the mainland of China, and describes itself as liberal economy and free port. Gaming and sightseeing are the main foundations of the Macau economy, but are also working to diversify the driving force of economic growth. The Macau government (GOM) maintains a transparent, no n-discriminatory free market economy. The Macau government promises to maintain an environment that is friendly to investors.	In 2002, the GOM ended with a lon g-standing gaming monopoly, awarded two gaming concessions and one su b-concession to the United States with interest. The opening promoted a large amount of US investment in casinos and hotels, spurred gaming, sightseeing, and rapid economic growth in the field of entertainment. In December 2022, GOM awarded six 1 0-year gaming concession, including three US companies in US companies. Macau's total gaming revenue in 2023 years was $ 22. 8 billion, increased by 334 % yea r-o n-year, and most pandemic regulations were abolished in January 2023, and Betters from mainland China returned in 2019. About tw o-thirds of the gaming income recorded in the year were recorded. Although the total gaming income did not reach the level of 2019, Macau has surpassed Las Vegas again in 2023, as it was so every year, except for 2022 since 2007. Macau's gaming income before Pandemic was about six times as much as Las Vegas. GOM collected in 2023 was $ 8. 1 billion, accounting for 77 % of government revenue of $ 10. 5 billion. < SPAN> Macau is a special administrative district (SAR) of the People's Republic of China (PRC), and its status is stipulated by the 1987 declaration of the Great Gran and SAR, a de facto constitution of SAR. The People's Republic of China gave Macau's advanced autonomy of 50 even after Macau returned to the sovereign of the People's Republic of China in 1999, under the philosophy of the "System Two System". I promised not to change the year. Macau is an independent tariff area from the mainland of China, and describes itself as liberal economy and free port. Gaming and sightseeing are the main foundations of the Macau economy, but are also working to diversify the driving force of economic growth. The Macau government (GOM) maintains a transparent, no n-discriminatory free market economy. The Macau government promises to maintain an environment that is friendly to investors.

1. Openness To, and Restrictions Upon, Foreign Investment

Policies Towards Foreign Direct Investment

In 2002, the GOM ended with a lon g-standing gaming monopoly, awarded two gaming concessions and one su b-concession to the United States with interest. The opening promoted a large amount of US investment in casinos and hotels, spurred gaming, sightseeing, and rapid economic growth in the field of entertainment. In December 2022, GOM awarded six 1 0-year gaming concession, including three US companies in US companies. Macau's total gaming income in 2023 years was 22. 8 billion, up 334 % yea r-o n-year, and most pandemic regulations were eliminated in January 2023, and Betters from mainland China returned in 2019. About tw o-thirds of the gaming income recorded in the year were recorded. Although the total gaming income did not reach the level of 2019, Macau has surpassed Las Vegas again in 2023, as it was so every year, except for 2022 since 2007. Macau's gaming income before Pandemic was about six times as much as Las Vegas. GOM collected in 2023 was $ 8. 1 billion, accounting for 77 % of government revenue of $ 10. 5 billion. Macau is a special administrative district (SAR) of the People's Republic of China (PRC), and its status is stipulated in the 1987, declaration of the middle grave and a de facto constitution of SAR. The People's Republic of China gave Macau's advanced autonomy of 50 even after Macau returned to the sovereign of the People's Republic of China in 1999, under the philosophy of the "System Two System". I promised not to change the year. Macau is an independent tariff area from the mainland of China, and describes itself as liberal economy and free port. Gaming and sightseeing are the main foundations of the Macau economy, but are also working to diversify the driving force of economic growth. The Macau government (GOM) maintains a transparent, no n-discriminatory free market economy. The Macau government promises to maintain an environment that is friendly to investors.

US investment in Macau over the past decade is estimated at at least $20 billion, a figure expected to grow as the six concessionaires agreed to invest $15 billion in the Macau economy as part of the concession process, furthering GOM's efforts to diversify the economy. In addition to gaming, Macau aims to become a regional center for meetings, incentives, conventions, exhibition tourism, traditional Chinese medicine, modern financial services, and advanced technology, but has experienced limited success to date. Macau also aims to become a "commercial and trade cooperation service platform" between mainland China and Portuguese-speaking countries. GOM has various policies to promote these efforts and create business opportunities for domestic and foreign investors. Currently, many infrastructure projects are underway, including new casinos, hotels, subways, airport expansion, and the Macau-Taipa Fourth Vehicle Port Crossing, which broke ground in August 2020 and is scheduled for completion in 2024. In 2007, business leaders established the Macau American Chamber of Commerce. The GOM has taken several measures to restrict participation in the political process, especially since 2021, including amending the 2023 Chief Executive Election Law and disqualifying pro-democracy candidates from participating in the 2021 Macau Legislative Council elections. It also amended the country's national security law in 2023 to expand the definition of secession, sedition, and conspiracy crimes, and passed the State Secrets Law, which gives the Chief Executive broad discretion to decide what information to keep classified and for how long. In January 2023, the United States put into effect regulations that apply export controls to China on advanced computing integrated circuits (ICs), computer goods containing such ICs, and certain semiconductor manufacturing items to Macau. Table 1: Key indicators and rankings

Indicator

Year

Limits On Foreign Control and Right to Private Ownership And Establishment

Index/Rank

Website address

TI Corruption Perceptions Index

Other Investment Policy Reviews

N/A

Business Facilitation

https://www. transparency. org/en/cpi/2023

Outward Investment

Global Innovation Index

2. Bilateral Investment and Taxation Treaties

N/A of 132

https://www. wipo. int/global_innovation_index/en/2023/

US direct investment in partner country (US$ million, past stock position)

$552

3. Legal Regime

International Regulatory Considerations

https://apps. bea. gov/international/factsheet/

Legal System and Judicial Independence

World Bank GNI per capita

$43, 680

https://data. worldbank. org/indicator/NY. GNP. PCAP. CD

Laws and Regulations on Foreign Direct Investment

The Joint Declaration on the Macau Question between the Government of the People's Republic of China and the Government of the Republic of Portugal was signed in March 1987, establishing the constitutional principle of "one country, two systems". The "one country, two systems" framework ensures that the autonomy, free market system, legal system, and liberal society enjoyed by Macau will remain unchanged until at least 2049. The Macau Basic Law, drafted on the basis of the Sino-Portuguese Joint Declaration, came into force in December 1999 and established the basic principles for the governance of Macau under Chinese sovereignty. Macau is a member of the World Trade Organization (WTO) separately from mainland China.

Competition and Antitrust Laws

There are no restrictions on foreign capital as Macau does not have special rules regulating foreign capital. Both foreign and domestic companies are registered and subject to the same regulations on business, such as the Commercial Code (Decree 40/99/M).

Expropriation And Compensation

Macau is greatly dependent on the game industry and tourism. GOM aims to diversify the Macau economy by attracting foreign investment, and is working to maintain an environment that is friendly to investors. Corporate taxes are low and net income of more than $ 75, 000 has a 12 % tax rate. Companies with net income of less than $ 75, 000 are ta x-exempt. The maximum tax rate for individuals is 12 %, with the first $ 18, 000 of the personal taxable income. Macau established a new gaming method in June 2022, maintains 35 % of direct tax on gaming income, and promotes the development of Macau's culture, science, and education on public funds and gaming income for social security funds. Indirect tax was raised from 4 % to 5 %. This indirect tax can prove that the casino operator has attracted tourists from mainland China to Macau Special Administrative District, as part of Macau's excessive dependence on tourists. , It may be reduced. All six companies in Macau's gaming concession holders succeeded in maintaining the concession in 2022, and were allowed to operate for another 10 years. Casino operating companies have promised to continue a large investment for Macau's economic development, and ultimately invested about $ 15 billion.

Dispute Settlement

ICSID Convention and New York Convention

The Macau Trade Investment Promotion Organization (IPim) is a GOM institution in charge of promoting trade and investment activities. The IPim provides a on e-stop service, including notary services for business registration, and applies legal and administrative procedures to all local and foreign individuals or foreign organizations interested in establishing a company in Macau. Macau is greatly dependent on the game industry and tourism. GOM aims to diversify the Macau economy by attracting foreign investment, and is working to maintain an environment that is friendly to investors. Corporate taxes are low and net income of more than $ 75, 000 has a 12 % tax rate. Companies with net income of less than $ 75, 000 are ta x-exempt. The maximum tax rate for individuals is 12 %, with the first $ 18, 000 of the personal taxable income. Macau established a new gaming method in June 2022, maintains 35 % of direct tax on gaming income, and promotes the development of Macau's culture, science, and education on public funds and gaming income for social security funds. Indirect tax was raised from 4 % to 5 %. This indirect tax can prove that the casino operator has attracted tourists from mainland China to Macau Special Administrative District, as part of Macau's excessive dependence on tourists. , It may be reduced. All six companies in Macau's gaming concession holders succeeded in maintaining the concession in 2022, and were allowed to operate for another 10 years. Casino operating companies have promised to continue a large investment for Macau's economic development, and ultimately invested about $ 15 billion.

Investor-State Dispute Settlement

The Macau Trade Investment Promotion Organization (IPim) is a GOM institution in charge of promoting trade and investment activities. The IPim provides a on e-stop service, including notary services for business registration, and applies legal and administrative procedures to all local and foreign individuals or foreign organizations interested in establishing a company in Macau. Macau is greatly dependent on the game industry and tourism. GOM aims to diversify the Macau economy by attracting foreign investment, and is working to maintain an environment that is friendly to investors. Corporate taxes are low and net income of more than $ 75, 000 has a 12 % tax rate. Companies with net income of less than $ 75, 000 are ta x-exempt. The maximum tax rate for individuals is 12 %, with the first $ 18, 000 of the personal taxable income. Macau established a new gaming method in June 2022, maintains 35 % of direct tax on gaming income, and promotes the development of Macau's culture, science, and education on public funds and gaming income for social security funds. Indirect tax was raised from 4 % to 5 %. This indirect tax can prove that the casino operator has attracted tourists from mainland China to Macau Special Administrative District, as part of Macau's excessive dependence on tourists. , It may be reduced. All six companies in Macau's gaming concession holders succeeded in maintaining the concession in 2022, and were allowed to operate for another 10 years. Casino operating companies have promised to continue a large investment for Macau's economic development, and ultimately invested about $ 15 billion.

International Commercial Arbitration and Foreign Courts

Macau maintains an ongoing dialogue with investors through various business networks and platforms, including IPIM, the Macau Chamber of Commerce, the Macau American Chamber of Commerce and the Macau Bankers Association. Macau is a member of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries, which holds a ministerial-level conference in Macau every three years, bringing together business representatives and government officials from participating countries, as well as representatives of international trade organizations and trade promotion associations.

Foreign companies and individuals are free to establish companies, branches and representative offices in Macau without discrimination or undue restrictions. There are also no restrictions on the ownership of such establishments. Company directors are not required to be Macau citizens or to reside in Macau, but there are residency requirements for three professions:

Education: An individual applying to set up a school must hold an identity card or have the right to reside in Macau. The principal of the school must be a Macau resident.

Bankruptcy Regulations

Education: An individual applying to set up a school must hold an identity card or have the right to reside in Macau. The principal of the school must be a Macau resident. Newspapers and Magazines Applicants must first apply for business registration and register with the Government Information Office as an organization or individual. Publishers of newspapers and magazines must be Macau residents or have the right to reside in Macau.

Legal Services Lawyers from foreign jurisdictions who wish to practice law in Macau must first obtain residency in Macau. Foreign lawyers must also pass an examination before registering with the Bar Association, a self-regulatory organization. The examination is conducted in Chinese or Portuguese. Foreign lawyers who pass the examination are required to undergo 18 months of uninterrupted practical training before they can practice law in Macau.

4. Industrial Policies

Investment Incentives

Macau last conducted a WTO Trade Policy Review in November 2020. See https://www. wto. org/english/tratop_e/tpr_e/s402_e. pdf.

IPIM assists foreign investors in company registration and liaison with relevant agencies to enter the Macau market. The company registration process usually takes less than 10 working days. Company registration procedures can be found here: http://www. ipim. gov. mo/en/services/one-stop-service/handle-company-registration-procedures/

Macau does not promote or encourage outward investment, nor does it restrict domestic investors from investing abroad. In 2022, the latest data, outward direct investment flows of Macau enterprises were $1. 1 billion, down 66. 7% year-on-year, while outward direct investment stock was $13. 6 billion, up 6% year-on-year. Hong Kong and mainland China remained the top two.

In December 2016, the United States signed an intergovernmental agreement on the Foreign Account Tax Compliance Act with Macau. Macau does not have a bilateral tax treaty with the United States.

Macau and mainland China have a free trade agreement (FTA) called the Closer Economic Partnership Agreement (CEPA). The agreement provides tariff-free access to mainland China for all Macau-origin products and preferential treatment for 48 service sectors. Macau and Guangdong Province, China have signed an agreement to achieve basic liberalization of trade in services, and under the framework of CEPA, Macau and Hong Kong use a "negative list" covering 134 service sectors and grant national treatment to 58 service industries in Macau. In addition, the agreement grants Macau most-favored-nation treatment, and the liberalization measures included in the FTAs concluded by mainland China and other countries also apply to Macau. The framework and content of this agreement have become a model for the basic liberalization of trade in services between Macau and mainland China. In the framework of CEPA, there is an investment agreement and an economic and technical cooperation agreement. The investment agreement includes investment access, investment protection, and investment facilitation.

Foreign Trade Zones/Free Ports/Trade Facilitation

Macau-Hong Kong CEPA came into effect in 2017. In November 2019, Macau and Hong Kong signed a comprehensive double taxation avoidance agreement, which came into effect on January 1, 2021. Under the agreement, Hong Kong tax paid by Macau residents on Hong Kong-sourced income is allowed as a credit against Macau tax payable on the same income, and vice versa.

Macau has concluded the Portugal and the Netherlands and the tw o-country investment treaty (bit). In September 2018, the Macinida Convention on Taxes on Macau came into effect. As of 2023, the GOM is 16 countries and regions (with the Republic of Argentina, the United Kingdom, Gernsy, Japan, Greenland, India, Australia, Denmark, Fellows Island, Iceland, Iceland, Sweden, Sweden, Malta, Ireland, Jamica, Finland). The tax information exchange agreement (TIEA) has been concluded. TIEA negotiations with Germany and New Zealand are continuing. Currently, Macau can be reduced in double tax based on the double taxation agreements that Macau, Belgium, China, China, Mozambique, Vietnam, Portugal, Hong Kong, and the latest Cambodia concluded.

Macau has been a member of the WTO since 1995 and has adopted international norms. GOM has notified all technical rules to the WTO trade technical disability. Macau has achieved a 100 % implementation rate as a member of the Trade Silveration Agreement (TFA).

Under the "one country and two systems, Macau has maintained the Continental European Law, which is based on the independence of legal and justice, as the foundation of the legal system. The current judicial procedure is a fair and reliable thing that has the ability to procure. Macau has a commercial law and a contract law. Commercial Code is a comprehensive source of commercial law, and civil law is a basic source of contract law. The Macau court includes the final court, the intermediate court, and the first court. There are also administrative courts that jurisdiction over administrative cases and tax work. Court provides effective means to exercise property rights and contract rights. Currently, the final appeal court has three judges, the intermediate court has eight judges, and the first court has 30 judges. The Public Prosecutor has 34 prosecutors. Macau has concluded a Portugal and the Netherlands and the tw o-country investment treaty (bit). In September 2018, the Macinida Convention on Taxes on Macau came into effect. As of 2023, the GOM is 16 countries and regions (with the Republic of Argentina, the United Kingdom, Gernsy, Japan, Greenland, India, Australia, Denmark, Fellows Island, Iceland, Iceland, Sweden, Sweden, Malta, Ireland, Jamica, Finland). The tax information exchange agreement (TIEA) has been concluded. TIEA negotiations with Germany and New Zealand are continuing. Currently, Macau can be reduced in double tax based on the double taxation agreements that Macau, Belgium, China, China, Mozambique, Vietnam, Portugal, Hong Kong, and the latest Cambodia concluded.

Performance and Data Localization Requirements

Under the "one country and two systems, Macau has maintained the Continental European Law, which is based on the independence of legal and justice, as the foundation of the legal system. The current judicial procedure is a fair and reliable thing that has the ability to procure. Macau has a commercial law and a contract law. Commercial Code is a comprehensive source of commercial law, and civil law is a basic source of contract law. The Macau court includes the final court, the intermediate court, and the first court. There are also administrative courts that jurisdiction over administrative cases and tax work. Court provides effective means to exercise property rights and contract rights. Currently, the final appeal court has three judges, the intermediate court has eight judges, and the first court has 30 judges. The Public Prosecutor has 34 prosecutors. Macau has concluded the Portugal and the Netherlands and the tw o-country investment treaty (bit). In September 2018, the Macinida Convention on Taxes on Macau came into effect. As of 2023, the GOM is 16 countries and regions (with the Republic of Argentina, the United Kingdom, Gernsy, Japan, Greenland, India, Australia, Denmark, Fellows Island, Iceland, Iceland, Sweden, Sweden, Malta, Ireland, Jamica, Finland). The tax information exchange agreement (TIEA) has been concluded. TIEA negotiations with Germany and New Zealand are continuing. Currently, Macau can be reduced in double tax based on the double taxation agreements that Macau, Belgium, Cerbo Verde, China, Mozambique, Vietnam, Portugal, Hong Kong, and the latest Cambodia.

Macau enacted the National Security Law (NSL) in 2009, which prohibits and punishes crimes against national security, including treason, secession, sedition, subversion, theft of state secrets, and collusion with foreign political organizations. Preparatory acts leading to these crimes may also be criminalized. In 2023, after 45 days of public consultation, the Legislative Yuan unanimously amended the NSL. The amended NSL broadened the scope of the law. For example, the new regime expanded the scope of secession to include non-violent acts and other crimes. The crime of subversion against the Chinese government was made broader and defined as subversion against all organs of China's central political power. The proposed amendment also expanded the crime of conspiracy from association with foreign political organizations to any organization outside Macau, and clarified that it has an extraterritorial nature that applies to all those who seek to threaten the national security of the SAR, including those outside Macau. Although human rights groups have expressed concern that the NSL's "vague and broad provisions" could erode freedom of association and expression in Macau, no one has been prosecuted under the Macau NSL since its enactment in 2009.

Macau courts have jurisdiction over all domestic cases except those related to national defense and foreign affairs. The 2009 NSL and related amendments did not affect this jurisdiction.

5. Protection of Property Rights

Real Property

Macau's legal system is based on the rule of law and judicial independence. Foreign and domestic companies are registered under the same rules and are subject to the same commercial and bankruptcy laws (Decree 40/99/M).

Macau has no authority to review transactions related to competition, and no competition law. The Commercial Law (Law No. 16 of 2009) contains the basic elements of a competition policy against trade practices that may distort the proper functioning of the market. In response to public backlash against price fixing in Macau's oil and food retail industries, the GOM appointed the Macau Consumers' Committee in May 2020 to monitor local market prices and determine whether new legislation on market competition is warranted. In January 2022, the GOM enacted the Consumer Rights Protection Law, which defines consumer rights, regulates deceptive business practices, and provides mechanisms for resolving consumer complaints. Although it does not contain provisions regulating monopolies, collusion, and predatory pricing, the GOM considers the Consumer Rights Protection Law sufficient to perform the functions of antitrust and anticompetitive law.

The United States does not recognize direct or indirect actions for expropriation. Lawful expropriation of private property may occur when it is in the public interest. In such cases, the GOM will exchange private property for comparable public property based on the fair market value and terms of the former. The exchange of property will follow established principles of international law. There will be no remunerative compensation.

Macau is subject to both the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). The International Commercial Arbitration Law (Decree 55/98/M) provides for the enforcement of arbitral awards under the 1958 New York Convention.

The United States knows only one investment dispute involved in the United States or other foreign investors or contractors and GOMs. In March 2010, a cheap airline was forced to cancel the flight due to a credit conflict with a fuel supply company, which triggered the airline, which was brushed. The Macau court in September 2010 declared the airline bankruptcy. A private investment company in the United States, a major shareholder of the airline, filed a lawsuit in Macau for a ruling whether GOM's administrative act led to bankruptcy of the airline. The second institution held a hearing in May and June 2012. In November 2013, the second trial rejected the appeal.

Private investment disputes are usually processed by court or private negotiations. Alternatively, the dispute may be entrusted to the Hong Kong International Arbitration Center or the Macau World Trade Center arbitration center. A review of the judicial documents in the Civil and Corporation of Macau Special Administrative District and the Macau Special Administrative District came into effect in August 2020, and the delivery of judicial documents between the two regions was greatly increased.

6. Financial Sector

Capital Markets and Portfolio Investment

Macau has an arbitration law (Cabinet Order 55/98/m), which adopts the International Trading Model Law of the United Nations International Trade Law (UNCITRAL). GOM accepts international arbitration of investment disputes between its own and investors. Local courts allow and execute foreign arbitration. In May 2020, the Macau government enacted the New Naka Court Law and unified the Macau Domestic and International Arbitration Law. This arbitration reform includes effective conflict solutions to investment disputes, such as the introduction of the emergency arbitrator system, restrictions on appeal, the provisions of the court in gathering evidence, the approval and execution of the provisional measures, and the announcement of mi d-court judgment. The best practices are included.

Macau established the World Trade Center Macau Arbitration Center in June 1998. The center aims to promote dispute resolution by arbitration and mediation and provide an alternative other than judicial litigation to the party party. The United States knows only one investment dispute involving the United States or other foreign investors or contractors and GOM. In March 2010, a cheap airline was forced to cancel the flight due to a credit conflict with a fuel supply company, which triggered the airline, which was brushed. The Macau court in September 2010 declared the airline bankruptcy. A private investment company in the United States, a major shareholder of the airline, filed a lawsuit in Macau for a ruling whether GOM's administrative act led to bankruptcy of the airline. The second institution held a hearing in May and June 2012. In November 2013, the second trial rejected the appeal.

Money And Banking System

Macau established the World Trade Center Macau Arbitration Center in June 1998. The center aims to promote dispute resolution by arbitration and mediation and provide an alternative other than judicial litigation to the party party. The United States knows only one investment dispute involved in the United States or other foreign investors or contractors and GOMs. In March 2010, a cheap airline was forced to cancel the flight due to a credit conflict with a fuel supply company, which triggered the airline, which was brushed. The Macau court in September 2010 declared the airline bankruptcy. A private investment company in the United States, a major shareholder of the airline, filed a lawsuit in Macau for a ruling whether GOM's administrative act led to bankruptcy of the airline. The second institution held a hearing in May and June 2012. In November 2013, the second trial rejected the appeal.

Foreign Exchange and Remittance

Foreign ruling on civil and trading can be executed in Macau. The execution of the Foreign Judgment is stipulated in Article 1199 and 1200 of the Civil Procedure Code. The foreign court ruling is approved and executed in Macau when it is eligible as a final ruling backed by a true document, and its execution does not violate Macau's public order and morals.

Remittance Policies

Commercial law and bankruptcy law are written under the Macau Commercial Code, Civil Procedure Law, and Criminal Code. Bankruptcy proceedings are activated by bankrupt, claims from creditors, or prosecutors. There are four ways to prevent bankruptcy: creditor rally, corporate assets audit, harmony, and creditors agreement. According to Article 615, 618, and Article 351 to Article 353 of the Civil Procedure Code, creditors who have a legitimate fear of losing the guarantee of the claim may claim the foreclosure of the debtor's assets. Bankruptcy is subject to criminal liability.

In October 2020, the Macau Postal Communications Bureau announced the construction of a credit information system, and when banks allow the bank's credit status when approving individual customer credit applications, from banks. Those who want to borrow money have to apply for personal credit information from a new system for bank screening. The system has started operation on January 1, 2023, covering all 32 Macau banks.

In order to attract foreign capital, GOM provides investors providing investment preferential treatment based on national treatment. These preferential measures are stipulated in Cabinet Order 7/2021 and provide as much as possible that companies are doing one of the following: To promote economic diversification and promote new unlimited market. Contribution, promotion of added value in the value chain of activities, and contribution to technical modernization. Macau residents do not need to own shares. These preferential measures are classified as financial preferential measures, financial preferential measures, and export diversification preferences. Foreign ruling for civil and trading can be executed in Macau. The execution of the Foreign Judgment is stipulated in Article 1199 and 1200 of the Civil Procedure Code. The foreign court ruling is approved and executed in Macau when it is eligible as a final ruling backed by a true document, and its execution does not violate Macau's public order and morals.

Sovereign Wealth Funds

7. State-Owned Enterprises (SOEs)

In order to attract foreign capital, GOM provides investors providing investment preferential treatment based on national treatment. These preferential measures are stipulated in Cabinet Order 7/2021 and provide as much as possible that companies are doing one of the following: To promote economic diversification and promote new unlimited market. Contribution, promotion of added value in the value chain of activities, and contribution to technical modernization. Macau residents do not need to own shares. These preferential measures are classified as financial preferential measures, financial preferential measures, and export diversification preferences. Foreign ruling on civil and trading can be executed in Macau. The execution of the Foreign Judgment is stipulated in Article 1199 and 1200 of the Civil Procedure Code. The foreign court ruling is approved and executed in Macau when it is eligible as a final ruling backed by a true document, and its execution does not violate Macau's public order and morals.

Privatization Program

8. Responsible Business Conduct

Financial preferential measures include full or partial exemptions of profit and corporate tax, industrial tax, property tax, real estate transfer stamp tax, and consumption tax. The tax incentives are not an export subsidy or an import alternative subsidy defined in the WTO Agreement, so it is in line with the WTO agreement on subsidies and offset measures. In 2019, GOM said that a company whose registered capital reached $ 125, 000 or a company whose average taxable income reached $ 62, 500 a year for the third consecutive year for innovation and technical projects (R & AMP; D) ) We have enhanced tax deductions for expenditures. The tax deduction is 300 % for the first $ 375, 000 of the target R & D expenses, 200 % for the remaining amount, and a total of $ 1. 5 million. In addition, income from the Portuguese speaking countries is exempted from corporate tax only when taxation is levied in its hometown.

Two new laws that encourage Macau's financial leasing activities were enforced in April 2019. In the new system, the minimum capital requirements for financial leasing companies can be reduced from $ 3. 75 million to $ 1. 25 million. In addition, if a financial leasing company gets real estate only for its own use, stamp tax is exempted to up to $ 62, 500. The approved finance leasing company is also exempted from stamp tax for initially capital, additional capital, interest, commission, and financial contract registration.

Additional Resources

Financial preferential measures include government funds. Export diversification incentives include subsidies given to companies and industry groups participating in trade promotion activities hosted by IPim. Only companies registered at the Economic and Technology Development Bureau (ETDB) can receive subsidies such as rental fees for space and the cost of audience materials. In addition, Macau also provides subsidies for the installation of pollution prevention equipment.

In order to promote the spread of electronic commercial transactions, companies that use services provided by the target electronic business operators and websites can receive subsidies up to $ 3, 750 per year.
Macau is free, but there are four types of taxable products: alcoholic beverages, tobacco, vehicles, and gasoline (volatile oil). When importing these products, you need to get a license from the ETDB in advance. Financial preferential measures include a full or part of the expulsion of interest tax, corporate tax, industrial tax, property tax, real estate transfer stamp tax, and consumption tax. The tax incentives are not an export subsidy or an import alternative subsidy defined in the WTO Agreement, so it is in line with the WTO agreement on subsidies and offset measures. In 2019, GOM said that a company whose registered capital reached $ 125, 000 or a company whose average taxable income reached $ 62, 500 a year for the third consecutive year for innovation and technical projects (R & AMP; D) ) We have enhanced tax deductions for expenditures. The tax deduction is 300 % for the first $ 375, 000 of the target R & D expenses, 200 % for the remaining amount, and a total of $ 1. 5 million. In addition, income from the Portuguese speaking countries is exempted from corporate tax only when taxation is levied in its hometown.
Two new laws that encourage Macau's financial leasing activities were enforced in April 2019. In the new system, the minimum capital requirements for financial leasing companies can be reduced from $ 3. 75 million to $ 1. 25 million. In addition, if a financial leasing company gets real estate only for its own use, stamp tax is exempted to up to $ 62, 500. The approved finance leasing company is also exempted from stamp tax for initially capital, additional capital, interest, commission, and financial contract registration.
Financial preferential measures include government funds. Export diversification incentives include subsidies given to companies and industry groups participating in trade promotion activities hosted by IPim. Only companies registered at the Economic and Technology Development Bureau (ETDB) can receive subsidies such as rental fees for space and the cost of audience materials. In addition, Macau also provides subsidies for the installation of pollution prevention equipment.
In order to promote the spread of electronic commercial transactions, companies that use services provided by the target electronic business operators and websites can receive subsidies up to $ 3, 750 per year.
Macau is a free port, but there are four types of taxable products: alcoholic beverages, cigarettes, vehicles, and gasoline (volatile oil). When importing these products, you need to get a license from the ETDB in advance. Financial preferential measures include full or partial exemptions of profit and corporate tax, industrial tax, property tax, real estate transfer stamp tax, and consumption tax. The tax incentives are not an export subsidy or an import alternative subsidy defined in the WTO Agreement, so it is in line with the WTO agreement on subsidies and offset measures. In 2019, GOM said that a company whose registered capital reached $ 125, 000 or a company whose average taxable income reached $ 62, 500 a year for the third consecutive year for innovation and technical projects (R & AMP; D) ) We have enhanced tax deductions for expenditures. The tax deduction is 300 % for the first $ 375, 000 of the target R & D expenses, 200 % for the remaining amount, and a total of $ 1. 5 million. In addition, income from the Portuguese speaking countries is exempted from corporate tax only when taxation is levied in its hometown.

In order to promote the spread of electronic commercial transactions, companies that use services provided by the target electronic business operators and websites can receive subsidies up to $ 3, 750 per year.
Macau is free, but there are four types of taxable products: alcoholic beverages, tobacco, vehicles, and gasoline (volatile oil). When importing these products, you need to get a license from the ETDB in advance.
GOM has accepted ATA Carnet (temporary entry permit) to promote the Macau meeting, incentive, convention, exhibition (MICE) and logistics industry. ATA Carnet is an international customs document that provides efficient ways for temporary import and r e-exporting goods, making it easier to do foreign exhibitions and business.
With the latest additional CEPA, the principles of trad e-offs, such as simplification of customs procedures, improving transparency, and strengthening cooperation, have been established.

Climate

In 2021, Macau and the mainland authorities launched a special economic zone, "Guangdong and Macau Shenzhen Cooperation District," jointly managed by both the special administrative districts and the governments of Guangdong Province. The authorities plan to make various new arrangements to smooth the flow of people, things and capital. On March 1, 2024, the authorities introduced the "tw o-line" customs system of the "second line" connecting Macau and Yokoto and the "second line" that connects Yokoto and other areas of the mainland of China. In the "front line, customs requirements are alleviated, and the target products are released by tax exemption, while" second lines "provide severe customs management. In order to promote the growth of Yokoto, the authorities provide incentive tax systems, subsidies for companies and individuals, and import duties exemption of targeted products processed in the special economic zone. As of 2023, nearly 6, 000 Macau capital companies have advanced to Yokoto.

9. Corruption

In Macau, there is no forced localization policy for foreign investors to use domestic ones for products and technology. However, the Macau government has hired a strict foreign worker policy, and that Macau citizens will be hired in the employment process so that the import of foreign workers will not impair the Macau citizens' employment opportunities. I am obliged. Macau's conference, incentive, convention, exhibition (MICE) and logistics industries have accepted the ATA Carnet (temporary admission certificate). ATA Carnet is an international customs document that provides efficient ways for temporary import and r e-exporting goods, making it easier to do foreign exhibitions and business.

With the latest additional CEPA, the principles of trad e-offs, such as simplification of customs procedures, improving transparency, and strengthening cooperation, have been established.

Resources to Report Corruption

10. Political and Security Environment

In Macau, there is no forced localization policy for foreign investors to use domestic ones for products and technology. However, the Macau government has hired a strict foreign worker policy, and that Macau citizens will be hired in the employment process so that the import of foreign workers will not impair the Macau citizens' employment opportunities. I am obliged. GOM has accepted ATA Carnet (temporary entry permit) to promote the Macau meeting, incentive, convention, exhibition (MICE) and logistics industry. ATA Carnet is an international customs document that provides efficient ways for temporary import and r e-exporting goods, making it easier to do foreign exhibitions and business.

With the latest additional CEPA, the principles of trad e-offs, such as simplification of customs procedures, improving transparency, and strengthening cooperation, have been established.

11. Labor Policies and Practices

In Macau, there is no forced localization policy that foreign investors must use domestic ones for products and technology. However, the Macau government has hired a strict foreign worker policy, and that Macau citizens will be hired in employment processes so that the import of foreign workers will not impair the Macau citizens' employment opportunities. I am obliged.

A no n-residents will be allowed to work in Macau only if the employer cannot find appropriate candidates in the domestic labor market. The employer who wishes to hire foreign workers applies to the Macau Labor Bureau for advance approval, and the labor by no n-residents is supplementary, provisional, secondary, sustainable based on the law. You have to prove something. People who are critical of Macau's labor policies have impaired the labor rights of foreign workers at a realistic level of asymmetrical legal provisions in employment processes between Macau residents and no n-residents. I mentioned. The employment application for foreign workers is processed by the Macau Labor Bureau.

There is no official requirement for foreign IT providers to submit source code to the GOM or provide monitoring access (such as backdoors, backdoors, and encryption keys to software). However, if a criminal act is suspected to threaten national security, the company may be obliged if the law enforcement is secured a court warrant.

According to the Personal Data Protection Law (DECREE 8/2005), when relocating personal data outside Macau, the relocation destination confirms that it has an appropriate protection level (supervision of the Law). ・ You have to ask for the opinions of the executed director).

In December 2019, the Macau Cyber Security Law was enacted. Under this law, public and private network operators in a particular industry have the obligation to provide rea l-time access to Macau authorities selected to Macau authorities with the aim of protecting information networks and computer systems. Must be fulfilled. For example, a network operator must register and verify the identity before providing an telecommunications service. The law has caused investment and operating costs for affected companies, causing concerns about privacy and monitoring.

In December 2021, the legislation was passed a new eavescopic bill that stipulates data preservation requirements for telecommunications carriers, and the telecommunications carrier saves the communication record (excluding communication content) for one year. He stated that he had to do it. During the preservation period, telecommunications carriers must guarantee the safety and confidentiality of related data. Working in a no n-resident Macau is only allowed when the employer cannot find the right candidate in the domestic labor market. The employer who wishes to hire foreign workers applies to the Macau Labor Bureau for advance approval, and the labor by no n-residents is supplementary, provisional, secondary, sustainable based on the law. You have to prove something. People who are critical of Macau's labor policies have impaired the labor rights of foreign workers at a realistic level of asymmetrical legal provisions in employment processes between Macau residents and no n-residents. I mentioned. The employment application for foreign workers is processed by the Macau Labor Bureau.

12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs

In December 2019, the Macau Cyber Security Law was enacted. Under this law, public and private network operators in a specific industry have the obligation to provide rea l-time access to Macau authorities selected to Macau authorities with the aim of protecting information networks and computer systems. Must be fulfilled. For example, a network operator must register and verify the identity before providing an telecommunications service. The law has caused investment and operating costs for affected companies, causing concerns about privacy and monitoring.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

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