![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/09/Keith-Morrison_cmyk.jpg\")
![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2017/08/population-150x150.jpg\")
\nMacau Business | June 2024
\n\n\n\nKeith Morrison \u2013 Author and educationist
\n\n\n\nLike many other parts of the world, Macau is experiencing a population change. It is common knowledge that Macau\u2019s population is living longer. In 2013, the proportion of its population aged 65 and above was 8.4 per cent; in 2023 it was 14 per cent, projected to rise to 23.3 per cent in 2034. Further, the number of people in the 25 to 34 age group, i.e. those who might have children, whilst they comprised 16.7 per cent of the population in 2023, is projected to fall to 10.2 per cent in 2034. As graph 1 shows, in the last ten years Macau\u2019s population aged 65 and above grew dramatically, by 85 per cent (rounded), whilst the number of live births fell by half (49.57 per cent) (see graph 2). The younger population (aged 0-4 years) is projected to fall from 4.3 per cent in 2023 to 3.4 per cent in 2034.
\n\n\n\nThe ramifications of these simple figures are already engaging Macau\u2019s government, for example, building accommodation for the increasing elderly population in Macau. Nevertheless, more can be done for elderly health services. Why are there daily queues of elderly patients waiting for treatment in Macau\u2019s hospitals and health centres? What is being done to augment the massively over-stretched and under-provided mental health provision and services in Macau, to promote well-being, and, indeed, not only for the elderly but for all age groups? Despite recent building programmes, there are still insufficient homes for the elderly providing a decent, stimulating, and caring environment, together with a high quality of life rather than endurance and suffering in a socially withering, boring environment.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/dx_www-W6MGOy0QRjs-unsplash.jpg\")
We hear many, many stories of young adults of child-rearing age in Macau deciding not to have children. It is little surprise that the birth rate is falling in Macau. Why is this? What incentives and provisions are there for bringing children into the world in Macau? Can young Macau couples afford to have children? In other parts of the world, financial help from the government for all parents bringing up children lasts until the children are 18 years of age, regardless of parents\u2019 income, i.e. equality for all. Not so in Macau. This raises an ongoing and massive agenda, regarding affordable accommodation, job security, and sufficient income to raise children, to give them a reasonable, enjoyable childhood and subsequent adulthood. These point to the need for considerable investment in improving health care, education, providing for children, social welfare, ensuring their well-being and a positive and stimulating environment for bringing up children with their families, not only giving individual handouts; it is a system-level as well as an individual-level support matter. No wonder, perhaps, that fewer people in Macau have babies.
\n\n\n\nIt is difficult to reconcile Macau\u2019s huge GDP and steps taken to further its \u2018gold business card\u2019, with the need for all its population, young and old, to have a better quality of life. Where is Macau\u2019s government providing sufficient all-round care and support for the elderly and child rearing in Macau? Only with having all these available and accessible services and support will the elderly be able to look forward to retirement without apprehension, fear, and despair, and will the younger, child-bearing population be able to afford to have children and give them a decent life. This places societal welfare at the top of a government agenda, not simply the amassing of wealth, flourishing business, and putting crowded streets of tourists at the topic of the \u2018to do\u2019 list.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/%E5%B1%8F%E5%B9%95%E6%88%AA%E5%9B%BE-2024-07-20-153216.png\")
Source: DSEC (latest annual data)
\n", "content_text": "Macau Business | June 2024\n\n\n\nKeith Morrison \u2013 Author and educationist\n\n\n\n\n\n\n\nLike many other parts of the world, Macau is experiencing a population change. It is common knowledge that Macau\u2019s population is living longer. In 2013, the proportion of its population aged 65 and above was 8.4 per cent; in 2023 it was 14 per cent, projected to rise to 23.3 per cent in 2034. Further, the number of people in the 25 to 34 age group, i.e. those who might have children, whilst they comprised 16.7 per cent of the population in 2023, is projected to fall to 10.2 per cent in 2034. As graph 1 shows, in the last ten years Macau\u2019s population aged 65 and above grew dramatically, by 85 per cent (rounded), whilst the number of live births fell by half (49.57 per cent) (see graph 2). The younger population (aged 0-4 years) is projected to fall from 4.3 per cent in 2023 to 3.4 per cent in 2034.\n\n\n\nThe ramifications of these simple figures are already engaging Macau\u2019s government, for example, building accommodation for the increasing elderly population in Macau. Nevertheless, more can be done for elderly health services. Why are there daily queues of elderly patients waiting for treatment in Macau\u2019s hospitals and health centres? What is being done to augment the massively over-stretched and under-provided mental health provision and services in Macau, to promote well-being, and, indeed, not only for the elderly but for all age groups? Despite recent building programmes, there are still insufficient homes for the elderly providing a decent, stimulating, and caring environment, together with a high quality of life rather than endurance and suffering in a socially withering, boring environment. \n\n\n\n\n\n\n\nWe hear many, many stories of young adults of child-rearing age in Macau deciding not to have children. It is little surprise that the birth rate is falling in Macau. Why is this? What incentives and provisions are there for bringing children into the world in Macau? Can young Macau couples afford to have children? In other parts of the world, financial help from the government for all parents bringing up children lasts until the children are 18 years of age, regardless of parents\u2019 income, i.e. equality for all. Not so in Macau. This raises an ongoing and massive agenda, regarding affordable accommodation, job security, and sufficient income to raise children, to give them a reasonable, enjoyable childhood and subsequent adulthood. These point to the need for considerable investment in improving health care, education, providing for children, social welfare, ensuring their well-being and a positive and stimulating environment for bringing up children with their families, not only giving individual handouts; it is a system-level as well as an individual-level support matter. No wonder, perhaps, that fewer people in Macau have babies.\n\n\n\nIt is difficult to reconcile Macau\u2019s huge GDP and steps taken to further its \u2018gold business card\u2019, with the need for all its population, young and old, to have a better quality of life. Where is Macau\u2019s government providing sufficient all-round care and support for the elderly and child rearing in Macau? Only with having all these available and accessible services and support will the elderly be able to look forward to retirement without apprehension, fear, and despair, and will the younger, child-bearing population be able to afford to have children and give them a decent life. This places societal welfare at the top of a government agenda, not simply the amassing of wealth, flourishing business, and putting crowded streets of tourists at the topic of the \u2018to do\u2019 list.\n\n\n\n\n\n\n\nSource: DSEC (latest annual data)", "date_published": "July 21, 2024", "date_modified": "July 20, 2024 - 15:34", "author": { "name": "Keith Morrison", "url": "https://www.macaubusiness.com/author/keith-morrison/", "avatar": "https://secure.gravatar.com/avatar/2cbea4555b349452d65f06d8dd037154?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2017/08/population.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "Like many other parts of the world, Macau is experiencing a population change. It is common knowledge that Macau\u2019s population is living longer. " }, { "id": "https://www.macaubusiness.com/special-report-extreme-precipitation-and-flood-disaster-risk/", "url": "https://www.macaubusiness.com/special-report-extreme-precipitation-and-flood-disaster-risk/", "title": "Special Report \u2013 Extreme precipitation and flood disaster risk", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/4_imagem-150x150.png\")
\nIn the context of the GBA, there are some cities more at risk than Macau
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
A team of scientists, including Long Zhou, from the Faculty of Innovation and Design at City University of Macau, identified what they called “flood hazard risk zones for the high-density urban areas in Macau,” having concluded that “the areas most affected by flooding is concentrated along the western coastline of the Macau Peninsula, including the area close to the coastline from Inner Harbor South and Rua da Praia do Manduco to the Ilha Verde Industrial Zone, especially the area around Inner Harbor, which is severely affected by rain and flooding due to to its low-lying topography.”
\n\n\n\nIn addition to the abovementioned areas, the areas around Avenida Horta e Costa and Avenida da Almeida, some areas around the Lisboa Hotel also have a high risk of flooding.
\n\n\n\nIn contrast, the vast majority of the areas within the buffer zone of the Historic Centre of Macau are at the lowest risk of flooding due to their high topography.
\n\n\n\nBut due to its size and the context in which it operates, this problem cannot be seen in isolation, which is why there are more and more studies that analyse the risk of flooding in the context of the Greater Bay Area (GBA).
\n\n\n\n“As climate change intensifies, extreme weather events, especially coastal flooding, is becoming increasingly severe,” states a research paper authored by a team of mainland scientists who investigated “climate risk assessment and adaptation ability in China\u2019s coastal urban agglomerations” (2024).
\n\n\n\nThe authors assume that “carbon emissions exacerbate climate change, leading to increased frequency and intensity of extreme precipitation, which may result in flooding,\u201d and they focused the research precisely on the GBA.
\n\n\n\nThe result shows that Huizhou in the east of the GBA and Zhaoqing in the northwest have the highest level of flood disaster risk.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Guangdong-floods-1028x682.jpg\")
However, the central region of the GBA, which includes Guangzhou, Dongguan, Zhongshan, and Foshan, is highly susceptible to disaster-inducing environments and hazard-affected bodies. This means that the flooding risk and its impact in the GBA region exhibit distinct characteristics and spatial patterns.
\n\n\n\nAnd if the regions with the highest flood disaster risk are Guangzhou, Foshan, Dongguan, and Zhongshan along the Pearl River estuary, Zhuhai and Macau seem more ‘sheltered’.
\n\n\n\nWhat this research also shows is that “areas with higher levels of urbanisation and more developed economies will face higher flooding risks.”
\n\n\n\nAt the same time, the research results highlight that “ecological protection has a positive effect on reducing flood risk.”
\n\n\n\nIn the same vein is another piece of research published in 2023, also by scientists from the mainland and with the GBA as an object of analysis (\u201cEvolution characteristics of the rainstorm disaster chains in the Guangdong\u2013Hong Kong\u2013Macao Greater Bay Area, China\u201d).
\n\n\n\nThe authors also have no doubt that “enhancing the resistance of urban agglomeration against rainstorm-induced disasters has become a more urgent mission for the construction of the GBA.”
\n\n\n\nAnd they conclude that “rainstorms can lead to many disaster chains in the GBA, such as flash floods, riverine floods, debris flow/landslides, urban waterlogging, and agricultural waterlogging. Among them, the urban waterlogging disaster chain has the highest probability of occur.” Furthermore, “these disaster chains are influenced and exacerbated by each other, leading to cascading effects.”
\n\n\n\nThe authors created a ranking and concluded that “Shenzhen, Zhaoqing and Huizhou rank the top three in the frequency of rainstorm disaster chains, and Zhaoqing ranks the first in disaster loss index.”
\n\n\n\nWhile Guangzhou, Zhaoqing and Shenzhen “are at high-risk level for the rainstorm disasters with 10-year and 20-year return periods,” in Zhuhai, Zhongshan and Dongguan the index risk is relatively small. The same applies to Mac
\n\n\n\n
\u201cThe vast majority of the areas within the buffer zone of the Historic Center of Macau are at the lowest risk of flooding due to their high topography\u201d \u2013 study
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/4_imagem_CAIXA-1028x643.png\")
Sea-land breezes
\n\n\n\nSea-land breezes (SLB) “are mesoscale circulation phenomena that significantly affect weather and air quality in coastal regions.”
\n\n\n\nThe GBA experiences frequent SLB intrusion, according to a 2023 study, that examined the SLB features in the GBA from 2013 to 2022.
\n\n\n\nThe annual average daily sea and land wind speeds ranged from 2.8 to 3.2 m/s and 1.9 to 2.2 m/s, and from 1.8 to 2.2 m/s and 1.6 to 1.9 m/s in the eastern and western GBA, respectively.
\n\n\n\nThe start time of sea (land) winds first appeared at 0000 (1100) UTC and finally occurred at 0900 (2000) UTC.
\n\n\n\nPrevious | Western part of Peninsula \u201cis more sensitive to storm surge\u201d
\n", "content_text": "In the context of the GBA, there are some cities more at risk than Macau\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\nA team of scientists, including Long Zhou, from the Faculty of Innovation and Design at City University of Macau, identified what they called “flood hazard risk zones for the high-density urban areas in Macau,” having concluded that “the areas most affected by flooding is concentrated along the western coastline of the Macau Peninsula, including the area close to the coastline from Inner Harbor South and Rua da Praia do Manduco to the Ilha Verde Industrial Zone, especially the area around Inner Harbor, which is severely affected by rain and flooding due to to its low-lying topography.”\n\n\n\nIn addition to the abovementioned areas, the areas around Avenida Horta e Costa and Avenida da Almeida, some areas around the Lisboa Hotel also have a high risk of flooding.\n\n\n\nIn contrast, the vast majority of the areas within the buffer zone of the Historic Centre of Macau are at the lowest risk of flooding due to their high topography.\n\n\n\nBut due to its size and the context in which it operates, this problem cannot be seen in isolation, which is why there are more and more studies that analyse the risk of flooding in the context of the Greater Bay Area (GBA).\n\n\n\n“As climate change intensifies, extreme weather events, especially coastal flooding, is becoming increasingly severe,” states a research paper authored by a team of mainland scientists who investigated “climate risk assessment and adaptation ability in China\u2019s coastal urban agglomerations” (2024).\n\n\n\nThe authors assume that “carbon emissions exacerbate climate change, leading to increased frequency and intensity of extreme precipitation, which may result in flooding,\u201d and they focused the research precisely on the GBA.\n\n\n\nThe result shows that Huizhou in the east of the GBA and Zhaoqing in the northwest have the highest level of flood disaster risk.\n\n\n\n\n\n\n\nHowever, the central region of the GBA, which includes Guangzhou, Dongguan, Zhongshan, and Foshan, is highly susceptible to disaster-inducing environments and hazard-affected bodies. This means that the flooding risk and its impact in the GBA region exhibit distinct characteristics and spatial patterns.\n\n\n\nAnd if the regions with the highest flood disaster risk are Guangzhou, Foshan, Dongguan, and Zhongshan along the Pearl River estuary, Zhuhai and Macau seem more ‘sheltered’.\n\n\n\nWhat this research also shows is that “areas with higher levels of urbanisation and more developed economies will face higher flooding risks.”\n\n\n\nAt the same time, the research results highlight that “ecological protection has a positive effect on reducing flood risk.”\n\n\n\nIn the same vein is another piece of research published in 2023, also by scientists from the mainland and with the GBA as an object of analysis (\u201cEvolution characteristics of the rainstorm disaster chains in the Guangdong\u2013Hong Kong\u2013Macao Greater Bay Area, China\u201d).\n\n\n\nThe authors also have no doubt that “enhancing the resistance of urban agglomeration against rainstorm-induced disasters has become a more urgent mission for the construction of the GBA.”\n\n\n\nAnd they conclude that “rainstorms can lead to many disaster chains in the GBA, such as flash floods, riverine floods, debris flow/landslides, urban waterlogging, and agricultural waterlogging. Among them, the urban waterlogging disaster chain has the highest probability of occur.” Furthermore, “these disaster chains are influenced and exacerbated by each other, leading to cascading effects.”\n\n\n\nThe authors created a ranking and concluded that “Shenzhen, Zhaoqing and Huizhou rank the top three in the frequency of rainstorm disaster chains, and Zhaoqing ranks the first in disaster loss index.”\n\n\n\nWhile Guangzhou, Zhaoqing and Shenzhen “are at high-risk level for the rainstorm disasters with 10-year and 20-year return periods,” in Zhuhai, Zhongshan and Dongguan the index risk is relatively small. The same applies to Mac\n\n\n\n \u201cThe vast majority of the areas within the buffer zone of the Historic Center of Macau are at the lowest risk of flooding due to their high topography\u201d \u2013 study \n\n\n\n\n\n\n\n\n\n\n\nSea-land breezes\n\n\n\nSea-land breezes (SLB) “are mesoscale circulation phenomena that significantly affect weather and air quality in coastal regions.”\n\n\n\nThe GBA experiences frequent SLB intrusion, according to a 2023 study, that examined the SLB features in the GBA from 2013 to 2022.\n\n\n\nThe annual average daily sea and land wind speeds ranged from 2.8 to 3.2 m/s and 1.9 to 2.2 m/s, and from 1.8 to 2.2 m/s and 1.6 to 1.9 m/s in the eastern and western GBA, respectively.\n\n\n\nThe start time of sea (land) winds first appeared at 0000 (1100) UTC and finally occurred at 0900 (2000) UTC.\n\n\n\nPrevious | Western part of Peninsula \u201cis more sensitive to storm surge\u201d", "date_published": "July 21, 2024", "date_modified": "July 20, 2024 - 15:21", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/4_imagem.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "In the context of the GBA, there are some cities more at risk than Macau" }, { "id": "https://www.macaubusiness.com/special-report-western-part-of-peninsula-is-more-sensitive-to-storm-surge/", "url": "https://www.macaubusiness.com/special-report-western-part-of-peninsula-is-more-sensitive-to-storm-surge/", "title": "Special Report \u2013 Western part of Peninsula \u201cis more sensitive to storm surge\u201d", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/017_187582-150x150.jpg\")
\nIn a scenario where sea waters rise by one metre, the majority of the Macau Peninsula will become a maximum risk zone
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
A study by the Institute of Atmospheric Physics, Chinese Academy of Sciences, Beijing, published in 2021, put an end to doubts. Other scientists had previously drawn attention to the problem of sea level rise (SLR) in Macau, but researchers from the Institute of Atmospheric Physics stated that \u201cglobal warming-related SLR constitutes a substantial threat to Macau, due to its low elevation, small size.\u201d
\n\n\n\nBased on local tide gauge records, this study shows that sea level in Macau \u201cis now rising at an accelerated rate\u201d: 1.35 mm yr-1 over 1925-2010 and jumping to 4.2 mm yr-1 over 1970-2010, \u201creflecting an apparent acceleration of SLR.\u201d
\n\n\n\nFurthermore, reads the document, the sea level near Macau rose 10 per cent faster than the global mean during the period from 1993 to 2012.
\n\n\n\n\u201cIn the future, as projected by a suite of climate models, the rate of SLR in Macau will be about 20 per cent higher than the global average,\u201d states the scientific team led by Lin Wang.
\n\n\n\nFrom then on, other scientists began to worry about other types of priorities: if such scenarios (which the previous study quantified in detail) are confirmed, which areas of Macau will be most affected?
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/7_mangkut-1.jpg\")
In the last two years, at least two different studies have come to answer the question.
\n\n\n\n“At the current sea level, the western part of Macau Peninsula is more sensitive to storm surge. The west and northwest of Macau Peninsula is mainly affected by overtopping floods, while the eastern part of Macau Peninsula is mainly affected by backflow through the pipe network,” states a research conducted by Zhi-Yong Long and Liang Gao, State Key Laboratory of Internet of Things for Smart City and Ocean Science and Technology, University of Macau.
\n\n\n\nAccording to them, “the western and northwestern parts are the most storm surge-prone region on Macau Peninsula, owning to its inshore location and low-lying terrain. Even in the storm surge scenario corresponding to a 5-year return period, floods appear in this region.”
\n\n\n\n“When facing a 200-year return period storm surge event, the flow depth will reach more than 1 metre in the western and northwestern areas of Macau Peninsula,” Long and Gao added.
\n\n\n\nAlso from the University of Macau is the researcher Shi Huabin, who has dedicated himself to the topic of SLR and who promises soon the conclusions of a study in which \u201cattempts to quantify the risk of flooding caused by storm tides based on a specific case, [super-typhoon] Hato.\u201d
\n\n\n\nThe investigation established five risk levels based on the potential duration of flooding, something Shi described as \u201cvery important.\u201d \u201cIf the floods last one or two days, the result is more dangerous,\u201d he said.
\n\n\n\nIn a scenario where sea waters rise by one metre, Shi said the model predicts that the majority of the Macau Peninsula will become a maximum risk zone, as well as \u201chuge flooding at the airport and Cotai.\u201d.
\n\n\n\n
\u201cThe areas most affected by flooding are concentrated along the western coastline of the Macau Peninsula\u201d \u2013 study
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/3_imagem-1028x578.png\")
The Shijiaoju floodgate
\n\n\n\nIn September 2023, Hong Kong recorded the highest rainfall for the last 139 years.
\n\n\n\nTo make the problem worse, the authorities in Shenzhen had to open the reservoir’s floodgates, but the Hong Kong police were only informed 45 minutes beforehand, and public opinion in the region knew only a quarter of an hour before, which made the response difficult.
\n\n\n\nThis case alerted public opinion in Macau to the possibility of a similar situation occurring in the event of a discharge of water from the Shijiaoju (Zhuhai) floodgate.
\n\n\n\nWhen questioned by lawmaker Leong Hong Sai, the Government simply responded that “work has already begun to reconstruct the Shijiaoju floodgate” and that its operation “has not, in general, caused any impact on the tide level in Macau in recent years, however , the Macau Government remains attentive to relevant circumstances.\u201d
\n\n\n\nPrevious | China\u2019s land subsidence risk
\n", "content_text": "In a scenario where sea waters rise by one metre, the majority of the Macau Peninsula will become a maximum risk zone\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\nA study by the Institute of Atmospheric Physics, Chinese Academy of Sciences, Beijing, published in 2021, put an end to doubts. Other scientists had previously drawn attention to the problem of sea level rise (SLR) in Macau, but researchers from the Institute of Atmospheric Physics stated that \u201cglobal warming-related SLR constitutes a substantial threat to Macau, due to its low elevation, small size.\u201d\n\n\n\nBased on local tide gauge records, this study shows that sea level in Macau \u201cis now rising at an accelerated rate\u201d: 1.35 mm yr-1 over 1925-2010 and jumping to 4.2 mm yr-1 over 1970-2010, \u201creflecting an apparent acceleration of SLR.\u201d\n\n\n\nFurthermore, reads the document, the sea level near Macau rose 10 per cent faster than the global mean during the period from 1993 to 2012.\n\n\n\n\u201cIn the future, as projected by a suite of climate models, the rate of SLR in Macau will be about 20 per cent higher than the global average,\u201d states the scientific team led by Lin Wang.\n\n\n\nFrom then on, other scientists began to worry about other types of priorities: if such scenarios (which the previous study quantified in detail) are confirmed, which areas of Macau will be most affected?\n\n\n\n\n\n\n\nIn the last two years, at least two different studies have come to answer the question.\n\n\n\n“At the current sea level, the western part of Macau Peninsula is more sensitive to storm surge. The west and northwest of Macau Peninsula is mainly affected by overtopping floods, while the eastern part of Macau Peninsula is mainly affected by backflow through the pipe network,” states a research conducted by Zhi-Yong Long and Liang Gao, State Key Laboratory of Internet of Things for Smart City and Ocean Science and Technology, University of Macau.\n\n\n\nAccording to them, “the western and northwestern parts are the most storm surge-prone region on Macau Peninsula, owning to its inshore location and low-lying terrain. Even in the storm surge scenario corresponding to a 5-year return period, floods appear in this region.”\n\n\n\n“When facing a 200-year return period storm surge event, the flow depth will reach more than 1 metre in the western and northwestern areas of Macau Peninsula,” Long and Gao added.\n\n\n\nAlso from the University of Macau is the researcher Shi Huabin, who has dedicated himself to the topic of SLR and who promises soon the conclusions of a study in which \u201cattempts to quantify the risk of flooding caused by storm tides based on a specific case, [super-typhoon] Hato.\u201d\n\n\n\nThe investigation established five risk levels based on the potential duration of flooding, something Shi described as \u201cvery important.\u201d \u201cIf the floods last one or two days, the result is more dangerous,\u201d he said.\n\n\n\nIn a scenario where sea waters rise by one metre, Shi said the model predicts that the majority of the Macau Peninsula will become a maximum risk zone, as well as \u201chuge flooding at the airport and Cotai.\u201d.\n\n\n\n \u201cThe areas most affected by flooding are concentrated along the western coastline of the Macau Peninsula\u201d \u2013 study \n\n\n\n\n\n\n\n\n\n\n\nThe Shijiaoju floodgate\n\n\n\nIn September 2023, Hong Kong recorded the highest rainfall for the last 139 years.\n\n\n\nTo make the problem worse, the authorities in Shenzhen had to open the reservoir’s floodgates, but the Hong Kong police were only informed 45 minutes beforehand, and public opinion in the region knew only a quarter of an hour before, which made the response difficult.\n\n\n\nThis case alerted public opinion in Macau to the possibility of a similar situation occurring in the event of a discharge of water from the Shijiaoju (Zhuhai) floodgate.\n\n\n\nWhen questioned by lawmaker Leong Hong Sai, the Government simply responded that “work has already begun to reconstruct the Shijiaoju floodgate” and that its operation “has not, in general, caused any impact on the tide level in Macau in recent years, however , the Macau Government remains attentive to relevant circumstances.\u201d\n\n\n\nPrevious | China\u2019s land subsidence risk", "date_published": "July 21, 2024", "date_modified": "July 20, 2024 - 15:19", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/017_187582.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "In a scenario where sea waters rise by one metre, the majority of the Macau Peninsula will become a maximum risk zone" }, { "id": "https://www.macaubusiness.com/special-report-chinas-land-subsidence-risk/", "url": "https://www.macaubusiness.com/special-report-chinas-land-subsidence-risk/", "title": "Special Report \u2013 China\u2019s land subsidence risk", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/02/5W9A7061a-150x150.jpg\")
\nChina\u2019s massive wave of urbanisation is threatened by land subsidence, a study indicates.
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
\n\n\n\nForty percent of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/%E5%B1%8F%E5%B9%95%E6%88%AA%E5%9B%BE-2024-07-19-172428.png\")
A study published in April, analysing 82 major cities in China, showed that about 40 per cent of the land is “undergoing moderate to severe subsidence, which adds to the risk of flooding for a large population.”
\n\n\n\nThe study’s title, “A national-scale assessment of land subsidence in China’s major cities,” which appeared in Science magazine, sums up the research’s goals.
\n\n\n\nIts 63 authors, all Chinese, are renowned scientists from the mainland, so the credibility of the information is beyond doubt. The research was funded by the National Natural Science Foundation of China and the Chinese Academy of Sciences.
\n\n\n\nThe impact of the study was enormous. In addition to being in the news via Reuters, it originated several texts, with emphasis on one published in competitor Nature: “Nearly half of China’s major cities are sinking \u2014 some ‘rapidly’.”
\n\n\n\nThrough radar observations from satellites, scientists were able to track ground deformation, between 2015 and 2022. “Over many years, radar can pick up even relatively small changes on the order of millimetres per year.” This was the first time that satellite data was used to systematically measure how China’s major cities are sinking. An example: some parts of Shanghai have subsided up to 9 feet in the last century.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/2_Tinajin.jpeg\")
The northern city of Tianjin \u201cwas identified as one of the worst-hit.\u201d According to Reuters dispatch, \u201clast year, 3,000 residents were evacuated after a’sudden geological disaster\u2019 that investigators blamed on water depletion as well as the construction of geothermal wells.\u201d
\n\n\n\nOne of the consequences highlighted by the study is that part of the population living in areas of high urbanisation will be in danger in the coming decades.
\n\n\n\nA third of China’s urban population lives in the most affected areas. In the conclusions, the authors support the possibility that about a quarter of China’s coastal land will be below sea level in the next hundred years, largely due to subsidence.
\n\n\n\n\u201cOf the examined urban lands, 45 per cent are subsiding faster than 3 millimetres per year, and 16 per cent are subsiding faster than 10 millimeters per year, affecting 29 and 7 per cent of the urban population, respectively,\u201d wrote the authors.
\n\n\n\n\u201cThe subsidence appears to be associated with a range of factors, such as groundwater withdrawal and the weight of buildings,\u201d reads the paper.
\n\n\n\n\u201cBy 2120, 22 to 26 per cent of China\u2019s coastal lands will have a relative elevation lower than sea level, hosting 9 to 11 per cent of the coastal population, because of the combined effect of city subsidence and sea-level rise. Our results underscore the necessity of enhancing protective measures to mitigate potential damages from subsidence,\u201d the team lead by Zurui Ao (Associate Researcher at South China Normal University) recommends.
\n\n\n\n“Subsidence is the technical term for when land sinks relative to its surroundings, and it’s a major threat for cities around the world. It accelerates local sea level rise from climate change, because the land is getting lower as the ocean gets higher. Urban subsidence can also affect inland cities by damaging buildings and roads, and causing drainage issues when water is trapped in sinking areas,” according to the explanations in one of the multiple publications made later on the topic.
\n\n\n\nOf the 44 major coastal cities suffering from the problem, 30 were in Asia, according to a 2022 Singapore study, quoted by Reuters.
\n\n\n\nPrevious | \u201cClimate change brings complex legal issues\u201d
\n", "content_text": "China\u2019s massive wave of urbanisation is threatened by land subsidence, a study indicates.\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\nForty percent of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding\n\n\n\n\n\n\n\nA study published in April, analysing 82 major cities in China, showed that about 40 per cent of the land is “undergoing moderate to severe subsidence, which adds to the risk of flooding for a large population.”\n\n\n\nThe study’s title, “A national-scale assessment of land subsidence in China’s major cities,” which appeared in Science magazine, sums up the research’s goals.\n\n\n\nIts 63 authors, all Chinese, are renowned scientists from the mainland, so the credibility of the information is beyond doubt. The research was funded by the National Natural Science Foundation of China and the Chinese Academy of Sciences.\n\n\n\nThe impact of the study was enormous. In addition to being in the news via Reuters, it originated several texts, with emphasis on one published in competitor Nature: “Nearly half of China’s major cities are sinking \u2014 some ‘rapidly’.”\n\n\n\nThrough radar observations from satellites, scientists were able to track ground deformation, between 2015 and 2022. “Over many years, radar can pick up even relatively small changes on the order of millimetres per year.” This was the first time that satellite data was used to systematically measure how China’s major cities are sinking. An example: some parts of Shanghai have subsided up to 9 feet in the last century.\n\n\n\n\n\n\n\nThe northern city of Tianjin \u201cwas identified as one of the worst-hit.\u201d According to Reuters dispatch, \u201clast year, 3,000 residents were evacuated after a’sudden geological disaster\u2019 that investigators blamed on water depletion as well as the construction of geothermal wells.\u201d\n\n\n\nOne of the consequences highlighted by the study is that part of the population living in areas of high urbanisation will be in danger in the coming decades.\n\n\n\nA third of China’s urban population lives in the most affected areas. In the conclusions, the authors support the possibility that about a quarter of China’s coastal land will be below sea level in the next hundred years, largely due to subsidence.\n\n\n\n\u201cOf the examined urban lands, 45 per cent are subsiding faster than 3 millimetres per year, and 16 per cent are subsiding faster than 10 millimeters per year, affecting 29 and 7 per cent of the urban population, respectively,\u201d wrote the authors.\n\n\n\n\u201cThe subsidence appears to be associated with a range of factors, such as groundwater withdrawal and the weight of buildings,\u201d reads the paper.\n\n\n\n\u201cBy 2120, 22 to 26 per cent of China\u2019s coastal lands will have a relative elevation lower than sea level, hosting 9 to 11 per cent of the coastal population, because of the combined effect of city subsidence and sea-level rise. Our results underscore the necessity of enhancing protective measures to mitigate potential damages from subsidence,\u201d the team lead by Zurui Ao (Associate Researcher at South China Normal University) recommends.\n\n\n\n“Subsidence is the technical term for when land sinks relative to its surroundings, and it’s a major threat for cities around the world. It accelerates local sea level rise from climate change, because the land is getting lower as the ocean gets higher. Urban subsidence can also affect inland cities by damaging buildings and roads, and causing drainage issues when water is trapped in sinking areas,” according to the explanations in one of the multiple publications made later on the topic.\n\n\n\nOf the 44 major coastal cities suffering from the problem, 30 were in Asia, according to a 2022 Singapore study, quoted by Reuters.\n\n\n\nPrevious | \u201cClimate change brings complex legal issues\u201d", "date_published": "July 20, 2024", "date_modified": "July 19, 2024 - 17:28", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2020/02/5W9A7061a.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "China\u2019s massive wave of urbanisation is threatened by land subsidence, a study indicates.\ufeff" }, { "id": "https://www.macaubusiness.com/special-report-climate-change-brings-complex-legal-issues/", "url": "https://www.macaubusiness.com/special-report-climate-change-brings-complex-legal-issues/", "title": "Special Report \u2013 \u201cClimate change brings complex legal issues\u201d", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/09/Figura-4-Situa%C3%A7%C3%A3o-das-inunda%C3%A7%C3%B5es-na-parte-sul-do-Porto-Interior-na-manh%C3%A3-de-2-de-Setembro-150x150.png\")
\nEva Jiang Yi Wa is one of the first lawyers in Macau specializing in, among other areas, environmental law, energy, and climate change. She works at JNV Lawyers and Notaries.
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
She has also been with the Faculty of Law at the University of Macau since 2011, serving as the Deputy Director of the Centre for Legal Studies and the Coordinator of the Postgraduate and Master’s programs.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/2_1_imagem.jpg\")
Floods are increasingly common in the Inner Harbour and, experts say, because of climate change. This alone can lead to an increase in conflict in court. Is this one of the risks?
\n\n\n\nEva Jiang \u2013 Yes, floods in the Inner Harbour are becoming more frequent primarily due to climate change, and this indeed poses significant legal risks. As part of the Macau Special Administrative Region, the Inner Harbour faces climate change challenges similar to those encountered in the rest of the world. Globally, climate change-induced extreme weather events such as floods, hurricanes, and rising sea levels have led to increased property damage and infrastructure destruction, subsequently resulting in numerous legal disputes. These disputes encompass several aspects:
\n\n\n\nFirstly, disputes over liability are likely to increase. Victims might even sue government agencies, arguing that they have failed to provide adequate flood prevention measures and infrastructure. Governments play a crucial role in responding to climate change and extreme weather events. Their responsibilities include not only the implementation of effective flood prevention infrastructure but also the formulation and enforcement of stringent environmental regulations and policies. Should the government fail to fulfil these duties effectively, it may face legal action.
\n\n\n\n
\u201cThe judicial responsibility for climate change cannot fall solely on one type of entity; it is distributed among governments, businesses, and individuals\u201d
Secondly, from a commercial perspective, as floods become more frequent, insurance claims and compensation issues will become more complex. Insurance companies might pay substantial compensation for flood damages but could also question whether the insured parties have adequate disaster prevention measures, leading to legal disputes. This also reminds the government to take precautions and strengthen dialogue with the insurance industry (\u201cto prepare for a rainy day\u201d), ensuring that insurance policies and claims procedures can address the growing climate risks.
\n\n\n\nFurthermore, the long-term impacts of climate change include challenges to land use and urban-planning policies. For example, the government may need to reassess and revise building related regulations and land use policies, including considerations for urban renewal plans, to adapt to changing environmental conditions.
\n\n\n\nIn conclusion, climate change brings not only direct environmental and economic challenges but also complex legal issues, necessitating global legal frameworks and policy adjustments to address these risks. Governments, businesses, and individuals all have significant responsibilities in addressing climate change and preventing the resulting legal disputes.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/Inner-harbour-walls-flood-gates.png\")
It seems obvious that, despite some signs, we have not yet begun to suffer the consequences of climate change, which will happen in the coming decades. What can a lawyer with this specialisation do?
\n\n\n\nE. J. \u2013 As a Macau lawyer and law teacher in the Faculty of Law at the University of Macau, I see numerous opportunities to help our community prepare for and adapt to future challenges. Macau, as a global tourism hub, faces climate change challenges similar to those encountered in other parts of the world while participating in building a community with a shared future for mankind. Although we have not yet fully experienced the severe consequences of climate change, these impacts will become more apparent in the coming decades. Here are some action directions that I have considered:
\n\n\n\nLaws and Policies: First, I believe that legal professionals in Macau should actively participate in drafting and advocating for stricter environmental regulations and policies to mitigate and adapt to the impacts of climate change.
\n\n\n\nLegal Litigation and Advocacy: In terms of legal litigation, legal professionals in Macau, especially practicing lawyers, can represent individuals, communities, or NGOs in lawsuits against entities responsible for climate change.
\n\n\n\nCorporate Consulting and Compliance: Providing legal consulting and compliance advice to companies is both important and beneficial.
\n\n\n\nEducation and Awareness: Education and awareness are also key duties of legal practitioners in the field of climate change.
\n\n\n\nCross-Border Cooperation and Exchange: Finally, climate change knows no borders, it is a global issue that requires cross-border cooperation and exchange. As lawyers in Macau, we should actively participate in international or regional climate change legal forums, exchanging experiences and best practices with legal experts from other countries and regions.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Macau-seen-from-Hengqin-1028x935.jpeg\")
A philosophical question: man, in a general sense, is primarily (the sole? responsible for climate change and, therefore, its consequences. Who will be held responsible when we start talking about judicial accountability?
\n\n\n\nE. J. \u2013 Judicial responsibility in environmental protection is not merely the duty of a single entity but rather a complex collective responsibility (the principle of “common but differentiated responsibilities” should likewise apply). As a lawyer in Macau specialising in environmental and administrative law, I believe that addressing the judicial responsibility related to climate change demands a comprehensive and integrated approach:
\n\n\n\nAdministrative and legislative bodies: Governments play a fundamental role in mitigating and adapting to climate change, and this is indisputable. It is crucial that the government adopt a proactive and flexible approach to execution rather than merely reacting to issues.
\n\n\n\nIn Macau, businesses must also adhere to local environmental laws and regulations while referencing international best practices to develop and implement effective environmental management systems. The Macau SAR government has enacted a series of environmental protection policies, and businesses must actively cooperate to ensure their operations do not negatively impact the environment; otherwise, they risk becoming defendants in judicial lawsuits.
\n\n\n\nIn summary, the judicial responsibility for climate change cannot fall solely on one type of entity; it is distributed among governments, businesses, and individuals. Each entity plays a role in mitigating and adapting to climate change, forming a collective responsibility, with judicial responsibilities being no exception.
\n\n\n\nPrevious | The weather is \u201cbroken\u201d and Macau has already noticed that
\n", "content_text": "Eva Jiang Yi Wa is one of the first lawyers in Macau specializing in, among other areas, environmental law, energy, and climate change. She works at JNV Lawyers and Notaries. \n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\nShe has also been with the Faculty of Law at the University of Macau since 2011, serving as the Deputy Director of the Centre for Legal Studies and the Coordinator of the Postgraduate and Master’s programs.\n\n\n\n\n\n\n\nFloods are increasingly common in the Inner Harbour and, experts say, because of climate change. This alone can lead to an increase in conflict in court. Is this one of the risks? \n\n\n\nEva Jiang \u2013 Yes, floods in the Inner Harbour are becoming more frequent primarily due to climate change, and this indeed poses significant legal risks. As part of the Macau Special Administrative Region, the Inner Harbour faces climate change challenges similar to those encountered in the rest of the world. Globally, climate change-induced extreme weather events such as floods, hurricanes, and rising sea levels have led to increased property damage and infrastructure destruction, subsequently resulting in numerous legal disputes. These disputes encompass several aspects:\n\n\n\nFirstly, disputes over liability are likely to increase. Victims might even sue government agencies, arguing that they have failed to provide adequate flood prevention measures and infrastructure. Governments play a crucial role in responding to climate change and extreme weather events. Their responsibilities include not only the implementation of effective flood prevention infrastructure but also the formulation and enforcement of stringent environmental regulations and policies. Should the government fail to fulfil these duties effectively, it may face legal action.\n\n\n\n \u201cThe judicial responsibility for climate change cannot fall solely on one type of entity; it is distributed among governments, businesses, and individuals\u201d \n\n\n\nSecondly, from a commercial perspective, as floods become more frequent, insurance claims and compensation issues will become more complex. Insurance companies might pay substantial compensation for flood damages but could also question whether the insured parties have adequate disaster prevention measures, leading to legal disputes. This also reminds the government to take precautions and strengthen dialogue with the insurance industry (\u201cto prepare for a rainy day\u201d), ensuring that insurance policies and claims procedures can address the growing climate risks.\n\n\n\nFurthermore, the long-term impacts of climate change include challenges to land use and urban-planning policies. For example, the government may need to reassess and revise building related regulations and land use policies, including considerations for urban renewal plans, to adapt to changing environmental conditions.\n\n\n\nIn conclusion, climate change brings not only direct environmental and economic challenges but also complex legal issues, necessitating global legal frameworks and policy adjustments to address these risks. Governments, businesses, and individuals all have significant responsibilities in addressing climate change and preventing the resulting legal disputes.\n\n\n\n\n\n\n\n It seems obvious that, despite some signs, we have not yet begun to suffer the consequences of climate change, which will happen in the coming decades. What can a lawyer with this specialisation do?\n\n\n\nE. J. \u2013 As a Macau lawyer and law teacher in the Faculty of Law at the University of Macau, I see numerous opportunities to help our community prepare for and adapt to future challenges. Macau, as a global tourism hub, faces climate change challenges similar to those encountered in other parts of the world while participating in building a community with a shared future for mankind. Although we have not yet fully experienced the severe consequences of climate change, these impacts will become more apparent in the coming decades. Here are some action directions that I have considered:\n\n\n\nLaws and Policies: First, I believe that legal professionals in Macau should actively participate in drafting and advocating for stricter environmental regulations and policies to mitigate and adapt to the impacts of climate change.\n\n\n\nLegal Litigation and Advocacy: In terms of legal litigation, legal professionals in Macau, especially practicing lawyers, can represent individuals, communities, or NGOs in lawsuits against entities responsible for climate change.\n\n\n\nCorporate Consulting and Compliance: Providing legal consulting and compliance advice to companies is both important and beneficial.\n\n\n\nEducation and Awareness: Education and awareness are also key duties of legal practitioners in the field of climate change.\n\n\n\nCross-Border Cooperation and Exchange: Finally, climate change knows no borders, it is a global issue that requires cross-border cooperation and exchange. As lawyers in Macau, we should actively participate in international or regional climate change legal forums, exchanging experiences and best practices with legal experts from other countries and regions.\n\n\n\n\n\n\n\nA philosophical question: man, in a general sense, is primarily (the sole? responsible for climate change and, therefore, its consequences. Who will be held responsible when we start talking about judicial accountability?\n\n\n\nE. J. \u2013 Judicial responsibility in environmental protection is not merely the duty of a single entity but rather a complex collective responsibility (the principle of “common but differentiated responsibilities” should likewise apply). As a lawyer in Macau specialising in environmental and administrative law, I believe that addressing the judicial responsibility related to climate change demands a comprehensive and integrated approach:\n\n\n\nAdministrative and legislative bodies: Governments play a fundamental role in mitigating and adapting to climate change, and this is indisputable. It is crucial that the government adopt a proactive and flexible approach to execution rather than merely reacting to issues.\n\n\n\nIn Macau, businesses must also adhere to local environmental laws and regulations while referencing international best practices to develop and implement effective environmental management systems. The Macau SAR government has enacted a series of environmental protection policies, and businesses must actively cooperate to ensure their operations do not negatively impact the environment; otherwise, they risk becoming defendants in judicial lawsuits.\n\n\n\nIn summary, the judicial responsibility for climate change cannot fall solely on one type of entity; it is distributed among governments, businesses, and individuals. Each entity plays a role in mitigating and adapting to climate change, forming a collective responsibility, with judicial responsibilities being no exception.\n\n\n\nPrevious | The weather is \u201cbroken\u201d and Macau has already noticed that", "date_published": "July 20, 2024", "date_modified": "July 19, 2024 - 17:21", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/09/Figura-4-Situa%C3%A7%C3%A3o-das-inunda%C3%A7%C3%B5es-na-parte-sul-do-Porto-Interior-na-manh%C3%A3-de-2-de-Setembro.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Eva Jiang Yi Wa is one of the first lawyers in Macau specializing in, among other areas, environmental law, energy, and climate change. She works at JNV Lawyers and Notaries. " }, { "id": "https://www.macaubusiness.com/analysis-the-internationalization-of-chinas-electric-vehicles/", "url": "https://www.macaubusiness.com/analysis-the-internationalization-of-chinas-electric-vehicles/", "title": "ANALYSIS \u2013 The internationalization of China\u2019s Electric Vehicles", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Chinese-carmaker-BYD-150x150.jpg\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/12/Jorge-Costa-Oliveira-new-photo-1028x982.jpg\")
By Jorge Costa Oliveira
\n\n\n\nPartner and CEO of JCO Consultancy
\n\n\n\nWell-defined public policies (including significant government incentives \u2013 purchase subsidies, tax incentives and favourable licensing plates), good government and business planning in creating an integrated value chain in the electric storage and mobility sectors, and the absence of entropies created by radical environmentalist activism, all these factors converged to make China the largest market in the production (45%) and consumption (60%) of electric vehicles (EV). It should be noted that it is not only Chinese brands (BYD, Great Wall, SAIC, BAIC, Changan, Chery, Geely, XPeng, NIO) that produce EV in China; many foreign brands (Tesla, Ford, GM, BMW, VW, Mercedes, Audi, Renault, Volvo, Jaguar Land Rover, Nissan) also have EV plants within China, producing for the Chinese domestic market, but also for export. Value chain integration \u2013 from the refining of critical metals to the production of electric cells, cathodes, anodes, to gigafactories and EV assemblers \u2013 low production costs, the abovementioned government incentives and effective competition, have enabled the production of EVs in China to be significantly cheaper than in the US and Europe. According to some industry experts, production in China can shave up to \u20ac10,000 off the cost of an EV. In 2022, electric battery prices were 24% lower in China than in the U.S.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture2-1028x579.png\")
Meanwhile, in the Chinese domestic EV market, demand growth is slowing down (+90% in 2022, +36% in 2023, +22% in 2024) and competition is fierce (with a price war that has lasted for more than a year). Furthermore, several western institutions consider that China\u2019s EV industry is at overcapacity, producing annually an excess of 5 to 10 million EVs beyond domestic demand, forcing China to find new markets to fuel continued growth.
\n\n\n\nInternationalisation has become an essential facet for all EV producers in China, focused on key potential consumer markets. Thus far, the internationalisation of Chinese EVs has been made mainly via exports. The growth of EV exports was the key factor for China\u2019s reversion of its automotive trade balance; since mid-2022, vehicle exports have continuously outperformed imports. This trend was catalysed by China-produced vehicle exports to Russia amid the retreat of western corporations from this market since Ukraine\u2019s invasion.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture3-1028x544.png\")
Overall, the Association of European Vehicle Logistics (ECG), citing data from the China Association of Automobile Manufacturers (Caam), reports that Chinese [all] vehicle exports rose >1.3m in Q1 2024 (76.8% ICE, 23.2% NEVs), up 33% from Q1 2023, with leading markets being Russia (112,000 units), Mexico (66,000), Belgium (42,000) and the UK (38,000). The main Chinese carmakers exporters were Chery (with 253,000 units), SAIC (206,000), Changan (145,000), Geely (111,000), BYD (99,000), Great Wall (93,000) and Tesla (88,000).
\n\n\n\nThe main destination market for Chinese-produced EVs is Europe, followed by Asia; there is little penetration in the North American and Latin American markets (although growing fast in Brazil). Chinese EV brands avoid exporting to the US, which has a 27.5% tariff on automobiles imported from China (soon to be increased to 100%) and tie EV tax credits to local incorporation requirements. The majority of EVs exported from China are destined for Europe due to high demand in the region, high European per capita income, high local EV prices, low European customs tariffs, and substantial government subsidies for EVs, regardless of its origin.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture4-1028x545.png\")
To understand the competitiveness of Chinese EV brands, a recent report by Rhodium Group gives the example of BYD’s Seal U model that sells for \u20ac21,770 in China and \u20ac41,990 in the EU. Not only are Chinese automakers rapidly gaining shares of the European EV market (especially in the lower-priced segments), but they are making higher profits in Europe. Elon Musk\u2019s prediction that Chinese carmakers would \u2018demolish\u2019 global rivals is coming true in literally every market (hence the 100% tariff imposed by the US government).
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture5.png\")
According to the European Automobile Manufacturers’ Association (ACEA), China maintained its position as the leading source of new car imports to the EU in terms of value, with a growth of 37.1% and a market share of 17.7%. A significant portion of this growth is due to EVs. According to the European Federation for Transport and Environment (T&E), EVs manufactured in China are expected to account for 25% of total EV sales in Europe in 2024 (+5% compared to 2023).
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture6.png\")
T&E projections estimate that [among the EVs manufactured in China] Chinese brands will progressively gain bigger market shares \u2013 11% by 2024 and 20% until 2027. However, it is important to clarify what \u201cChinese brands\u201d means. In 2023, Chinese brands only represented a 2.5% market share of the European market last year, with 72% of that share belonging to MG, a British car brand controlled by the Chinese group SAIC Motor, MG being today a fully Chinese brand from production to design. Without MG, Chinese brands have only a 0.6% market share in Europe. This discrepancy arises from the fact that most vehicles imported from China to Europe are not Chinese brand vehicles but rather vehicles manufactured in China by foreign brands. Tesla alone accounts for 68% of the EVs imported from China and registered in Western Europe.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture7.png\")
Following an investigation launched by the European Commission on \u201cunfair subsidization\u201d of China-produced EVs\u2019, the currently low EU customs tariffs (10%) are going to be increased to up to 38% (on BYD: 17,4%; on Geely: 20%; on SAIC: 38,1%; on other BEV producers in China, which cooperated in the investigation but have not been sampled: 21%; on all other BEV producers in China which did not cooperate in the investigation: 38,1%). It is not clear the effect that such an increase will have on European consumers demand for China-produced EVs, but it is likely to slow down the [fast] penetration they were having.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture8-1028x787.png\")
Given the high tariffs already imposed in many relevant markets (e.g., India, Thailand, Brazil) to protect local automobile industries and the high probability that the EU would raise its tariffs (and eventually impose non-tariff obstacles), Chinese EV producers have planned to and are gradually setting up plants in several countries outside China.
\n\n\n\nJourney to the West – the European Market
\n\n\n\nThe growing decoupling between China and the US has refrained Chinese EV producers from venturing into US-based production. Only Polestar \u2013 a luxury EV brand owned by Geely \u2013 has an investment in an EV plant, scheduled to start production in South Carolina in 2024 (it is so far the only brand selling in the US China-produced EVs).
\n\n\n\nThe main market where Chinese-branded EV companies plan to set up plants is Europe. BYD will have its first European plant investment in Hungary, and announced it is considering a second European plant in 2025. It is also likely that Great Wall Motors will make its first European plant in Hungary (negotiations concerning government incentives, including tax breaks, to attract foreign investment and for job creation, are under way). These investments are in line with sizable investments (and government incentives) for gigafactories in the country, to be made by South Korean groups SK On and Samsung SDI and Chinese battery giant CATL.
\n\n\n\nSpain, Europe\u2019s second largest car-making country after Germany, has secured investment from Chery, which will start production in the fourth quarter at a former Nissan facility in Barcelona, via a partnership with Spanish EV Motors. Chery is expected to benefit from Spain\u2019s 3.7 billion-euro programme launched in 2020 to attract EV and battery plants.
\n\n\n\nChina\u2019s Envision Group has already received 300 million euros in incentives under the scheme for a 2.5 billion battery plant creating 3,000 jobs. Spain might also host Stellantis\u2019 planned fourth gigafactory in Europe, with CATL.
\n\n\n\nPoland will have an EV plant to be made, in Tychy, by a partnership of China’s Leapmotor and Franco-Italian Stellantis.
\n\n\n\nChery is mulling over plans to establish a plant in the UK as it begins to launch its Omoda and Jaecoo brands, following in the footsteps of several Chinese-owned gigafactories producing electric batteries in the country.
\n\n\n\nAccording to Reuters, Chery plans a second, larger facility in Europe, a source with knowledge of the company’s plans told, and has held talks with governments, including the Italian one, which is keen to attract a second automaker to rival Fiat-maker Stellantis.
\n\n\n\nItaly can tap its national automotive fund, worth 6 billion euros between 2025 and 2030, for incentives for both car buyers and manufacturers. China\u2019s Dongfeng is among several other automakers that have held investment discussions with Rome.
\n\n\n\nStill, according to Reuters, SAIC, owner of the MG brand, aims to build two Europe plants. The first, based at an existing facility, could be announced as early as July and would employ a kit-assembly technique, targeting annual production of up to 50,000 vehicles. SAIC\u2019s second European plant would be completely greenfield and produce up to 200,000 vehicles annually. Germany, Italy, Spain and Hungary are reported to be on SAIC’s location shortlist.
\n\n\n\nBYD, Chery, SAIC and Great Wall are also looking for attractive locations in Eastern Europe and Turkey (its Association Agreement with the EU creates a customs union, and the country has several free trade agreements with non-EU countries) to set up plants for lower-cost vehicles.
\n\n\n\nTurkey is reported to be in advanced negotiations with BYD and Chery for EV plants investments in the country. The Turkish government says that separate negotiations are also underway with SAIC Motor, which owns MG, and Great Wall Motor.
\n\n\n\nOvercoming shipping issues
\n\n\n\nIn 2023, prices for car shipping carriers increased by up to 700% compared to 2019; Houthi attacks in the Red Sea further exacerbated them. A perception of shortage of shipping carriers [capacity] and inflated costs stemming from the war in Ukraine led Chinese EV carmakers and associated shipping companies to place orders for a significant number of new car carrier ships. According to the abovementioned report by the Rhodium Group, the combined capacity of these ships will allow the shipment of an estimated 560,000 cars annually to Europe in 2025, based on six trips a year (in 2023 the EU imported 472,000 EVs from China). Said capacity could surge to 1.7 million cars in 2026. \u201cIn the unlikely case that all ships were used for transporting cars to Europe, the volumes exported from China would likely be enough to capture 50% of the EU\u2019s EV market\u201d. The decision to purchase rather than lease these car-shipping carriers shows the long-term commitment of Chinese EV producers to export large quantities of cars.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture9-1028x614.png\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture11.png\")
Journey to SE Asia
\n\n\n\nThe other relevant market where Chinese-branded EV companies plan to set up plants is Southeast Asia.
\n\n\n\nAccording to a Counterpoint analyst, \u201cover 70% of EV sales in [Southeast Asia] are from Chinese brands, led by BYD\u201d. Thailand is the main destination market in SE Asia, accounting for 79% of ASEAN EV sales. Several major Chinese EV manufacturers have already established or announced plans to invest in Thailand. Great Wall Motors operates an EVs plant in Rayong province that produces its Ora brand. The company also plans to build a battery factory and an R&D centre in Thailand. BYD (in cooperation with Rever Automotive) also has a plant in Rayong that produces EVs and batteries. Chongqing Changan Automobile intends to invest 10 billion baht ($290 million) to set up an EV production facility in Chonburi province. The company expects to start production in 2024 and sell its vehicles under the Kaicene brand. GAC Aion plans to invest 6.2 billion baht ($180 million) to build an EV plant in Chachoengsao province. The company targets to begin production in 2024 and launch its Aion V model in Thailand. Hozon New Energy Automobile (in partnership with a local firm, Yontrakit Group) will start production of its Neta brand of EVs in Thailand in 2024. In 2023, SAIC Motor, in cooperation with Charoen Pokphand Group (CP), opened its first battery plant for EV in Chonburi province. SAIC Motor-CP said it intended to start making MG BEVs in Thailand.
\n\n\n\nSeveral Chinese EV brands are also scheduled to be produced in Malaysia. Hozon New Energy Automobile announced investments to produce the Neta brand in Malaysia. Changan Automobile Corporation (in partnership with Fieldman EV Sdn Bhd (FEV)) plans to build the Eado EV460 model in Lipat Kajang, Jasin, Melaka. Chery also plans to produce its EQ1 model in Malaysia. BYD (in partnership with CSH Alliance) will assemble (CKD) the BYD T3 electric van in Tanjung Malim, Perak.
\n\n\n\nEven in Vietnam, home to the successful VinFast EV carmaker, BYD and Haima announced plans to build plants to produce car parts and plants to assemble EVs.
\n\n\n\nIn Indonesia (by far the most populous SE Asian country, but with a low GDP per capita), PT Neta Auto (a subsidiary of Chinese firm Hozon Auto), in partnership with PT Handal Indonesia Motor (HIM), has started the production of Neta’s latest model, the Neta V-II (on a CKD basis) in Bekasi, West Java. Neta V-II is powered by LFP batteries from Chinese battery maker Gotion High-tech, a battery pack that, according to Neta Auto, has 44% of its components produced in Indonesia. BYD announced in January 2024 that it will make an EV plant in Indonesia, following a previous intention of building an electric bus assembly plant and, eventually, a battery manufacturing factory in Indonesia. Chinese EV maker Aion announced in April 2024 that plans to make an EV plant in Indonesia (in partnership with Indomobil Group).
\n\n\n\nIndonesia has also great potential to become a production hub for EV batteries given the abundant nickel ore natural resources in the country. Many EV carmakers, namely from China, are keen to enter upstream in the supply chain for EVs and automotive batteries including the mining and refining of nickel ore, producing precursors and cathode materials.
\n\n\n\nJourneys to other geographies
\n\n\n\nAlthough Europe and ASEAN are the main markets in the internationalization path of Chinese EV carmakers, the main producers are also expanding into other relevant geographies.
\n\n\n\nIn Central Asia, the Kazakhstan government, unveiled (on March 2023) that it reached an agreement [with Chery and ZEEKR] for the construction of EV plants for the production of Exeed and Geely car models, with a planned capacity of 80,000 finished vehicles.
\n\n\n\nIt is noteworthy the sizable investment by BYD [Europe] (in partnership with Uzavtosanoat) in the Jizzakh region, in Uzbekistan, for an EV plant using initially the CKD method. Chinese firm Henan Suda signed a deal with Uzbekistan\u2019s Energy Ministry to build upwards of 50,000 electric vehicle charging stations around the country by 2033.
\n\n\n\nIn Latin America, thus far, Chinese EV carmakers have focused in Brazil and in Mexico. In Brazil, Chinese EV carmakers are already the EV market leaders, and they appear set to capitalize on the rapidly growing market for EVs in the country. EV sales in Brazil were up 145% in the first three months of 2024, according to the Brazilian Electric Vehicle Association, with BYD and Great Wall Motors leading the pack on EV sales in Brazil, the world\u2019s sixth-largest auto market. Like the US and the EU, Brazil has raised tariffs on all imported EVs, which should reach 35% in 2026.
\n\n\n\nGreat Wall and BYD have both pledged to build EV factories in the country. BYD estimates that its Cama\u00e7ari complex (a former Ford cars plant) will be able to churn out 150,000 vehicles per year once it opens, while Great Wall’s plant in Iracem\u00e1polis (a former Mercedes-Benz cars plant) could produce 100,000 vehicles annually. Following its business model in China, BYD is trying to recreate an integrated supply chain in Brazil (and Chile), reportedly holding talks about taking over one of the country’s lithium producers.
\n\n\n\nBYD committed to make an EV plant in Central Mexico. SAIC also plans to build an EV plant in the country, to produce locally MG-branded vehicles. Jetour (in alliance with the LDR company), another Chinese EV automaker, also announced large investments in Mexico (in Aguascalientes and/or Guanajuato) for a dual assembly plant \u2013 it will produce both combustion vehicles (ICE) and EVs. Chery is also mentioned in the media as being engaged in discussions with Mexican authorities over the setting up of EV car assembly plants.
\n\n\n\nA report from the \u2018Alliance for American Manufacturing\u2019, released in February 2024, describes as \u201calarming\u201d the Chinese focus on building plants in Mexico. \u201cThey can access the US by way of the more favourable tariffs [2.5%] under the USMCA. This strategy is, in effect, an effort to gain backdoor access to American consumers by circumventing existing policies that are keeping China\u2019s autos out of the US market.\u201d The Alliance expressed concern that \u201cthe introduction of cheap Chinese autos \u2013 which are so inexpensive because they are backed with the power and funding of the Chinese government \u2013 to the American market could end up being an extinction-level event for the US auto sector\u201d. Reuters reported, on April 2024, that the Mexico’s federal government, under pressure from the US authorities, is keeping Chinese automakers at arm’s length by refusing to offer such incentives as low-cost public land or tax cuts for investment in EV production.
\n\n\n\nIn the Middle East, in 2022 Enovate Motors, a Chinese EV start-up, announced it would make (in partnership with Saudi Sumou Holding) an EV plant in Saudi Arabia. On mid-2023 Saudi Arabia’s Ministry of Investment agreed with Chinese EV carmaker Human Horizons a mega-deal of $5.6 billion to collaborate on the development, manufacture and sale of vehicles. These investments in the new plants made by Chinese-based EV automakers in Saudi Arabia are expected to serve the surrounding region.
\n\n\n\nIn India, BYD, which entered the Indian passenger vehicle market in 2021, currently offers two products in its India portfolio \u2013 Atto3 SUV and e6 MPV \u2013 which are imported and assembled at its plant in Chennai. However, on mid-2023, a proposal by BYD (in partnership with Hyderabad-based Megha Engineering and Infrastructures) to make another EV plant, in Hyderabad (the proposal included a plan to set up charging stations in India and build research and development and training centres) was refused by the Indian government on \u201csecurity concerns with respect to Chinese investments in India\u201d. More recently, the Indian government changed its approach. On March 2024, the new EV policy approved by Indian government, allows import duty concessions (a limited number of cars costing USD >35,000 will be subject to lower customs/import duty of 15% for five years) to be given to foreign companies setting up manufacturing units in the country with a minimum investment of USD 500 million. Clarifications were made by the Indian government that this new policy also applies to Chinese EV carmakers, but many of these Chinese EV corporations will remain at large given the serious tension arising from regional rivalry and borders conflicts.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture10-1028x770.png\")
Conclusion
\n\n\n\nSeveral 2021 Merics analysts\u2019 predictions \u2013 that China would become a major automotive export hub, that Europe would be the main market for Chinese EV exporters, that the Chinese government would issue directives, put pressure and support Chinese and China-based foreign carmakers to export, that Chinese manufacturers would move up the EVs value chain, that Chinese companies\u2019 overseas investments and partnerships would make them global [successful] competitors, that government subsidies for China-based manufacturers could distort global markets \u2013 became true.
\n\n\n\nThe internationalization of Chinese EVs is global, albeit giving priority to markets with higher income and demand for EVs.
\n\n\n\nThe internationalization of Chinese EVs is subject to political decisions at home and abroad, often influenced by geopolitical concerns.
\n\n\n\nIn several cases, of which BYD is a good example, the integration of upstream stages in the EVs value chain (producing its own EV batteries and its components as well as refining the critical metals needed for EV batteries), creates bigger operating margins that provide greater price elasticity and makes Chinese EVs very competitive.
\n\n\n\nInternationalization of Chinese EVs will continue to be made on a dual track \u2013 via exports of certified models and via investments in local EV plants.
\n\n\n\nHigh(er) tariffs on imported EVs to protect domestic automotive industries \u2013 as is the case in the US, the EU, Brazil and Thailand \u2013 are likely to continue.
\n\n\n\nThe impact of higher tariffs on imported EVs is not clear but it is likely to reduce [the pace of] exports of Chinese EV models of such relevant markets.
\n\n\n\nAlthough higher tariffs will make some Chinese EV carmakers (e.g., XPeng) hesitate to go ahead with planned EV plants in said protected markets, such investments likely will be a necessary cost to maintain access to some of those markets, namely in Europe.
\n\n\n\nIn some markets where higher tariffs are but a tool arising from a clear political will of not allowing Chinese EV carmakers to enter the national market \u2013 as seems to be the case of the US and India \u2013 it is unlikely that Chinese EV will be successful in penetrating such markets; in some cases (US), commitments on investments in local EV plants will probably not be authorized.
\n\n\n\nNonetheless, even with the recently announced imposition of US, EU and Brazil higher tariffs on EVs from China (and, in the case of the US, from 2030 also from Southeast Asia), a fast pace for the internationalization of Chinese EV carmakers is inevitable in every relevant market and hard times lie ahead for European, American, Japanese and Korean automakers.
\n", "content_text": "Jorge Costa Oliveira – Partner and CEO of JCO Consultancy \n\n\n\nBy Jorge Costa Oliveira\n\n\n\nPartner and CEO of JCO Consultancy\n\n\n\n\n\n\n\nWell-defined public policies (including significant government incentives \u2013 purchase subsidies, tax incentives and favourable licensing plates), good government and business planning in creating an integrated value chain in the electric storage and mobility sectors, and the absence of entropies created by radical environmentalist activism, all these factors converged to make China the largest market in the production (45%) and consumption (60%) of electric vehicles (EV). It should be noted that it is not only Chinese brands (BYD, Great Wall, SAIC, BAIC, Changan, Chery, Geely, XPeng, NIO) that produce EV in China; many foreign brands (Tesla, Ford, GM, BMW, VW, Mercedes, Audi, Renault, Volvo, Jaguar Land Rover, Nissan) also have EV plants within China, producing for the Chinese domestic market, but also for export. Value chain integration \u2013 from the refining of critical metals to the production of electric cells, cathodes, anodes, to gigafactories and EV assemblers \u2013 low production costs, the abovementioned government incentives and effective competition, have enabled the production of EVs in China to be significantly cheaper than in the US and Europe. According to some industry experts, production in China can shave up to \u20ac10,000 off the cost of an EV. In 2022, electric battery prices were 24% lower in China than in the U.S.\n\n\n\n\n\n\n\nMeanwhile, in the Chinese domestic EV market, demand growth is slowing down (+90% in 2022, +36% in 2023, +22% in 2024) and competition is fierce (with a price war that has lasted for more than a year). Furthermore, several western institutions consider that China\u2019s EV industry is at overcapacity, producing annually an excess of 5 to 10 million EVs beyond domestic demand, forcing China to find new markets to fuel continued growth.\n\n\n\nInternationalisation has become an essential facet for all EV producers in China, focused on key potential consumer markets. Thus far, the internationalisation of Chinese EVs has been made mainly via exports. The growth of EV exports was the key factor for China\u2019s reversion of its automotive trade balance; since mid-2022, vehicle exports have continuously outperformed imports. This trend was catalysed by China-produced vehicle exports to Russia amid the retreat of western corporations from this market since Ukraine\u2019s invasion.\n\n\n\n\n\n\n\nOverall, the Association of European Vehicle Logistics (ECG), citing data from the China Association of Automobile Manufacturers (Caam), reports that Chinese [all] vehicle exports rose >1.3m in Q1 2024 (76.8% ICE, 23.2% NEVs), up 33% from Q1 2023, with leading markets being Russia (112,000 units), Mexico (66,000), Belgium (42,000) and the UK (38,000). The main Chinese carmakers exporters were Chery (with 253,000 units), SAIC (206,000), Changan (145,000), Geely (111,000), BYD (99,000), Great Wall (93,000) and Tesla (88,000).\n\n\n\nThe main destination market for Chinese-produced EVs is Europe, followed by Asia; there is little penetration in the North American and Latin American markets (although growing fast in Brazil). Chinese EV brands avoid exporting to the US, which has a 27.5% tariff on automobiles imported from China (soon to be increased to 100%) and tie EV tax credits to local incorporation requirements. The majority of EVs exported from China are destined for Europe due to high demand in the region, high European per capita income, high local EV prices, low European customs tariffs, and substantial government subsidies for EVs, regardless of its origin.\n\n\n\n\n\n\n\nTo understand the competitiveness of Chinese EV brands, a recent report by Rhodium Group gives the example of BYD’s Seal U model that sells for \u20ac21,770 in China and \u20ac41,990 in the EU. Not only are Chinese automakers rapidly gaining shares of the European EV market (especially in the lower-priced segments), but they are making higher profits in Europe. Elon Musk\u2019s prediction that Chinese carmakers would \u2018demolish\u2019 global rivals is coming true in literally every market (hence the 100% tariff imposed by the US government).\n\n\n\n\n\n\n\nAccording to the European Automobile Manufacturers’ Association (ACEA), China maintained its position as the leading source of new car imports to the EU in terms of value, with a growth of 37.1% and a market share of 17.7%. A significant portion of this growth is due to EVs. According to the European Federation for Transport and Environment (T&E), EVs manufactured in China are expected to account for 25% of total EV sales in Europe in 2024 (+5% compared to 2023).\n\n\n\n\n\n\n\nT&E projections estimate that [among the EVs manufactured in China] Chinese brands will progressively gain bigger market shares \u2013 11% by 2024 and 20% until 2027. However, it is important to clarify what \u201cChinese brands\u201d means. In 2023, Chinese brands only represented a 2.5% market share of the European market last year, with 72% of that share belonging to MG, a British car brand controlled by the Chinese group SAIC Motor, MG being today a fully Chinese brand from production to design. Without MG, Chinese brands have only a 0.6% market share in Europe. This discrepancy arises from the fact that most vehicles imported from China to Europe are not Chinese brand vehicles but rather vehicles manufactured in China by foreign brands. Tesla alone accounts for 68% of the EVs imported from China and registered in Western Europe.\n\n\n\n\n\n\n\nFollowing an investigation launched by the European Commission on \u201cunfair subsidization\u201d of China-produced EVs\u2019, the currently low EU customs tariffs (10%) are going to be increased to up to 38% (on BYD: 17,4%; on Geely: 20%; on SAIC: 38,1%; on other BEV producers in China, which cooperated in the investigation but have not been sampled: 21%; on all other BEV producers in China which did not cooperate in the investigation: 38,1%). It is not clear the effect that such an increase will have on European consumers demand for China-produced EVs, but it is likely to slow down the [fast] penetration they were having.\n\n\n\n\n\n\n\nGiven the high tariffs already imposed in many relevant markets (e.g., India, Thailand, Brazil) to protect local automobile industries and the high probability that the EU would raise its tariffs (and eventually impose non-tariff obstacles), Chinese EV producers have planned to and are gradually setting up plants in several countries outside China.\n\n\n\nJourney to the West – the European Market\n\n\n\nThe growing decoupling between China and the US has refrained Chinese EV producers from venturing into US-based production. Only Polestar \u2013 a luxury EV brand owned by Geely \u2013 has an investment in an EV plant, scheduled to start production in South Carolina in 2024 (it is so far the only brand selling in the US China-produced EVs).\n\n\n\nThe main market where Chinese-branded EV companies plan to set up plants is Europe. BYD will have its first European plant investment in Hungary, and announced it is considering a second European plant in 2025. It is also likely that Great Wall Motors will make its first European plant in Hungary (negotiations concerning government incentives, including tax breaks, to attract foreign investment and for job creation, are under way). These investments are in line with sizable investments (and government incentives) for gigafactories in the country, to be made by South Korean groups SK On and Samsung SDI and Chinese battery giant CATL.\n\n\n\nSpain, Europe\u2019s second largest car-making country after Germany, has secured investment from Chery, which will start production in the fourth quarter at a former Nissan facility in Barcelona, via a partnership with Spanish EV Motors. Chery is expected to benefit from Spain\u2019s 3.7 billion-euro programme launched in 2020 to attract EV and battery plants.\n\n\n\nChina\u2019s Envision Group has already received 300 million euros in incentives under the scheme for a 2.5 billion battery plant creating 3,000 jobs. Spain might also host Stellantis\u2019 planned fourth gigafactory in Europe, with CATL.\n\n\n\nPoland will have an EV plant to be made, in Tychy, by a partnership of China’s Leapmotor and Franco-Italian Stellantis.\n\n\n\nChery is mulling over plans to establish a plant in the UK as it begins to launch its Omoda and Jaecoo brands, following in the footsteps of several Chinese-owned gigafactories producing electric batteries in the country.\n\n\n\nAccording to Reuters, Chery plans a second, larger facility in Europe, a source with knowledge of the company’s plans told, and has held talks with governments, including the Italian one, which is keen to attract a second automaker to rival Fiat-maker Stellantis.\n\n\n\nItaly can tap its national automotive fund, worth 6 billion euros between 2025 and 2030, for incentives for both car buyers and manufacturers. China\u2019s Dongfeng is among several other automakers that have held investment discussions with Rome.\n\n\n\nStill, according to Reuters, SAIC, owner of the MG brand, aims to build two Europe plants. The first, based at an existing facility, could be announced as early as July and would employ a kit-assembly technique, targeting annual production of up to 50,000 vehicles. SAIC\u2019s second European plant would be completely greenfield and produce up to 200,000 vehicles annually. Germany, Italy, Spain and Hungary are reported to be on SAIC’s location shortlist.\n\n\n\nBYD, Chery, SAIC and Great Wall are also looking for attractive locations in Eastern Europe and Turkey (its Association Agreement with the EU creates a customs union, and the country has several free trade agreements with non-EU countries) to set up plants for lower-cost vehicles.\n\n\n\nTurkey is reported to be in advanced negotiations with BYD and Chery for EV plants investments in the country. The Turkish government says that separate negotiations are also underway with SAIC Motor, which owns MG, and Great Wall Motor.\n\n\n\nOvercoming shipping issues\n\n\n\nIn 2023, prices for car shipping carriers increased by up to 700% compared to 2019; Houthi attacks in the Red Sea further exacerbated them. A perception of shortage of shipping carriers [capacity] and inflated costs stemming from the war in Ukraine led Chinese EV carmakers and associated shipping companies to place orders for a significant number of new car carrier ships. According to the abovementioned report by the Rhodium Group, the combined capacity of these ships will allow the shipment of an estimated 560,000 cars annually to Europe in 2025, based on six trips a year (in 2023 the EU imported 472,000 EVs from China). Said capacity could surge to 1.7 million cars in 2026. \u201cIn the unlikely case that all ships were used for transporting cars to Europe, the volumes exported from China would likely be enough to capture 50% of the EU\u2019s EV market\u201d. The decision to purchase rather than lease these car-shipping carriers shows the long-term commitment of Chinese EV producers to export large quantities of cars.\n\n\n\n\n\n\n\n\n\n\n\nJourney to SE Asia\n\n\n\nThe other relevant market where Chinese-branded EV companies plan to set up plants is Southeast Asia.\n\n\n\nAccording to a Counterpoint analyst, \u201cover 70% of EV sales in [Southeast Asia] are from Chinese brands, led by BYD\u201d. Thailand is the main destination market in SE Asia, accounting for 79% of ASEAN EV sales. Several major Chinese EV manufacturers have already established or announced plans to invest in Thailand. Great Wall Motors operates an EVs plant in Rayong province that produces its Ora brand. The company also plans to build a battery factory and an R&D centre in Thailand. BYD (in cooperation with Rever Automotive) also has a plant in Rayong that produces EVs and batteries. Chongqing Changan Automobile intends to invest 10 billion baht ($290 million) to set up an EV production facility in Chonburi province. The company expects to start production in 2024 and sell its vehicles under the Kaicene brand. GAC Aion plans to invest 6.2 billion baht ($180 million) to build an EV plant in Chachoengsao province. The company targets to begin production in 2024 and launch its Aion V model in Thailand. Hozon New Energy Automobile (in partnership with a local firm, Yontrakit Group) will start production of its Neta brand of EVs in Thailand in 2024. In 2023, SAIC Motor, in cooperation with Charoen Pokphand Group (CP), opened its first battery plant for EV in Chonburi province. SAIC Motor-CP said it intended to start making MG BEVs in Thailand.\n\n\n\nSeveral Chinese EV brands are also scheduled to be produced in Malaysia. Hozon New Energy Automobile announced investments to produce the Neta brand in Malaysia. Changan Automobile Corporation (in partnership with Fieldman EV Sdn Bhd (FEV)) plans to build the Eado EV460 model in Lipat Kajang, Jasin, Melaka. Chery also plans to produce its EQ1 model in Malaysia. BYD (in partnership with CSH Alliance) will assemble (CKD) the BYD T3 electric van in Tanjung Malim, Perak. \n\n\n\nEven in Vietnam, home to the successful VinFast EV carmaker, BYD and Haima announced plans to build plants to produce car parts and plants to assemble EVs. \n\n\n\nIn Indonesia (by far the most populous SE Asian country, but with a low GDP per capita), PT Neta Auto (a subsidiary of Chinese firm Hozon Auto), in partnership with PT Handal Indonesia Motor (HIM), has started the production of Neta’s latest model, the Neta V-II (on a CKD basis) in Bekasi, West Java. Neta V-II is powered by LFP batteries from Chinese battery maker Gotion High-tech, a battery pack that, according to Neta Auto, has 44% of its components produced in Indonesia. BYD announced in January 2024 that it will make an EV plant in Indonesia, following a previous intention of building an electric bus assembly plant and, eventually, a battery manufacturing factory in Indonesia. Chinese EV maker Aion announced in April 2024 that plans to make an EV plant in Indonesia (in partnership with Indomobil Group).\n\n\n\nIndonesia has also great potential to become a production hub for EV batteries given the abundant nickel ore natural resources in the country. Many EV carmakers, namely from China, are keen to enter upstream in the supply chain for EVs and automotive batteries including the mining and refining of nickel ore, producing precursors and cathode materials.\n\n\n\nJourneys to other geographies\n\n\n\nAlthough Europe and ASEAN are the main markets in the internationalization path of Chinese EV carmakers, the main producers are also expanding into other relevant geographies.\n\n\n\nIn Central Asia, the Kazakhstan government, unveiled (on March 2023) that it reached an agreement [with Chery and ZEEKR] for the construction of EV plants for the production of Exeed and Geely car models, with a planned capacity of 80,000 finished vehicles.\n\n\n\nIt is noteworthy the sizable investment by BYD [Europe] (in partnership with Uzavtosanoat) in the Jizzakh region, in Uzbekistan, for an EV plant using initially the CKD method. Chinese firm Henan Suda signed a deal with Uzbekistan\u2019s Energy Ministry to build upwards of 50,000 electric vehicle charging stations around the country by 2033. \n\n\n\nIn Latin America, thus far, Chinese EV carmakers have focused in Brazil and in Mexico. In Brazil, Chinese EV carmakers are already the EV market leaders, and they appear set to capitalize on the rapidly growing market for EVs in the country. EV sales in Brazil were up 145% in the first three months of 2024, according to the Brazilian Electric Vehicle Association, with BYD and Great Wall Motors leading the pack on EV sales in Brazil, the world\u2019s sixth-largest auto market. Like the US and the EU, Brazil has raised tariffs on all imported EVs, which should reach 35% in 2026.\n\n\n\nGreat Wall and BYD have both pledged to build EV factories in the country. BYD estimates that its Cama\u00e7ari complex (a former Ford cars plant) will be able to churn out 150,000 vehicles per year once it opens, while Great Wall’s plant in Iracem\u00e1polis (a former Mercedes-Benz cars plant) could produce 100,000 vehicles annually. Following its business model in China, BYD is trying to recreate an integrated supply chain in Brazil (and Chile), reportedly holding talks about taking over one of the country’s lithium producers.\n\n\n\nBYD committed to make an EV plant in Central Mexico. SAIC also plans to build an EV plant in the country, to produce locally MG-branded vehicles. Jetour (in alliance with the LDR company), another Chinese EV automaker, also announced large investments in Mexico (in Aguascalientes and/or Guanajuato) for a dual assembly plant \u2013 it will produce both combustion vehicles (ICE) and EVs. Chery is also mentioned in the media as being engaged in discussions with Mexican authorities over the setting up of EV car assembly plants.\n\n\n\nA report from the \u2018Alliance for American Manufacturing\u2019, released in February 2024, describes as \u201calarming\u201d the Chinese focus on building plants in Mexico. \u201cThey can access the US by way of the more favourable tariffs [2.5%] under the USMCA. This strategy is, in effect, an effort to gain backdoor access to American consumers by circumventing existing policies that are keeping China\u2019s autos out of the US market.\u201d The Alliance expressed concern that \u201cthe introduction of cheap Chinese autos \u2013 which are so inexpensive because they are backed with the power and funding of the Chinese government \u2013 to the American market could end up being an extinction-level event for the US auto sector\u201d. Reuters reported, on April 2024, that the Mexico’s federal government, under pressure from the US authorities, is keeping Chinese automakers at arm’s length by refusing to offer such incentives as low-cost public land or tax cuts for investment in EV production.\n\n\n\nIn the Middle East, in 2022 Enovate Motors, a Chinese EV start-up, announced it would make (in partnership with Saudi Sumou Holding) an EV plant in Saudi Arabia. On mid-2023 Saudi Arabia’s Ministry of Investment agreed with Chinese EV carmaker Human Horizons a mega-deal of $5.6 billion to collaborate on the development, manufacture and sale of vehicles. These investments in the new plants made by Chinese-based EV automakers in Saudi Arabia are expected to serve the surrounding region.\n\n\n\nIn India, BYD, which entered the Indian passenger vehicle market in 2021, currently offers two products in its India portfolio \u2013 Atto3 SUV and e6 MPV \u2013 which are imported and assembled at its plant in Chennai. However, on mid-2023, a proposal by BYD (in partnership with Hyderabad-based Megha Engineering and Infrastructures) to make another EV plant, in Hyderabad (the proposal included a plan to set up charging stations in India and build research and development and training centres) was refused by the Indian government on \u201csecurity concerns with respect to Chinese investments in India\u201d. More recently, the Indian government changed its approach. On March 2024, the new EV policy approved by Indian government, allows import duty concessions (a limited number of cars costing USD >35,000 will be subject to lower customs/import duty of 15% for five years) to be given to foreign companies setting up manufacturing units in the country with a minimum investment of USD 500 million. Clarifications were made by the Indian government that this new policy also applies to Chinese EV carmakers, but many of these Chinese EV corporations will remain at large given the serious tension arising from regional rivalry and borders conflicts.\n\n\n\n\n\n\n\nConclusion\n\n\n\nSeveral 2021 Merics analysts\u2019 predictions \u2013 that China would become a major automotive export hub, that Europe would be the main market for Chinese EV exporters, that the Chinese government would issue directives, put pressure and support Chinese and China-based foreign carmakers to export, that Chinese manufacturers would move up the EVs value chain, that Chinese companies\u2019 overseas investments and partnerships would make them global [successful] competitors, that government subsidies for China-based manufacturers could distort global markets \u2013 became true.\n\n\n\nThe internationalization of Chinese EVs is global, albeit giving priority to markets with higher income and demand for EVs.\n\n\n\nThe internationalization of Chinese EVs is subject to political decisions at home and abroad, often influenced by geopolitical concerns.\n\n\n\nIn several cases, of which BYD is a good example, the integration of upstream stages in the EVs value chain (producing its own EV batteries and its components as well as refining the critical metals needed for EV batteries), creates bigger operating margins that provide greater price elasticity and makes Chinese EVs very competitive.\n\n\n\nInternationalization of Chinese EVs will continue to be made on a dual track \u2013 via exports of certified models and via investments in local EV plants.\n\n\n\nHigh(er) tariffs on imported EVs to protect domestic automotive industries \u2013 as is the case in the US, the EU, Brazil and Thailand \u2013 are likely to continue. \n\n\n\nThe impact of higher tariffs on imported EVs is not clear but it is likely to reduce [the pace of] exports of Chinese EV models of such relevant markets. \n\n\n\nAlthough higher tariffs will make some Chinese EV carmakers (e.g., XPeng) hesitate to go ahead with planned EV plants in said protected markets, such investments likely will be a necessary cost to maintain access to some of those markets, namely in Europe.\n\n\n\nIn some markets where higher tariffs are but a tool arising from a clear political will of not allowing Chinese EV carmakers to enter the national market \u2013 as seems to be the case of the US and India \u2013 it is unlikely that Chinese EV will be successful in penetrating such markets; in some cases (US), commitments on investments in local EV plants will probably not be authorized.\n\n\n\nNonetheless, even with the recently announced imposition of US, EU and Brazil higher tariffs on EVs from China (and, in the case of the US, from 2030 also from Southeast Asia), a fast pace for the internationalization of Chinese EV carmakers is inevitable in every relevant market and hard times lie ahead for European, American, Japanese and Korean automakers.", "date_published": "July 20, 2024", "date_modified": "July 20, 2024 - 23:34", "author": { "name": "Jorge Costa Oliveira", "url": "https://www.macaubusiness.com/author/jcoliveira/", "avatar": "https://secure.gravatar.com/avatar/61f6addb50097930d533e4bbee2df34b?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Chinese-carmaker-BYD.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "ANALYSIS - The internationalization of China\u2019s Electric Vehicles " }, { "id": "https://www.macaubusiness.com/opinion-know-thy-customer/", "url": "https://www.macaubusiness.com/opinion-know-thy-customer/", "title": "OPINION \u2013 Know thy customer", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/IMG_5579-150x150.jpeg\")
\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/09/JoseIDuarte_L3553641_cmyk.jpg\")
Jos\u00e9 I. Duarte
\n\n\n\nEconomist, Macau Business Senior Analyst
\n\n\n\nThe debate about the impact of mass tourism is going on in several places around the world. In some, it is very visible and, one might say, vociferous. It is (or will be) possibly everlasting. Tourism impacts local populations\u2019 livelihoods and environment in multiple ways, some more amenable than others. Specific local issues will play out differently in different places, and diverse solutions will be tried – but the core issue is essentially the same. Too many people, either physically or psychologically, probably both, affect conspicuously how the locals go about their daily lives.
\n\n\n\nSetting such discussions around concepts such as carrying capacities and quotas is almost intuitive and provides a first easily understandable frame of reference. But, as argued here before, the simplicity of the approach may turn out to be too crude to lead to effective policies. It may be a starting point, but hardly an anchor for effective policies.
\n\n\n\nSo, it all starts with increasing numbers of visitors. However, all the visitors are not the same, either in their contribution to the residents\u2019 income or occupation of the physical space. (A short note is justified at this point before we proceed. Published statistics focus on the number of visitors, their length of stay, and their spending profiles. Other relevant matters, relating to their space and time distribution and concentration while in town require systematic information collection that is not readily available, if at all.)
\n\n\n\nThe main distinction, between tourists (those staying overnight, as they are technically defined) and same-day visitors (self-explanatory) provides a good starting point for the discussion. They are associated with different spending profiles – and those differences matter. They impact local activities in diverse (positive and negative) ways.
\n\n\n\nAvailable data tell us that the average overnighter spends, gambling aside, four to five times more than same-day visitors. Indeed, part of that difference is directly linked to the fact that overnighters usually pay for lodging, a significant item in their expenditure basket. But even if we set aside that item (important as it is for the local economy\u2019s direct and indirect income and employment), overnighters still typically spend at least twice as much as their single-day counterparts.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/04/Capture-1.jpg\")
Indeed, the bulk of visitors come from mainland China and the overall figures in all types of expenditure are heavily influenced by their spending patterns. But, again, averages hide significant behavioural differences. Unsurprisingly, most visitors come from Guangdong and Fujian provinces, for reasons of geographical proximity and social affinity. The average consumption for all Chinese visitors is, therefore, quite close to the corresponding figures for those two regions. Yet, significant differences are visible, even at this high level of data aggregation.
\n\n\n\nFor instance, visitors on individual visas consistently spend above the global average (by very variable margins, we may note, the reasons for which would be interesting to investigate). That difference seems related to the behaviour of visitors from regions other than the two closest ones seen above. Distance and visit frequency may play a role in them, but we can only guess, at this point – the data is too aggregated for further judgment).
\n\n\n\nIndeed, all this conversation needs to go beyond the cold analysis of figures and the things they can (fruitfully) tell us. Yet, a careful examination of patterns, trends, and their evolution, is a needed starting point. It will help us to understand the flow of visitors, their distribution, and their spending profiles – and identify their drivers. It should inform any policies concerning the management of the city as a tourist destination, as well as its promotion.
\n", "content_text": "Jos\u00e9 I. Duarte\n\n\n\nEconomist, Macau Business Senior Analyst\n\n\n\n\n\n\n\nThe debate about the impact of mass tourism is going on in several places around the world. In some, it is very visible and, one might say, vociferous. It is (or will be) possibly everlasting. Tourism impacts local populations\u2019 livelihoods and environment in multiple ways, some more amenable than others. Specific local issues will play out differently in different places, and diverse solutions will be tried – but the core issue is essentially the same. Too many people, either physically or psychologically, probably both, affect conspicuously how the locals go about their daily lives. \n\n\n\nSetting such discussions around concepts such as carrying capacities and quotas is almost intuitive and provides a first easily understandable frame of reference. But, as argued here before, the simplicity of the approach may turn out to be too crude to lead to effective policies. It may be a starting point, but hardly an anchor for effective policies. \n\n\n\nSo, it all starts with increasing numbers of visitors. However, all the visitors are not the same, either in their contribution to the residents\u2019 income or occupation of the physical space. (A short note is justified at this point before we proceed. Published statistics focus on the number of visitors, their length of stay, and their spending profiles. Other relevant matters, relating to their space and time distribution and concentration while in town require systematic information collection that is not readily available, if at all.) \n\n\n\nThe main distinction, between tourists (those staying overnight, as they are technically defined) and same-day visitors (self-explanatory) provides a good starting point for the discussion. They are associated with different spending profiles – and those differences matter. They impact local activities in diverse (positive and negative) ways. \n\n\n\nAvailable data tell us that the average overnighter spends, gambling aside, four to five times more than same-day visitors. Indeed, part of that difference is directly linked to the fact that overnighters usually pay for lodging, a significant item in their expenditure basket. But even if we set aside that item (important as it is for the local economy\u2019s direct and indirect income and employment), overnighters still typically spend at least twice as much as their single-day counterparts.\n\n\n\n\n\n\n\nIndeed, the bulk of visitors come from mainland China and the overall figures in all types of expenditure are heavily influenced by their spending patterns. But, again, averages hide significant behavioural differences. Unsurprisingly, most visitors come from Guangdong and Fujian provinces, for reasons of geographical proximity and social affinity. The average consumption for all Chinese visitors is, therefore, quite close to the corresponding figures for those two regions. Yet, significant differences are visible, even at this high level of data aggregation.\n\n\n\nFor instance, visitors on individual visas consistently spend above the global average (by very variable margins, we may note, the reasons for which would be interesting to investigate). That difference seems related to the behaviour of visitors from regions other than the two closest ones seen above. Distance and visit frequency may play a role in them, but we can only guess, at this point – the data is too aggregated for further judgment). \n\n\n\nIndeed, all this conversation needs to go beyond the cold analysis of figures and the things they can (fruitfully) tell us. Yet, a careful examination of patterns, trends, and their evolution, is a needed starting point. It will help us to understand the flow of visitors, their distribution, and their spending profiles – and identify their drivers. It should inform any policies concerning the management of the city as a tourist destination, as well as its promotion.", "date_published": "July 14, 2024", "date_modified": "July 13, 2024 - 13:11", "author": { "name": "Jos\u00e9 I. Duarte", "url": "https://www.macaubusiness.com/author/jose-duarte/", "avatar": "https://secure.gravatar.com/avatar/e38388db4f8ef2a44f40cee48efffb47?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/IMG_5579.jpeg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "The debate about the impact of mass tourism is going on in several places around the world. In some, it is very visible and, one might say, vociferous. It is (or will be) possibly everlasting." }, { "id": "https://www.macaubusiness.com/slotting-into-place/", "url": "https://www.macaubusiness.com/slotting-into-place/", "title": "Slotting into place", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0028-150x150.jpg\")
\nWith revenues doubling in Asia over the past 12 months in the post-COVID era, leading machine maker and gaming supplier Aristocrat Gaming is bullish about regional prospects and is actively pursuing double-digit growth while doubling down on Macau through investments in products, infrastructure, and personnel, says Asia GM Lloyd Robson.
\n\n\n\nBy Tony Lai
\n\n\n\n
\u201cA growing industry is a tailwind behind us as a supplier, but you’ve got to have the right products at the right time to be able to help drive that growth.\u201d
The past 12 months have proven to be a period of triumph for Aristocrat Gaming, a slot machine maker and games provider, as its strategic investments in the Asian market in recent years began bearing fruit in the post-Covid landscape.
\n\n\n\n\u201cFor us, the business has been accelerating quicker and quicker,\u201d Lloyd Robson, general manager for Asia at Aristocrat Gaming, expressed his enthusiasm for the company’s performance in the post-Covid era. \u201cOur revenues have doubled in the last 12 months [in Asia], and there’ve been multiple contributing factors across the region \u2014 Macau has been a part of that, as have the Philippines, Singapore, and the rest of Southeast Asia.\u201d
\n\n\n\nIn Macau, the gross gaming revenue (GGR) surged by 41.9 percent year-on-year, reaching MOP113.7 billion (US$12 billion) in the first six months of 2024. Across other markets in Asia, the Philippine gaming sector, including operations beyond land-based casinos, achieved a record high of PHP81.70 billion (US$1.42 billion) in GGR during the first quarter of 2024, marking an 18.5 percent increase from the same period the previous year.
\n\n\n\nAristocrat\u2019s success does not only rely on the recovery of Asian gaming jurisdictions but also on its steadfast investments in the region. \u201cA growing industry is a tailwind behind us as a supplier, but you’ve got to have the right products at the right time to be able to help drive that growth,\u201d Mr. Robson said in an interview.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0019.jpg\")
Games for Asia
\n\n\n\n\u201cOne of the decisions we made in the middle of the pandemic \u2014 when decisions were difficult to make \u2014 was to continue to build and invest in our content portfolio,\u201d he said. \u201cWe’re building more games now for Asia than we ever have.\u201d
\n\n\n\nThe slot supplier now has 13 global studios for product development, with nine of them building games for the Asian market. \u201cWe make a really concerted effort to ensure the games we’ve brought to Asia are not just tweaks of global games. They’re games that the designers spent time in the market, listening to [casino] operators and players,\u201d he exemplified.
\n\n\n\n\u201cThe fruits of that labour really started to be seen from about the middle of last year,\u201d he continued. \u201cOur product performance has just gotten better and better over the last 18 months, combined with markets opening up and more players joining casino floors.\u201d
\n\n\n\nOne example of Aristocrat’s success is its popular title \u201cDragon Link,\u201d which is performing \u201cexceptionally well on mass and high-limit floors\u201d in Asian casinos, according to the general manager. At the recent Global Gaming Expo (G2E) Asia 2024, a major regional trade show for the casino industry held in Macau in early June, the supplier showcased an extensive game portfolio that went beyond \u201cDragon Link.\u201d Some of the featured titles included \u201cGrand Legends: Great King,\u201d \u201cGrand Legends: Royal Emperor,\u201d \u201cCaifu Zhong Sheng: Dragon,\u201d \u201cBao Zhu Zhao Fu,\u201d and others.
\n\n\n\nAristocrat Gaming’s parent company, Australia-listed Aristocrat Leisure Ltd, recently reported a year-on-year revenue increase of 6.1 percent to about AUD3.27 billion (US$2.19 billion) in its financial first half. In the October-March 2024 period, its interim profit after tax and before amortisation of acquired intangibles (NPATA) rose 8.6 percent year-on-year to AUD752.1 million.
\n\n\n\n
\u201cWe’ve been building out our marketing structure… to partner with casinos and bring products to life in a different fashion on the casino floor.\u201d
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0139.jpg\")
New standards
\n\n\n\nThe robust performance of the slot supplier in the Macau market can also be attributed to the ongoing replacement of electronic gaming machines (EGMs). Macau operators are upgrading their EGMs to comply with the new EGM Technical Standards mandated by the local gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ). By 31 December 2026, all EGMs in Macau must fully comply with the new standards.
\n\n\n\nGiven the cap of 12,000 gaming machines permitted on Macau casino floors, Mr. Robson estimated that about 35 percent of the machines in the market have been compliant with the new standards, indicating that operators are on track to meet the 2026 deadline.
\n\n\n\n
\u201cWe’ve been trying to recruit younger, energetic [and] hungry people who want to grow within Asia and the Macau gaming market.\u201d
Infrastructure and talent
\n\n\n\nAside from continuous investments in products, Aristocrat Gaming also emphasises investments in infrastructure and personnel. After opening its first dedicated gaming showroom in the Philippines last year, the supplier spent six months renovating its office and showroom in downtown Macau. The newly revamped facilities in Macau were unveiled in early June, ahead of the G2E Asia 2024.
\n\n\n\n\u201cWe’ve been in this facility for 20 years… but this was the most significant investment that we put into rebuilding the infrastructure to create an environment that is very different for Macau,\u201d Mr. Robson stated. \u201cIt’s designed to drive collaboration and engagement, not just for our employees but also for our customers and regulators.\u201d
\n\n\n\nAristocrat’s operation in Macau has also seen an expansion in its corporate structure, with the addition of roles in analytics, marketing, and sales. This has increased the headcount of the Macau team to over 20. \u201cHistorically, the supplier-casino relationship has been focused on providing games, selling products, and moving on,\u201d he explained, highlighting the importance of the new roles.
\n\n\n\n\u201cBut we’re really trying to deepen those partnerships and add value in areas that are not as invested in across the industry,\u201d the general manager stated. For instance, the supplier\u2019s analytics roles could analyse the data of its titles \u201cto ultimately help [casino] operators drive incremental GGR,\u201d he added.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0079.jpg\")
Significance of marketing
\n\n\n\nMarketing also plays a crucial role in attracting players, particularly young players, to slot machines. \u201cWe’ve been building out our marketing structure… to partner with casinos and bring products to life in a different fashion on the casino floor,\u201d Mr. Robson remarked. \u201cThe core slot demographic across the region has typically been of an older vintage.\u201d
\n\n\n\n\u201cSo one of the things that we’ve been doing is partnering with operators, especially in a marketing capacity,\u201d he continued. \u201cHow do we package up? How do we retail up? How do we theme our games to create an experience that they [players] haven’t had before? It’s more than just putting a game on the floor and hoping the game will work.\u201d
\n\n\n\nAristocrat also focuses on cultivating local talent, as 95 percent of its Macau team consist of locals. \u201cWe’re really committed to our local team and growing local talent over the last three or four years,\u201d he added. \u201cWe’ve been trying to recruit younger, energetic [and] hungry people who want to grow within Asia and the Macau gaming market.\u201d
\n\n\n\n
\u201cWe’re bullish on Asia, and we’re also bullish on the electronic gaming segment, as many markets around Asia have refocused on the mass market, which also lends itself to electronic gaming.\u201d
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0006.jpg\")
Double-digit growth
\n\n\n\nWith expectations of continuous recovery and steady growth across the Asian continent, Aristocrat Gaming is confident in the prospects of the regional market. \u201cThere’s a lot of growth in front of us and right across the region,\u201d the general manager stated. \u201c[We have] a double-digit growth expectation coming out of Asia.\u201d
\n\n\n\n\u201cIf you look into the next five years, you see a growing Macau market and an expanding Philippine market, led by the president of the Philippines and the chairman of PAGCOR, who are very pro-business,\u201d he explained, referring to the gaming regulator of the Southeast Asian country, the Philippine Amusement and Gaming Corporation (PAGCOR). \u201cThere are also expanding markets in Singapore, Vietnam [and] Cambodia, not to mention markets like Thailand and Japan on the horizon.\u201d
\n\n\n\nA consortium led by MGM Resorts International and Japanese firm Orix Corp is currently constructing Japan’s first integrated resort with a casino in the prefecture of Osaka, scheduled to open in 2030. Meanwhile, Thailand is in the midst of discussions about legalising casino resorts in the country, with lawmakers endorsing a feasibility study earlier this year.
\n\n\n\n\u201cWe’re bullish on Asia, and we’re also bullish on the electronic gaming segment, as many markets around Asia have refocused on the mass market, which also lends itself to electronic gaming,\u201d Mr. Robson expressed. \u201cAs one of the leaders in the electronic space, we are pretty excited about what we see for the future.\u201d
\n\n\n\nContinuous investments
\n\n\n\nTo seize the opportunities across the region, the supplier is committed to continuous investments. \u201cWe will continue to invest in our people, our products, and our infrastructure,\u201d he emphasised. \u201cWe’re really focused on providing a diversified portfolio that hits different player segments in order to drive incremental GGR [for casino operators].\u201d
\n\n\n\n\u201cWe have been able to demonstrate over the last 12 months what investments in Asia can deliver, and we have the backing to go after Asia for the next five years and beyond,\u201d he concluded.
\n\n\n\n\n", "content_text": "With revenues doubling in Asia over the past 12 months in the post-COVID era, leading machine maker and gaming supplier Aristocrat Gaming is bullish about regional prospects and is actively pursuing double-digit growth while doubling down on Macau through investments in products, infrastructure, and personnel, says Asia GM Lloyd Robson.\n\n\n\nBy Tony Lai\n\n\n\n\n\n\n\n \u201cA growing industry is a tailwind behind us as a supplier, but you’ve got to have the right products at the right time to be able to help drive that growth.\u201d \n\n\n\nThe past 12 months have proven to be a period of triumph for Aristocrat Gaming, a slot machine maker and games provider, as its strategic investments in the Asian market in recent years began bearing fruit in the post-Covid landscape.\n\n\n\n\u201cFor us, the business has been accelerating quicker and quicker,\u201d Lloyd Robson, general manager for Asia at Aristocrat Gaming, expressed his enthusiasm for the company’s performance in the post-Covid era. \u201cOur revenues have doubled in the last 12 months [in Asia], and there’ve been multiple contributing factors across the region \u2014 Macau has been a part of that, as have the Philippines, Singapore, and the rest of Southeast Asia.\u201d\n\n\n\nIn Macau, the gross gaming revenue (GGR) surged by 41.9 percent year-on-year, reaching MOP113.7 billion (US$12 billion) in the first six months of 2024. Across other markets in Asia, the Philippine gaming sector, including operations beyond land-based casinos, achieved a record high of PHP81.70 billion (US$1.42 billion) in GGR during the first quarter of 2024, marking an 18.5 percent increase from the same period the previous year.\n\n\n\nAristocrat\u2019s success does not only rely on the recovery of Asian gaming jurisdictions but also on its steadfast investments in the region. \u201cA growing industry is a tailwind behind us as a supplier, but you’ve got to have the right products at the right time to be able to help drive that growth,\u201d Mr. Robson said in an interview.\n\n\n\n\n\n\n\nGames for Asia\n\n\n\n\u201cOne of the decisions we made in the middle of the pandemic \u2014 when decisions were difficult to make \u2014 was to continue to build and invest in our content portfolio,\u201d he said. \u201cWe’re building more games now for Asia than we ever have.\u201d\n\n\n\nThe slot supplier now has 13 global studios for product development, with nine of them building games for the Asian market. \u201cWe make a really concerted effort to ensure the games we’ve brought to Asia are not just tweaks of global games. They’re games that the designers spent time in the market, listening to [casino] operators and players,\u201d he exemplified. \n\n\n\n\u201cThe fruits of that labour really started to be seen from about the middle of last year,\u201d he continued. \u201cOur product performance has just gotten better and better over the last 18 months, combined with markets opening up and more players joining casino floors.\u201d\n\n\n\nOne example of Aristocrat’s success is its popular title \u201cDragon Link,\u201d which is performing \u201cexceptionally well on mass and high-limit floors\u201d in Asian casinos, according to the general manager. At the recent Global Gaming Expo (G2E) Asia 2024, a major regional trade show for the casino industry held in Macau in early June, the supplier showcased an extensive game portfolio that went beyond \u201cDragon Link.\u201d Some of the featured titles included \u201cGrand Legends: Great King,\u201d \u201cGrand Legends: Royal Emperor,\u201d \u201cCaifu Zhong Sheng: Dragon,\u201d \u201cBao Zhu Zhao Fu,\u201d and others.\n\n\n\nAristocrat Gaming’s parent company, Australia-listed Aristocrat Leisure Ltd, recently reported a year-on-year revenue increase of 6.1 percent to about AUD3.27 billion (US$2.19 billion) in its financial first half. In the October-March 2024 period, its interim profit after tax and before amortisation of acquired intangibles (NPATA) rose 8.6 percent year-on-year to AUD752.1 million.\n\n\n\n \u201cWe’ve been building out our marketing structure… to partner with casinos and bring products to life in a different fashion on the casino floor.\u201d \n\n\n\n\n\n\n\nNew standards\n\n\n\nThe robust performance of the slot supplier in the Macau market can also be attributed to the ongoing replacement of electronic gaming machines (EGMs). Macau operators are upgrading their EGMs to comply with the new EGM Technical Standards mandated by the local gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ). By 31 December 2026, all EGMs in Macau must fully comply with the new standards. \n\n\n\nGiven the cap of 12,000 gaming machines permitted on Macau casino floors, Mr. Robson estimated that about 35 percent of the machines in the market have been compliant with the new standards, indicating that operators are on track to meet the 2026 deadline.\n\n\n\n \u201cWe’ve been trying to recruit younger, energetic [and] hungry people who want to grow within Asia and the Macau gaming market.\u201d \n\n\n\nInfrastructure and talent\n\n\n\nAside from continuous investments in products, Aristocrat Gaming also emphasises investments in infrastructure and personnel. After opening its first dedicated gaming showroom in the Philippines last year, the supplier spent six months renovating its office and showroom in downtown Macau. The newly revamped facilities in Macau were unveiled in early June, ahead of the G2E Asia 2024.\n\n\n\n\u201cWe’ve been in this facility for 20 years… but this was the most significant investment that we put into rebuilding the infrastructure to create an environment that is very different for Macau,\u201d Mr. Robson stated. \u201cIt’s designed to drive collaboration and engagement, not just for our employees but also for our customers and regulators.\u201d\n\n\n\nAristocrat’s operation in Macau has also seen an expansion in its corporate structure, with the addition of roles in analytics, marketing, and sales. This has increased the headcount of the Macau team to over 20. \u201cHistorically, the supplier-casino relationship has been focused on providing games, selling products, and moving on,\u201d he explained, highlighting the importance of the new roles. \n\n\n\n\u201cBut we’re really trying to deepen those partnerships and add value in areas that are not as invested in across the industry,\u201d the general manager stated. For instance, the supplier\u2019s analytics roles could analyse the data of its titles \u201cto ultimately help [casino] operators drive incremental GGR,\u201d he added. \n\n\n\n\n\n\n\nSignificance of marketing\n\n\n\nMarketing also plays a crucial role in attracting players, particularly young players, to slot machines. \u201cWe’ve been building out our marketing structure… to partner with casinos and bring products to life in a different fashion on the casino floor,\u201d Mr. Robson remarked. \u201cThe core slot demographic across the region has typically been of an older vintage.\u201d\n\n\n\n\u201cSo one of the things that we’ve been doing is partnering with operators, especially in a marketing capacity,\u201d he continued. \u201cHow do we package up? How do we retail up? How do we theme our games to create an experience that they [players] haven’t had before? It’s more than just putting a game on the floor and hoping the game will work.\u201d\n\n\n\nAristocrat also focuses on cultivating local talent, as 95 percent of its Macau team consist of locals. \u201cWe’re really committed to our local team and growing local talent over the last three or four years,\u201d he added. \u201cWe’ve been trying to recruit younger, energetic [and] hungry people who want to grow within Asia and the Macau gaming market.\u201d\n\n\n\n \u201cWe’re bullish on Asia, and we’re also bullish on the electronic gaming segment, as many markets around Asia have refocused on the mass market, which also lends itself to electronic gaming.\u201d \n\n\n\n\n\n\n\nDouble-digit growth\n\n\n\nWith expectations of continuous recovery and steady growth across the Asian continent, Aristocrat Gaming is confident in the prospects of the regional market. \u201cThere’s a lot of growth in front of us and right across the region,\u201d the general manager stated. \u201c[We have] a double-digit growth expectation coming out of Asia.\u201d\n\n\n\n\u201cIf you look into the next five years, you see a growing Macau market and an expanding Philippine market, led by the president of the Philippines and the chairman of PAGCOR, who are very pro-business,\u201d he explained, referring to the gaming regulator of the Southeast Asian country, the Philippine Amusement and Gaming Corporation (PAGCOR). \u201cThere are also expanding markets in Singapore, Vietnam [and] Cambodia, not to mention markets like Thailand and Japan on the horizon.\u201d\n\n\n\nA consortium led by MGM Resorts International and Japanese firm Orix Corp is currently constructing Japan’s first integrated resort with a casino in the prefecture of Osaka, scheduled to open in 2030. Meanwhile, Thailand is in the midst of discussions about legalising casino resorts in the country, with lawmakers endorsing a feasibility study earlier this year.\n\n\n\n\u201cWe’re bullish on Asia, and we’re also bullish on the electronic gaming segment, as many markets around Asia have refocused on the mass market, which also lends itself to electronic gaming,\u201d Mr. Robson expressed. \u201cAs one of the leaders in the electronic space, we are pretty excited about what we see for the future.\u201d\n\n\n\nContinuous investments\n\n\n\nTo seize the opportunities across the region, the supplier is committed to continuous investments. \u201cWe will continue to invest in our people, our products, and our infrastructure,\u201d he emphasised. \u201cWe’re really focused on providing a diversified portfolio that hits different player segments in order to drive incremental GGR [for casino operators].\u201d\n\n\n\n\u201cWe have been able to demonstrate over the last 12 months what investments in Asia can deliver, and we have the backing to go after Asia for the next five years and beyond,\u201d he concluded.", "date_published": "July 14, 2024", "date_modified": "July 13, 2024 - 10:54", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/013A0028.jpg", "tags": [ "Gaming", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ], "summary": "With revenues doubling in Asia over the past 12 months in the post-COVID era, leading machine maker and gaming supplier Aristocrat Gaming is bullish about regional prospects and is actively pursuing double-digit growth while doubling down on Macau through investments in products, infrastructure, and personnel, says Asia GM Lloyd Robson." }, { "id": "https://www.macaubusiness.com/special-report-the-weather-is-broken-and-macau-has-already-noticed-that/", "url": "https://www.macaubusiness.com/special-report-the-weather-is-broken-and-macau-has-already-noticed-that/", "title": "Special Report \u2013 The weather is \u201cbroken\u201d and Macau has already noticed that", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/07/IMG_2530-150x150.jpeg\")
\nAverage temperatures are increasing, but in contrast, we have never had a December with such low temperatures as in 2022.
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
The residents of Macau have grown accustomed to reading news sources such as:
\n\n\n\n“There hasn’t been such a rainy summer in 15 years” or “2023 was Macau’s third hottest year on record.”
\n\n\n\nAlthough there is not enough data to establish a definitive trend (rainier? hotter? ), what we all realise is that the weather is unstable, volatile, and extreme.
\n\n\n\nAnd we all accept that it could be rainier and hotter at the same time.
\n\n\n\nThe table attached to this piece, with some of the records released in recent years, shows this.
\n\n\n\nOne of the strongest hypotheses is that global warming, because of climate change, will result in an increase in the average temperature in Macau.
\n\n\n\nThis is what the graph below (courtesy of Meteoblue.com) shows us.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Picture1-1028x434.png\")
While at the end of the 1970s of the last century the average temperature did not reach 23\u00ba, this value was reached in the 1990s and has already been exceeded this century. At this time, the average value approaches 24\u00ba.
\n\n\n\nIn the lower part of the same graph, we can see the so called warming stripes. Each coloured stripe represents the average temperature for a year\u2014blue for colder years and red for warmer years.
\n\n\n\nAnd, as you can see, since 1997, there have only been two blues (2008 and 2011).
\n\n\n\nIn contrast, in the first 20 years of the chart, 13 years were blue and seven were red.
\n\n\n\nIf the forecasts from the Macau Meteorological and Geophysical Services (SMG) are confirmed, the weather will continue to warm: the average maximum annual temperatures in Macau, in the middle of this 21st century (2041\u20132060), should rise by around 1.3 \u00b0C and 1.6\u00b0C, respectively, in relation to the 1995-2014 average.
\n\n\n\nThe SMG relied on the 2023 climate change report from the Intergovernmental Panel on Climate Change (IPCC) to project Macau’s climate change in the 21st century under different emissions scenarios.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/IaFSAl8GI98d9rHf2hWq.jpeg\")
\u201cUnder the average emissions scenario, the number of very hot days in the mid-21st century (2041-2060) will increase to 77.7 days per year, compared to the average of 27.8 days per year in 1995-2014, and the number of very hot days at the end of the 21st century (2081-2100) is expected to exceed 100 days per year\u201d, the report reads.
\n\n\n\nThe SMG stated that the global temperature in Macau will continue to increase and high temperature meteorological phenomena will become more frequent in the 21st century. Therefore, in the future, the number of very hot days in Macau will increase as the global temperature rises.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/macau-tourism-ruins-st-pauls-weather-climate-rain-visitors.png\")
More sun, more rain and colder
\n\n\n\nMacau broke eight records when it comes to extreme weather in 2021 \u2013 three out of seven Signal No. 10 typhoons issued since 1968 occurred in the past six years.
\n\n\n\nOn June 1, 2021, 433 mm of precipitation was recorded, the highest value in the last 69 years.
\n\n\n\nAt least since 1999, there has not been a month of December with such low temperatures in Macau as in 2022. The average temperature of that month was 14.6 \u00b0C, which shows a drop of almost three degrees compared to 17.5 \u00b0C recorded in December 2021.
\n\n\n\nMacau\u2019s mean air temperature in 2023 was 23.4 \u00b0C, 0.6 \u00b0C above the city\u2019s climatological norm for 1991\u20132020. The number of very hot days (defined as 33 \u00b0C or higher) and hot nights (28 \u00b0C or higher) was also above normal.
\n\n\n\nThe hottest day ever in March was recorded this year: 31 \u00b0C on March 26, exceeding the previous high of 29.8 \u00b0C recorded on March 19, 2008.
\n\n\n\n2023 was the third hottest year on record, with the average temperature at 23.3 \u00b0C and a record-breaking high of 35.2 \u00b0C recorded in October. The year was 0.5\u2103 warmer than what\u2019s considered the climatological norm.
\n\n\n\n2023 was also wet; the cumulative rainfall stood at 295.4 mm, about four times the norm. According to reports, that summer was the wettest in 15 years.
\n\n\n\nThe summer of 2023 was the wettest in the last 15 years. The 375.3 millimetres of average monthly precipitation are only exceeded by the 2008 value.
\n\n\n\n\n", "content_text": "Average temperatures are increasing, but in contrast, we have never had a December with such low temperatures as in 2022.\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\nThe residents of Macau have grown accustomed to reading news sources such as:\n\n\n\n“There hasn’t been such a rainy summer in 15 years” or “2023 was Macau’s third hottest year on record.”\n\n\n\nAlthough there is not enough data to establish a definitive trend (rainier? hotter? ), what we all realise is that the weather is unstable, volatile, and extreme.\n\n\n\nAnd we all accept that it could be rainier and hotter at the same time.\n\n\n\nThe table attached to this piece, with some of the records released in recent years, shows this.\n\n\n\nOne of the strongest hypotheses is that global warming, because of climate change, will result in an increase in the average temperature in Macau.\n\n\n\nThis is what the graph below (courtesy of Meteoblue.com) shows us.\n\n\n\n\n\n\n\nWhile at the end of the 1970s of the last century the average temperature did not reach 23\u00ba, this value was reached in the 1990s and has already been exceeded this century. At this time, the average value approaches 24\u00ba.\n\n\n\nIn the lower part of the same graph, we can see the so called warming stripes. Each coloured stripe represents the average temperature for a year\u2014blue for colder years and red for warmer years.\n\n\n\nAnd, as you can see, since 1997, there have only been two blues (2008 and 2011).\n\n\n\nIn contrast, in the first 20 years of the chart, 13 years were blue and seven were red.\n\n\n\nIf the forecasts from the Macau Meteorological and Geophysical Services (SMG) are confirmed, the weather will continue to warm: the average maximum annual temperatures in Macau, in the middle of this 21st century (2041\u20132060), should rise by around 1.3 \u00b0C and 1.6\u00b0C, respectively, in relation to the 1995-2014 average.\n\n\n\nThe SMG relied on the 2023 climate change report from the Intergovernmental Panel on Climate Change (IPCC) to project Macau’s climate change in the 21st century under different emissions scenarios.\n\n\n\n\n\n\n\n\u201cUnder the average emissions scenario, the number of very hot days in the mid-21st century (2041-2060) will increase to 77.7 days per year, compared to the average of 27.8 days per year in 1995-2014, and the number of very hot days at the end of the 21st century (2081-2100) is expected to exceed 100 days per year\u201d, the report reads.\n\n\n\nThe SMG stated that the global temperature in Macau will continue to increase and high temperature meteorological phenomena will become more frequent in the 21st century. Therefore, in the future, the number of very hot days in Macau will increase as the global temperature rises.\n\n\n\n\n\n\n\n\n\n\n\nMore sun, more rain and colder\n\n\n\nMacau broke eight records when it comes to extreme weather in 2021 \u2013 three out of seven Signal No. 10 typhoons issued since 1968 occurred in the past six years.\n\n\n\nOn June 1, 2021, 433 mm of precipitation was recorded, the highest value in the last 69 years.\n\n\n\nAt least since 1999, there has not been a month of December with such low temperatures in Macau as in 2022. The average temperature of that month was 14.6 \u00b0C, which shows a drop of almost three degrees compared to 17.5 \u00b0C recorded in December 2021.\n\n\n\nMacau\u2019s mean air temperature in 2023 was 23.4 \u00b0C, 0.6 \u00b0C above the city\u2019s climatological norm for 1991\u20132020. The number of very hot days (defined as 33 \u00b0C or higher) and hot nights (28 \u00b0C or higher) was also above normal.\n\n\n\nThe hottest day ever in March was recorded this year: 31 \u00b0C on March 26, exceeding the previous high of 29.8 \u00b0C recorded on March 19, 2008.\n\n\n\n2023 was the third hottest year on record, with the average temperature at 23.3 \u00b0C and a record-breaking high of 35.2 \u00b0C recorded in October. The year was 0.5\u2103 warmer than what\u2019s considered the climatological norm.\n\n\n\n2023 was also wet; the cumulative rainfall stood at 295.4 mm, about four times the norm. According to reports, that summer was the wettest in 15 years.\n\n\n\nThe summer of 2023 was the wettest in the last 15 years. The 375.3 millimetres of average monthly precipitation are only exceeded by the 2008 value.\n\n\n\nPrevious | \u201cMacau should review its carbon emissions from the perspective of whole life-cycle thinking\u201d", "date_published": "July 14, 2024", "date_modified": "July 13, 2024 - 10:45", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/07/IMG_2530.jpeg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Average temperatures are increasing, but in contrast, we have never had a December with such low temperatures as in 2022." }, { "id": "https://www.macaubusiness.com/we-need-to-have-the-ability-to-invest-in-the-currency-that-we-earn-our-salaries/", "url": "https://www.macaubusiness.com/we-need-to-have-the-ability-to-invest-in-the-currency-that-we-earn-our-salaries/", "title": "\u201cWe need to have the ability to invest in the currency that we earn our salaries\u201d", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/bernardo-alves-abraham-kot-3-150x150.png\")
\nBy Jos\u00e9 Carlos Matias
\n\n\n\nPhotos by Lei Heong Ieong
\n\n\n\nThe city\u2019s first locally registered money market open fund solely denominated in patacas has been launched. It\u2019s the brainchild of Bernardo Alves and Abraham Kot, who are looking to make a splash in the city\u2019s financial industry.
\n\n\n\nA&P Investment Fund Management Company Limited received approval in early May from the Monetary Authority of Macau and secured a special license\u2014the first of its kind\u2014to establish the \u201cA&P Macau Patacas Money Market Fund,\u201d which was launched on July 3.
\n\n\n\nIn an exclusive interview with Macau Business and Business Intelligence, A&P\u2019s chairman and founder, Bernardo Alves, and CEO, Abraham Kot, discuss the rationale behind launching their new fund, the city\u2019s nascent fund industry, and the prospects for modernizing Macau\u2019s financial services. The fund leverages Alves\u2019 nearly two decades of experience in public and private equity investments, and Kot\u2019s over three decades of experience across retail, commercial, and corporate banking, as well as investment fund management.
\n\n\n\nTell us about the backstory behind setting up this investment fund.
\n\n\n\nAbraham Kot: First of all, I think that Bernardo Alves and I share the same idea about how to approach people’s wealth management in Macau. In 2016, I was coming from banking, and we realised something really important and astonishing at that time. Clients told us that it was difficult to find a responsible investment fund manager. As you know, most of the public funds are created in Hong Kong, and every time issues arise, people seem to struggle to see a response from them.
\n\n\n\nSo, I said, why not create something for the local people? I believe that Bernardo and I really wanted to create something at that time. We wanted to develop tailor-made investment products for locals.
\n\n\n\nIn 2021, Bernardo and I thought, why not apply to create an investment fund management company in Macau, according to the local regulations? The company was eventually established in early 2023, with the special registration from the Monetary Authority of Macau (AMCM) being granted in June 2023.
\n\n\n\nIt then took another three months to complete our application for the first public fund.
\n\n\n\nWe submitted the application to AMCM in October 2023, and in May 2024, we secured the permit.
\n\n\n\n
\u201cI truly believe that we are not competitors to the banks’ income. We are their partners\u201d – Abraham Kot
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/abraham-kot-1.png\")
This [having a locally registered MOP-denominated open public investment fund] is something entirely new for the city. How would you describe the whole process and the main challenges you faced throughout this process?
\n\n\n\nA.K.: When we recall the year 2022, it was a time of financial turmoil. In the property market in China, equities and bonds nosedived. As you know, we are very close to the local banking sector. We heard numerous negative investment stories. People were afraid of making investments. They believed that high risk would not translate into high returns.
\n\n\n\nSo, we were struggling a lot. Finally, we made a decision. We tried to model our fund after well-known, stable, and reliable ones. We searched for the most popular public funds, particularly money market investment funds. Then we identified a very stable model, one that is good for the city\u2019s local residents.
\n\n\n\nWhy start with a public money market investment fund and not, let\u2019s say, a private fund? What\u2019s the rationale behind this approach?
\n\n\n\nA.K.: First of all, we believe that a private fund shouldn\u2019t be our first project. The competition is very fierce in Hong Kong and Macau, and I don\u2019t believe that it\u2019s the right move for A&P to start with a private fund.
\n\n\n\nSecondly, given the complicated financial situation in 2022, we had to find something very safe in everybody\u2019s eyes, where transparency is very high, and it\u2019s easy for people to understand the portfolio and how they can see their investment returns.
\n\n\n\nWhat exactly are the components of a money market fund, and of your fund in particular?
\n\n\n\nA.K.: Basically, money market funds are very simple. They’re just like a savings product. We collect the investors’ money and deposit it into the fund, and then we place the money as large-scale deposits into big banks that can offer us a very attractive interbank interest rate.
\n\n\n\nBernardo and I thought about something a little bit creative. By 2022, the US Federal Reserve had started to increase interest rates. By that time, we noticed the interest rate gap between the US dollar and the Hong Kong dollar. We also saw from AMCM information that the composite interest rate for MOP is substantially lower than that of the HKD. So, we took a bet: why not attract MOP deposits?
\n\n\n\nOf course, there’s one criterion that we have to explain to our investors very carefully. Do you have confidence in the peg system between the US dollar, the Hong Kong dollar, and the Macau pataca? If yes, that would be a fantastic financial plan for your money.
\n\n\n\nSome people think: What am I going to do with the salary I receive every month (in MOP)? Many people exchange it to HKD and then put it in an HKD deposit account. Some are even smarter: they change it into US dollars.
\n\n\n\nThat\u2019s why we are going to create a portfolio, bringing together bank deposits and one more item: US Treasury bills. The trading volume of these US Treasury bills is huge. You can easily invest and recover your money.
\n\n\n\n
\u201cA&P can play a crucial role in redefining the relationship with capital\u201d \u2013 Bernardo Alves
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/bernardo-alves-1.png\")
What\u2019s the significance of having an MOP-denominated investment fund, the very first one? Is it also a kind of stance?
\n\n\n\nBernardo Alves: Well, I think so. We could have constituted a fund of this kind since late 1999 [when the law governing the establishment of investment funds was enacted], but funds have always been constituted mostly in Hong Kong and denominated in HKD and USD.
\n\n\n\nI think it goes back to the mentality of Macau and its population.
\n\n\n\nWhen it comes to basic purchases, we all use MOP, but for big investments in our lives, most of which are in real estate, we use Hong Kong dollars. Naturally, there has been a predisposition for investment funds and insurance products to be quoted in Hong Kong dollars. Therefore, I understand the reasoning behind using HKD.
\n\n\n\nFor us to be an investment fund company in Macau and not use MOP would\u2019ve been a bit of a shame.
\n\n\n\nIt also revolves around my belief that A&P can play a crucial role in redefining the relationship with capital. Since this is the first time an investment fund manager is locally based and we are doing something different, I think that it is a stance in a sense.
\n\n\n\nComing back to your main point, yes, it is the objective of the company to make a statement. Something I wholeheartedly believe is that we, as a society and as locals, need the ability to invest in the currency in which we earn our salaries. It’s natural. So we are going to test this market.
\n\n\n\nA.K.: Local people are very conservative. Actually, I think we are shaking and shaping the local financial ecosystem, particularly the fund industry, by creating the first MOP money market fund. What is the meaning behind this? One crucial aspect is that the relationship between the investor and the fund manager has never been closer. We are a local company, so anytime any investor or person who wants to talk, share their wishes, or ask for advice about their money can come to our office.
\n\n\n\n
\u201cWe are shaking and shaping the local finance industry, particularly the fund industry, by creating the first MOP money market fund\u201d –\u00a0Abraham Kot
\u201cThere have always been complaints that there’s no innovation. Let’s try to do something different in the financial industry\u201d \u2013 Bernardo Alves
![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2024/07/bernardo-alves-abraham-kot-1.png\")
Customer service plays a key role here, right?
\n\n\n\nA.K.: Exactly.
\n\n\n\nB.A.: Investment is psychological. To be close to the investor, or for the investor to feel or need an understanding of the investments themselves, is also very soothing, I would say.
\n\n\n\nThe relationship we had with funds in Macau has been the opposite. When the fund is performing well, the fund managers come and show; when the fund is not performing so well, it\u2019s natural that they don\u2019t come.
\n\n\n\nThat’s also a potential breach of transparency.
\n\n\n\nIt’s all about the communication channel and the availability to say, ‘Look, we are here.’ We can talk about and explain the results. I think the explanation is the key part that will differentiate us from other companies.
\n\n\n\nAs you are the very first locally licensed investment fund management company, are you expecting any kind of first-mover advantage?
\n\n\n\nB.A.: The fund\u2019s application wasn\u2019t easy. I don\u2019t think any non-local company could have come here and tried to apply for it because, firstly, there was no precedent case. And when there\u2019s no precedent, there is no timeline. This is an investment, and capital abhors uncertainty, of course.
\n\n\n\nWe have been called pioneers. We\u2019ve been called white lab rats. It\u2019s natural. If there\u2019s a first-mover advantage, it\u2019s incidental.
\n\n\n\nI really wanted to develop this, and I found this fire in Abraham too, which was, \u201cLet\u2019s try to do something different in the financial industry.\u201d There have always been complaints that there\u2019s no innovation. Okay, let\u2019s try something innovative.
\n\n\n\nYou are working with Bank of China, the two Macau licenses.
\n\n\n\nA.K. – Yes, Bank of China Macau Branch is our custodian and also provides the administrator of the unit of the fund. We are also working with Bank of China (Macau) which is our distributor, to sell our fund to customers. The other banks are our counterparty.
\n\n\n\nB.A. \u2013 When we constitute the fund there\u2019s a whole infrastructure behind it that supports the fund. One of these pillars is the depositary [custodian]. But both of them are extremely valuable because they control the assets of the fund too, and they supervise the transactions of the fund, whereas we control the investors and the investment. So this relationship is symbiotic. So we were lucky to have Bank of China be innovative.
\n\n\n\nAnd of course, we have an auditor and all the legal contracts behind us. So just the single movement of a new company that germinated in the industry created a shockwave along the industries in Macau. So that’s development. The objective of development is to try and push one company and see how other companies will also have to reinvest or maybe have to invest in new mechanisms that will hopefully propel our industry a little bit forward, and hopefully attract more capital. Because I believe the success of A&P is also the success of Macau in terms of showing that it’s indeed possible to develop a new idea and the conceptualization of an idea into the practicality of it.
\n\n\n\nYou are, to some extent, in competition with the banking and insurance sectors. How do you address this?
\n\n\n\nB.A.: The money market fund, yes. It\u2019s very important for any financial center to have its own products that can be bought as an investment, not only to combat inflation. As a savings mechanism, as a savings idea, it\u2019s important. Not having such a product is problematic for a city like Macau in this instance.
\n\n\n\nThe objective of launching the money market fund is also based on the idea that we need to start to populate certain investment silos, which have their own risk-return profiles in the market.
\n\n\n\nWe could have launched an equity fund, and I would be as happy as everyone, you know, because that\u2019s my expertise. But we realized very early, when we did the application to AMCM, that Macau needed a solid foundation.
\n\n\n\nSo the money market fund is something that is required. This will be called the parking fund. A money market fund is the third-most traded asset class in the world. So naturally, Macau has to have it.
\n\n\n\nA.K.: I truly believe that we are not competitors to the banks\u2019 income. We are their partners.
\n\n\n\nTraditionally, banking activity is mostly about deposits. But A&P and our funds are focusing on the wealth management industry, which is much bigger.
\n\n\n\nDon\u2019t forget that our central government really wants us to move into the Greater Bay Area, which is a huge market for Macau companies and banks as well. So actually, we are partners. We work together, shoulder to shoulder.
\n\n\n\n
\u201cOne crucial aspect is that the relationship between the investor and the fund manager has never been closer. We are a local company\u201d – Abraham Kot
\u201cThere’s always a contrast of what is the speed that we should walk at. For the regulator tomorrow is too early, but for us, the private side, today is too late\u201d \u2013 Bernardo Alves
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/bernardo-alves-abraham-kot-2.png\")
There has been much talk about the GBA Wealth Management Connect scheme. Will you be playing a role in this respect as well?
\n\n\n\nA.K.: That\u2019s why we have designed this fund under a low-risk structure. Only a low-risk public fund will be allowed into the Greater Bay Area.
\n\n\n\nB.A.: We have to be careful because, in terms of legislation, what is considered a risky factor in one jurisdiction might not be in another. I really hope that we can work with AMCM to push this product along in the Greater Bay Area.
\n\n\n\nLooking further down the road, you have a business development plan with regard to having a portfolio of funds. What would be the next steps? Income funds? Bond-based funds? Private equity funds?
\n\n\n\nB.A.: This has to be worked out in conjunction with AMCM. They\u2019re the ones capable of approving certain types of funds. Hopefully, we can tap into the main criteria, which are bonds and equity. I think this is something that is missing, but again, it depends on the financial development of Macau and the city\u2019s financial literacy. And we need a lot of feedback from this first fund to see what worked and what didn\u2019t work. This whole process is very market dependent too.
\n\n\n\nIf everything aligns again, and if we think that the income side is important, then it\u2019s something that we will tap into.
\n\n\n\nRight now, we are launching a prime money market fund, which is based on fixed time deposits and similar money market instruments. Hopefully, in the future, we can launch a government money market fund, which is actually the most popular version of a money market fund, and that\u2019s based on government-issued securities only.
\n\n\n\nThat will also depend on how far the regulator will go in terms of allowing the secondary markets to have access to certain tools, right?
\n\n\n\nB.A.: Well, this relates to M-bills (AMCM issued Monetary Bills) which are being traded in the primary market but not yet tradable in the secondary market. Taking such a step is a great opportunity, not only as a testing ground but also to gauge the depth of an instrument that is based in MOP. So it’s circular. One of my objectives is to see how we can unblock that.
\n\n\n\nA&P\u2019s life has always been about proving people wrong and trying to break barriers. I think M-bills are one barrier, but for me, the money market fund is not done yet. And I think we still, as a population, require a government money market fund, and Monetary Bills perfectly reflect that. So hopefully, we can, in the near future, work with the authorities to try and unblock certain barriers.
\n\n\n\nThis brings us to the wider issue of the overall infrastructure to develop the city\u2019s modern finance industry. Where are we in this respect?
\n\n\n\nB.A.: When we say modern, we have to say modern with Macau characteristics. This is a very important idea. Otherwise, many aspects of Macau remain underdeveloped. When we compare ourselves to financial centres abroad, it\u2019s understandable to feel we’re behind. So, when we discuss digital currencies or blockchain, these are significant 21st-century developments. But are we embracing them fully in Macau? That was my initial concern. Our journey to launch this fund has revealed that much of our industry still lags behind. While modern financial developments are a commonplace in Hong Kong and other financial hubs, Macau has a different story.
\n\n\n\nWhen we aim to develop modern finance or a new industry, we need to work closely with the regulator. However, there\u2019s often a discrepancy in the pace we should adopt. Tomorrow might be too early for the regulator, but for us on the private side, today could be too late.
\n\n\n\nSo, we need to find a marriage and a balance. We must test things step by step to see what works and what is viable.
\n\n\n\nIn a broader sense, what are the main drivers and takeaways of this project?
\n\n\n\nB.A.: My idea for A&P is that it’s not just a slogan; it’s really the truth: we are genuinely trying to redefine the capital relationship. And the first chapter is MOP as an investment currency.
\n\n\n\nA.K.: We are trying to connect with people from around the world. Let’s build a team and then roll out more tools and products for Macau, Hong Kong, mainland China, Singapore, or even Portugal and the Portuguese-speaking countries. This is our platform.
\n", "content_text": "By Jos\u00e9 Carlos Matias\n\n\n\nPhotos by Lei Heong Ieong\n\n\n\n\n\n\n\nThe city\u2019s first locally registered money market open fund solely denominated in patacas has been launched. It\u2019s the brainchild of Bernardo Alves and Abraham Kot, who are looking to make a splash in the city\u2019s financial industry.\n\n\n\nA&P Investment Fund Management Company Limited received approval in early May from the Monetary Authority of Macau and secured a special license\u2014the first of its kind\u2014to establish the \u201cA&P Macau Patacas Money Market Fund,\u201d which was launched on July 3.\n\n\n\nIn an exclusive interview with Macau Business and Business Intelligence, A&P\u2019s chairman and founder, Bernardo Alves, and CEO, Abraham Kot, discuss the rationale behind launching their new fund, the city\u2019s nascent fund industry, and the prospects for modernizing Macau\u2019s financial services. The fund leverages Alves\u2019 nearly two decades of experience in public and private equity investments, and Kot\u2019s over three decades of experience across retail, commercial, and corporate banking, as well as investment fund management.\n\n\n\nTell us about the backstory behind setting up this investment fund.\n\n\n\nAbraham Kot: First of all, I think that Bernardo Alves and I share the same idea about how to approach people’s wealth management in Macau. In 2016, I was coming from banking, and we realised something really important and astonishing at that time. Clients told us that it was difficult to find a responsible investment fund manager. As you know, most of the public funds are created in Hong Kong, and every time issues arise, people seem to struggle to see a response from them.\n\n\n\nSo, I said, why not create something for the local people? I believe that Bernardo and I really wanted to create something at that time. We wanted to develop tailor-made investment products for locals.\n\n\n\nIn 2021, Bernardo and I thought, why not apply to create an investment fund management company in Macau, according to the local regulations? The company was eventually established in early 2023, with the special registration from the Monetary Authority of Macau (AMCM) being granted in June 2023.\n\n\n\nIt then took another three months to complete our application for the first public fund.\n\n\n\nWe submitted the application to AMCM in October 2023, and in May 2024, we secured the permit.\n\n\n\n \u201cI truly believe that we are not competitors to the banks’ income. We are their partners\u201d – Abraham Kot \n\n\n\n\n\n\n\nThis [having a locally registered MOP-denominated open public investment fund] is something entirely new for the city. How would you describe the whole process and the main challenges you faced throughout this process?\n\n\n\nA.K.: When we recall the year 2022, it was a time of financial turmoil. In the property market in China, equities and bonds nosedived. As you know, we are very close to the local banking sector. We heard numerous negative investment stories. People were afraid of making investments. They believed that high risk would not translate into high returns.\n\n\n\nSo, we were struggling a lot. Finally, we made a decision. We tried to model our fund after well-known, stable, and reliable ones. We searched for the most popular public funds, particularly money market investment funds. Then we identified a very stable model, one that is good for the city\u2019s local residents.\n\n\n\nWhy start with a public money market investment fund and not, let\u2019s say, a private fund? What\u2019s the rationale behind this approach?\n\n\n\nA.K.: First of all, we believe that a private fund shouldn\u2019t be our first project. The competition is very fierce in Hong Kong and Macau, and I don\u2019t believe that it\u2019s the right move for A&P to start with a private fund.\n\n\n\nSecondly, given the complicated financial situation in 2022, we had to find something very safe in everybody\u2019s eyes, where transparency is very high, and it\u2019s easy for people to understand the portfolio and how they can see their investment returns.\n\n\n\nWhat exactly are the components of a money market fund, and of your fund in particular?\n\n\n\nA.K.: Basically, money market funds are very simple. They’re just like a savings product. We collect the investors’ money and deposit it into the fund, and then we place the money as large-scale deposits into big banks that can offer us a very attractive interbank interest rate.\n\n\n\nBernardo and I thought about something a little bit creative. By 2022, the US Federal Reserve had started to increase interest rates. By that time, we noticed the interest rate gap between the US dollar and the Hong Kong dollar. We also saw from AMCM information that the composite interest rate for MOP is substantially lower than that of the HKD. So, we took a bet: why not attract MOP deposits?\n\n\n\nOf course, there’s one criterion that we have to explain to our investors very carefully. Do you have confidence in the peg system between the US dollar, the Hong Kong dollar, and the Macau pataca? If yes, that would be a fantastic financial plan for your money.\n\n\n\nSome people think: What am I going to do with the salary I receive every month (in MOP)? Many people exchange it to HKD and then put it in an HKD deposit account. Some are even smarter: they change it into US dollars.\n\n\n\nThat\u2019s why we are going to create a portfolio, bringing together bank deposits and one more item: US Treasury bills. The trading volume of these US Treasury bills is huge. You can easily invest and recover your money.\n\n\n\n \u201cA&P can play a crucial role in redefining the relationship with capital\u201d \u2013 Bernardo Alves \n\n\n\n\n\n\n\nWhat\u2019s the significance of having an MOP-denominated investment fund, the very first one? Is it also a kind of stance?\n\n\n\nBernardo Alves: Well, I think so. We could have constituted a fund of this kind since late 1999 [when the law governing the establishment of investment funds was enacted], but funds have always been constituted mostly in Hong Kong and denominated in HKD and USD.\n\n\n\nI think it goes back to the mentality of Macau and its population.\n\n\n\nWhen it comes to basic purchases, we all use MOP, but for big investments in our lives, most of which are in real estate, we use Hong Kong dollars. Naturally, there has been a predisposition for investment funds and insurance products to be quoted in Hong Kong dollars. Therefore, I understand the reasoning behind using HKD.\n\n\n\nFor us to be an investment fund company in Macau and not use MOP would\u2019ve been a bit of a shame.\n\n\n\nIt also revolves around my belief that A&P can play a crucial role in redefining the relationship with capital. Since this is the first time an investment fund manager is locally based and we are doing something different, I think that it is a stance in a sense.\n\n\n\nComing back to your main point, yes, it is the objective of the company to make a statement. Something I wholeheartedly believe is that we, as a society and as locals, need the ability to invest in the currency in which we earn our salaries. It’s natural. So we are going to test this market.\n\n\n\nA.K.: Local people are very conservative. Actually, I think we are shaking and shaping the local financial ecosystem, particularly the fund industry, by creating the first MOP money market fund. What is the meaning behind this? One crucial aspect is that the relationship between the investor and the fund manager has never been closer. We are a local company, so anytime any investor or person who wants to talk, share their wishes, or ask for advice about their money can come to our office.\n\n\n\n \u201cWe are shaking and shaping the local finance industry, particularly the fund industry, by creating the first MOP money market fund\u201d –\u00a0Abraham Kot \n\n\n\n \u201cThere have always been complaints that there’s no innovation. Let’s try to do something different in the financial industry\u201d \u2013 Bernardo Alves \n\n\n\n\n\n\n\nCustomer service plays a key role here, right?\n\n\n\nA.K.: Exactly.\n\n\n\nB.A.: Investment is psychological. To be close to the investor, or for the investor to feel or need an understanding of the investments themselves, is also very soothing, I would say.\n\n\n\nThe relationship we had with funds in Macau has been the opposite. When the fund is performing well, the fund managers come and show; when the fund is not performing so well, it\u2019s natural that they don\u2019t come.\n\n\n\nThat’s also a potential breach of transparency.\n\n\n\nIt’s all about the communication channel and the availability to say, ‘Look, we are here.’ We can talk about and explain the results. I think the explanation is the key part that will differentiate us from other companies.\n\n\n\nAs you are the very first locally licensed investment fund management company, are you expecting any kind of first-mover advantage?\n\n\n\nB.A.: The fund\u2019s application wasn\u2019t easy. I don\u2019t think any non-local company could have come here and tried to apply for it because, firstly, there was no precedent case. And when there\u2019s no precedent, there is no timeline. This is an investment, and capital abhors uncertainty, of course.\n\n\n\nWe have been called pioneers. We\u2019ve been called white lab rats. It\u2019s natural. If there\u2019s a first-mover advantage, it\u2019s incidental.\n\n\n\nI really wanted to develop this, and I found this fire in Abraham too, which was, \u201cLet\u2019s try to do something different in the financial industry.\u201d There have always been complaints that there\u2019s no innovation. Okay, let\u2019s try something innovative.\n\n\n\nYou are working with Bank of China, the two Macau licenses. \n\n\n\nA.K. – Yes, Bank of China Macau Branch is our custodian and also provides the administrator of the unit of the fund. We are also working with Bank of China (Macau) which is our distributor, to sell our fund to customers. The other banks are our counterparty. \n\n\n\nB.A. \u2013 When we constitute the fund there\u2019s a whole infrastructure behind it that supports the fund. One of these pillars is the depositary [custodian]. But both of them are extremely valuable because they control the assets of the fund too, and they supervise the transactions of the fund, whereas we control the investors and the investment. So this relationship is symbiotic. So we were lucky to have Bank of China be innovative.\n\n\n\nAnd of course, we have an auditor and all the legal contracts behind us. So just the single movement of a new company that germinated in the industry created a shockwave along the industries in Macau. So that’s development. The objective of development is to try and push one company and see how other companies will also have to reinvest or maybe have to invest in new mechanisms that will hopefully propel our industry a little bit forward, and hopefully attract more capital. Because I believe the success of A&P is also the success of Macau in terms of showing that it’s indeed possible to develop a new idea and the conceptualization of an idea into the practicality of it.\n\n\n\nYou are, to some extent, in competition with the banking and insurance sectors. How do you address this?\n\n\n\nB.A.: The money market fund, yes. It\u2019s very important for any financial center to have its own products that can be bought as an investment, not only to combat inflation. As a savings mechanism, as a savings idea, it\u2019s important. Not having such a product is problematic for a city like Macau in this instance.\n\n\n\nThe objective of launching the money market fund is also based on the idea that we need to start to populate certain investment silos, which have their own risk-return profiles in the market.\n\n\n\nWe could have launched an equity fund, and I would be as happy as everyone, you know, because that\u2019s my expertise. But we realized very early, when we did the application to AMCM, that Macau needed a solid foundation.\n\n\n\nSo the money market fund is something that is required. This will be called the parking fund. A money market fund is the third-most traded asset class in the world. So naturally, Macau has to have it.\n\n\n\nA.K.: I truly believe that we are not competitors to the banks\u2019 income. We are their partners.\n\n\n\nTraditionally, banking activity is mostly about deposits. But A&P and our funds are focusing on the wealth management industry, which is much bigger.\n\n\n\nDon\u2019t forget that our central government really wants us to move into the Greater Bay Area, which is a huge market for Macau companies and banks as well. So actually, we are partners. We work together, shoulder to shoulder.\n\n\n\n \u201cOne crucial aspect is that the relationship between the investor and the fund manager has never been closer. We are a local company\u201d – Abraham Kot \n\n\n\n \u201cThere’s always a contrast of what is the speed that we should walk at. For the regulator tomorrow is too early, but for us, the private side, today is too late\u201d \u2013 Bernardo Alves \n\n\n\n\n\n\n\nThere has been much talk about the GBA Wealth Management Connect scheme. Will you be playing a role in this respect as well?\n\n\n\nA.K.: That\u2019s why we have designed this fund under a low-risk structure. Only a low-risk public fund will be allowed into the Greater Bay Area. \n\n\n\nB.A.: We have to be careful because, in terms of legislation, what is considered a risky factor in one jurisdiction might not be in another. I really hope that we can work with AMCM to push this product along in the Greater Bay Area.\n\n\n\nLooking further down the road, you have a business development plan with regard to having a portfolio of funds. What would be the next steps? Income funds? Bond-based funds? Private equity funds?\n\n\n\nB.A.: This has to be worked out in conjunction with AMCM. They\u2019re the ones capable of approving certain types of funds. Hopefully, we can tap into the main criteria, which are bonds and equity. I think this is something that is missing, but again, it depends on the financial development of Macau and the city\u2019s financial literacy. And we need a lot of feedback from this first fund to see what worked and what didn\u2019t work. This whole process is very market dependent too.\n\n\n\nIf everything aligns again, and if we think that the income side is important, then it\u2019s something that we will tap into.\n\n\n\nRight now, we are launching a prime money market fund, which is based on fixed time deposits and similar money market instruments. Hopefully, in the future, we can launch a government money market fund, which is actually the most popular version of a money market fund, and that\u2019s based on government-issued securities only.\n\n\n\nThat will also depend on how far the regulator will go in terms of allowing the secondary markets to have access to certain tools, right?\n\n\n\nB.A.: Well, this relates to M-bills (AMCM issued Monetary Bills) which are being traded in the primary market but not yet tradable in the secondary market. Taking such a step is a great opportunity, not only as a testing ground but also to gauge the depth of an instrument that is based in MOP. So it’s circular. One of my objectives is to see how we can unblock that.\n\n\n\nA&P\u2019s life has always been about proving people wrong and trying to break barriers. I think M-bills are one barrier, but for me, the money market fund is not done yet. And I think we still, as a population, require a government money market fund, and Monetary Bills perfectly reflect that. So hopefully, we can, in the near future, work with the authorities to try and unblock certain barriers.\n\n\n\nThis brings us to the wider issue of the overall infrastructure to develop the city\u2019s modern finance industry. Where are we in this respect?\n\n\n\nB.A.: When we say modern, we have to say modern with Macau characteristics. This is a very important idea. Otherwise, many aspects of Macau remain underdeveloped. When we compare ourselves to financial centres abroad, it\u2019s understandable to feel we’re behind. So, when we discuss digital currencies or blockchain, these are significant 21st-century developments. But are we embracing them fully in Macau? That was my initial concern. Our journey to launch this fund has revealed that much of our industry still lags behind. While modern financial developments are a commonplace in Hong Kong and other financial hubs, Macau has a different story.\n\n\n\nWhen we aim to develop modern finance or a new industry, we need to work closely with the regulator. However, there\u2019s often a discrepancy in the pace we should adopt. Tomorrow might be too early for the regulator, but for us on the private side, today could be too late.\n\n\n\nSo, we need to find a marriage and a balance. We must test things step by step to see what works and what is viable.\n\n\n\nIn a broader sense, what are the main drivers and takeaways of this project?\n\n\n\nB.A.: My idea for A&P is that it’s not just a slogan; it’s really the truth: we are genuinely trying to redefine the capital relationship. And the first chapter is MOP as an investment currency.\n\n\n\nA.K.: We are trying to connect with people from around the world. Let’s build a team and then roll out more tools and products for Macau, Hong Kong, mainland China, Singapore, or even Portugal and the Portuguese-speaking countries. This is our platform.", "date_published": "July 13, 2024", "date_modified": "July 10, 2024 - 14:53", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/bernardo-alves-abraham-kot-3.png", "tags": [ "Finance", "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "The city\u2019s first locally registered money market open fund solely denominated in patacas has been launched. It\u2019s the brainchild of Bernardo Alves and Abraham Kot, who are looking to make a splash in the city\u2019s financial industry." }, { "id": "https://www.macaubusiness.com/opinion-illegal-gambling-and-criminal-law-principles/", "url": "https://www.macaubusiness.com/opinion-illegal-gambling-and-criminal-law-principles/", "title": "OPINION \u2013 Illegal gambling and criminal law principles", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/07/casino-gaming-macau-gambling-chips-cards-150x150.png\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Jorge-Godinho-1028x1028.gif\")
Jorge A. F. Godinho
\n\n\n\nAssociate Professor, ISMAT, Portugal
\n\n\n\nVisiting Professor, University of Macau, China
\n\n\n\n\n\n\n\n[Macau Business, July 2024]
\n\n\n\n\tThe persistent demand for casino games of chance, betting, and lotteries is met by a small number of legalised, regulated, and supervised operators; some have a monopoly. Unfortunately, there is always somebody trying to make money by offering gaming illegally. We know what happens in unlawful gaming operations. They do not need to worry much about the customer. No rules and standards must be observed. The mathematics of the games can be anything.
\n\n\n\nUnderground betting operations and casinos appear regularly, both brick and mortar and online. Illegal sports betting always appears around major international tournaments, such as the football world and European cups. When horse racing existed in Macau, illegal betting was a relatively regular feature. With the internet, the possibilities for unlawful online gaming have multiplied.
\n\n\n\nThe fight against illegal gambling, done by means of criminal law, is an unavoidable and essential component of the overall regulation of gaming. Where legalised gaming exists, the primary criminal policy goal is not to repress gaming as such, but to protect the player and the integrity of the regulated industry.
\n\n\n\nThe current Macau law on gaming crimes, approved in 1996, is being amended by the Legislative Assembly. The first draft keeps classic and important crimes such as the operation of gaming businesses without authorization, fraudulent gaming (cheating), and unlawful loans for gaming (\u201cloansharking\u201d). Other aspects of the 1996 law clearly needed to be reformed or replaced. In doing this, it is necessary to avoid some mistakes and exaggerations. I will highlight a few principles.
\n\n\n\nFirst, legal language cannot be a labyrinth. Citizens must be able to understand clearly the border between what is legal and what is not. Criminal laws cannot be vague, obscure, ambiguous, or full of value-based expressions, and therefore unpredictable and impossible to control. Precise concepts, often originating from outside criminal law, must be used. It may be added that when applying the law in court, if a certain gaming law concept has a narrow meaning outside of a criminal law context, it cannot suddenly be extended and gain a much broader meaning inside criminal law for punitive purposes, catching persons by surprise.
\n\n\n\nSecond, not everything should be criminalized. Criminal law is the last resort of social policy and should be used only for major problems, not for petty issues. Minor or merely technical violations should be only administrative law offences, enforced by the regulator and not by the courts.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/AdobeStock_316678651-1028x685.jpg\")
Third, punishment of not just intentional but also negligent conduct can broaden immensely the scope of any criminal law provisions. This is why there is no crime of negligent money laundering, for example. It should be carefully considered whether negligent conduct should be criminalized and if that even makes any sense.
\n\n\n\nFourth, presumptions or assumptions cannot be used in criminal law for incrimination purposes; they directly breach the opposite constitutional rule, the presumption of innocence.
\n\n\n\nFinally, criminal law in the field of gaming has always been a domestic concern. There are no transnational criminal law efforts against illegal gambling, and this domain continues to be mostly based on domestic laws. This means that international cooperation may be more difficult than in other areas. If the laws are poorly drafted, it gets worse.
\n\n\n\nLooking forward, I am afraid that there will be a lot more criminal law problems related to gaming in the future. This is due to various factors, including the said expansion of the law on gaming crimes, the current regulatory environment, and the new restrictions on credit for gaming that will start to apply from August.
\n\n\n\n\n", "content_text": "Jorge A. F. Godinho\n\n\n\nAssociate Professor, ISMAT, Portugal\n\n\n\nVisiting Professor, University of Macau, China\n\n\n\njg.macau@gmail.com\n\n\n\n[Macau Business, July 2024]\n\n\n\n\n\n\n\n \tThe persistent demand for casino games of chance, betting, and lotteries is met by a small number of legalised, regulated, and supervised operators; some have a monopoly. Unfortunately, there is always somebody trying to make money by offering gaming illegally. We know what happens in unlawful gaming operations. They do not need to worry much about the customer. No rules and standards must be observed. The mathematics of the games can be anything.\n\n\n\nUnderground betting operations and casinos appear regularly, both brick and mortar and online. Illegal sports betting always appears around major international tournaments, such as the football world and European cups. When horse racing existed in Macau, illegal betting was a relatively regular feature. With the internet, the possibilities for unlawful online gaming have multiplied.\n\n\n\nThe fight against illegal gambling, done by means of criminal law, is an unavoidable and essential component of the overall regulation of gaming. Where legalised gaming exists, the primary criminal policy goal is not to repress gaming as such, but to protect the player and the integrity of the regulated industry.\n\n\n\nThe current Macau law on gaming crimes, approved in 1996, is being amended by the Legislative Assembly. The first draft keeps classic and important crimes such as the operation of gaming businesses without authorization, fraudulent gaming (cheating), and unlawful loans for gaming (\u201cloansharking\u201d). Other aspects of the 1996 law clearly needed to be reformed or replaced. In doing this, it is necessary to avoid some mistakes and exaggerations. I will highlight a few principles.\n\n\n\nFirst, legal language cannot be a labyrinth. Citizens must be able to understand clearly the border between what is legal and what is not. Criminal laws cannot be vague, obscure, ambiguous, or full of value-based expressions, and therefore unpredictable and impossible to control. Precise concepts, often originating from outside criminal law, must be used. It may be added that when applying the law in court, if a certain gaming law concept has a narrow meaning outside of a criminal law context, it cannot suddenly be extended and gain a much broader meaning inside criminal law for punitive purposes, catching persons by surprise.\n\n\n\nSecond, not everything should be criminalized. Criminal law is the last resort of social policy and should be used only for major problems, not for petty issues. Minor or merely technical violations should be only administrative law offences, enforced by the regulator and not by the courts.\n\n\n\n\n\n\n\nThird, punishment of not just intentional but also negligent conduct can broaden immensely the scope of any criminal law provisions. This is why there is no crime of negligent money laundering, for example. It should be carefully considered whether negligent conduct should be criminalized and if that even makes any sense.\n\n\n\nFourth, presumptions or assumptions cannot be used in criminal law for incrimination purposes; they directly breach the opposite constitutional rule, the presumption of innocence.\n\n\n\nFinally, criminal law in the field of gaming has always been a domestic concern. There are no transnational criminal law efforts against illegal gambling, and this domain continues to be mostly based on domestic laws. This means that international cooperation may be more difficult than in other areas. If the laws are poorly drafted, it gets worse.\n\n\n\nLooking forward, I am afraid that there will be a lot more criminal law problems related to gaming in the future. This is due to various factors, including the said expansion of the law on gaming crimes, the current regulatory environment, and the new restrictions on credit for gaming that will start to apply from August.", "date_published": "July 13, 2024", "date_modified": "July 09, 2024 - 16:45", "author": { "name": "admin", "url": "https://www.macaubusiness.com/author/admin/", "avatar": "https://secure.gravatar.com/avatar/135daf3ac9866023ee4710e9f5237dd1?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/07/casino-gaming-macau-gambling-chips-cards.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "The persistent demand for casino games of chance, betting, and lotteries is met by a small number of legalised, regulated, and supervised operators; some have a monopoly. Unfortunately, there is always somebody trying to make money by offering gaming illegally." }, { "id": "https://www.macaubusiness.com/special-report-macau-should-review-its-carbon-emissions-from-the-perspective-of-whole-life-cycle-thinking/", "url": "https://www.macaubusiness.com/special-report-macau-should-review-its-carbon-emissions-from-the-perspective-of-whole-life-cycle-thinking/", "title": "Special Report \u2013 \u201cMacau should review its carbon emissions from the perspective of whole life-cycle thinking\u201d", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/1_imagempara-entrevista-150x150.jpg\")
\nQingbin Song, a professor at Macau University of Science and Technology, is one of Macau’s most authoritative voices in the study of the environmental impacts of climate change. He explained his priorities to Macau Business.
\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau
As Macau is not a relevant producer of CO2, there may be a temptation to do nothing locally to mitigate these impacts. How do you interpret it? Is the local population aware of the problem of climate change?
\n\n\n\nQingbin Song \u2013 As an international tourist service city, the energy and resources consumed by Macau’s urban development mainly come from China (Mainland, Hong Kong) and other countries/regions, and the proportion of direct carbon emissions is relatively low. According to the long-term carbon reduction strategy report issued by Macau Environmental Protection Bureau, indirect emissions from overseas electricity in Macau account for about 60 percent of the total emissions, while local direct emissions only account for 40 percent of the total emissions . However, it should be noted that as a responsible international city, Macau should review its carbon emissions from the perspective of whole life-cycle thinking, which is also consistent with the transformation of global environmental governance from end treatment to source control. Thus, it is necessary to pay more attention on the carbon emissions of the entire industrial chain from society, economy, and trade in Macau. Macau can contribute its efforts to mitigate regional, national, and even though global climate change through green purchasing, green finance, and other ways.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/02/POLLUTION-TA002_2_rgb-1028x685.jpg\")
For local residents, our research team has explored residents’ perceptions of climate change through behavioural science method. 72.29 percent of Macau residents believe that their non-energy-saving behaviour will aggravate climate change. Meanwhile, 96.61 percent of university students in Macau think that it is necessary to save energy in order to reduce the environmental impact caused by climate change, according to a research from 2019. Residents with better awareness on climate change are more likely to support climate-friendly policies and take climate-friendly actions. Most residents are generally aware of the environmental problems caused by climate change. However, the residents’ attention doesn’t mean the wide understanding on the knowledge and ability of climate change and its mitigation. Cooperating with the implementation of long-term carbon reduction strategy in Macau, the government should still increase more publicity to cultivate residents’ climate change awareness, knowledge, and sustainable consumption choices.
\n\n\n\n
\u201cBy choosing eco-friendly products, properly disposing of waste, using energy-saving appliances, reducing plastic trash, etc., the consumers and residents also play an important role in mitigating the impact on climate change\u201d \u2013 Qingbin Song
Do you believe that sustainability practices (ESG) will be the answer that Macau can give to the problem? Do you want to recommend some?
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/Qingbin-Song-775x1028.jpeg\")
Q. S. \u2013 All stakeholders in society should work together to address climate change through specific sustainable practices. Environmental, Social, and Governance (ESG) practices are the three pillars of corporate sustainability, encompassing comprehensive actions by businesses in environmental protection, social responsibility, and internal governance. On the environmental level, companies are committed to mitigating the impact of their operations on the natural world, referring to carbon emissions reduction, energy-saving, and waste minimization. The social dimension emphasizes the responsibility of businesses for the welfare of employees, communities. In terms of governance, companies establish sound governance structures through ensuring operational transparency, ethical business practices, and the independence of the board of directors. Thus, ESG will be one of useful mitigation strategies for climate change from the views of company and the systematic thinking.
\n\n\n\nAt the same time, Extended Producer Responsibility (EPR) policy is also considered as one effective measure to mitigate the climate change, which requires companies to be accountable for the entire life-cycle stages of their products, from design to disposal, especially referring to all the stakeholders. Governments encourage low-carbon lifestyles by formulating and implementing relevant policies, providing financial incentives and tax benefits, and building public infrastructure such as transportation and recycling facilities. Non-governmental organizations raise public awareness of sustainable development through education and advocacy activities and promote green lifestyles. By choosing eco-friendly products, properly disposing of waste, using energy-saving appliances, reducing plastic trash, etc., the consumers and residents also play an important role in mitigating the impact on climate change.
\n\n\n\nIn addition, the Macau Carbon Inclusion Project has been introduced into Macau to encourage residents to participate in carbon reduction tasks through a mini-programme. This positive incentive mechanism effectively promotes public participation in emission reduction, advocating for a low-carbon and environmentally friendly lifestyle.
\n\n\n\nMacau is based on land reclamations, and saturated landfills have been a pressing issue. How will this worsen the impact of climate change in certain areas of the city?
\n\n\n\nQ. S. \u2013 Since the Macau Refuse Incineration Plant (MRIP) came into service in 1992, the waste categories ending in landfills have changed from organic waste to inert waste. Currently, Macau Construction Waste Landfill (MCWL) has been in use since March 2006 for inert solid waste generated from excavation, demolition, construction, and other activities, including rubble, concrete blocks, soft soil, marine mud, and slag. In the past 10 years, MCWL received 49 percent inert construction waste, 40 percent marine mud (finally thrown in the sea), 8 percent mixed construction waste, and 3 percent slag and fly ash. Thus, MCWL will result in lower carbon emissions. In addition, due to more than 30 years, there are also few carbon emissions for the waste landfill before 1992. Therefore, the climate change effects from landfill will not the most important challenges.
\n\n\n\nSince 2013, the MCWL has reached saturation point and can only be piled high to handle the received construction and demolition waste (CDW). Over 49 million cubic metres of CDW have been received so far, with the highest point of the landfill reaching about 20 meters. It will be very necessary to pay more attention on the operation safety and ecological risks of inert waste in near-shore marine areas. In future, under the Construction Waste Management System, more effective measures should be carried out to control the height of landfills and landfill safety, and at the same time reduce the marine environmental and ecological impacts.
\n\n\n\n\n", "content_text": "Qingbin Song, a professor at Macau University of Science and Technology, is one of Macau’s most authoritative voices in the study of the environmental impacts of climate change. He explained his priorities to Macau Business.\n\n\n\nMacau Business | July 2024 | Special Report | How climate change(s) Macau\n\n\n\n\n\n\n\n As Macau is not a relevant producer of CO2, there may be a temptation to do nothing locally to mitigate these impacts. How do you interpret it? Is the local population aware of the problem of climate change?\n\n\n\nQingbin Song \u2013 As an international tourist service city, the energy and resources consumed by Macau’s urban development mainly come from China (Mainland, Hong Kong) and other countries/regions, and the proportion of direct carbon emissions is relatively low. According to the long-term carbon reduction strategy report issued by Macau Environmental Protection Bureau, indirect emissions from overseas electricity in Macau account for about 60 percent of the total emissions, while local direct emissions only account for 40 percent of the total emissions . However, it should be noted that as a responsible international city, Macau should review its carbon emissions from the perspective of whole life-cycle thinking, which is also consistent with the transformation of global environmental governance from end treatment to source control. Thus, it is necessary to pay more attention on the carbon emissions of the entire industrial chain from society, economy, and trade in Macau. Macau can contribute its efforts to mitigate regional, national, and even though global climate change through green purchasing, green finance, and other ways.\n\n\n\n\n\n\n\nFor local residents, our research team has explored residents’ perceptions of climate change through behavioural science method. 72.29 percent of Macau residents believe that their non-energy-saving behaviour will aggravate climate change. Meanwhile, 96.61 percent of university students in Macau think that it is necessary to save energy in order to reduce the environmental impact caused by climate change, according to a research from 2019. Residents with better awareness on climate change are more likely to support climate-friendly policies and take climate-friendly actions. Most residents are generally aware of the environmental problems caused by climate change. However, the residents’ attention doesn’t mean the wide understanding on the knowledge and ability of climate change and its mitigation. Cooperating with the implementation of long-term carbon reduction strategy in Macau, the government should still increase more publicity to cultivate residents’ climate change awareness, knowledge, and sustainable consumption choices. \n\n\n\n \u201cBy choosing eco-friendly products, properly disposing of waste, using energy-saving appliances, reducing plastic trash, etc., the consumers and residents also play an important role in mitigating the impact on climate change\u201d \u2013 Qingbin Song \n\n\n\nDo you believe that sustainability practices (ESG) will be the answer that Macau can give to the problem? Do you want to recommend some?\n\n\n\n\n\n\n\nQ. S. \u2013 All stakeholders in society should work together to address climate change through specific sustainable practices. Environmental, Social, and Governance (ESG) practices are the three pillars of corporate sustainability, encompassing comprehensive actions by businesses in environmental protection, social responsibility, and internal governance. On the environmental level, companies are committed to mitigating the impact of their operations on the natural world, referring to carbon emissions reduction, energy-saving, and waste minimization. The social dimension emphasizes the responsibility of businesses for the welfare of employees, communities. In terms of governance, companies establish sound governance structures through ensuring operational transparency, ethical business practices, and the independence of the board of directors. Thus, ESG will be one of useful mitigation strategies for climate change from the views of company and the systematic thinking.\n\n\n\nAt the same time, Extended Producer Responsibility (EPR) policy is also considered as one effective measure to mitigate the climate change, which requires companies to be accountable for the entire life-cycle stages of their products, from design to disposal, especially referring to all the stakeholders. Governments encourage low-carbon lifestyles by formulating and implementing relevant policies, providing financial incentives and tax benefits, and building public infrastructure such as transportation and recycling facilities. Non-governmental organizations raise public awareness of sustainable development through education and advocacy activities and promote green lifestyles. By choosing eco-friendly products, properly disposing of waste, using energy-saving appliances, reducing plastic trash, etc., the consumers and residents also play an important role in mitigating the impact on climate change.\n\n\n\nIn addition, the Macau Carbon Inclusion Project has been introduced into Macau to encourage residents to participate in carbon reduction tasks through a mini-programme. This positive incentive mechanism effectively promotes public participation in emission reduction, advocating for a low-carbon and environmentally friendly lifestyle. \n\n\n\nMacau is based on land reclamations, and saturated landfills have been a pressing issue. How will this worsen the impact of climate change in certain areas of the city?\n\n\n\nQ. S. \u2013 Since the Macau Refuse Incineration Plant (MRIP) came into service in 1992, the waste categories ending in landfills have changed from organic waste to inert waste. Currently, Macau Construction Waste Landfill (MCWL) has been in use since March 2006 for inert solid waste generated from excavation, demolition, construction, and other activities, including rubble, concrete blocks, soft soil, marine mud, and slag. In the past 10 years, MCWL received 49 percent inert construction waste, 40 percent marine mud (finally thrown in the sea), 8 percent mixed construction waste, and 3 percent slag and fly ash. Thus, MCWL will result in lower carbon emissions. In addition, due to more than 30 years, there are also few carbon emissions for the waste landfill before 1992. Therefore, the climate change effects from landfill will not the most important challenges.\n\n\n\nSince 2013, the MCWL has reached saturation point and can only be piled high to handle the received construction and demolition waste (CDW). Over 49 million cubic metres of CDW have been received so far, with the highest point of the landfill reaching about 20 meters. It will be very necessary to pay more attention on the operation safety and ecological risks of inert waste in near-shore marine areas. In future, under the Construction Waste Management System, more effective measures should be carried out to control the height of landfills and landfill safety, and at the same time reduce the marine environmental and ecological impacts.", "date_published": "July 13, 2024", "date_modified": "July 14, 2024 - 22:36", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/1_imagempara-entrevista.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Qingbin Song, a professor at Macau University of Science and Technology, is one of Macau's most authoritative voices in the study of the environmental impacts of climate change. He explained his priorities to Macau Business." }, { "id": "https://www.macaubusiness.com/from-boardrooms-to-bedrooms/", "url": "https://www.macaubusiness.com/from-boardrooms-to-bedrooms/", "title": "From boardrooms to bedrooms", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/04/AdobeStock_382337099_modified-150x150.jpg\")
\nWhile guidelines allowing the conversion of office space into hotel accommodation in Hengqin have the potential to breathe life into vacant towers on the island and provide affordable options, industry insiders call for strict observance of safety standards.
\n\n\n\nBy Tony Lai
\n\n\n\nOver 1 million sqm
– Estimated gross floor area of existing office units for potential hotel conversion
\u201cThe entire building is divided into multiple hotel [operations]. Its location is very good, but there was no management except for self-service check-in,\u201d a user wrote about their recent accommodation experience in June on Trip.com, one of the major platforms for booking travel services.
\n\n\n\n\u201c[One of the two elevators] had a power outage and dropped from the 22nd floor to the 5th floor. When I reported this incident to customer service on WeChat,\u201d the user continued, referring to WeChat as the popular social media platform in Mainland China, \u201cthey acted as if nothing had happened.\u201d
\n\n\n\nThe user\u2019s accommodation experience took place at a hotel in the Guangdong-Macau In-depth Cooperation Zone in Hengqin, within an office tower, where several other hotels and inns operated by different parties are also situated. Such a situation is expected to become more commonplace in the future due to new policy directives, but this trend also necessitates heightened supervision from authorities to ensure the safety and well-being of the guests, observers say.
\n\n\n\nFollowing the recent relaxation of the visa policy between Macau and Hengqin, specifically the introduction of a multiple-entry visa for mainlanders participating in package tours between the two places, the authorities of the cooperation zone formulated the Operational Guidelines for Temporary Use of Existing Commercial Office Buildings as Hotels in late April.
\n\n\n\nThe guidelines, drafted by several departments of the Hengqin authorities, provide a detailed mechanism for converting existing vacant commercial and office buildings into hotels for a period of eight years. According to the official document, the works for the conversion must obtain construction permits from the Urban Planning and Construction Bureau of the cooperation zone before the special industry license for the hotel industry is issued by the Public Security Bureau. The Commercial Services Bureau and Economic Development Bureau will also assist in the process.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/hengqin-hotels-industry-insider-1.png\")
9,227
– No of guest rooms at non-starred hotels in Hengqin
Facilitating exchanges
\n\n\n\nThe Hengqin authorities explained that this new measure was formulated in response to the increasing hotel demand in Hengqin in light of the introduction of the multiple-entry visa between Macau and Hengqin. It is expected that more mainland tourists will visit Macau during the day and spend the night in the cooperation zone as part of package tours.
\n\n\n\n\u201cThese can make better use of existing commercial office buildings (…) further promote the diversified development of Hengqin’s hotel industry, facilitate the exchange of tourists between Macau and Hengqin, and strengthen the integration between the two places,\u201d remarked the Hengqin authorities.
\n\n\n\nAccording to the latest official data, there were 31 \u201cnon-starred hotels\u201d in the cooperation zone, providing a total of 9,227 guest rooms. Meanwhile, the number of tourists at main tourist attractions in Hengqin totaled over 11.63 million last year, averaging 31,863 tourists per day. Across the border, the visitation to Macau reached 14.17 million in the first five months of 2024, averaging 93,214 visitors per day.
\n\n\n\n
\u201cThese can make better use of existing commercial office buildings (…) further promote the diversified development of Hengqin’s hotel industry, facilitate the exchange of tourists between Macau and Hengqin, and strengthen the integration between the two places\u201d
Hengqin Cooperation Zone Administrative Committee
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/hengqin-hotels-industry-insider-2-1028x636.png\")
Vacant office towers
\n\n\n\nIn addition to well-known hotel brands and standalone hotel towers in mega resorts like Chimelong, Hyatt Regency Hengqin, Hilton Garden Inn Zhuhai Hengqin, Serensia Woods, Angsana Zhuhai Hengqin, and Artyzen Habitat Hengqin Zhuhai, there are other types of accommodation available in the cooperation zone. These include homestays, as well as “inns” or “apartment hotels” that occupy only a few floors of commercial or residential buildings and provide more affordable rates compared to standard hotels.
\n\n\n\nProperty agency Centaline believes that this new policy change will attract more office tower developers to convert their projects in Hengqin. \u201cThe key factor is the presence of numerous vacant office towers in Hengqin that have been completed but remain unsold,\u201d remarked a representative from the Hengqin branch of Centaline. \u201cThe total gross floor space of these vacant properties exceeds 1 million square metres.\u201d
\n\n\n\nFurthermore, this could help address the lack of affordable hotel options in the cooperation zone. \u201cWhile there are numerous four-to-five-star or luxury hotels in Hengqin, there is a shortage of more economical choices particularly for package tour tourists who may have average spending power,\u201d adds the Centaline representative.
\n\n\n\nBut the Centaline representative also highlights that the conversion process may not be straightforward for certain projects. \u201cIf developers have already sold some units in their towers, they must obtain consent from the buyers before proceeding with the conversion, which can be time-consuming.\u201d According to the guidelines, the temporary conversion requires approval from the property’s stakeholders in a meeting attended by at least two-thirds of the owners. The consent is only valid if it receives approval from at least 75 percent of the participating owners in the meeting.
\n\n\n\n
\u201cIf developers have already sold some units in their towers, they must obtain consent from the buyers before proceeding with the conversion, which can be time-consuming.\u201d
Property agency Centaline
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/hengqin-oswald-vas-1028x646.png\")
Affordability
\n\n\n\nThough the guidelines have only been released in recent weeks, hotel operations have already been evident in some office and commercial towers since at least last year. For example, a search on Trip.com revealed the presence of at least five hotels and inns situated in the same office tower at Haoyi Fortune Centre, a mixed-use development spanning 238,000 square metres, which is zoned for offices, flats, and a shopping mall. These hotels and inns, including Zhuhai Dida International Apartment, Hello Hotel Apartment, Meng Apartment, provide between 35 and 105 guest rooms each.
\n\n\n\nIn addition to elevator complaints, some users have also expressed dissatisfaction with the lack of staff and poor hygiene standards at these hotels. \u201cThe hotel, located in a commercial building, doesn’t feel secure enough with its passcode lock,\u201d wrote one user about their experience in December 2023. Another user shared their experience in June, stating, \u201cThe apartment was extremely small with a sinking wooden floor.\u201d
\n\n\n\nDespite the concerns expressed by Trip.com users, this type of hotel and inn remains popular among travellers due to its affordability. These converted hotels in Hengqin typically offer room rates ranging from RMB200 (MOP221) to RMB400 on average, while standard hotels start at a minimum of RMB500, according to the hotel industry.
\n\n\n\n
\u201cThe biggest concern is, of course, fire safety and staff training in case of emergencies.\u201d
A hotel industry insider
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/07/hengqin-osvaldo-vas-1028x540.png\")
Safety and inspection
\n\n\n\n\u201cIt’s mind-blowing to see that many office buildings near [Hengqin Port] have been converted into hotel rooms floor by floor,\u201d says a hotel industry expert who has visited some of these converted units in Hengqin. \u201cThey are nicely decorated, equipped with amenities like a stove, a toilet, and offer fantastic views. The quality is reasonable.\u201d
\n\n\n\nWith the recent guidelines issued by the Hengqin authorities, the industry insider also predicts that there will be even more similar conversions in the future. \u201cGiven that the office business is not picking up quick enough, owners [of office buildings] would want to generate an ROI [return on investment] by renting out a few floors [for hotel conversion],\u201d the source explains, adding that the average hotel occupancy rate in Hengqin now stands at about 60-70 percent.
\n\n\n\nHowever, the insider, speaking anonymously due to the sensitivity of the topic, raises concerns regarding these conversions. \u201cThe biggest concern is, of course, fire safety and staff training in case of emergencies,\u201d the source emphasises. \u201cIn places like Macau, hotels are required to strictly comply with fire codes, including conducting fire drills, installing sprinklers in guest rooms, and smoke detectors. But I have not seen any evidence that these measures have been in place in these converted units.”
\n\n\n\n\u201cThere should be regular inspections and specific safety standards in place to ensure the safety of guests,\u201d the industry source asserts.
\n\n\n\nThe recent guidelines mandate that all converted hotels must incorporate essential facilities such as elevators, fire exits, fire stairs, passageways, and comply with the requirements set by the fire department of the cooperation zone. \u201cThe fire department will also enhance fire safety inspections of the hotels during their operation,\u201d the guidelines further state.
\n\n\n\n
\u201cHaving numerous vacant towers does not contribute positively to the image of Hengqin\u201d
A travel industry representative
Win-win
\n\n\n\nAnother source within the travel industry believes that the recent guidelines establish clearer rules and regulations for this type of conversion. \u201cWe have noticed there are hotels operating within office towers in Hengqin prior to the publication of the guidelines,\u201d the source reveals while speaking anonymously.
\n\n\n\n\u201cIt’s not surprising, considering the current oversupply of office spaces. Having numerous vacant towers does not contribute positively to the image of Hengqin,\u201d the source adds. \u201cThe current situation could be a win-win scenario for both the authorities and the developers of these office units.\u201d
\n\n\n\n\u201cWhile the authorities describe this plan as a temporary conversion for a period of eight years, there is a possibility that it could become a permanent conversion depending on the development of the business environment in the cooperation zone,\u201d the source concludes.
\n\n\n\n\n", "content_text": "While guidelines allowing the conversion of office space into hotel accommodation in Hengqin have the potential to breathe life into vacant towers on the island and provide affordable options, industry insiders call for strict observance of safety standards.\n\n\n\nBy Tony Lai\n\n\n\n\n\n\n\n Over 1 million sqm – Estimated gross floor area of existing office units for potential hotel conversion \n\n\n\n\u201cThe entire building is divided into multiple hotel [operations]. Its location is very good, but there was no management except for self-service check-in,\u201d a user wrote about their recent accommodation experience in June on Trip.com, one of the major platforms for booking travel services.\n\n\n\n\u201c[One of the two elevators] had a power outage and dropped from the 22nd floor to the 5th floor. When I reported this incident to customer service on WeChat,\u201d the user continued, referring to WeChat as the popular social media platform in Mainland China, \u201cthey acted as if nothing had happened.\u201d\n\n\n\nThe user\u2019s accommodation experience took place at a hotel in the Guangdong-Macau In-depth Cooperation Zone in Hengqin, within an office tower, where several other hotels and inns operated by different parties are also situated. Such a situation is expected to become more commonplace in the future due to new policy directives, but this trend also necessitates heightened supervision from authorities to ensure the safety and well-being of the guests, observers say.\n\n\n\nFollowing the recent relaxation of the visa policy between Macau and Hengqin, specifically the introduction of a multiple-entry visa for mainlanders participating in package tours between the two places, the authorities of the cooperation zone formulated the Operational Guidelines for Temporary Use of Existing Commercial Office Buildings as Hotels in late April.\n\n\n\nThe guidelines, drafted by several departments of the Hengqin authorities, provide a detailed mechanism for converting existing vacant commercial and office buildings into hotels for a period of eight years. According to the official document, the works for the conversion must obtain construction permits from the Urban Planning and Construction Bureau of the cooperation zone before the special industry license for the hotel industry is issued by the Public Security Bureau. The Commercial Services Bureau and Economic Development Bureau will also assist in the process.\n\n\n\n\n\n\n\n 9,227 – No of guest rooms at non-starred hotels in Hengqin \n\n\n\nFacilitating exchanges\n\n\n\nThe Hengqin authorities explained that this new measure was formulated in response to the increasing hotel demand in Hengqin in light of the introduction of the multiple-entry visa between Macau and Hengqin. It is expected that more mainland tourists will visit Macau during the day and spend the night in the cooperation zone as part of package tours.\n\n\n\n\u201cThese can make better use of existing commercial office buildings (…) further promote the diversified development of Hengqin’s hotel industry, facilitate the exchange of tourists between Macau and Hengqin, and strengthen the integration between the two places,\u201d remarked the Hengqin authorities.\n\n\n\nAccording to the latest official data, there were 31 \u201cnon-starred hotels\u201d in the cooperation zone, providing a total of 9,227 guest rooms. Meanwhile, the number of tourists at main tourist attractions in Hengqin totaled over 11.63 million last year, averaging 31,863 tourists per day. Across the border, the visitation to Macau reached 14.17 million in the first five months of 2024, averaging 93,214 visitors per day.\n\n\n\n \u201cThese can make better use of existing commercial office buildings (…) further promote the diversified development of Hengqin’s hotel industry, facilitate the exchange of tourists between Macau and Hengqin, and strengthen the integration between the two places\u201d Hengqin Cooperation Zone Administrative Committee \n\n\n\n\n\n\n\nVacant office towers\n\n\n\nIn addition to well-known hotel brands and standalone hotel towers in mega resorts like Chimelong, Hyatt Regency Hengqin, Hilton Garden Inn Zhuhai Hengqin, Serensia Woods, Angsana Zhuhai Hengqin, and Artyzen Habitat Hengqin Zhuhai, there are other types of accommodation available in the cooperation zone. These include homestays, as well as “inns” or “apartment hotels” that occupy only a few floors of commercial or residential buildings and provide more affordable rates compared to standard hotels.\n\n\n\nProperty agency Centaline believes that this new policy change will attract more office tower developers to convert their projects in Hengqin. \u201cThe key factor is the presence of numerous vacant office towers in Hengqin that have been completed but remain unsold,\u201d remarked a representative from the Hengqin branch of Centaline. \u201cThe total gross floor space of these vacant properties exceeds 1 million square metres.\u201d\n\n\n\nFurthermore, this could help address the lack of affordable hotel options in the cooperation zone. \u201cWhile there are numerous four-to-five-star or luxury hotels in Hengqin, there is a shortage of more economical choices particularly for package tour tourists who may have average spending power,\u201d adds the Centaline representative.\n\n\n\nBut the Centaline representative also highlights that the conversion process may not be straightforward for certain projects. \u201cIf developers have already sold some units in their towers, they must obtain consent from the buyers before proceeding with the conversion, which can be time-consuming.\u201d According to the guidelines, the temporary conversion requires approval from the property’s stakeholders in a meeting attended by at least two-thirds of the owners. The consent is only valid if it receives approval from at least 75 percent of the participating owners in the meeting.\n\n\n\n \u201cIf developers have already sold some units in their towers, they must obtain consent from the buyers before proceeding with the conversion, which can be time-consuming.\u201d Property agency Centaline \n\n\n\n\n\n\n\nAffordability\n\n\n\nThough the guidelines have only been released in recent weeks, hotel operations have already been evident in some office and commercial towers since at least last year. For example, a search on Trip.com revealed the presence of at least five hotels and inns situated in the same office tower at Haoyi Fortune Centre, a mixed-use development spanning 238,000 square metres, which is zoned for offices, flats, and a shopping mall. These hotels and inns, including Zhuhai Dida International Apartment, Hello Hotel Apartment, Meng Apartment, provide between 35 and 105 guest rooms each.\n\n\n\nIn addition to elevator complaints, some users have also expressed dissatisfaction with the lack of staff and poor hygiene standards at these hotels. \u201cThe hotel, located in a commercial building, doesn’t feel secure enough with its passcode lock,\u201d wrote one user about their experience in December 2023. Another user shared their experience in June, stating, \u201cThe apartment was extremely small with a sinking wooden floor.\u201d\n\n\n\nDespite the concerns expressed by Trip.com users, this type of hotel and inn remains popular among travellers due to its affordability. These converted hotels in Hengqin typically offer room rates ranging from RMB200 (MOP221) to RMB400 on average, while standard hotels start at a minimum of RMB500, according to the hotel industry.\n\n\n\n \u201cThe biggest concern is, of course, fire safety and staff training in case of emergencies.\u201d A hotel industry insider \n\n\n\n\n\n\n\n Safety and inspection\n\n\n\n\u201cIt’s mind-blowing to see that many office buildings near [Hengqin Port] have been converted into hotel rooms floor by floor,\u201d says a hotel industry expert who has visited some of these converted units in Hengqin. \u201cThey are nicely decorated, equipped with amenities like a stove, a toilet, and offer fantastic views. The quality is reasonable.\u201d\n\n\n\nWith the recent guidelines issued by the Hengqin authorities, the industry insider also predicts that there will be even more similar conversions in the future. \u201cGiven that the office business is not picking up quick enough, owners [of office buildings] would want to generate an ROI [return on investment] by renting out a few floors [for hotel conversion],\u201d the source explains, adding that the average hotel occupancy rate in Hengqin now stands at about 60-70 percent.\n\n\n\nHowever, the insider, speaking anonymously due to the sensitivity of the topic, raises concerns regarding these conversions. \u201cThe biggest concern is, of course, fire safety and staff training in case of emergencies,\u201d the source emphasises. \u201cIn places like Macau, hotels are required to strictly comply with fire codes, including conducting fire drills, installing sprinklers in guest rooms, and smoke detectors. But I have not seen any evidence that these measures have been in place in these converted units.”\n\n\n\n\u201cThere should be regular inspections and specific safety standards in place to ensure the safety of guests,\u201d the industry source asserts.\n\n\n\nThe recent guidelines mandate that all converted hotels must incorporate essential facilities such as elevators, fire exits, fire stairs, passageways, and comply with the requirements set by the fire department of the cooperation zone. \u201cThe fire department will also enhance fire safety inspections of the hotels during their operation,\u201d the guidelines further state.\n\n\n\n \u201cHaving numerous vacant towers does not contribute positively to the image of Hengqin\u201d A travel industry representative \n\n\n\nWin-win\n\n\n\nAnother source within the travel industry believes that the recent guidelines establish clearer rules and regulations for this type of conversion. \u201cWe have noticed there are hotels operating within office towers in Hengqin prior to the publication of the guidelines,\u201d the source reveals while speaking anonymously.\n\n\n\n\u201cIt’s not surprising, considering the current oversupply of office spaces. Having numerous vacant towers does not contribute positively to the image of Hengqin,\u201d the source adds. \u201cThe current situation could be a win-win scenario for both the authorities and the developers of these office units.\u201d\n\n\n\n\u201cWhile the authorities describe this plan as a temporary conversion for a period of eight years, there is a possibility that it could become a permanent conversion depending on the development of the business environment in the cooperation zone,\u201d the source concludes.", "date_published": "July 07, 2024", "date_modified": "July 07, 2024 - 20:19", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/04/AdobeStock_382337099_modified.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ], "summary": "While guidelines allowing the conversion of office space into hotel accommodation in Hengqin have the potential to breathe life into vacant towers on the island and provide affordable options, industry insiders call for strict observance of safety standards." }, { "id": "https://www.macaubusiness.com/editorial-growing-the-pie/", "url": "https://www.macaubusiness.com/editorial-growing-the-pie/", "title": "EDITORIAL \u2013 Growing the pie", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Macau-Zhuhai-shopping3-150x150.jpeg\")
\nMacau Business magazine l\u00a0July\u00a02024
![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/05/matias-opinion-screenshot-director-MB.jpg\")
By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWe often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. Successful integration hinges on a gradual approach, supported by measures to cushion its side effects.
\n\n\n\nIn recent weeks, mainland authorities have implemented several measures to address this balance. These include extending the stay for mainland Chinese individuals holding business visas for Macau, introducing a new multiple-entry visa arrangement for package tours between Macau and Hengqin, adding eight mainland cities to the individual visit scheme for the SARs, and increasing the duty-free allowance for arrivals from Hong Kong and Macau.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Macau-border-checkpoints-1028x685.jpeg\")
In a further step towards enhanced northbound mobility, non-Chinese permanent residents of Macau and Hong Kong will now enjoy a multi-entry travel permit of up to five years for mainland entry\u2014a much-welcome development.
\n\n\n\nWhile these gifts from the central government are significant steps to support the city\u2019s business development, is the SAR government doing enough locally to counter the impact of domestic consumption outflows and address the socio-economic challenges faced by numerous SMEs?
\n\n\n\nSome measures have been adopted. For instance, in mid-June, the SAR announced an extension of the repayment period for interest-free financial assistance provided to local small and medium-sized enterprises (SMEs) and young entrepreneurs. This was an absolutely necessary move.
\n\n\n\nHowever, the lifeline needs to be extended further for these companies. Despite encouraging tourism and gaming figures (though the latter have seen some recent slowdown), data, business surveys, and naked-eye observation are crystal clear: you can\u2019t sweep it under the rug. Food and beverage establishments, especially those outside integrated resorts and tourist hotspots, various types of retailers, particularly supermarkets, and watch-clock-and-jewellery shops, have seen year-on-year double-digit declines, sometimes by as much as one-third. A number of these businesses are being left with no option other than closing for good.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/elina-sitnikova-4wv-Q4g-7V4-unsplash.jpg\")
Local consumers have cited as significant advantages the better value for money and superior customer service obtainable across the border, which may seal the fate of many small businesses here. Who can blame them?
\n\n\n\nA handful of pressing questions arise: How do we cope with this? How can we increase competitiveness? How do we lower fixed costs, such as commercial property rentals and labour, and improve service quality to stem the outflow of local consumption and attract visitors, especially to residential areas?
\n\n\n\nAny suggestions? How about rolling out an e-consumption voucher scheme modelled on those used during the pandemic? Or perhaps, even bolder, consider transferring part of the cash handout to a local consumption voucher plan? True, giving a man a fish will feed him for a day, while teaching him to fish feeds him for a lifetime, but the clock is ticking, and there is a need to do both at the same time at this stage.
\n\n\n\nWe often hear the Government say: there\u2019s only so much we can do. Is that really the case? Besides policymaking, is there a deeper issue\u2014one related to the mindset in the local business sphere?
\n\n\n\nIn any case, it seems clear that while a number of local companies and businesspeople are venturing into Hengqin or other areas of the Greater Bay Area, encouraged by existing incentives, there is a need to ensure that the small businesses remaining local\u2014the lifeblood of the city\u2019s way of life\u2014have a future, one that younger generations can feel confident about.
\n\n\n\nOne hopes the current and the incoming government (and socio-economic actors) will have the ability, determination, and conditions to effectively make the cake bigger and more inclusive, ensuring that SMEs aren\u2019t left to live on crumbs. And, by the way, it would be wise to ensure that the lion\u2019s share is not seized by the entrenched interests that hinder our city\u2019s modernization.
\n", "content_text": "Macau Business magazine l\u00a0July\u00a02024\n\n\n\n\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nWe often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. Successful integration hinges on a gradual approach, supported by measures to cushion its side effects.\n\n\n\nIn recent weeks, mainland authorities have implemented several measures to address this balance. These include extending the stay for mainland Chinese individuals holding business visas for Macau, introducing a new multiple-entry visa arrangement for package tours between Macau and Hengqin, adding eight mainland cities to the individual visit scheme for the SARs, and increasing the duty-free allowance for arrivals from Hong Kong and Macau.\n\n\n\n\n\n\n\nIn a further step towards enhanced northbound mobility, non-Chinese permanent residents of Macau and Hong Kong will now enjoy a multi-entry travel permit of up to five years for mainland entry\u2014a much-welcome development.\n\n\n\nWhile these gifts from the central government are significant steps to support the city\u2019s business development, is the SAR government doing enough locally to counter the impact of domestic consumption outflows and address the socio-economic challenges faced by numerous SMEs?\n\n\n\nSome measures have been adopted. For instance, in mid-June, the SAR announced an extension of the repayment period for interest-free financial assistance provided to local small and medium-sized enterprises (SMEs) and young entrepreneurs. This was an absolutely necessary move.\n\n\n\nHowever, the lifeline needs to be extended further for these companies. Despite encouraging tourism and gaming figures (though the latter have seen some recent slowdown), data, business surveys, and naked-eye observation are crystal clear: you can\u2019t sweep it under the rug. Food and beverage establishments, especially those outside integrated resorts and tourist hotspots, various types of retailers, particularly supermarkets, and watch-clock-and-jewellery shops, have seen year-on-year double-digit declines, sometimes by as much as one-third. A number of these businesses are being left with no option other than closing for good.\n\n\n\n\n\n\n\nLocal consumers have cited as significant advantages the better value for money and superior customer service obtainable across the border, which may seal the fate of many small businesses here. Who can blame them?\n\n\n\nA handful of pressing questions arise: How do we cope with this? How can we increase competitiveness? How do we lower fixed costs, such as commercial property rentals and labour, and improve service quality to stem the outflow of local consumption and attract visitors, especially to residential areas?\n\n\n\nAny suggestions? How about rolling out an e-consumption voucher scheme modelled on those used during the pandemic? Or perhaps, even bolder, consider transferring part of the cash handout to a local consumption voucher plan? True, giving a man a fish will feed him for a day, while teaching him to fish feeds him for a lifetime, but the clock is ticking, and there is a need to do both at the same time at this stage.\n\n\n\nWe often hear the Government say: there\u2019s only so much we can do. Is that really the case? Besides policymaking, is there a deeper issue\u2014one related to the mindset in the local business sphere?\n\n\n\nIn any case, it seems clear that while a number of local companies and businesspeople are venturing into Hengqin or other areas of the Greater Bay Area, encouraged by existing incentives, there is a need to ensure that the small businesses remaining local\u2014the lifeblood of the city\u2019s way of life\u2014have a future, one that younger generations can feel confident about.\n\n\n\nOne hopes the current and the incoming government (and socio-economic actors) will have the ability, determination, and conditions to effectively make the cake bigger and more inclusive, ensuring that SMEs aren\u2019t left to live on crumbs. And, by the way, it would be wise to ensure that the lion\u2019s share is not seized by the entrenched interests that hinder our city\u2019s modernization.", "date_published": "July 07, 2024", "date_modified": "July 07, 2024 - 13:34", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Macau-Zhuhai-shopping3.jpeg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": "We often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. " }, { "id": "https://www.macaubusiness.com/one-visa-two-zones/", "url": "https://www.macaubusiness.com/one-visa-two-zones/", "title": "One visa, two zones", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/07/Zhuhai_Hengqin_plan06_rgb-150x150.jpg\")
\nThe newly implemented Macau-Hengqin multi-entry visa scheme for package tour visitors aims to provide a combination of tourism resources and experiences. It is set to intensify both competition and collaboration
\n\n\n\nBy Therese Tu
\n\n\n\nExclusive Macau Business / Macau News Agency
\n\n\n\nOn May 6, Macau welcomed a special group of 16 travellers, the first tour group visiting the city and the neighbouring Hengqin island since the implementation of a new visa policy. The group embarked on a three-day, two-night journey, spending one night in Macau and the other on the island.
\n\n\n\nThe policy that allows them to freely explore both regions is the multiple-entry visa arrangement introduced by China’s National Immigration Administration (NIA) for Chinese nationals traveling on package tours. Under this new visa arrangement, package tour visitors now have the freedom to travel back and forth between the Guangdong-Macau In-Depth Cooperation Zone in Hengqin and the Macau SAR multiple times over a period of seven days.
\n\n\n\nAlso starting on May 6, mainland Chinese individuals holding business visas for Macau will be able to extend their stay in the city by an additional week, from seven to 14 days.
\n\n\n\nMacau\u2019s tourism authorities said that the measure will contribute to expanding the sources of visitors, promoting integrated development between Macau and Hengqin, and benefiting the business of travel agencies and tour guides on both sides.
\n\n\n\nMeanwhile, Hengqin\u2019s Economic Development Bureau revealed that several tourism agency operators have already expressed their intention to launch joint Macau-Hengqin tour packages. These operators illustrated that travel itineraries could include daytime activities in Macau, overnight stays at hotels in Hengqin, and visits to Hengqin\u2019s tourist attractions the following day.
\n\n\n\nFor Macau\u2019s tourism, hotel, and MICE industries, this new policy could usher in both opportunities and challenges. Industry representatives expressed their belief that this measure has the potential to act as a catalyst, bringing about enhanced combinations of tourism resources, intensified competition, greater market openness, and a significant milestone in the journey towards a more integrated market.
\n\n\n\n
“The new policy can significantly enhance the travel experience for tourists and help attract more tour groups to visit both Macau and the Cooperation Zone\u201d – Cheung Kin Chung, Chairman of the Association of Macau Tourist Agents
![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/06/chimelong_rgb-1028x771.jpg\")
A better package
\n\n\n\nLeng Sai Wai, Chairman of the Association of Federation of the Industry and Commerce of Macau Tourism, told Macau News Agency (MNA) that Macau lacks children-friendly facilities, particularly in terms of outdoor theme parks, leading to shorter stays for family travellers visiting with children. However, with the multi-entry visa policy in place, he believes this issue can be effectively addressed, as families can now \u2018enjoy their time in Macau while taking their children to theme parks in Hengqin\u2019.
\n\n\n\nThe tourism sector representative also emphasised the pressing issue of Macau\u2019s inadequate tourism carrying capacity, which refers to the optimal number of visitors that a specific space can receive at a time without causing a negative impact on the cultural and natural environment.
\n\n\n\nHe highlighted that Macau’s tourism carrying capacity problem is evident in \u2018congested transportation\u2019 and \u2018overcrowding in popular tourist areas\u2019, particularly during peak periods.
\n\n\n\nMr. Leng believes that the new policy will effectively redirect a portion of tourists to Hengqin, providing them with a better tourism experience while simultaneously bolstering Macau’s capacity to accommodate visitors. Meanwhile, the policy is expected to facilitate tourists’ diversion to Hengqin Port for border crossings, thereby alleviating traffic pressure on Gongbei Port, the northern district, and the bridges connecting the peninsula to Taipa.
\n\n\n\nIn recent years, Macau and Hengqin have already established tourism cooperation arrangements, such as joint promotion of’multi-destination travel\u2019 and joint marketing campaigns targeting overseas and mainland markets. Cheung Kin Chung, Chairman of the Association of Macau Tourist Agents and President of the Macau Hoteliers & Innkeepers Association, underscored the potential of the new policy to amplify cooperation between the two regions, foster the integration of their tourism industries, and broaden the range of tourism activities available for Macau.
\n\n\n\n“The new policy can significantly enhance the travel experience for tourists and help attract more tour groups to visit both Macau and the cooperation zone, achieving mutually beneficial growth for the tourism industry and associated sectors in both regions,” he said.
\n\n\n\nMacau’s tourism industry is rapidly accelerating its efforts to enhance collaboration with the mainland tourism sector, Mr. Cheung added. The industry insider indicated that in the near future, the tourism sectors of Macau and the mainland will collaborate to introduce a wide range of high-quality travel routes and tourism products, thereby expanding business opportunities through resource integration.
\n\n\n\n
\u201cFamilies can now enjoy their time in Macau while taking their children to theme parks in Hengqin\u201d – Leng Sai Wai, Chairman of the Association of Federation of the Industry and Commerce of Macau Tourism
Competition or collaboration?
\n\n\n\nThe most notable change is that travellers on package tours can now choose between staying in Macau or Hengqin, has sparked a widespread discussion regarding whether the higher-priced hotels in Macau can maintain their competitiveness. Industry insiders pointed out that while competition may intensify, it could also bring an opportunity for transformation and highlight Macau\u2019s competitive differentiation.
\n\n\n\nLuis Heredia, President of the Macau Hotel Association, considers that these changes mark the opening up of the market and increased regional competition. He underscored the importance for Macau hotels to continuously improve their service quality and enhance the overall guest experience as Greater Bay Area integration gradually takes shape.
\n\n\n\n\u201cWe fully understand that this is a process, a development in the region, a connection to Macau, step by step,\u201d he said, \u201cWe will have to make them more exclusive and work harder. We will have to push ourselves to serve even better.\u201d
\n\n\n\nAs the multi-entry visa arrangement is now limited to package tour travellers, many tour groups and travel agencies tend to choose budget-friendly accommodations in Hengqin to control costs. In light of this, Mr. Leng has called for a further relaxation of the policy to cover individual travellers as well.
\n\n\n\nAccording to Mr. Leng, the primary concern for individual travellers differs from that of package tour groups. While cost control remains important for the latter, individual travellers prioritise service quality and hotel amenities. When comparing the facilities and service standards of five-star hotels in the same price range, those in Macau undoubtedly emerge as the more appealing choice.
\n\n\n\nThe local tourism association chairman argues that by expanding the multi-entry visa arrangement to cover individual travellers, more tourists will be able to choose between staying in either Macau or Hengqin based on their specific preferences and needs. Such an expansion would \u2018foster differentiated competition\u2019 among hotels in both regions, reducing the need for price wars.
\n\n\n\n\u201cThe competitiveness of Macau hotels is, without a doubt, unmatched in the Greater Bay Area. I believe that if the policy is expanded to include individual travellers, the relationship between Hengqin and Macau will transform into a pure collaboration instead of competition,\u201d Mr. Leng said.
\n\n\n\n
\u201cWe fully understand that this is a process, a development in the region, a connection to Macau, step by step (\u2026) We will have to make them more exclusive and work harder. We will have to push ourselves to serve even better\u201d – Luis Her\u00e9dia, President of the Macau Hotel Association
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/Hengqin-Port-2.jpg\")
Multi-venue events
\n\n\n\nBesides regular tour groups, business tour groups that visit Macau to attend MICE events can also enjoy the convenience brought by the new visa policy. Alan Ho Hoi Ming, Chairperson of the Macao Association of Convention, Exhibition & Tourism Sectors, expressed that this policy change accelerates the development of the multi-venue event model. He predicts that the number of multi-venue events held this year will double compared to the previous year’s record of 12.
\n\n\n\n“This policy is a significant boon for the MICE industry in both Macau and Hengqin, injecting new energy into its development,” Alan Ho said.
\n\n\n\nHe highlighted the advantages of the multi-venue event model, which expands the range of venues available for hosting MICE events while diversifying the types of events that can be held. For instance, Macau has limited outdoor venues, whereas Hengqin boasts several natural parks. Therefore, Macau’s MICE events can leverage the spaces in Hengqin to host outdoor activities such as camping and RV shows.
\n\n\n\nThe MICE industry insider further noted that the new policy addresses the issue of hotel room shortages for hosting MICE events during the peak tourism season in July and August. With over 9,000 hotel rooms in Hengqin, the neighbouring island can alleviate the strain faced by Macau. Also, while hotel room prices in Cotai can skyrocket to MOP 2000\u20133000 during the summer holiday period, Hengqin offers more affordable rates ranging from MOP600\u2013700.
\n\n\n\nAlan Ho expects a deepening collaboration between Zhuhai and Macau in the MICE sector as policies gradually ease. The MICE sector insider indicated that in the near future, numerous conferences, exhibitions, sports events, and performing arts activities are poised to harness the resources of both regions and foster integrated development.
\n\n\n\n
“This policy is a significant boon for the MICE industry in both Macau and Hengqin, injecting new energy into its development” – Alan Ho Hoi Ming, Chairperson of the Macao Association of Convention, Exhibition & Tourism Sectors
Macau
\n\n\n\nVisitors (2023):
\n\n\n\nHotel rooms 47,000
\n\n\n\nSource: Statistics and Census Service
\n\n\n\nHengqin
\n\n\n\nVisitors (2023): 11.6 million*
\n\n\n\nN. of hotel rooms: 9,000+**
\n\n\n\n*Number of visitors Hengqin\u2019s tourist attractions received, according to authorities
\n\n\n\n** Industry sources
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/10_imagem1-150x150.jpg\")
\nMacau’s participation in the 2025 National Games offers several advantages but also presents a challenge, providing a crucial opportunity to demonstrate its organising efficiency
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
“National sports events are beneficial for Macau’s tourism image because they allow many mainland tourists to gain a better understanding of Macau’s diversity. Macau can host or participate in some national sports competitions,” says Jose Weng-Chou Wong from the Macau University of Science and Technology (MUST).
\n\n\n\nThe Assistant Dean and Associate at MUST\u2019s Faculty of Hospitality and Tourism Management adds that if Macau leverages national sports competitions for international promotion, “it can also serve as a great connection.” “On one hand, we need to introduce national competitions, but on the other hand, during that period, we should also actively promote our hosted national competitions in Southeast Asia or even further regions, acting as a bridge,” explains Professor Wong to Macau Business.
\n\n\n\n“The upcoming hosting of the 2025 National Games presents Macau with a crucial opportunity to demonstrate its proficiency in organising large-scale sports events,” adds Jin Quan Zhou, Faculty of Business from the Macao Polytechnic University (MPU). “While the city’s hardware facilities and environmental assets provide a solid foundation, the success of such endeavours largely depends on effective software management. This encompasses many elements, including meticulous planning, flawless execution, and comprehensive event evaluation,” explains the Programme Coordinator of Business Administration in Marketing at MPU.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/05/sporting.jpg\")
“Through meticulous planning and stringent oversight, Macau is poised to affirm its capability to host prestigious sports events with precision and excellence, reinforcing its status as a leading destination for sports tourism,” concluded Professor Zhou to Macau Business.
\n\n\n\nAnother Macau-based researcher who is excited about the prospect of Macau hosting the National Games in 2025 is Ubaldino Couto, Assistant Professor at Macao University of Tourism. In a recent interview with Macau Business, the researcher stated that “The upcoming National Games in 2025 is a collaboration between cities in Guangdong province. This is an invaluable opportunity for us to see the mechanisms of making this happen so that we can make similar events a reality. Likewise, it is a good opportunity to test our capabilities and see how we can improve, such as investments in infrastructure and training on talents.”
\n\n\n\nAs Kevin Ho, a Macau deputy to the National People\u2019s Congress and member of the Sports Council and the Sports (the Macau government’s sports advisory body), there are not only gains in terms of image and tourist reputation. “I think it will further enhance Macau as a key city within the GBA region. Having some of the games hosted in Macau will not only increase tourism for Macau, but also improve Macanese athletes\u2019 competitiveness amongst other competitors from the mainland and, as a whole, increase awareness of sports among the general population,” Kevin Ho explained to Macau Business.
\n\n\n\n\u201cA tremendous opportunity\u201d
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/12/Macau-International-marathon-1028x685.jpeg\")
“Co-hosting the 15th National Games in 2025 with Guangdong and Hong Kong offers a tremendous opportunity for Macau to showcase its potential and appeal as a \u2018tourism + sports\u2019 destination,” according to the Macao Government Tourism Office (MGTO).
\n\n\n\n“An event of the scale and impact of the National Games will attract many sports fans to Macao to watch the games, as well as strengthen the image of the city as an ideal destination to host high-profile sports competitions,” the Tourism Bureau clarifies, \u201cin line with the current efforts to attract more major regional and international sports events, able to create synergies between sports, tourism, and related sectors as part of the SAR Government\u2019s \u20181+4\u2019 development strategy for adequate diversification.\u201d
\n\n\n\nThe MGTO integrates the Macau Zone Organizing Committee of the National Games and is collaborating in the preparations, including the tourism promotion of the event.
\n\n\n\nPrevious | The first time Macau was a \u2018City of International Sports Events\u2019
\n", "content_text": "Macau’s participation in the 2025 National Games offers several advantages but also presents a challenge, providing a crucial opportunity to demonstrate its organising efficiency\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\n“National sports events are beneficial for Macau’s tourism image because they allow many mainland tourists to gain a better understanding of Macau’s diversity. Macau can host or participate in some national sports competitions,” says Jose Weng-Chou Wong from the Macau University of Science and Technology (MUST).\n\n\n\nThe Assistant Dean and Associate at MUST\u2019s Faculty of Hospitality and Tourism Management adds that if Macau leverages national sports competitions for international promotion, “it can also serve as a great connection.” “On one hand, we need to introduce national competitions, but on the other hand, during that period, we should also actively promote our hosted national competitions in Southeast Asia or even further regions, acting as a bridge,” explains Professor Wong to Macau Business.\n\n\n\n“The upcoming hosting of the 2025 National Games presents Macau with a crucial opportunity to demonstrate its proficiency in organising large-scale sports events,” adds Jin Quan Zhou, Faculty of Business from the Macao Polytechnic University (MPU). “While the city’s hardware facilities and environmental assets provide a solid foundation, the success of such endeavours largely depends on effective software management. This encompasses many elements, including meticulous planning, flawless execution, and comprehensive event evaluation,” explains the Programme Coordinator of Business Administration in Marketing at MPU.\n\n\n\n\n\n\n\n“Through meticulous planning and stringent oversight, Macau is poised to affirm its capability to host prestigious sports events with precision and excellence, reinforcing its status as a leading destination for sports tourism,” concluded Professor Zhou to Macau Business.\n\n\n\nAnother Macau-based researcher who is excited about the prospect of Macau hosting the National Games in 2025 is Ubaldino Couto, Assistant Professor at Macao University of Tourism. In a recent interview with Macau Business, the researcher stated that “The upcoming National Games in 2025 is a collaboration between cities in Guangdong province. This is an invaluable opportunity for us to see the mechanisms of making this happen so that we can make similar events a reality. Likewise, it is a good opportunity to test our capabilities and see how we can improve, such as investments in infrastructure and training on talents.”\n\n\n\nAs Kevin Ho, a Macau deputy to the National People\u2019s Congress and member of the Sports Council and the Sports (the Macau government’s sports advisory body), there are not only gains in terms of image and tourist reputation. “I think it will further enhance Macau as a key city within the GBA region. Having some of the games hosted in Macau will not only increase tourism for Macau, but also improve Macanese athletes\u2019 competitiveness amongst other competitors from the mainland and, as a whole, increase awareness of sports among the general population,” Kevin Ho explained to Macau Business.\n\n\n\n\n\n\n\n\u201cA tremendous opportunity\u201d\n\n\n\n\n\n\n\n“Co-hosting the 15th National Games in 2025 with Guangdong and Hong Kong offers a tremendous opportunity for Macau to showcase its potential and appeal as a \u2018tourism + sports\u2019 destination,” according to the Macao Government Tourism Office (MGTO).\n\n\n\n“An event of the scale and impact of the National Games will attract many sports fans to Macao to watch the games, as well as strengthen the image of the city as an ideal destination to host high-profile sports competitions,” the Tourism Bureau clarifies, \u201cin line with the current efforts to attract more major regional and international sports events, able to create synergies between sports, tourism, and related sectors as part of the SAR Government\u2019s \u20181+4\u2019 development strategy for adequate diversification.\u201d\n\n\n\nThe MGTO integrates the Macau Zone Organizing Committee of the National Games and is collaborating in the preparations, including the tourism promotion of the event.\n\n\n\nPrevious | The first time Macau was a \u2018City of International Sports Events\u2019", "date_published": "June 30, 2024", "date_modified": "June 30, 2024 - 00:27", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/10_imagem1.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Macau's participation in the 2025 National Games offers several advantages but also presents a challenge, providing a crucial opportunity to demonstrate its organising efficiency" }, { "id": "https://www.macaubusiness.com/opinion-materiality-in-sustainability-reporting-a-path-to-transparency-and-accountability/", "url": "https://www.macaubusiness.com/opinion-materiality-in-sustainability-reporting-a-path-to-transparency-and-accountability/", "title": "OPINION \u2013 Materiality in sustainability reporting: A path to transparency and accountability", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/01/AdobeStock_390028606-150x150.jpeg\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/shixiang-you.png\")
Shixiang You
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/MICSRGC-1028x157.png\")
Member
\n\n\n\nMacau Institute for Corporate Social Responsibility in Greater China (MICSRGC)
\n\n\n\nMacau adopts the International Financial Reporting Standards (IFRS) Standards (the 2015 version) as its financial reporting standards. IFRS is the most widely adopted accounting standard worldwide. In June 2023, the IFRS Foundation issued IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures. IFRS S1 requires a company to disclose sustainability-related risks and opportunities that may affect the company\u2019s cash flows, financial access, and cost of capital in the short, medium, or long term. At the same time, IFRS S2 particularly reinforces the disclosure of climate-related risks and opportunities.
\n\n\n\nAdopting the latest version of IFRS Standards can help Macau align with the international financial reporting trends and allow Macau’s businesses to engage in globalization more proactively. However, some companies, particularly small and medium enterprises (SMEs), may find it challenging to evaluate what kind of sustainability-related risks and opportunities exist in their business operations or what type of climate risks and opportunities will significantly impact financial performance. For example, some managers may think climate-related risks, such as global warming, are too far away for an average SME among many companies. Some companies only prioritize risks and opportunities related to product responsibilities, as customers are their major stakeholder group.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/494286-image-1-jpeg-400x0-IkU5p9.jpeg\")
Generally, sustainability reporting requires companies to disclose their environmental, social and governance (ESG) performance. Sometimes companies disclose ESG information as much as possible to show their determination to promote sustainable development and maintain a socially responsible image. However, excessive ESG information will dilute the effectiveness of sustainability reports by mixing many unnecessary disclosures. Stakeholders will likely miss the point. Besides, misjudging or overlooking significant ESG risks damages the balanced relationships with various stakeholder groups. Some investors may make biased investment decisions when they do not find the expected sustainability information in sustainability reports or annual reports.
\n\n\n\nThe decision on the necessary ESG performance to be disclosed remains a question. Using the materiality principle in sustainability reports is one way to help companies accurately evaluate ESG risks and opportunities. Materiality has been applied in both financial and non-financial reporting. It sets a threshold for the omission or misstatement of information that can impact stakeholders. In short, companies should disclose sustainability information that is truly important to stakeholders based on thorough communication with all stakeholder groups. Materiality is not just ticking boxes on a report; it shows the relationship between sustainability, responsibility, and resilience.
\n\n\n\nSince materiality in sustainability reporting does not have a standard definition, companies can define the benchmark of materiality by themselves. Senior managers can consider ESG risks and opportunities from financial and non-financial perspectives. For example, cutting energy consumption may significantly impact a company\u2019s revenue or expenses (financial performance) and long-term sustainability. Thus, the company chooses to disclose energy consumption performance in the sustainability report due to its financial materiality.
\n\n\n\nFollowing international reporting standards and applying materiality principles can benefit companies in many ways. First, companies can enhance their responsible reputation and credibility among various stakeholders, such as investors, customers, and the community. Since material ESG information is what the stakeholders expect, companies can maintain a stable relationship among stakeholders. Second, proper ESG disclosure can help gain more accessible access to capital. Companies may attract a broader range of institutional investors as sustainable investing is gaining popularity. Third, business organizations can improve risk management and mitigate potential threats by considering sustainability risks and opportunities, such as climate change, procurement corruption, and modern slavery. Fourth, companies presenting sustainability efforts will likely gain competitive advantages in the market since consumers have increasingly focused on sustainable development. Finally, disclosing material ESG information helps create long-term value. Integrating sustainability considerations in reporting practice and business operations can foster business innovation and adapt to changing market trends.
\n\n\n\nBoth mainland China and Hong Kong promote or implement materiality in sustainability reporting. In Hong Kong, the Hong Kong Exchanges and Clearing Limited (HKEX) has already mandated listed companies to disclose ESG information based on the materiality principle. In mainland China, the proposed sustainability reporting regulation of the Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), and Beijing Stock Exchange (BSE) also adopt the double materiality principle under the supervision of the China Securities Regulatory Commission (CSRC). Since Macau follows the IFRS accounting standards and has substantial economic connections to mainland China and Hong Kong, it is almost inevitable that sustainability reports will be issued based on the materiality principle. Thus, we encourage companies in Macau to disclose material ESG information based on the latest IFRS Standards to enhance transparency and accountability of sustainability performance.
\n\n\n\nIN PARTNERSHIP WITH:
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/12/MICSRGC-logo-1-1028x96.png\"){kind=logo}
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/9_imagem1-150x150.jpg\")
\nIn 2005, Macau organised the East Asian Games and invested MOP3.43 billion on the construction and redevelopment of 14 sports venues and other facilities
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
\n\n\n\nMacau’s need to diversify revenue sources and find alternatives to its dominant industry predates the pandemic. However, after what happened between 2020 and 2022, no one was left with any doubts: remaining dependent on a single industry, gambling, is extremely risky for Macau.
\n\n\n\nThe government then pointed to several targets (calling that the \u20184+1 strategy\u2019), and one of them is event tourism, mainly cultural and sporting events\u2014and that is what we are seeing at this time.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/9_imagem2.jpg\")
It turns out that Macau already knows what it means to be a city of sporting events and has already organised several large ones, not in a tripartite way (being the poor relation, as will happen next year) but assuming all the responsibilities.
\n\n\n\nBetween 2005 and 2007, the city held the East Asian Games (EAG), the Lusofonia Games (bringing together Portuguese-speaking countries), and the Asian Indoor Games (AIG).
\n\n\n\nIt should be highlighted that after the 2007 AIG, Macau never again applied to hold major events.
\n\n\n\nWhen the EAG ended on November 9, 2005, the word “success” was the most used to assess what had just happened in the previous 10 days, according to the official report submitted by the organising committee to the East Asian Games Association, which supervised the events.
\n\n\n\nThe number of athletes, technicians, guests, and meda professionals (6,700) or volunteers (11,500) involved were unprecedented for the city.
\n\n\n\nThe overall expenses for holding the 4th EAG amounted to a total of MOP226 million, with a positive balance amounting to MOP135 million, “subsequently returned to the Macau SAR Government,” says the report.
\n\n\n\nHowever, although the games’ organising committee returned money, it was known that something had gone wrong with the infrastructure costs. While the organisation\u2019s budget was MOP630 million for the construction and reconstruction of 14 sports venues and other facilities, the associated investment was MOP3.43 billion.
\n\n\n\nThus, it became known that, in general terms, the construction of infrastructure for the Games \u201cwas deficient in general planning and budgeting, leading several times to immediate budget changes with counterparts in other projects, thus postponing their start. Regarding financial management, there were numerous additional works involving large amounts of money as a result of poor planning, requiring a considerable number of budget changes and, at the same time, making construction expenses far exceed the initial budgets,\u201d according to several reports from the Commission of Audit (CA), published in the years following the event. The forecast for infrastructure expenditure was MOP2.029 billion in 2004 and ended up at MOP3.43 billion (69.9 per cent).
\n\n\n\nThe surprise caused by the release of the final accounts and CA report was followed by the arrest in December 2006, for corruption, of Ao Man Long, until then Secretary of Public Works. Among the public works used for the alleged corruption scheme are some sports venues built in Macau for the EAG, which were the target of criticism from the CA.
\n\n\n\n\n\n\n\n\u2018White Elephant\u2019 Dome?
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/9_imagem_CAIXA.jpg\")
The greatest symbol of the EAG was the construction of the Macau East Asian Games Dome, often simply called Macau Dome, or colloquially known in Chinese as \u6fb3\u9580\u86cb (Macau Egg). The Macau Dome, a multi-purpose pavilion (two convention and exhibition halls, an auditorium, and an arena), hosted the main games competitions.
\n\n\n\nHowever, in these almost two decades, the Dome has never had a use equal to the many millions it cost. For the youngest in Macau, perhaps the closest they have been to it is the LRT station with the same name. It\u2019s an example of what is often called a \u2018white elephant,\u2019 critics say.
\n\n\n\nIn 2018, the Government allocated MOP30 million to eliminate infiltration and other problems and have the pavilion in a position to celebrate the 20th anniversary of the Macau SAR. An ice rink that existed in the space had already been eliminated before, with the Sports Bureau promising a new one.
\n\n\n\nLast year, lawmaker Jos\u00e9 Pereira Coutinho denounced the poor use of the spaces and asked about plans for better use by the inhabitants. The Dome cost MOP1.259 billion, which means a 79 per cent overrun compared to the initially budgeted value of MOP701 million (an increase of MOP558 million).
\n\n\n\nPrevious | The Three (National) Games of 2025
\n", "content_text": "In 2005, Macau organised the East Asian Games and invested MOP3.43 billion on the construction and redevelopment of 14 sports venues and other facilities\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\nMacau’s need to diversify revenue sources and find alternatives to its dominant industry predates the pandemic. However, after what happened between 2020 and 2022, no one was left with any doubts: remaining dependent on a single industry, gambling, is extremely risky for Macau.\n\n\n\nThe government then pointed to several targets (calling that the \u20184+1 strategy\u2019), and one of them is event tourism, mainly cultural and sporting events\u2014and that is what we are seeing at this time.\n\n\n\n\n\n\n\nIt turns out that Macau already knows what it means to be a city of sporting events and has already organised several large ones, not in a tripartite way (being the poor relation, as will happen next year) but assuming all the responsibilities.\n\n\n\nBetween 2005 and 2007, the city held the East Asian Games (EAG), the Lusofonia Games (bringing together Portuguese-speaking countries), and the Asian Indoor Games (AIG).\n\n\n\nIt should be highlighted that after the 2007 AIG, Macau never again applied to hold major events. \n\n\n\nWhen the EAG ended on November 9, 2005, the word “success” was the most used to assess what had just happened in the previous 10 days, according to the official report submitted by the organising committee to the East Asian Games Association, which supervised the events.\n\n\n\nThe number of athletes, technicians, guests, and meda professionals (6,700) or volunteers (11,500) involved were unprecedented for the city.\n\n\n\nThe overall expenses for holding the 4th EAG amounted to a total of MOP226 million, with a positive balance amounting to MOP135 million, “subsequently returned to the Macau SAR Government,” says the report.\n\n\n\nHowever, although the games’ organising committee returned money, it was known that something had gone wrong with the infrastructure costs. While the organisation\u2019s budget was MOP630 million for the construction and reconstruction of 14 sports venues and other facilities, the associated investment was MOP3.43 billion.\n\n\n\nThus, it became known that, in general terms, the construction of infrastructure for the Games \u201cwas deficient in general planning and budgeting, leading several times to immediate budget changes with counterparts in other projects, thus postponing their start. Regarding financial management, there were numerous additional works involving large amounts of money as a result of poor planning, requiring a considerable number of budget changes and, at the same time, making construction expenses far exceed the initial budgets,\u201d according to several reports from the Commission of Audit (CA), published in the years following the event. The forecast for infrastructure expenditure was MOP2.029 billion in 2004 and ended up at MOP3.43 billion (69.9 per cent).\n\n\n\nThe surprise caused by the release of the final accounts and CA report was followed by the arrest in December 2006, for corruption, of Ao Man Long, until then Secretary of Public Works. Among the public works used for the alleged corruption scheme are some sports venues built in Macau for the EAG, which were the target of criticism from the CA.\n\n\n\n\n\n\n\n\n\n\n\n\u2018White Elephant\u2019 Dome?\n\n\n\n\n\n\n\nThe greatest symbol of the EAG was the construction of the Macau East Asian Games Dome, often simply called Macau Dome, or colloquially known in Chinese as \u6fb3\u9580\u86cb (Macau Egg). The Macau Dome, a multi-purpose pavilion (two convention and exhibition halls, an auditorium, and an arena), hosted the main games competitions.\n\n\n\nHowever, in these almost two decades, the Dome has never had a use equal to the many millions it cost. For the youngest in Macau, perhaps the closest they have been to it is the LRT station with the same name. It\u2019s an example of what is often called a \u2018white elephant,\u2019 critics say.\n\n\n\nIn 2018, the Government allocated MOP30 million to eliminate infiltration and other problems and have the pavilion in a position to celebrate the 20th anniversary of the Macau SAR. An ice rink that existed in the space had already been eliminated before, with the Sports Bureau promising a new one.\n\n\n\nLast year, lawmaker Jos\u00e9 Pereira Coutinho denounced the poor use of the spaces and asked about plans for better use by the inhabitants. The Dome cost MOP1.259 billion, which means a 79 per cent overrun compared to the initially budgeted value of MOP701 million (an increase of MOP558 million).\n\n\n\nPrevious | The Three (National) Games of 2025", "date_published": "June 29, 2024", "date_modified": "June 30, 2024 - 03:26", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/9_imagem1.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "In 2005, Macau organised the East Asian Games and spent MOP3.43 billion on the construction and redevelopment of 14 sports venues and other facilities" }, { "id": "https://www.macaubusiness.com/special-report-the-three-national-games-of-2025/", "url": "https://www.macaubusiness.com/special-report-the-three-national-games-of-2025/", "title": "Special Report \u2013 The Three (National) Games of 2025", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/A589AE13-DE92-482E-957E-5AEB82A2B329-150x150.png\")
\nThe National Games will take place in three distinct locations for the first time. From a distance, we anticipate what you already know will happen in the 34 competitive sports and 23 mass sports activities scheduled between the November 9 and 21
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
Macau
\n\n\n\nMacau will host four competitive sports events: table tennis, women\u2019s volleyball, 3\u00d73 basketball, and men\u2019s under-18 basketball, as well as one mass-participation event in karate.
\n\n\n\nThe Macau Government has not yet announced the exact locations where the events will take place, but the Sports Bureau (ID) said last year that it will strictly follow the requirement of \u2018Simple, Safe and Remarkable\u2019 by using existing sporting venues without building any new ones for the Games. The Macau East Asian Games Dome will serve as one of the competition venues for the upcoming Games, ID revealed to Macau Business.
\n\n\n\n2019 saw the completion of the MOP1.8 billion (US$222.9 million) new Athletes Training and Development Centre in Cotai, which occupies 12,614 square metres and includes two multi-sport pavilions, an 11-story residential building with 171 guest rooms, and a parking silo for tourist buses.
\n\n\n\nMacau authorities issued a call for 10,000 volunteers to assist the organization. As of February 2024, more than 9,000 people had registered to participate.
\n\n\n\nThere was a plan to hold either two or up to three test events this year to ensure the best conditions for welcoming the National Games.
\n\n\n\nA curiosity: the Grand Prix weekend of the first year will coincide with the National Games. According to Pun Weng Kun, the president of the ID, \u201cthe day was for car racing, while the night was for the games.\u201d
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/8_imagem_ERSHA.png\")
Hong Kong
\n\n\n\nHong Kong is set to host eight competitive sports events: fencing, track cycling, rugby sevens, golf, triathlon, beach volleyball, men’s handball, and men’s U22 basketball, as well as one mass participation event, bowling.
\n\n\n\nThe soon-to-be-completed Kai Tak Sports Park (KTSP) will host the main events held in Hong Kong, but the triathlon event will take place at the landmark Victoria Harbour and Central Harbourfront.
\n\n\n\nOccupying an area of about 28 hectares, the KTSP will provide modern and multi-purpose sports and recreation facilities upon completion, including a 50,000-seat main stadium, a 10,000-seat indoor sports centre, a 5,000-seat public sports ground, and about 14 hectares of landscaped open space and other ancillary facilities.
\n\n\n\nGuangdong
\n\n\n\nThe opening ceremony will be held in Guangzhou, and Shenzhen wil host the closing.
\n\n\n\nGuangzhou will host 40 percent of the Games\u2019 events in 25 venues.
\n\n\n\nThe Yuexiu district of Guangzhou is expected to host several competitions, as it is listed as one of the nation’s sport industry model bases and boasts rich public sports infrastructure such as Ersha smart sport island.
\n\n\n\nThe National Games for Persons with Disabilities and the National Special Olympic Games
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/national-games-disabilities-disabled-ngd-nsog-paralympics.png\")
In addition to the events related to the 15th National Games, there will be two other competitions the following month: the 12th National Games for Persons with Disabilities (NGD) and the 9th National Special Olympic Games (NSOG), also in the three regions.
\n\n\n\nFrom December 8 to 15, 2025, the 12th NGD and 9th NSOG will take place, spanning a total of eight days.
\n\n\n\nThe NGD is a national multi-sport games featuring sports events under the International Paralympic Committee, while the NSOG encourages people with intellectual disabilities to participate in sports competitions.
\n\n\n\nIt is known that Macau will host two badminton competition events for the 9th NSOG (physically disabled/deaf and intellectually disabled) and that Hong Kong will organise five NGD events (Boccia, wheelchair fencing, para table tennis, mass participation event Para Dance Sport) and one NSOG event, table tennis.
\n\n\n\nPrevious | \u201cThe Olympic Games of China\u201d
\n", "content_text": "The National Games will take place in three distinct locations for the first time. From a distance, we anticipate what you already know will happen in the 34 competitive sports and 23 mass sports activities scheduled between the November 9 and 21\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\nMacau\n\n\n\nMacau will host four competitive sports events: table tennis, women\u2019s volleyball, 3\u00d73 basketball, and men\u2019s under-18 basketball, as well as one mass-participation event in karate.\n\n\n\nThe Macau Government has not yet announced the exact locations where the events will take place, but the Sports Bureau (ID) said last year that it will strictly follow the requirement of \u2018Simple, Safe and Remarkable\u2019 by using existing sporting venues without building any new ones for the Games. The Macau East Asian Games Dome will serve as one of the competition venues for the upcoming Games, ID revealed to Macau Business.\n\n\n\n2019 saw the completion of the MOP1.8 billion (US$222.9 million) new Athletes Training and Development Centre in Cotai, which occupies 12,614 square metres and includes two multi-sport pavilions, an 11-story residential building with 171 guest rooms, and a parking silo for tourist buses.\n\n\n\nMacau authorities issued a call for 10,000 volunteers to assist the organization. As of February 2024, more than 9,000 people had registered to participate.\n\n\n\nThere was a plan to hold either two or up to three test events this year to ensure the best conditions for welcoming the National Games.\n\n\n\nA curiosity: the Grand Prix weekend of the first year will coincide with the National Games. According to Pun Weng Kun, the president of the ID, \u201cthe day was for car racing, while the night was for the games.\u201d\n\n\n\n\n\n\n\nHong Kong\n\n\n\nHong Kong is set to host eight competitive sports events: fencing, track cycling, rugby sevens, golf, triathlon, beach volleyball, men’s handball, and men’s U22 basketball, as well as one mass participation event, bowling.\n\n\n\nThe soon-to-be-completed Kai Tak Sports Park (KTSP) will host the main events held in Hong Kong, but the triathlon event will take place at the landmark Victoria Harbour and Central Harbourfront.\n\n\n\nOccupying an area of about 28 hectares, the KTSP will provide modern and multi-purpose sports and recreation facilities upon completion, including a 50,000-seat main stadium, a 10,000-seat indoor sports centre, a 5,000-seat public sports ground, and about 14 hectares of landscaped open space and other ancillary facilities.\n\n\n\nGuangdong\n\n\n\nThe opening ceremony will be held in Guangzhou, and Shenzhen wil host the closing.\n\n\n\nGuangzhou will host 40 percent of the Games\u2019 events in 25 venues.\n\n\n\nThe Yuexiu district of Guangzhou is expected to host several competitions, as it is listed as one of the nation’s sport industry model bases and boasts rich public sports infrastructure such as Ersha smart sport island.\n\n\n\n\n\n\n\nThe National Games for Persons with Disabilities and the National Special Olympic Games\n\n\n\n\n\n\n\nIn addition to the events related to the 15th National Games, there will be two other competitions the following month: the 12th National Games for Persons with Disabilities (NGD) and the 9th National Special Olympic Games (NSOG), also in the three regions.\n\n\n\nFrom December 8 to 15, 2025, the 12th NGD and 9th NSOG will take place, spanning a total of eight days.\n\n\n\nThe NGD is a national multi-sport games featuring sports events under the International Paralympic Committee, while the NSOG encourages people with intellectual disabilities to participate in sports competitions.\n\n\n\nIt is known that Macau will host two badminton competition events for the 9th NSOG (physically disabled/deaf and intellectually disabled) and that Hong Kong will organise five NGD events (Boccia, wheelchair fencing, para table tennis, mass participation event Para Dance Sport) and one NSOG event, table tennis.\n\n\n\nPrevious | \u201cThe Olympic Games of China\u201d", "date_published": "June 29, 2024", "date_modified": "June 29, 2024 - 17:12", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/A589AE13-DE92-482E-957E-5AEB82A2B329.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "The National Games will take place in three distinct locations for the first time. From a distance, we anticipate what you already know will happen in the 34 competitive sports and 23 mass sports activities scheduled between the November 9 and 21" }, { "id": "https://www.macaubusiness.com/fidelidade-macau-celebrates-its-25th-anniversary/", "url": "https://www.macaubusiness.com/fidelidade-macau-celebrates-its-25th-anniversary/", "title": "Fidelidade\u00a0Macau celebrates its 25th Anniversary", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Featured-image-for-EDM-and-for-article-Fidelidade-25-years-Image1200-x-900main-ENG-150x150.jpg\")
\nOver the past two and a half decades, Fidelidade Macau has thrived in an evolving insurance landscape. The insurer aims to become even stronger, enhance the quality of its services, develop solutions for industry challenges, and continue making positive contributions to Macau society.
\n\n\n\nAuthorised to provide life and non-life insurance services just months before the establishment of the Macau Special Administrative Region, Fidelidade Macau has consistently added value, expanded its portfolio, and strengthened its ties with local and international communities over the past quarter-century, building on a history that spans 216 years.
\n\n\n\n\u201cThe company’s presence in Macau is a testament to its ability to adapt and thrive in the evolving insurance landscape,\u201d emphasises Fidelidade Macau CEO Paulo Barbosa. Over these 25 years, the insurance company \u201chas weathered economic cycles, regulatory changes, and shifting consumer demands\u2014yet it has increased its market position and continued serving its policyholder base,\u201d he notes.
\n\n\n\nRecognition and loyalty are key words along this journey. \u201cWe reach this milestone with a strong brand reputation, a loyal customer base, and robust operational capabilities, demonstrating our commitment to the modern Macau financial market and our strategic focus on developing high-quality products with customer service driven by a sustainable approach,\u201d Mr. Barbosa adds. At the core of Fidelidade Macau\u2019s mission is \u201ca continued commitment towards employees, customers, stakeholders, and friends, always in pursuit of excellence.\u201d This commitment is reflected in the local and international recognition of the company as a leading life and non-life insurer in the SAR.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Ivan-Cheung-and-Paulo-Barbosa-Fidelidade-Macau-resize.jpg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/fidelidade-paulo-barbosa-ivan-cheung-quote-1028x386.png\")
Fidelidade Macau Executive Director Ivan Cheung stresses that the company \u201cis celebrating not only its anniversary but another year of success.\u201d
\n\n\n\nIn 2023, the group saw robust growth in its Gross Written Premiums (GWPs) in both the life and non-life segments, with 15.8 percent and 27.3 percent expansions compared to 2022. Also last year, US financial rating agency Fitch upgraded Fidelidade Macau\u2019s Insurer Financial Strength (IFS) rating to \u2018A\u2019 (Strong) from \u2018A-\u2019 (Strong) with a Stable Outlook.
\n\n\n\n**This is a sponsored feature
\n\n\n\n\u201cThis is a reminder that our greatest asset is our united and unstoppable team, responsible for our success, built on dedication, teamwork, and unwavering determination, turning challenges into opportunities and dreams into reality,\u201d Mr. Cheung noted. Over the years, the life insurance segment has witnessed a solid and widely recognised performance. In 2020, after 21 years of providing life insurance and pension fund services in Macau as a branch of Fidelidade \u2013 Companhia de Seguros S.A., a local Life Insurance Company was incorporated, ensuring a stronger corporate presence in the region.
\n\n\n\nA leading provider of innovative solutions
\n\n\n\nThe company\u2019s life insurance product portfolio includes a wide range of personal insurances, such as life protection, mortgage, education, savings, and retirement plans. Fidelidade is also authorised to manage both private pension funds and the non-mandatory central provident fund.
\n\n\n\nIn the general insurance segment, a new subsidiary was formally incorporated in the SAR, Fidelidade Macau \u2013 Insurance Company Limited, in 2015. The company\u2019s personal insurance portfolio comprises personal accident, household, fire, motor, hospital, travel, and other products. In commercial insurance, Fidelidade is a leading provider of innovative and comprehensive solutions, serving the needs of corporate customers in various sectors, meeting the increasing demands of organisations established in Macau.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Fidelidade-Life-Key-indicators.png\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Fidelidade-Macau-Non-Life-company.png\")
For Fidelidade Macau, successful business performance is coupled with a strong commitment to sustainability and social responsibility. The group\u2019s Environment, Sustainability, and Governance (ESG) pillars address challenges related to longevity, ageing, climate change, and financial illiteracy, which impact all Macau communities.
\n\n\n\nOn the corporate social responsibility front, the company has been deeply involved and supportive of key initiatives such as the “Charity Run” held by Caritas Macau, the Continuing Professional Development Programme for Insurance Intermediaries, and the “929 Challenge” Startup Competition.
\n\n\n\nLooking ahead, the company is confident in its future development and success. \u201cWe remain committed and prepared for the next decades, to make this company even stronger, improve the quality of insurance services, create solutions to the challenges of the insurance industry, and make positive contributions towards Macau society,\u201d Ivan Cheung emphasises.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/cheoc-van-beach-environment-dead-finless-porpoise-wildlife-ecology-1-150x150.png\")
\nFaced with an oversaturated landfill, Macau authorities have proposed turning chunks of construction waste into an artificial island. But why has such a well-intentioned idea raised the ire of environmentalists?
\n\n\n\nBy Aries Un
\n\n\n\nMacau’s only landfill is piling up – almost 25 metres high, the equivalent of an eight-storey apartment block \u2013 an urgent situation that requires immediate attention. The solution? A reclaimed island made of construction waste off Coloane, according to the Macau government.
\n\n\n\nWhether a 2.45-square-kilometre island of unwanted rubble will serve as a stopgap or a permanent solution will only be known by the end of the year \u2013 when the results of a government-commissioned study by mainland Chinese experts are due.
\n\n\n\nDespite repeated official assurances that the project would not take a significant toll environmentally, green activists remain skeptical and unconvinced.
\n\n\n\nAmong the dissenting voices is the Chief of Macau Ecology, a homegrown force initiated by two nature lovers.
\n\n\n\nKen Kuan, one of the group’s founders, tells Macau Business that the city needs sorting and recycling facilities instead of what the government terms an ‘ecological island’ that is expected to cost some MOP15.59 billion.
\n\n\n\nAccording to public information, the proposed man-made island will take up 2.45 square kilometres of the city\u2019s 85-square-kilometre waters \u2013 roughly one-third of Coloane.
\n\n\n\nThe authorities believe that it could last at least 20 years and handle 35.8 million cubic metres of waste.
\n\n\n\nHowever, Kuan says four waste sorting plants would be enough to address the issue of mounting construction waste, such as slag and fly ash.
\n\n\n\n
“We will not proceed with the project if the conclusion of the analysis suggests a ‘no’,” the secretary told lawmakers. “But it will go ahead if it is a ‘yes'” \u2013 Raimundo do Ros\u00e1rio, Scretary for Transport and Public Works
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/chinese-white-dolphins-macau-environment-ecology-1028x682.png\")
\u201cFour such facilities would only take up about two hectares (0.02 square kilometres). Each one would only cost RMB3.3 million to build,\u201d the activist said.
\n\n\n\n\u201cThey will be able to sort most of the construction waste, which last year totalled around 930,000 square metres, before sending it to mainland China for recycling under an agreement signed between Guangdong province and Macau.\u201d
\n\n\n\nHowever, from the official perspective, regional cooperation is out of the question as up to 52 per cent of the construction refuse that Macau has produced must be disposed domestically, according to promotional materials from the Environmental Protection Bureau.
\n\n\n\nWaste disposal in mainland China not sustainable
\n\n\n\nThe authorities have also dismissed the possibility of introducing sorting machinery to tackle what they describe as a \u201cdire situation that cannot rely on the Chinese mainland indefinitely\u201d.
\n\n\n\nOperating expenses \u2013 on top of the cost of the facilities themselves \u2013 have the potential to exceed over MOP10 billion in the long run, official estimates suggest.
\n\n\n\nThis tug of war erupted over the looming prospect of a saturating landfill site in the vicinity of the city\u2019s airport, which has been handling upwards of 49 million square metres of construction waste since it came into operation in March 2006.
\n\n\n\nThe authorities have insisted that it is so full that the amount of garbage is comparable to 19,600 standard swimming pools.
\n\n\n\nThe first phase of the mammoth project will cover an area of 1.4 square kilometres and last some 10 years.
\n\n\n\n
\u201cI don\u2019t think they are intentionally doing this since the report is confidential based on the contract between the university and government, but the way they have processed the information is inappropriate\u201d \u2013 Joe Chan, environmentalist
According to public information from the government, the artificial island will be perched about 1 kilometre southeast of Coloane \u2013 highly visible from the weekend family getaway Black Sand Beach.
\n\n\n\nDuring a Legislative Assembly plenary session in March, Secretary for Transport and Public Works Raimundo Arrais do Ros\u00e1rio once again made the assurance that \u201cthe country\u2019s experts will keep an eye on all aspects of the project\u201d.
\n\n\n\n“We will not proceed with the project if the conclusion of the analysis suggests a ‘no’,” the secretary told lawmakers. “But it will go ahead if it is a ‘yes’.”
\n\n\n\nThe scientific evaluation, which will be carried out by researchers in mainland China, will be conducted according to national standards, the authorities insist.
\n\n\n\nAny findings will then have to be approved by the central government. Only then will there be a firm timetable for construction.
\n\n\n\nRos\u00e1rio\u2019s pledge to comply with all the necessary national rules has also been echoed by Chief Executive Ho Iat Seng, who told lawmakers in the chamber that \u201cno necessary step in the evaluation will be missing\u201d.
\n\n\n\n
\u201cThey will be able to sort most of the construction waste, which last year totalled around 930,000 square metres, before sending it to mainland China for recycling under an agreement signed between Guangdong province and Macau.\u201d \u2013 Ken Kuan, environmentalist
![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2024/06/macau-ecological-island-environment.png\")
Is the Construction Waste Management System helping?
\n\n\n\nWith the threat of mounting demolition waste becoming increasingly imminent, the authorities introduced in 2020 the Construction Waste Management System \u2013 a set of regulations to govern the classification, transportation, storage, treatment, and disposal of construction waste, including the categorisation of various materials and the designation of treatment facilities.
\n\n\n\nEnforced in January 2021, a fall of 30 per cent in waste quantity was recorded that year in comparison with 2020, as per Tam Vai Man, director of the Environmental Protection Bureau.
\n\n\n\nA further decline ensued the following year, with a 40 percent reduction observed in 2022. The figure climbed to about 60 per cent last year.
\n\n\n\n\u201cAs soon as the \u2018ecological island\u2019 is completed, there will be repurposing for the existing landfill site for construction waste in order to increase land supply for the government,\u201d Tam told lawmakers on the same occasion as Rosario back in March.
\n\n\n\nAre dolphins in the way?
\n\n\n\nThe choice of location for the proposed artificial island remains the main sticking point that has hampered the authorities’ efforts to win the support of environmental activists.
\n\n\n\nCritics argue that the implementation of a large-scale reclamation project will further endanger wildlife in a city that has already faced criticism for prioritising urban development over conserving green spaces.
\n\n\n\nChinese white dolphins, also known as Indo-Pacific humpback dolphins or pink dolphins, are a species of marine mammal native to the coastal waters of the Indo-Pacific region, including the Pearl River Estuary in China.
\n\n\n\nThey hold the \u2018vulnerable\u2019 status on the Red List of Threatened Species of the International Union for Conservation of Nature and Natural Resources (IUCN).
\n\n\n\nWhile on the Chinese mainland, the humpback dolphins, which are pink in colour \u2013 are listed as Grade 1 National Key Protected Species.
\n\n\n\nAn field survey conducted by the Chief of Macau Ecology in January this year concluded that as many as five dolphins had been spotted in one hour near the proposed site.
\n\n\n\nHowever, according to official information, the \u2018ecological island\u2019 takes up less than 0.2 per cent of the Chinese white dolphins’ activity range in the waters of the Pearl River Estuary.
\n\n\n\nIn a media interview earlier this year, the environmental protection chief claimed that the artificial island would be perched some one kilometre away from the coast.
\n\n\n\nThe official stressed then that the dolphins were only \u201cfound active some eight kilometres away from the \u2018ecological island\u2019\u201d, and that their usual hunt had been designated as a \u201creserve spanning several hundred square kilometres\u201d.
\n\n\n\nTam’s claims, however, appear to contradict the findings of a government-commissioned study conducted by Sun Yat-sen University in 2016.
\n\n\n\nAccording to a TDM Canal Macau report, the university considers the entirety of Macau\u2019s waters to be crucial to Chinese white dolphins, proposing establishing a conservation zone of more than 30 square metres for the 144 marine creatures that have been found in Macau\u2019s surrounding waters.
\n\n\n\nMoreover, the proposed zone, as the research suggests, appears to have overlapped the chosen site for the island.
\n\n\n\nHowever, the report had been withheld from the public by the authorities for reasons of confidentiality.
\n\n\n\nWhile sympathetic to the government’s refusal to release the report, Joe Chan, one of the city’s few environmentalists, questioned how such sensitive information was being handled.
\n\n\n\n\u201cI don\u2019t think they are intentionally doing this since the report is confidential based on the contract between the university and government, but the way they have processed the information is inappropriate,\u201d Chan told Macau Business.
\n\n\n\n\u201cThe research was conducted using government money and the information is related to our shared natural resources so the government should never sign this type of improper contract with the research centre,\u201d he added.
\n\n\n\nIn response to the government’s perceived intention to forge ahead with the plan, the president of the Macau Green Student Union \u2013 along with two other groups, including the Hong Kong Dolphin Conservation Society \u2013 decided to take matters into their own hands.
\n\n\n\nThe three groups collected more than 1,600 signatures from like-minded allies and delivered them to the government in February in a bid to bring the project to a halt.
\n\n\n\nIn April, the authorities agreed to extend the period during which the public were allowed to make their views known.
\n\n\n\n\u201cIf the reclamation work must go ahead, why not select a smaller spot that has already been developed to a certain extent \u2013 let\u2019s say, the eastern side of the reclaimed Zone A right to the south of the Hong Kong-Zhuhai-Macau Bridge \u2013 rather than a section of precious natural resources?”
\n\n\n\n\n", "content_text": "Faced with an oversaturated landfill, Macau authorities have proposed turning chunks of construction waste into an artificial island. But why has such a well-intentioned idea raised the ire of environmentalists?\n\n\n\nBy Aries Un \n\n\n\n\n\n\n\nMacau’s only landfill is piling up – almost 25 metres high, the equivalent of an eight-storey apartment block \u2013 an urgent situation that requires immediate attention. The solution? A reclaimed island made of construction waste off Coloane, according to the Macau government.\n\n\n\nWhether a 2.45-square-kilometre island of unwanted rubble will serve as a stopgap or a permanent solution will only be known by the end of the year \u2013 when the results of a government-commissioned study by mainland Chinese experts are due.\n\n\n\nDespite repeated official assurances that the project would not take a significant toll environmentally, green activists remain skeptical and unconvinced.\n\n\n\nAmong the dissenting voices is the Chief of Macau Ecology, a homegrown force initiated by two nature lovers. \n\n\n\nKen Kuan, one of the group’s founders, tells Macau Business that the city needs sorting and recycling facilities instead of what the government terms an ‘ecological island’ that is expected to cost some MOP15.59 billion.\n\n\n\nAccording to public information, the proposed man-made island will take up 2.45 square kilometres of the city\u2019s 85-square-kilometre waters \u2013 roughly one-third of Coloane.\n\n\n\nThe authorities believe that it could last at least 20 years and handle 35.8 million cubic metres of waste.\n\n\n\nHowever, Kuan says four waste sorting plants would be enough to address the issue of mounting construction waste, such as slag and fly ash.\n\n\n\n “We will not proceed with the project if the conclusion of the analysis suggests a ‘no’,” the secretary told lawmakers. “But it will go ahead if it is a ‘yes'” \u2013 Raimundo do Ros\u00e1rio, Scretary for Transport and Public Works \n\n\n\n\n\n\n\n\u201cFour such facilities would only take up about two hectares (0.02 square kilometres). Each one would only cost RMB3.3 million to build,\u201d the activist said.\n\n\n\n\u201cThey will be able to sort most of the construction waste, which last year totalled around 930,000 square metres, before sending it to mainland China for recycling under an agreement signed between Guangdong province and Macau.\u201d\n\n\n\nHowever, from the official perspective, regional cooperation is out of the question as up to 52 per cent of the construction refuse that Macau has produced must be disposed domestically, according to promotional materials from the Environmental Protection Bureau.\n\n\n\nWaste disposal in mainland China not sustainable\n\n\n\nThe authorities have also dismissed the possibility of introducing sorting machinery to tackle what they describe as a \u201cdire situation that cannot rely on the Chinese mainland indefinitely\u201d.\n\n\n\nOperating expenses \u2013 on top of the cost of the facilities themselves \u2013 have the potential to exceed over MOP10 billion in the long run, official estimates suggest.\n\n\n\nThis tug of war erupted over the looming prospect of a saturating landfill site in the vicinity of the city\u2019s airport, which has been handling upwards of 49 million square metres of construction waste since it came into operation in March 2006.\n\n\n\nThe authorities have insisted that it is so full that the amount of garbage is comparable to 19,600 standard swimming pools.\n\n\n\nThe first phase of the mammoth project will cover an area of 1.4 square kilometres and last some 10 years.\n\n\n\n \u201cI don\u2019t think they are intentionally doing this since the report is confidential based on the contract between the university and government, but the way they have processed the information is inappropriate\u201d \u2013 Joe Chan, environmentalist \n\n\n\nAccording to public information from the government, the artificial island will be perched about 1 kilometre southeast of Coloane \u2013 highly visible from the weekend family getaway Black Sand Beach.\n\n\n\nDuring a Legislative Assembly plenary session in March, Secretary for Transport and Public Works Raimundo Arrais do Ros\u00e1rio once again made the assurance that \u201cthe country\u2019s experts will keep an eye on all aspects of the project\u201d. \n\n\n\n“We will not proceed with the project if the conclusion of the analysis suggests a ‘no’,” the secretary told lawmakers. “But it will go ahead if it is a ‘yes’.”\n\n\n\nThe scientific evaluation, which will be carried out by researchers in mainland China, will be conducted according to national standards, the authorities insist.\n\n\n\nAny findings will then have to be approved by the central government. Only then will there be a firm timetable for construction.\n\n\n\nRos\u00e1rio\u2019s pledge to comply with all the necessary national rules has also been echoed by Chief Executive Ho Iat Seng, who told lawmakers in the chamber that \u201cno necessary step in the evaluation will be missing\u201d.\n\n\n\n \u201cThey will be able to sort most of the construction waste, which last year totalled around 930,000 square metres, before sending it to mainland China for recycling under an agreement signed between Guangdong province and Macau.\u201d \u2013 Ken Kuan, environmentalist \n\n\n\n\n\n\n\nIs the Construction Waste Management System helping?\n\n\n\nWith the threat of mounting demolition waste becoming increasingly imminent, the authorities introduced in 2020 the Construction Waste Management System \u2013 a set of regulations to govern the classification, transportation, storage, treatment, and disposal of construction waste, including the categorisation of various materials and the designation of treatment facilities. \n\n\n\nEnforced in January 2021, a fall of 30 per cent in waste quantity was recorded that year in comparison with 2020, as per Tam Vai Man, director of the Environmental Protection Bureau. \n\n\n\nA further decline ensued the following year, with a 40 percent reduction observed in 2022. The figure climbed to about 60 per cent last year. \n\n\n\n\u201cAs soon as the \u2018ecological island\u2019 is completed, there will be repurposing for the existing landfill site for construction waste in order to increase land supply for the government,\u201d Tam told lawmakers on the same occasion as Rosario back in March.\n\n\n\nAre dolphins in the way?\n\n\n\nThe choice of location for the proposed artificial island remains the main sticking point that has hampered the authorities’ efforts to win the support of environmental activists.\n\n\n\nCritics argue that the implementation of a large-scale reclamation project will further endanger wildlife in a city that has already faced criticism for prioritising urban development over conserving green spaces.\n\n\n\nChinese white dolphins, also known as Indo-Pacific humpback dolphins or pink dolphins, are a species of marine mammal native to the coastal waters of the Indo-Pacific region, including the Pearl River Estuary in China.\n\n\n\nThey hold the \u2018vulnerable\u2019 status on the Red List of Threatened Species of the International Union for Conservation of Nature and Natural Resources (IUCN). \n\n\n\nWhile on the Chinese mainland, the humpback dolphins, which are pink in colour \u2013 are listed as Grade 1 National Key Protected Species. \n\n\n\nAn field survey conducted by the Chief of Macau Ecology in January this year concluded that as many as five dolphins had been spotted in one hour near the proposed site.\n\n\n\nHowever, according to official information, the \u2018ecological island\u2019 takes up less than 0.2 per cent of the Chinese white dolphins’ activity range in the waters of the Pearl River Estuary.\n\n\n\nIn a media interview earlier this year, the environmental protection chief claimed that the artificial island would be perched some one kilometre away from the coast.\n\n\n\nThe official stressed then that the dolphins were only \u201cfound active some eight kilometres away from the \u2018ecological island\u2019\u201d, and that their usual hunt had been designated as a \u201creserve spanning several hundred square kilometres\u201d.\n\n\n\nTam’s claims, however, appear to contradict the findings of a government-commissioned study conducted by Sun Yat-sen University in 2016.\n\n\n\nAccording to a TDM Canal Macau report, the university considers the entirety of Macau\u2019s waters to be crucial to Chinese white dolphins, proposing establishing a conservation zone of more than 30 square metres for the 144 marine creatures that have been found in Macau\u2019s surrounding waters.\n\n\n\nMoreover, the proposed zone, as the research suggests, appears to have overlapped the chosen site for the island.\n\n\n\nHowever, the report had been withheld from the public by the authorities for reasons of confidentiality.\n\n\n\nWhile sympathetic to the government’s refusal to release the report, Joe Chan, one of the city’s few environmentalists, questioned how such sensitive information was being handled.\n\n\n\n\u201cI don\u2019t think they are intentionally doing this since the report is confidential based on the contract between the university and government, but the way they have processed the information is inappropriate,\u201d Chan told Macau Business.\n\n\n\n\u201cThe research was conducted using government money and the information is related to our shared natural resources so the government should never sign this type of improper contract with the research centre,\u201d he added.\n\n\n\nIn response to the government’s perceived intention to forge ahead with the plan, the president of the Macau Green Student Union \u2013 along with two other groups, including the Hong Kong Dolphin Conservation Society \u2013 decided to take matters into their own hands.\n\n\n\nThe three groups collected more than 1,600 signatures from like-minded allies and delivered them to the government in February in a bid to bring the project to a halt.\n\n\n\nIn April, the authorities agreed to extend the period during which the public were allowed to make their views known.\n\n\n\n\u201cIf the reclamation work must go ahead, why not select a smaller spot that has already been developed to a certain extent \u2013 let\u2019s say, the eastern side of the reclaimed Zone A right to the south of the Hong Kong-Zhuhai-Macau Bridge \u2013 rather than a section of precious natural resources?” ", "date_published": "June 23, 2024", "date_modified": "June 24, 2024 - 00:29", "author": { "name": "Aries Un", "url": "https://www.macaubusiness.com/author/aries-un/", "avatar": "https://secure.gravatar.com/avatar/7ae1d1264b8afa0640eb6915aab8c425?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/cheoc-van-beach-environment-dead-finless-porpoise-wildlife-ecology-1.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Faced with an oversaturated landfill, Macau authorities have proposed turning chunks of construction waste into an artificial island. But why has such a well-intentioned idea raised the ire of environmentalists?" }, { "id": "https://www.macaubusiness.com/special-report-the-olympic-games-of-china/", "url": "https://www.macaubusiness.com/special-report-the-olympic-games-of-china/", "title": "Special Report \u2013 \u201cThe Olympic Games of China\u201d", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/07/china-shaanxi-xian-olympic-center-stadium-xinhua-national-games-150x150.jpg\")
\n“Sports set the stage for a stronger and more prosperous nation,” Xi Jinping said. China takes sports very seriously.
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
The National Games are one of the most respected institutions in China and are often described in the press as \u2018The Olympic Games of China\u2019. The long history of the event contributes greatly to its prestige. The Games began at the very end of the Qing Dynasty in 1910, continued during the period of the Republic founded in 1912, and, with rare interruptions, have continued until today, occurring every four years, the year after the Olympic Games.
\n\n\n\nUntil the establishment of the People’s Republic of China, they were called the National Games of the Republic of China and continued to be organized in Taiwan when members of the Kuomintang left the mainland. They continue to be organized in Taiwan, although under different names. In the PRC era, the Games have been held 14 times, so the next ones in 2025 will be the 15th edition.
\n\n\n\nAfter the first four editions were held in Beijing, the government began to diversify the locations that host the event, and since 1997, there have been no repeat locations. The exception will be in 2025, when Guangdong will host part of the Games, having previously done so in 2001. The last time Beijing held the National Games was in 1993.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/%E5%B1%8F%E5%B9%95%E6%88%AA%E5%9B%BE-2024-06-22-033550.png\")
Not only do all provinces participate in the Games, but also thematic teams, notably the People’s Liberation Army, which is always one of the favourites for the final victory and is the team with the most medals. Guangdong and Shandong are provinces with several overall victories and complete the podium.
\n\n\n\nThe exact number of participants will only be known in several months, but it is possible to expect more than 10,000 athletes. In the 1979 edition, there were 15,000 participants, but the number decreased until it stabilized between 9,000 and 10,000. However, the last edition in 2021 saw over 12,000 athletes compete in Shaanxi Province.
\n\n\n\nIn addition to elite sports that mimic the Olympic Games, there are other, purely amateur sports that bring together thousands of athletes. One such activity is square dancing (Guangchang Wu), which is very popular, especially among middle-aged and retired women who use open spaces like gardens and squares to perform simple and natural movements accompanied by music. “As it requires very little skill or physical fitness to get started, square dancing is a popular form of exercise in China for millions of all ages and genders,” according to a report from Xinhua. In the last Games, held in 2021, 19 events were organized for ordinary people to showcase their athletic skills. The 2025 Games will also include 23 mass sports activities, from square dancing to Tai Chi.
\n\n\n\nOver the years, the General Administration of Sport, in conjunction with the Provincial Sport Bureaus, has tried to innovate. One example was the attempt to eliminate the ranking of medals, valuing more the results obtained and the pure nature of sport, and less the “win or lose” mentality. Another attempt, which was nothing more than a good intention, was the so-called “half-gold medal,” created to balance the sporting strength of different regions. Teams (for example, from each province) voluntarily sent athletes to compete for other regions. When an exchange athlete won a medal, 50 percent was awarded to the original team and the other 50 percent to the final team. The idea of balancing the various teams in competition while providing opportunities for athletes who otherwise would not compete (in teams like Beijing or Shanghai there are many candidates and few places) was curious but has since been discontinued.
\n\n\n\nAll-China Games
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/7_imagem-2-1028x389.jpg\")
In 2000, China once again innovated in sports competitions by creating a quadrennial multi-sports event for non-Olympic sports. The events are to “give priority to promoting national physical fitness and providing lots of fun for amateur athletes,” with no medal rankings.
\n\n\n\nEvents include: dragon boat racing, lion dancing, shuai jiao (Chinese wrestling), trampoline, dance sports, bridge, golf, aerobics, water skiing, parachuting, body building and fitness, billiards, chess, xiangqi (Chinese chess), mountaineering and climbing, squash, orienteering, hobby craft, wireless location hunting, bowling, roller sports, open water swimming, tug of war; fin swimming, goal ball, boules, bridge, fin swimming, billiards, and “Go (game)”.
\n\n\n\nThey became known as the All-China Games (\u5168\u56fd\u4f53\u80b2\u5927\u4f1a).
\n\n\n\nOrganised by the State General Administration of Sports, they had a second edition in 2002 and, from then on, became quadrennial (the Suzhou edition included 28 sports and 268 disciplines).
\n\n\n\nIn 2010, the last ones were held in the presence of 30,000 people who participated in 34 sports. Macau, which participated for the second time, sent a delegation of 115 local athletes to compete in 15 events, including 5-a-side football, bowling, dancesports, gate ball, squash, Weiqi (go chess), Xianqi, golf, roller sports, billiards, bodybuilding, open water swimming, 3-on-3 basketball, foot shuttlecock, and tug of war.
\n\n\n\nPrevious | Between a \u2018Sports City\u2019 and \u2018City of Sports\u2019
\n", "content_text": "“Sports set the stage for a stronger and more prosperous nation,” Xi Jinping said. China takes sports very seriously.\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\n\n\n\n\nThe National Games are one of the most respected institutions in China and are often described in the press as \u2018The Olympic Games of China\u2019. The long history of the event contributes greatly to its prestige. The Games began at the very end of the Qing Dynasty in 1910, continued during the period of the Republic founded in 1912, and, with rare interruptions, have continued until today, occurring every four years, the year after the Olympic Games.\n\n\n\nUntil the establishment of the People’s Republic of China, they were called the National Games of the Republic of China and continued to be organized in Taiwan when members of the Kuomintang left the mainland. They continue to be organized in Taiwan, although under different names. In the PRC era, the Games have been held 14 times, so the next ones in 2025 will be the 15th edition.\n\n\n\nAfter the first four editions were held in Beijing, the government began to diversify the locations that host the event, and since 1997, there have been no repeat locations. The exception will be in 2025, when Guangdong will host part of the Games, having previously done so in 2001. The last time Beijing held the National Games was in 1993.\n\n\n\n\n\n\n\nNot only do all provinces participate in the Games, but also thematic teams, notably the People’s Liberation Army, which is always one of the favourites for the final victory and is the team with the most medals. Guangdong and Shandong are provinces with several overall victories and complete the podium.\n\n\n\nThe exact number of participants will only be known in several months, but it is possible to expect more than 10,000 athletes. In the 1979 edition, there were 15,000 participants, but the number decreased until it stabilized between 9,000 and 10,000. However, the last edition in 2021 saw over 12,000 athletes compete in Shaanxi Province.\n\n\n\nIn addition to elite sports that mimic the Olympic Games, there are other, purely amateur sports that bring together thousands of athletes. One such activity is square dancing (Guangchang Wu), which is very popular, especially among middle-aged and retired women who use open spaces like gardens and squares to perform simple and natural movements accompanied by music. “As it requires very little skill or physical fitness to get started, square dancing is a popular form of exercise in China for millions of all ages and genders,” according to a report from Xinhua. In the last Games, held in 2021, 19 events were organized for ordinary people to showcase their athletic skills. The 2025 Games will also include 23 mass sports activities, from square dancing to Tai Chi.\n\n\n\nOver the years, the General Administration of Sport, in conjunction with the Provincial Sport Bureaus, has tried to innovate. One example was the attempt to eliminate the ranking of medals, valuing more the results obtained and the pure nature of sport, and less the “win or lose” mentality. Another attempt, which was nothing more than a good intention, was the so-called “half-gold medal,” created to balance the sporting strength of different regions. Teams (for example, from each province) voluntarily sent athletes to compete for other regions. When an exchange athlete won a medal, 50 percent was awarded to the original team and the other 50 percent to the final team. The idea of balancing the various teams in competition while providing opportunities for athletes who otherwise would not compete (in teams like Beijing or Shanghai there are many candidates and few places) was curious but has since been discontinued.\n\n\n\n\n\n\n\nAll-China Games\n\n\n\n\n\n\n\nIn 2000, China once again innovated in sports competitions by creating a quadrennial multi-sports event for non-Olympic sports. The events are to “give priority to promoting national physical fitness and providing lots of fun for amateur athletes,” with no medal rankings.\n\n\n\nEvents include: dragon boat racing, lion dancing, shuai jiao (Chinese wrestling), trampoline, dance sports, bridge, golf, aerobics, water skiing, parachuting, body building and fitness, billiards, chess, xiangqi (Chinese chess), mountaineering and climbing, squash, orienteering, hobby craft, wireless location hunting, bowling, roller sports, open water swimming, tug of war; fin swimming, goal ball, boules, bridge, fin swimming, billiards, and “Go (game)”.\n\n\n\nThey became known as the All-China Games (\u5168\u56fd\u4f53\u80b2\u5927\u4f1a).\n\n\n\nOrganised by the State General Administration of Sports, they had a second edition in 2002 and, from then on, became quadrennial (the Suzhou edition included 28 sports and 268 disciplines).\n\n\n\nIn 2010, the last ones were held in the presence of 30,000 people who participated in 34 sports. Macau, which participated for the second time, sent a delegation of 115 local athletes to compete in 15 events, including 5-a-side football, bowling, dancesports, gate ball, squash, Weiqi (go chess), Xianqi, golf, roller sports, billiards, bodybuilding, open water swimming, 3-on-3 basketball, foot shuttlecock, and tug of war.\n\n\n\nPrevious | Between a \u2018Sports City\u2019 and \u2018City of Sports\u2019", "date_published": "June 23, 2024", "date_modified": "June 22, 2024 - 03:41", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2020/07/china-shaanxi-xian-olympic-center-stadium-xinhua-national-games.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "\ufeff\"Sports set the stage for a stronger and more prosperous nation,\" Xi Jinping said. China takes sports very seriously." }, { "id": "https://www.macaubusiness.com/opinion-macau-eu-trade-and-economic-relations-back-in-focus/", "url": "https://www.macaubusiness.com/opinion-macau-eu-trade-and-economic-relations-back-in-focus/", "title": "OPINION \u2013 Macau-EU trade and economic relations back in focus", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/European-Commission-150x150.jpg\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Jose-Luis-Sales-Marques.png\")
Jos\u00e9 Lu\u00eds de Sales Marques
\n\n\n\nEconomist
\n\n\n\nMay is Europe\u2019s month in Macau, bringing back to the limelight a cooperative relationship that has historical meaning and high economic value. This year, Macau properly celebrated Europe Day on May 16, as was traditional before the COVID-19 outbreak and subsequent restrictions on public gatherings, with a cocktail reception and official representations from the EU and the Macau SAR Government. Europe Day is celebrated every year on May 9 to mark the anniversary of the Schuman Declaration, which symbolises the beginning of the European integration process. Additionally, on May 10th, the Macau European Chamber of Commerce (MECC) held its annual Gala Dinner, gathering all European business chambers and associated organisations and individuals. This event showcased the dynamism of European businesses in the region and their ambitions for the future, namely the expectation of extending their actions to the Greater Bay Area and, in particular, the In-depth Cooperation Zone in Hengqin. The recent focus on Macau and EU relations was also highlighted during the recent week-long visit to the region by Xia Baolong, the Director of the Office of the State Council for Hong Kong and Macau, who referred to the need for the region to strengthen relations with the EU in the context of its internationalisation.
\n\n\n\nIn both of these EU-connected gatherings, what caught the eyes and ears of many was the announcement that imports of goods from the EU continued to reign in Macau for the fourth consecutive year and were still doing so up to the first quarter of 2024, surpassing those from the Chinese Mainland, the traditional number one supplier of Macau in almost every category of basic and household goods. These results are even more surprising considering that, through e-commerce, much more has been bought directly by Macau consumers from Mainland suppliers and the recent introduction of high-value-added Chinese e-vehicles in the local market. The valuable question here is whether these trends will remain and why they have happened at all.
\n\n\n\nThis discussion will lead us to explore the features of consumer demand in this region for goods originating from Mainland China and the EU, and whether the segmentation of the market into two major clusters, one satisfying local needs and the other tourists’ appetite for luxury goods, is overly simplified. For this purpose, we will look at Macau’s imports of goods from both Mainland China and the EU over the last five years, using 2019 as a starting point, going through the years of restrictive policies and measures tied with the COVID crisis, and the recovery initiated in 2023 up to the latest available data on this subject.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/macau-eu-raimundo-do-rosario-thomas-gnocchi-alexandre-leitao-1028x589.png\")
EU trade with Macau
\n\n\n\nThe EU has a longstanding economic partnership with Macau, dating back to the early days of its industrial takeoff in the second half of the twentieth century. Favourable trade policies established by the former European Economic Community contributed to Macau’s growth and development as a manufacturing-exporting economy, with Europe and the United States serving as its main markets. However, as this region\u2019s economy transformed into a tourist and gaming powerhouse under the Macau SAR, the EU became a major exporter of goods to the region, supplying what its luxury industries know best: fashion, cosmetics, and powerful cars, while enjoying a trade surplus with this region. Only Mainland China, with its provision of all-around consumer and industrial goods, had a bigger stake in fulfilling this region’s domestic demand.
\n\n\n\nThe COVID-19 crisis and its dramatic impact on the region’s economy induced significant changes in consumer behaviour and market structure, with implications for the composition and origin of imports. The economy was already in trouble in 2019, with GDP contracting by -2.2%, and all major components such as private and public investment, internal demand, and export of services also in decline. As restrictive policies were introduced in 2020 locally, nationally, and elsewhere to limit the widespread transmission of the virus and its variants into this region, including successive lockdowns, air travel restrictions, and the closing of public spaces, including restaurants, hotels, and even, occasionally, casinos, the economic impact was severe, with GDP falling by -54.2% in 2020, recovering by +19.3% in 2021, and falling again by -26.8% in 2022, all in real terms. With domestic demand falling, imports from Mainland China followed the trend, decreasing by -9.9% in 2020.
\n\n\n\nTable 1- Macau imports of goods from Mainland China and EU (2019-2023) in Million MOP
\n\n\n\n| 2019 | +/- | 2020 | +/- | 2021 | +/- | 2022 | +/- | 2023 | |
| Mainland China | 30,647.5 | (-9.9) | 27,612,8 | (+75.7) | 48,515.4 | (-12.5) | 42,453.2 | (-4.6) | 40,505.3 |
| EU | 24,919.8 | (+14.5) | 28,536.4 | (+74.5) | 49.805 | (-7.9) | 45,854.6 | (-2.7) | 44,612.9 |
| Total Imports | 90,125 | (+2.7) | 92,559 | (+66.2) | 153,877 | (-9.1) | 139,810 | (+1.2) | 141,455 |
| Var. GDP (real terms) | (-54.2) | (+23.5) | (-21.4) | (+80.5) |
Source: DSEC-various publications
\n\n\n\nHowever, this is where logic stops, and the story begins to get interesting! Paradoxically, imports to Macau from Mainland China and the EU in 2021 and 2022 were much higher than the average of preceding years, jumping to unprecedented levels (Table 1) in an overall environment where global supply chains were severely disrupted, and cargo planes were a rarity anywhere in the world. The COVID-19 pandemic had a twisted evolution throughout those terrible years and played tricks on learned economists, analysts, politicians, as well as eager consumers and businesses. Unfulfilled expectations of rapid recovery, commercial contracts to guarantee enough supply for a fashion season, and revenge spending for all those who had not had the chance to travel or just indulged themselves in luxury\u2014whatever the causes, the fact is that EU imports into Macau reached unprecedented levels during the pandemic years, surpassing those from Mainland China, the region’s traditional number one supplier.
\n\n\n\nIt is well-known that Macau has two very different economic realities: one associated with gaming, tourism, and related industries and services, and the other constituted by a majority of micro and small enterprises serving the local population and, eventually, tourists. Goods imported into Macau are also demanded as inputs for industries such as construction, for government consumption, and re-export. More than 85% of Macau’s exports are actually re-exports, which account for approximately eight to ten percent of total imports.
\n\n\n\nThe EU\u2019s most popular export to Macau is liquid, but it\u2019s not wine!
\n\n\n\nFrance and Italy dominate as the top European suppliers to Macau, holding a combined market share of 89% of total EU imports into the region. Most of the growth in EU imports can be attributed to three categories of goods: essential oils, perfume and skin products, travel goods and handbags, and apparel and clothing. During the COVID years (2020-2022), the value and volume of goods imported under these categories from the EU to Macau were overwhelming (Table 2).
\n\n\n\nTable 2- Combined value of imports of 3 categories of goods from France and Italy and their respective weight in total EU import in the same period (2020-2022) in Million MOP
\n\n\n\n| Value | % | |
| Total EU Imports | 124,196 | 100 |
| Perfume | 41,313 | 33.3 |
| Travel+handbags | 24,186 | 19 |
| Apparel+Clothing | 14,710 | 11.8 |
Source: DSEC-Various publications/author\u2019s calculations
\n\n\n\nThe crucial question for businesses is whether EU exports to Macau will be able to maintain this momentum post-COVID and with recovery firmly in place. How well did sales perform, and what are the expectations for the future? Was demand sufficient for such a surge in supply? The answers to these questions are not easy to find and will likely remain trade secrets for a long time.
\n\n\n\nBased on observation, a significant number of cosmetic shops are mushrooming throughout the city, suggesting they must be doing good business to sustain operations. Some fashion brands have disappeared, but the most resilient and popular ones have refurbished their flagship stores, while others have had to resize or reduce their presence.
\n\n\n\nThe EU started to lose its position as the main supplier to Macau in August 2023, being overtaken by imports from Mainland China. However, it maintained overall dominance for the year and into the first quarter of 2024. Will it hold that position until the end of this year? More importantly, the trade level with the region is still very strong in absolute terms, with great potential for future growth, particularly in sectors beyond luxury goods. As Macau and the Greater Bay Area continue to develop into an international trade, modern finance, high-end technology, and tourism hub with unique characteristics and transregional mobility, Macau and the EU have vast room to further deepen their successful cooperative relationship.
\n\n\n\nMacau-EU relations
\n\n\n\nMacau and the European Economic Community (EEC)/EU established a framework Agreement for Trade and Cooperation signed in 1992. Under this agreement, Macau and the EU holds regular Joint Committee meetings, taking place alternatively in Macau and Brussels, to review matters of mutual interest and explore new areas for cooperation. There is already an extensive list of successfully implemented cooperations programs extending from areas such as academia, legal training, language and translation, cooperation on immigration, technology, advanced tourism studies and European Studies. The inception of the Institute of European Studies of Macau (IEEM) in 1995, is a lasting example of successful cooperation between the two parties, as well as, the Jean Monnet programs at the University of Macau and the founding of the Macau European Chamber of Commerce (MECC).
\n", "content_text": "Jos\u00e9 Lu\u00eds de Sales Marques\n\n\n\nEconomist \n\n\n\n\n\n\n\nMay is Europe\u2019s month in Macau, bringing back to the limelight a cooperative relationship that has historical meaning and high economic value. This year, Macau properly celebrated Europe Day on May 16, as was traditional before the COVID-19 outbreak and subsequent restrictions on public gatherings, with a cocktail reception and official representations from the EU and the Macau SAR Government. Europe Day is celebrated every year on May 9 to mark the anniversary of the Schuman Declaration, which symbolises the beginning of the European integration process. Additionally, on May 10th, the Macau European Chamber of Commerce (MECC) held its annual Gala Dinner, gathering all European business chambers and associated organisations and individuals. This event showcased the dynamism of European businesses in the region and their ambitions for the future, namely the expectation of extending their actions to the Greater Bay Area and, in particular, the In-depth Cooperation Zone in Hengqin. The recent focus on Macau and EU relations was also highlighted during the recent week-long visit to the region by Xia Baolong, the Director of the Office of the State Council for Hong Kong and Macau, who referred to the need for the region to strengthen relations with the EU in the context of its internationalisation.\n\n\n\nIn both of these EU-connected gatherings, what caught the eyes and ears of many was the announcement that imports of goods from the EU continued to reign in Macau for the fourth consecutive year and were still doing so up to the first quarter of 2024, surpassing those from the Chinese Mainland, the traditional number one supplier of Macau in almost every category of basic and household goods. These results are even more surprising considering that, through e-commerce, much more has been bought directly by Macau consumers from Mainland suppliers and the recent introduction of high-value-added Chinese e-vehicles in the local market. The valuable question here is whether these trends will remain and why they have happened at all.\n\n\n\nThis discussion will lead us to explore the features of consumer demand in this region for goods originating from Mainland China and the EU, and whether the segmentation of the market into two major clusters, one satisfying local needs and the other tourists’ appetite for luxury goods, is overly simplified. For this purpose, we will look at Macau’s imports of goods from both Mainland China and the EU over the last five years, using 2019 as a starting point, going through the years of restrictive policies and measures tied with the COVID crisis, and the recovery initiated in 2023 up to the latest available data on this subject.\n\n\n\n\n\n\n\nEU trade with Macau\n\n\n\nThe EU has a longstanding economic partnership with Macau, dating back to the early days of its industrial takeoff in the second half of the twentieth century. Favourable trade policies established by the former European Economic Community contributed to Macau’s growth and development as a manufacturing-exporting economy, with Europe and the United States serving as its main markets. However, as this region\u2019s economy transformed into a tourist and gaming powerhouse under the Macau SAR, the EU became a major exporter of goods to the region, supplying what its luxury industries know best: fashion, cosmetics, and powerful cars, while enjoying a trade surplus with this region. Only Mainland China, with its provision of all-around consumer and industrial goods, had a bigger stake in fulfilling this region’s domestic demand.\n\n\n\nThe COVID-19 crisis and its dramatic impact on the region’s economy induced significant changes in consumer behaviour and market structure, with implications for the composition and origin of imports. The economy was already in trouble in 2019, with GDP contracting by -2.2%, and all major components such as private and public investment, internal demand, and export of services also in decline. As restrictive policies were introduced in 2020 locally, nationally, and elsewhere to limit the widespread transmission of the virus and its variants into this region, including successive lockdowns, air travel restrictions, and the closing of public spaces, including restaurants, hotels, and even, occasionally, casinos, the economic impact was severe, with GDP falling by -54.2% in 2020, recovering by +19.3% in 2021, and falling again by -26.8% in 2022, all in real terms. With domestic demand falling, imports from Mainland China followed the trend, decreasing by -9.9% in 2020.\n\n\n\n\n\n\n\nTable 1- Macau imports of goods from Mainland China and EU (2019-2023) in Million MOP\n\n\n\n 2019 +/- 2020 +/- 2021 +/- 2022 +/- 2023Mainland China 30,647.5 (-9.9) 27,612,8 (+75.7) 48,515.4 (-12.5) 42,453.2 (-4.6) 40,505.3EU 24,919.8 (+14.5) 28,536.4 (+74.5) 49.805 (-7.9) 45,854.6 (-2.7) 44,612.9Total Imports 90,125 (+2.7) 92,559 (+66.2) 153,877 (-9.1) 139,810 (+1.2) 141,455Var. GDP (real terms) (-54.2) (+23.5) (-21.4) (+80.5) \n\n\n\nSource: DSEC-various publications\n\n\n\n\n\n\n\nHowever, this is where logic stops, and the story begins to get interesting! Paradoxically, imports to Macau from Mainland China and the EU in 2021 and 2022 were much higher than the average of preceding years, jumping to unprecedented levels (Table 1) in an overall environment where global supply chains were severely disrupted, and cargo planes were a rarity anywhere in the world. The COVID-19 pandemic had a twisted evolution throughout those terrible years and played tricks on learned economists, analysts, politicians, as well as eager consumers and businesses. Unfulfilled expectations of rapid recovery, commercial contracts to guarantee enough supply for a fashion season, and revenge spending for all those who had not had the chance to travel or just indulged themselves in luxury\u2014whatever the causes, the fact is that EU imports into Macau reached unprecedented levels during the pandemic years, surpassing those from Mainland China, the region’s traditional number one supplier.\n\n\n\nIt is well-known that Macau has two very different economic realities: one associated with gaming, tourism, and related industries and services, and the other constituted by a majority of micro and small enterprises serving the local population and, eventually, tourists. Goods imported into Macau are also demanded as inputs for industries such as construction, for government consumption, and re-export. More than 85% of Macau’s exports are actually re-exports, which account for approximately eight to ten percent of total imports.\n\n\n\nThe EU\u2019s most popular export to Macau is liquid, but it\u2019s not wine!\n\n\n\nFrance and Italy dominate as the top European suppliers to Macau, holding a combined market share of 89% of total EU imports into the region. Most of the growth in EU imports can be attributed to three categories of goods: essential oils, perfume and skin products, travel goods and handbags, and apparel and clothing. During the COVID years (2020-2022), the value and volume of goods imported under these categories from the EU to Macau were overwhelming (Table 2).\n\n\n\n\n\n\n\nTable 2- Combined value of imports of 3 categories of goods from France and Italy and their respective weight in total EU import in the same period (2020-2022) in Million MOP\n\n\n\n Value %Total EU Imports 124,196 100Perfume 41,313 33.3Travel+handbags 24,186 19Apparel+Clothing 14,710 11.8\n\n\n\nSource: DSEC-Various publications/author\u2019s calculations\n\n\n\n\n\n\n\nThe crucial question for businesses is whether EU exports to Macau will be able to maintain this momentum post-COVID and with recovery firmly in place. How well did sales perform, and what are the expectations for the future? Was demand sufficient for such a surge in supply? The answers to these questions are not easy to find and will likely remain trade secrets for a long time.\n\n\n\nBased on observation, a significant number of cosmetic shops are mushrooming throughout the city, suggesting they must be doing good business to sustain operations. Some fashion brands have disappeared, but the most resilient and popular ones have refurbished their flagship stores, while others have had to resize or reduce their presence.\n\n\n\nThe EU started to lose its position as the main supplier to Macau in August 2023, being overtaken by imports from Mainland China. However, it maintained overall dominance for the year and into the first quarter of 2024. Will it hold that position until the end of this year? More importantly, the trade level with the region is still very strong in absolute terms, with great potential for future growth, particularly in sectors beyond luxury goods. As Macau and the Greater Bay Area continue to develop into an international trade, modern finance, high-end technology, and tourism hub with unique characteristics and transregional mobility, Macau and the EU have vast room to further deepen their successful cooperative relationship.\n\n\n\n\n\n\n\nMacau-EU relations\n\n\n\nMacau and the European Economic Community (EEC)/EU established a framework Agreement for Trade and Cooperation signed in 1992. Under this agreement, Macau and the EU holds regular Joint Committee meetings, taking place alternatively in Macau and Brussels, to review matters of mutual interest and explore new areas for cooperation. There is already an extensive list of successfully implemented cooperations programs extending from areas such as academia, legal training, language and translation, cooperation on immigration, technology, advanced tourism studies and European Studies. The inception of the Institute of European Studies of Macau (IEEM) in 1995, is a lasting example of successful cooperation between the two parties, as well as, the Jean Monnet programs at the University of Macau and the founding of the Macau European Chamber of Commerce (MECC).", "date_published": "June 23, 2024", "date_modified": "June 21, 2024 - 15:10", "author": { "name": "admin", "url": "https://www.macaubusiness.com/author/admin/", "avatar": "https://secure.gravatar.com/avatar/135daf3ac9866023ee4710e9f5237dd1?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/European-Commission.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "May is Europe\u2019s month in Macau, bringing back to the limelight a cooperative relationship that has historical meaning and high economic value. This year, Macau properly celebrated Europe Day on May 16, as was traditional before the COVID-19 outbreak and subsequent restrictions on public gatherings, with a cocktail reception and official representations from the EU and the Macau SAR Government." }, { "id": "https://www.macaubusiness.com/special-report-between-a-sports-city-and-city-of-sports/", "url": "https://www.macaubusiness.com/special-report-between-a-sports-city-and-city-of-sports/", "title": "Special Report \u2013 Between a \u2018Sports City\u2019 and \u2018City of Sports\u2019", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/6_imagem-150x150.jpg\")
\nAt this early stage, it seems there are plenty more fish in the sea. But as time progresses, Macau will need to become more selective and ambitious in its choice of sporting events.
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
Macau is unlikely to transform into a sports city, as evidenced by the current constraints of space and the scarcity of athletes, particularly those of a high competitive caliber. However, it could transition into a city of sports \u2014 as the Government intends.
\n\n\n\nThe issue lies in the fact that, at least for now, the Government lacks a well-defined strategy to address questions such as:
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/6_imagem1.jpg\")
At present, in the absence of clear directives, it seems that both the Government and the six concessionaires are actively seeking sporting events to host in Macau. And, as the saying goes, when you go fishing, you never know whether you’ll reel in big or small fish.
\n\n\n\n“Macau does not have many infrastructures to become a large-scale sports tourism centre,” recognises Jose Weng-Chou Wong, Assistant Dean and Associate Professor, Faculty of Hospitality and Tourism Management, Macau University of Science and Technology.
\n\n\n\nInterviewed by Macau Business, Professor Wong emphasises that “therefore, Macau should selectively choose some signature sports or events that have foundations or can be hosted, such as table tennis or the previous Macau Marathon. Of course, Macau can also explore some new competitions, such as cycling or different forms of racing events.\u201d
\n\n\n\nEven so, and because some coordination was necessary, the Government felt the need to create a dialogue mechanism with gambling operators, that would allow the forwarding of cultural and sporting projects.
\n\n\n\nMacau Business asked the Sports Institute (ID) what the results of this project announced in July last year were, and the response shows this diversity/dispersion of events: the ID forwarded 8 sports projects for consideration by relevant companies, including taekwondo, hockey, dance, road cycling, mixed martial arts, judo and bodybuilding, among other sports. Last March, Secretary for Social Affairs and Culture Elsie Ao Ieong said the city would see at least 20 sporting events this year.
\n\n\n\nAnother sign of the need for coordination emerged two months ago, with the announcement of the creation of a coordination panel responsible for organizing large-scale events at government-linked venues or facilities. This panel is also responsible for \u2018providing views\u2019 in terms of requests and scrutiny.
\n\n\n\nAt the Legislative Assembly, some legislators expressed concerns about this issue.
\n\n\n\n
\u201cMacau will strive to create more branded sports tourism events with attractive Macau characteristics, with a view to attracting participation of different people in Macau and contribute to the construction of a \u2018City of Sports\u2019\u201d \u2013 Bureau Sports
![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2017/11/Sports-centre.png\")
Angela Leong intervened shortly after it became known that Macau would be part of the organisation of the 2025 National Games to say that the city \u201cshould seize the opportunity to capitalise on the role of the Games as a catalyst for the sports industry and actively seek resources and policies in order to promote the healthy and sustainable development of Macau\u2019s sports industry, even as a way of diversifying the economy.\u201d
\n\n\n\nAt the same time, another lawmaker, Leong Sun Iok, suggested that “to be able to create solid sports tourism, the Government must plan its development on a scientific basis. The authorities will have to define short-, medium- and long-term objectives, creating projects and priority infrastructure.”
\n\n\n\n“The Macau SAR Government has been actively promoting the development of the sports industry through the organisation of several major sporting events and, through collaboration with the private sector, is committed to bringing more high-level international sporting events to Macau,” says the ID to Macau Business.
\n\n\n\n“With the experience gained in holding the National Games and the Special Olympics Games for the Disabled in 2025, the Macau SAR Government will strive to create more branded sports tourism events with attractive Macau characteristics, with a view to attracting the participation of different people in Macau and contributing to the construction of a \u2018City of Sports\u2019,” they add.
\n\n\n\nThis ambition already has a first test, when discussions begin on the possibility of Guangdong, Hong Kong and Macau applying to jointly organise the FIFA Women\u2019s World Cup in 2031, as was recently suggested by Hong Kong politician Kenneth Fok.
\n\n\n\n“Sports have their political function in the unique MSAR system”
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/08/ho-sport-1028x861.jpg\")
“Sports\u2013Politics Puzzle in China’s Macau” is the name of an investigation conducted by two professors from the Department of Government and Public Administration, University of Macau, Eilo Wing-yat Yu and Leo Hou-ieong Lei, included in a 2018 book entitled “The Sports Development of Hong Kong and Macau.\u201d
\n\n\n\nIn the paper, the two authors show that “Sports serves politics through three major means: diplomacy, national identity/unity and regime legitimacy,” to conclude that “sports, to a great extent, cannot serve Macau politics in meeting the three social purposes of sports mentioned above.”
\n\n\n\n“Although mega events can serve the purposes of diplomacy that are conducive to improving Macau’s external relationships and international image, they are counter-productive to the Macau people’s sense of belonging to the region as well as to the legitimacy of the Macau Special Administrative Region (MSAR) regime,” both researchers stated.
\n\n\n\n“Nevertheless, sports have their political function in the unique MSAR political system as well, creating an arena for political power in Macau, primarily because political elites compete for the support of sports associations in political elections. Due to the special definition of Macau’s political system, sports associations have the right to select representatives for the legislature as well as to elect the MSAR’s Chief Executive.
\n\n\n\nPrevious | Gaming operators hunting\u00a0for events to sponsor
\n", "content_text": "At this early stage, it seems there are plenty more fish in the sea. But as time progresses, Macau will need to become more selective and ambitious in its choice of sporting events.\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\nMacau is unlikely to transform into a sports city, as evidenced by the current constraints of space and the scarcity of athletes, particularly those of a high competitive caliber. However, it could transition into a city of sports \u2014 as the Government intends.\n\n\n\nThe issue lies in the fact that, at least for now, the Government lacks a well-defined strategy to address questions such as:\n\n\n\nWhat sporting events should Macau prioritise to attract tourists (as that’s what ultimately matters)?Which sports align with the available spaces, including public areas and the arenas within various Integrated Resorts?Does Macau aim to embrace mass sports (which draw thousands of tourists), niche sports (despite table tennis’s popularity, how many visitors cross the border to attend tournaments), or both?Which sporting events can seamlessly integrate with convention areas, as outlined in the ‘Sport +’ concept?While the Development Plan for Appropriate Economic Diversification (2024-2028) exists, it may lack concrete answers to these and other questions, likely due to its preparation beginning over a year ago.\n\n\n\n\n\n\n\nAt present, in the absence of clear directives, it seems that both the Government and the six concessionaires are actively seeking sporting events to host in Macau. And, as the saying goes, when you go fishing, you never know whether you’ll reel in big or small fish.\n\n\n\n“Macau does not have many infrastructures to become a large-scale sports tourism centre,” recognises Jose Weng-Chou Wong, Assistant Dean and Associate Professor, Faculty of Hospitality and Tourism Management, Macau University of Science and Technology.\n\n\n\nInterviewed by Macau Business, Professor Wong emphasises that “therefore, Macau should selectively choose some signature sports or events that have foundations or can be hosted, such as table tennis or the previous Macau Marathon. Of course, Macau can also explore some new competitions, such as cycling or different forms of racing events.\u201d\n\n\n\nEven so, and because some coordination was necessary, the Government felt the need to create a dialogue mechanism with gambling operators, that would allow the forwarding of cultural and sporting projects.\n\n\n\nMacau Business asked the Sports Institute (ID) what the results of this project announced in July last year were, and the response shows this diversity/dispersion of events: the ID forwarded 8 sports projects for consideration by relevant companies, including taekwondo, hockey, dance, road cycling, mixed martial arts, judo and bodybuilding, among other sports. Last March, Secretary for Social Affairs and Culture Elsie Ao Ieong said the city would see at least 20 sporting events this year.\n\n\n\nAnother sign of the need for coordination emerged two months ago, with the announcement of the creation of a coordination panel responsible for organizing large-scale events at government-linked venues or facilities. This panel is also responsible for \u2018providing views\u2019 in terms of requests and scrutiny.\n\n\n\nAt the Legislative Assembly, some legislators expressed concerns about this issue.\n\n\n\n \u201cMacau will strive to create more branded sports tourism events with attractive Macau characteristics, with a view to attracting participation of different people in Macau and contribute to the construction of a \u2018City of Sports\u2019\u201d \u2013 Bureau Sports \n\n\n\n\n\n\n\nAngela Leong intervened shortly after it became known that Macau would be part of the organisation of the 2025 National Games to say that the city \u201cshould seize the opportunity to capitalise on the role of the Games as a catalyst for the sports industry and actively seek resources and policies in order to promote the healthy and sustainable development of Macau\u2019s sports industry, even as a way of diversifying the economy.\u201d\n\n\n\nAt the same time, another lawmaker, Leong Sun Iok, suggested that “to be able to create solid sports tourism, the Government must plan its development on a scientific basis. The authorities will have to define short-, medium- and long-term objectives, creating projects and priority infrastructure.”\n\n\n\n“The Macau SAR Government has been actively promoting the development of the sports industry through the organisation of several major sporting events and, through collaboration with the private sector, is committed to bringing more high-level international sporting events to Macau,” says the ID to Macau Business.\n\n\n\n“With the experience gained in holding the National Games and the Special Olympics Games for the Disabled in 2025, the Macau SAR Government will strive to create more branded sports tourism events with attractive Macau characteristics, with a view to attracting the participation of different people in Macau and contributing to the construction of a \u2018City of Sports\u2019,” they add.\n\n\n\nThis ambition already has a first test, when discussions begin on the possibility of Guangdong, Hong Kong and Macau applying to jointly organise the FIFA Women\u2019s World Cup in 2031, as was recently suggested by Hong Kong politician Kenneth Fok.\n\n\n\n\n\n\n\n“Sports have their political function in the unique MSAR system”\n\n\n\n\n\n\n\n“Sports\u2013Politics Puzzle in China’s Macau” is the name of an investigation conducted by two professors from the Department of Government and Public Administration, University of Macau, Eilo Wing-yat Yu and Leo Hou-ieong Lei, included in a 2018 book entitled “The Sports Development of Hong Kong and Macau.\u201d\n\n\n\nIn the paper, the two authors show that “Sports serves politics through three major means: diplomacy, national identity/unity and regime legitimacy,” to conclude that “sports, to a great extent, cannot serve Macau politics in meeting the three social purposes of sports mentioned above.”\n\n\n\n“Although mega events can serve the purposes of diplomacy that are conducive to improving Macau’s external relationships and international image, they are counter-productive to the Macau people’s sense of belonging to the region as well as to the legitimacy of the Macau Special Administrative Region (MSAR) regime,” both researchers stated.\n\n\n\n“Nevertheless, sports have their political function in the unique MSAR political system as well, creating an arena for political power in Macau, primarily because political elites compete for the support of sports associations in political elections. Due to the special definition of Macau’s political system, sports associations have the right to select representatives for the legislature as well as to elect the MSAR’s Chief Executive.\n\n\n\nPrevious | Gaming operators hunting\u00a0for events to sponsor", "date_published": "June 22, 2024", "date_modified": "June 20, 2024 - 16:00", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/6_imagem.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "\ufeffAt this early stage, it seems there are plenty more fish in the sea. But as time progresses, Macau will need to become more selective and ambitious in its choice of sporting events." }, { "id": "https://www.macaubusiness.com/opinion-on-visitor-quotas/", "url": "https://www.macaubusiness.com/opinion-on-visitor-quotas/", "title": "OPINION \u2013 On visitor quotas", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/01/CKK_5436-150x150.jpg\")
\nJos\u00e9 I. Duarte
\n\n\n\nEconomist, Macau Business Senior Analyst
\n\n\n\nAs the economy recovers, one hears renewed complaints about tourism overcrowding. Nobody indeed longs for COVID or any similar experience. Still, one cannot fail to recognise that many felt the aftermath of the pandemic gave the city back to the locals for a period. For many residents, the rising tide of tourism flows has brought back concerns about livability and well-being as areas of the city become visibly overcrowded and transit congestion intensifies.
\n\n\n\nConsequently, demands for some sort of limitation on the number of visitors returned to the public agenda. The issue is not new, and neither is the main remedy suggested. Maybe it is time we had a fuller discussion about these issues, one from which a policy can be drawn that addresses those legitimate concerns without undue or avoidable costs that will also affect the citizens’ welfare.
\n\n\n\nMacau has a population approaching 600,000 people while receiving more than three million monthly visitors at times. The stress on the urban space and infrastructure, not to mention the daily routines of residents, is undeniable and, at times, painful.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/photos-tourists-Macau.jpg\")
So, the problem is real, but a solution, if there is one, must ponder and balance the various aspects and interests at stake, upholding tourism’s benefits while lessening the inconveniences locals and visitors feel. Other cities worldwide are grappling with similar problems and discussing or trying ways of dealing with them.
\n\n\n\nSetting a maximum number of visitors has been proposed at times, and it seems like a simple and intuitive approach. Yet, it risks being rather crude as a measure and may entail needless side effects. Not all visitors are alike; not all pose the same challenges and impose the same costs. Simple solutions based on single quotas are unlikely to provide the necessary answers.
\n\n\n\nUsing the readily available figures published by the government, we can distinguish two broad types of visitors: same-day and overnight. Even at such a general level of distinction, it is clear they contribute in very different ways to the local economy and impose very different levels of stress on the urban and social fabric. Any policy bent on limiting visitors’ impact must start by clearly distinguishing these situations and their predictable implications. They are likely to call for different approaches and incentives if they are to deliver the desired results and lessen undesired effects.
\n\n\n\nOn average, same-day visitors stay in Macau for less than five hours. During those limited periods, they concentrate mainly on a very limited area of the city and impose the severest constraints on vehicle and person circulation. Their presence and expenses are indeed meaningful for a limited but not trivial number of local businesses. Overall, however, they represent comparatively little in terms of income and a lot in terms of congestion.
\n\n\n\nIn recent years, overnight visitors spent significantly more \u2014 at least five times more per capita. They spend on a broader spectrum of activities and businesses, distribute themselves more evenly in space and time, and bear much less pressure on the city and its residents’ lives.
\n\n\n\nDifferent types of visitors produce diverse impacts that justify diverse measures. A one-size-fits-all tool will be too blunt. Any policy setting visitors’ quotas (or alternative measures with similar purpose) should start by acknowledging and clearly distinguishing those situations and dealing with them differently.
\n\n\n\nWe should go further. That is a very general classification; careful and detailed profiling of the visitors to Macau, beyond these two categories, should be a necessary antecedent to any tourism management policy \u2013 a “know thy customer’ of sorts, allowing for a calibrated intervention, if or when it is required.
\n", "content_text": "Jos\u00e9 I. Duarte\n\n\n\nEconomist, Macau Business Senior Analyst\n\n\n\n\n\n\n\nAs the economy recovers, one hears renewed complaints about tourism overcrowding. Nobody indeed longs for COVID or any similar experience. Still, one cannot fail to recognise that many felt the aftermath of the pandemic gave the city back to the locals for a period. For many residents, the rising tide of tourism flows has brought back concerns about livability and well-being as areas of the city become visibly overcrowded and transit congestion intensifies. \n\n\n\nConsequently, demands for some sort of limitation on the number of visitors returned to the public agenda. The issue is not new, and neither is the main remedy suggested. Maybe it is time we had a fuller discussion about these issues, one from which a policy can be drawn that addresses those legitimate concerns without undue or avoidable costs that will also affect the citizens’ welfare. \n\n\n\nMacau has a population approaching 600,000 people while receiving more than three million monthly visitors at times. The stress on the urban space and infrastructure, not to mention the daily routines of residents, is undeniable and, at times, painful. \n\n\n\n\n\n\n\nSo, the problem is real, but a solution, if there is one, must ponder and balance the various aspects and interests at stake, upholding tourism’s benefits while lessening the inconveniences locals and visitors feel. Other cities worldwide are grappling with similar problems and discussing or trying ways of dealing with them. \n\n\n\nSetting a maximum number of visitors has been proposed at times, and it seems like a simple and intuitive approach. Yet, it risks being rather crude as a measure and may entail needless side effects. Not all visitors are alike; not all pose the same challenges and impose the same costs. Simple solutions based on single quotas are unlikely to provide the necessary answers. \n\n\n\nUsing the readily available figures published by the government, we can distinguish two broad types of visitors: same-day and overnight. Even at such a general level of distinction, it is clear they contribute in very different ways to the local economy and impose very different levels of stress on the urban and social fabric. Any policy bent on limiting visitors’ impact must start by clearly distinguishing these situations and their predictable implications. They are likely to call for different approaches and incentives if they are to deliver the desired results and lessen undesired effects. \n\n\n\nOn average, same-day visitors stay in Macau for less than five hours. During those limited periods, they concentrate mainly on a very limited area of the city and impose the severest constraints on vehicle and person circulation. Their presence and expenses are indeed meaningful for a limited but not trivial number of local businesses. Overall, however, they represent comparatively little in terms of income and a lot in terms of congestion.\n\n\n\n\n\n\n\nIn recent years, overnight visitors spent significantly more \u2014 at least five times more per capita. They spend on a broader spectrum of activities and businesses, distribute themselves more evenly in space and time, and bear much less pressure on the city and its residents’ lives. \n\n\n\nDifferent types of visitors produce diverse impacts that justify diverse measures. A one-size-fits-all tool will be too blunt. Any policy setting visitors’ quotas (or alternative measures with similar purpose) should start by acknowledging and clearly distinguishing those situations and dealing with them differently. \n\n\n\nWe should go further. That is a very general classification; careful and detailed profiling of the visitors to Macau, beyond these two categories, should be a necessary antecedent to any tourism management policy \u2013 a “know thy customer’ of sorts, allowing for a calibrated intervention, if or when it is required.", "date_published": "June 22, 2024", "date_modified": "June 20, 2024 - 15:32", "author": { "name": "Jos\u00e9 I. Duarte", "url": "https://www.macaubusiness.com/author/jose-duarte/", "avatar": "https://secure.gravatar.com/avatar/e38388db4f8ef2a44f40cee48efffb47?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/01/CKK_5436.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "As the economy recovers, one hears renewed complaints about tourism overcrowding. Nobody indeed longs for COVID or any similar experience. Still, one cannot fail to recognise that many felt the aftermath of the pandemic gave the city back to the locals for a period." }, { "id": "https://www.macaubusiness.com/special-report-gaming-operators-hunting-for-events-to-sponsor/", "url": "https://www.macaubusiness.com/special-report-gaming-operators-hunting-for-events-to-sponsor/", "title": "Special Report \u2013 Gaming operators hunting\u00a0for events to sponsor", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/caesars-golf-sport-tournament-macau-open-macao-150x150.png\")
\nThese are the new game rules mandated by the government. The six gaming concessionaires are increasingly sponsoring sporting events
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
\n\n\n\nThere are new gaming regulations mandated by the government, and the six gaming concessionaires are increasingly sponsoring sporting events.
\n\n\n\nPrestigious brands are fond of golf, and in the current Macau context, it’s almost certain that any of the six operators would be eager to sponsor Macau’s most important professional men’s event, the Macau Open. This event is part of the Asian Tour and has been running since 1998. Yet, the Macau Open wasn’t held between 2017, when the Venetian withdrew funding, and 2023, when SJM decided to take over sponsorship.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/12/2023-Galaxy-Entertainment-Macao-International-Marathon-2-1028x685.jpg\")
Regardless of SJM’s previous plans to take over project leadership, the truth is that this return is seen as linked to the commitments the government wants the six concessionaires to make in non-gaming activities, with sports events taking center stage under the new concession contract terms.
\n\n\n\nThat’s why, from the second half of last year until 2024, Macau has hosted more than a dozen major sporting events, in addition to the longstanding ones like the Grand Prix, the Marathon, or the Dragon Boat Race, each sponsored by one of the six operators.
\n\n\n\nWhen bidding for the retendering of the gaming concessions, the operators made significant non-gaming commitments, and the government established a platform in July last year for each operator to demonstrate their plans to carry out each of the events.
\n\n\n\n
\u201cGaming companies can certainly play a huge role in this. In addition to hosting some annual events themselves, apart from the existing ones, they can actually also introduce some internationally renowned competition series. For example, NBA games, including some soccer matches, etc. In fact, there are many international and iconic competitions that can be promoted by the gaming companies in turn\u201d \u2013 Professor Jose Weng-Chou Wong
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/10/SJm-Macao-Open-Lee.png\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/5_images.jpg\")
The plans extend to “cultural and sports associations of Macau, companies, or individuals,” encompassing a “forwarding mechanism for cultural and sports projects,” allowing each of the gaming operators to “analyse and respond (to the applications) independently.”
\n\n\n\nReturning to the example of the Macau Open, what has basically changed is this: with the new commitments made, the six operators are now using their creativity and financial resources to find events that they can organize (especially at their own facilities) and sponsor. They hope this will directly attract tourists and indirectly enhance brand reputation.
\n\n\n\nTake, for example, what happened with Melco last December: on the 13th, Melco collaborated with the East Asian Super League to present one of “Asia’s top sporting events to locals and tourists alike” at the Studio City Event Center (SCEC), the \u201cMelco Style Presents: Clash of the Champions,\u201d featuring \u201can intense battle\u201d between two of Asia’s biggest pro basketball teams: Meralco Bolts, from the Philippines Basketball Association, and Ryukyu Golden Kings, from Japan’s B. League. Less than ten days later, from the 22nd to the 24th, the \u201cMelco Style Presents: 2023 Macau Masters Snooker Tournament\u201d was held again at SCEC, with the participation of big names in the sport from around the world, including Luca Brecel, winner of the 2023 World Snooker Championship, ranked second in the world.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/07/Competi%C3%A7%C3%B5es-durante-dois-dias-seguidos-no-Relvado-da-Wynn-Palace-1028x685.jpg\")
These two events took place a few weeks after Melco was one of the sponsors of the Macau GP. In this case, however, none of the six stood out, as, for the first time, the Government asked each of them for MOP20 million, which means that this combined MOP120 million represents nearly half of the event’s overall budget (mostly MOP260 million). In 2021 and 2022, the Government had already tested this formula, but that year Sands China, Galaxy Entertainment Group, and Wynn Macau sponsored for MOP6.5 million each, and MGM China, Melco Resorts, and SJM Resorts sponsored for MOP3 million each.
\n\n\n\nPrevious | How to turn Macau a major sports events hub
\n", "content_text": "These are the new game rules mandated by the government. The six gaming concessionaires are increasingly sponsoring sporting events\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\nThere are new gaming regulations mandated by the government, and the six gaming concessionaires are increasingly sponsoring sporting events.\n\n\n\nPrestigious brands are fond of golf, and in the current Macau context, it’s almost certain that any of the six operators would be eager to sponsor Macau’s most important professional men’s event, the Macau Open. This event is part of the Asian Tour and has been running since 1998. Yet, the Macau Open wasn’t held between 2017, when the Venetian withdrew funding, and 2023, when SJM decided to take over sponsorship.\n\n\n\n\n\n\n\nRegardless of SJM’s previous plans to take over project leadership, the truth is that this return is seen as linked to the commitments the government wants the six concessionaires to make in non-gaming activities, with sports events taking center stage under the new concession contract terms.\n\n\n\nThat’s why, from the second half of last year until 2024, Macau has hosted more than a dozen major sporting events, in addition to the longstanding ones like the Grand Prix, the Marathon, or the Dragon Boat Race, each sponsored by one of the six operators.\n\n\n\nWhen bidding for the retendering of the gaming concessions, the operators made significant non-gaming commitments, and the government established a platform in July last year for each operator to demonstrate their plans to carry out each of the events.\n\n\n\n \u201cGaming companies can certainly play a huge role in this. In addition to hosting some annual events themselves, apart from the existing ones, they can actually also introduce some internationally renowned competition series. For example, NBA games, including some soccer matches, etc. In fact, there are many international and iconic competitions that can be promoted by the gaming companies in turn\u201d \u2013 Professor Jose Weng-Chou Wong \n\n\n\n\n\n\n\n\n\n\n\nThe plans extend to “cultural and sports associations of Macau, companies, or individuals,” encompassing a “forwarding mechanism for cultural and sports projects,” allowing each of the gaming operators to “analyse and respond (to the applications) independently.”\n\n\n\nReturning to the example of the Macau Open, what has basically changed is this: with the new commitments made, the six operators are now using their creativity and financial resources to find events that they can organize (especially at their own facilities) and sponsor. They hope this will directly attract tourists and indirectly enhance brand reputation.\n\n\n\nTake, for example, what happened with Melco last December: on the 13th, Melco collaborated with the East Asian Super League to present one of “Asia’s top sporting events to locals and tourists alike” at the Studio City Event Center (SCEC), the \u201cMelco Style Presents: Clash of the Champions,\u201d featuring \u201can intense battle\u201d between two of Asia’s biggest pro basketball teams: Meralco Bolts, from the Philippines Basketball Association, and Ryukyu Golden Kings, from Japan’s B. League. Less than ten days later, from the 22nd to the 24th, the \u201cMelco Style Presents: 2023 Macau Masters Snooker Tournament\u201d was held again at SCEC, with the participation of big names in the sport from around the world, including Luca Brecel, winner of the 2023 World Snooker Championship, ranked second in the world.\n\n\n\n\n\n\n\nThese two events took place a few weeks after Melco was one of the sponsors of the Macau GP. In this case, however, none of the six stood out, as, for the first time, the Government asked each of them for MOP20 million, which means that this combined MOP120 million represents nearly half of the event’s overall budget (mostly MOP260 million). In 2021 and 2022, the Government had already tested this formula, but that year Sands China, Galaxy Entertainment Group, and Wynn Macau sponsored for MOP6.5 million each, and MGM China, Melco Resorts, and SJM Resorts sponsored for MOP3 million each.\n\n\n\nPrevious | How to turn Macau a major sports events hub", "date_published": "June 16, 2024", "date_modified": "June 16, 2024 - 19:10", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/caesars-golf-sport-tournament-macau-open-macao.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "These are the new game rules mandated by the government. The six gaming concessionaires are increasingly sponsoring sporting events" }, { "id": "https://www.macaubusiness.com/special-report-how-to-turn-macau-a-major-sports-events-hub/", "url": "https://www.macaubusiness.com/special-report-how-to-turn-macau-a-major-sports-events-hub/", "title": "Special Report \u2013 How to turn Macau a major sports events hub", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Dragon-boat-races-150x150.jpg\")
\nMacau has the resources\u2014money, venues (mainly private and indoor), and a keen interest in hosting events. It’s not an easy feat, but it’s within reach
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
\n\n\n\nMacau has the resources\u2014money, venues (mostly private and indoor), and a strong interest in hosting events. It’s not an easy task, but it’s within grasp.
\n\n\n\nExperts unanimously agree that a city can only claim the label of ‘city of sports’ if it hosts a sufficient number of professional teams participating on a regular basis. Consider Las Vegas, which has long sought a seat in the NBA (and appears to be inching closer to it)), as well as clubs from the National Hockey League, the National Football League, and the Women’s National Basketball Association.
\n\n\n\nWhile Macau may not be considered a ‘city of sports’, it has the potential to become a thriving ‘city of sporting events’.
\n\n\n\nTo achieve this transformation, two fundamental conditions must be met: adequate spaces for events and funding to persuade organisers.
\n\n\n\nDespite the absence of a large open-air stadium accommodating at least 30,000 spectators, Macau already possesses the essentials.
\n\n\n\nHowever, there are still pivotal steps to take that, if accomplished, will firmly establish Macau on the global stage of sporting events.
\n\n\n\nJin Quan Zhou, from the Faculty of Business at Macau Polytechnic University (MPU), stands out among the local researchers focusing sports events studies.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/05/taipa-stadium-1028x843.jpg\")
In an interview with Macau Business, Zhou, the Programme Coordinator of Business Administration in Marketing at MPU, believes that “once sports and events in tourism involve multiple stakeholders as both a tourist destination and host, it is critical to develop more appropriate sports tourism brands for Macau.”
\n\n\n\nProfessor Zhou recognises that the initial stage should be “the expansion of current sports brands.”
\n\n\n\nTrue, “Macau hosts prestigious world-class sports events,” such as the Macau Grand Prix, Macao International Marathon, Macau Open Badminton Championships, and Macau Golf Open, but “despite their global appeal, resident engagement remains modest.” “To enhance this, it is vital to proactively promote sports events, leveraging Macau’s sports heritage to instill pride and foster involvement among residents,” says Professor Zhou, who adds that “this, in turn, can ultimately enhance Macau’s sports tourism sustainability.”
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/aaron-3-1028x685.jpeg\")
Second, there is the question of facilities and experience in hosting sporting events.
\n\n\n\nThe Macau-based scholar notes “Macau’s successful track record in hosting sports events,” notably “the successful hosting of the Fourth East Asian Games in 2005,”
\n\n\n\n“Being an international hub, Macau attracts global sports events and participants. Furthermore, the city’s infrastructure, including hotels, catering services, transportation networks, and more, is proficient at accommodating the diverse needs of both tourists and athletes during major sports events,” he explains.
\n\n\n\nAnother aspect that Professor Zhou considers equally relevant is the need to develop potential sports brand events.
\n\n\n\n“Through the ongoing collaboration with Hengqin and the integrated development of the Greater Bay Area, Macau is presented with enhanced opportunities to expand its sports brand presence,” the researcher says to Macau Business.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/9_imagem1-1028x619.png\")
Among others, “water sports enthusiasts and spectators can be drawn in through thrilling sailing races, kayaking competitions, and surfing events” and “Indoor games and sports in Macau go beyond traditional sports such as tennis and table tennis.\u201d
\n\n\n\n“By developing unique sports event brands, Macau can expand its presence in the sports tourism industry, either by creating its brands or by partnering with existing leagues. This approach will foster a vibrant and diverse sports tourism ecosystem,” states the Programme Coordinator of Business Administration in Marketing at MPU.
\n\n\n\nA final question is: how to stimulate and fulfil the role of the host in sports tourism? “Macau must actively engage the relevant stakeholders, including sports organisations and tourism entities, to effectively fulfil its role as a host in sports tourism,” he answers.
\n\n\n\nCoordinating and involving government bodies, local sports bureaus, sports associations, and sports clubs responsible for organising and hosting events is not easy, but, – assures Jin Quan Zhou – “this coordination ensures the efficient utilisation of limited space and resources, as well as the smooth execution of logistical and administrative aspects of the events.”
\n\n\n\n“Encouraging and mobilising diverse enterprises and organisations in Macau to participate in sports events is crucial for fostering a culture of universal sports and maximising the potential of sports tourism in the region,” concludes the expert.
\n\n\n\n
\u201cBy developing unique sports event brands, Macau can expand its presence in the sports tourism industry, either by creating its brands or by partnering with existing leagues\u201d \u2013 Jin Quan Zhou
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/4_boatraces.jpg\")
Don’t forget the residents
\n\n\n\nIt is very important to obtain residents’ approval and participation, according to Jin Quan Zhou from the Faculty of Business of the Macau Polytechnic University.
\n\n\n\n“Respecting the integrity of residents’ living environments is paramount to avoiding potential discontent and opposition. Instead of prioritising short-term economic gains, such as job creation and business expansion, greater emphasis should be placed on addressing broader social interests that align with long-term development objectives,” he explains.
\n\n\n\n“By integrating sports event planning with local culture and customs, Macau can foster a stronger sense of community ownership and acceptance,” underlines the Macau-based scholar.
\n\n\n\n\n", "content_text": "Macau has the resources\u2014money, venues (mainly private and indoor), and a keen interest in hosting events. It’s not an easy feat, but it’s within reach\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\nMacau has the resources\u2014money, venues (mostly private and indoor), and a strong interest in hosting events. It’s not an easy task, but it’s within grasp.\n\n\n\nExperts unanimously agree that a city can only claim the label of ‘city of sports’ if it hosts a sufficient number of professional teams participating on a regular basis. Consider Las Vegas, which has long sought a seat in the NBA (and appears to be inching closer to it)), as well as clubs from the National Hockey League, the National Football League, and the Women’s National Basketball Association.\n\n\n\nWhile Macau may not be considered a ‘city of sports’, it has the potential to become a thriving ‘city of sporting events’.\n\n\n\nTo achieve this transformation, two fundamental conditions must be met: adequate spaces for events and funding to persuade organisers.\n\n\n\nDespite the absence of a large open-air stadium accommodating at least 30,000 spectators, Macau already possesses the essentials.\n\n\n\nHowever, there are still pivotal steps to take that, if accomplished, will firmly establish Macau on the global stage of sporting events.\n\n\n\nJin Quan Zhou, from the Faculty of Business at Macau Polytechnic University (MPU), stands out among the local researchers focusing sports events studies.\n\n\n\n\n\n\n\nIn an interview with Macau Business, Zhou, the Programme Coordinator of Business Administration in Marketing at MPU, believes that “once sports and events in tourism involve multiple stakeholders as both a tourist destination and host, it is critical to develop more appropriate sports tourism brands for Macau.”\n\n\n\nProfessor Zhou recognises that the initial stage should be “the expansion of current sports brands.”\n\n\n\nTrue, “Macau hosts prestigious world-class sports events,” such as the Macau Grand Prix, Macao International Marathon, Macau Open Badminton Championships, and Macau Golf Open, but “despite their global appeal, resident engagement remains modest.” “To enhance this, it is vital to proactively promote sports events, leveraging Macau’s sports heritage to instill pride and foster involvement among residents,” says Professor Zhou, who adds that “this, in turn, can ultimately enhance Macau’s sports tourism sustainability.”\n\n\n\n\n\n\n\nSecond, there is the question of facilities and experience in hosting sporting events.\n\n\n\nThe Macau-based scholar notes “Macau’s successful track record in hosting sports events,” notably “the successful hosting of the Fourth East Asian Games in 2005,”\n\n\n\n“Being an international hub, Macau attracts global sports events and participants. Furthermore, the city’s infrastructure, including hotels, catering services, transportation networks, and more, is proficient at accommodating the diverse needs of both tourists and athletes during major sports events,” he explains.\n\n\n\nAnother aspect that Professor Zhou considers equally relevant is the need to develop potential sports brand events.\n\n\n\n“Through the ongoing collaboration with Hengqin and the integrated development of the Greater Bay Area, Macau is presented with enhanced opportunities to expand its sports brand presence,” the researcher says to Macau Business.\n\n\n\n\n\n\n\nAmong others, “water sports enthusiasts and spectators can be drawn in through thrilling sailing races, kayaking competitions, and surfing events” and “Indoor games and sports in Macau go beyond traditional sports such as tennis and table tennis.\u201d\n\n\n\n“By developing unique sports event brands, Macau can expand its presence in the sports tourism industry, either by creating its brands or by partnering with existing leagues. This approach will foster a vibrant and diverse sports tourism ecosystem,” states the Programme Coordinator of Business Administration in Marketing at MPU.\n\n\n\nA final question is: how to stimulate and fulfil the role of the host in sports tourism? “Macau must actively engage the relevant stakeholders, including sports organisations and tourism entities, to effectively fulfil its role as a host in sports tourism,” he answers.\n\n\n\nCoordinating and involving government bodies, local sports bureaus, sports associations, and sports clubs responsible for organising and hosting events is not easy, but, – assures Jin Quan Zhou – “this coordination ensures the efficient utilisation of limited space and resources, as well as the smooth execution of logistical and administrative aspects of the events.”\n\n\n\n“Encouraging and mobilising diverse enterprises and organisations in Macau to participate in sports events is crucial for fostering a culture of universal sports and maximising the potential of sports tourism in the region,” concludes the expert.\n\n\n\n \u201cBy developing unique sports event brands, Macau can expand its presence in the sports tourism industry, either by creating its brands or by partnering with existing leagues\u201d \u2013 Jin Quan Zhou \n\n\n\n\n\n\n\n\n\n\n\nDon’t forget the residents\n\n\n\nIt is very important to obtain residents’ approval and participation, according to Jin Quan Zhou from the Faculty of Business of the Macau Polytechnic University.\n\n\n\n“Respecting the integrity of residents’ living environments is paramount to avoiding potential discontent and opposition. Instead of prioritising short-term economic gains, such as job creation and business expansion, greater emphasis should be placed on addressing broader social interests that align with long-term development objectives,” he explains.\n\n\n\n“By integrating sports event planning with local culture and customs, Macau can foster a stronger sense of community ownership and acceptance,” underlines the Macau-based scholar.\n\n\n\nPrevious | Four medal hopes", "date_published": "June 16, 2024", "date_modified": "June 15, 2024 - 02:25", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Dragon-boat-races.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Macau has the resources\u2014money, venues (mainly private and indoor), and a keen interest in hosting events. It's not an easy feat, but it's within reach" }, { "id": "https://www.macaubusiness.com/opinion-macaus-got-talent/", "url": "https://www.macaubusiness.com/opinion-macaus-got-talent/", "title": "OPINION \u2013 Macau\u2019s got talent", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2017/08/talents-150x150.jpg\")
\nMacau Business | June 2024
\n\n\n\nKeith Morrison \u2013 Author and educationist
\n\n\n\nYou may have watched America\u2019s Got Talent, Britain\u2019s Got Talent, Australia\u2019s Got Talent. In fact, many countries have their own similar reality shows. But put those aside, because now Macau\u2019s got talent. It\u2019s true. Not the ear-splitting glitzy singers, endearing little children, dancers, magicians, and comedic acrobats. No, Macau can do better than these; Macau\u2019s got real talent. Reportedly, Macau is good at science, engineering, and technology. On top of this, it needs even more people with expertise in high-tech, computer science and applications, big health, and finance.
\n\n\n\nThe Macau government is reported to be offering a financial incentive to local \u2018high-end talents\u2019 to stay in Macau, along with attracting international experts. As the Secretary for Social affairs and Culture was reported to have said recently: \u2018We welcome scientific and technological talent from around the world to come to Macau to set up businesses and facilitate development\u2019. Add to this, bursting with life and excitement, is Macau\u2019s Talents Development Committee\u2019s alluring comment that its \u2018website provides high-paying job vacancies in five major occupational categories, including: corporate executives, professionals, highly skilled talents and applied talents. The salary of the vacancies is not lower than the median of the relevant occupational categories announced by the Bureau of Statistics.\u2019 Yawn.
\n\n\n\nMaybe the Talents Development Committee is disappointed that it has not recruited anyone who meets its eligibility criterion of having a Nobel prize, the Fields medal, the Turing Award, or the Shaw prize. So, Macau is turning to its own talents, paying them to stay, though reportedly offering them only \u2018slightly more\u2019 cash. Such incentives overlook the elephant in the room, even though several hundred applications are reported to have been received. And what is that elephant? Read on.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/12/Talents-2.-new.jpg\")
Whilst the endeavours of the Macau government are clearly well intentioned, the lack of suitably qualified and experienced workers in the identified key areas of need raises several questions. For example, how is it that the thousands of local students who graduate each year from Macau\u2019s higher education institutions with Master\u2019s and doctorate, and undergraduate degrees in the areas of need, are unsuitable for meeting the local needs, or who decide to work outside Macau, or to work in other employment? Why do local, highly talented people leave Macau or do not return from overseas? Why are suitably experienced international workers not only difficult to recruit but also difficult to retain? Why don\u2019t they want to come to, or stay in, Macau?
\n\n\n\nIn conducting a situational analysis of work opportunities, it is important to look at not only the upside of Macau, but also its downside. On the one hand, Macau is a safe city, most of its residents are delightful, it has some interesting sites, its low tax rate is attractive, and, for senior staff, it pays well. On the other hand, and this is the elephant in the room: (i) career development prospects are very limited in terms of promotion and diversity, with narrow fields of employment; (ii) many of its work cultures are over-hierarchical and over-authoritarian, with handed-down instructions for workers to obey compliantly; (iii) the labyrinthine bureaucracy of visas, work permits, and residency status is forbidding; (iv) government intrusion into private enterprises is oppressive; (v) Macau is monstrously overcrowded with both residents and tourists; (vi) it is a noisy, light-polluted, concrete jungle that lacks countryside and a nature-friendly environment, and its back streets are filthy and congested; (vii) accommodation is expensive; (viii) job security of international workers is fragile (they can be fired at the drop of a hat, as happened when thousands were kicked out at two weeks\u2019 notice in the Covid-19 pandemic); (ix) with only a few exceptions, its mass schooling is like turning back the clock 50+ years; (x) health services are suspect (people go outside Macau for diagnosis and treatment); (xi) Macau has become more geared to tourists than to its locals; (xii) Macau\u2019s residents have few societal and community benefits from the massive gaming income.
\n\n\n\nThe point here is that offering people cash to stay in Macau or to come to it for work pales into relative insignificance when balanced with quality of life, i.e. things that cash cannot buy. Macau seems to have talent in offering disincentives.
\n", "content_text": "Macau Business | June 2024\n\n\n\nKeith Morrison \u2013 Author and educationist\n\n\n\n\n\n\n\nYou may have watched America\u2019s Got Talent, Britain\u2019s Got Talent, Australia\u2019s Got Talent. In fact, many countries have their own similar reality shows. But put those aside, because now Macau\u2019s got talent. It\u2019s true. Not the ear-splitting glitzy singers, endearing little children, dancers, magicians, and comedic acrobats. No, Macau can do better than these; Macau\u2019s got real talent. Reportedly, Macau is good at science, engineering, and technology. On top of this, it needs even more people with expertise in high-tech, computer science and applications, big health, and finance. \n\n\n\nThe Macau government is reported to be offering a financial incentive to local \u2018high-end talents\u2019 to stay in Macau, along with attracting international experts. As the Secretary for Social affairs and Culture was reported to have said recently: \u2018We welcome scientific and technological talent from around the world to come to Macau to set up businesses and facilitate development\u2019. Add to this, bursting with life and excitement, is Macau\u2019s Talents Development Committee\u2019s alluring comment that its \u2018website provides high-paying job vacancies in five major occupational categories, including: corporate executives, professionals, highly skilled talents and applied talents. The salary of the vacancies is not lower than the median of the relevant occupational categories announced by the Bureau of Statistics.\u2019 Yawn. \n\n\n\nMaybe the Talents Development Committee is disappointed that it has not recruited anyone who meets its eligibility criterion of having a Nobel prize, the Fields medal, the Turing Award, or the Shaw prize. So, Macau is turning to its own talents, paying them to stay, though reportedly offering them only \u2018slightly more\u2019 cash. Such incentives overlook the elephant in the room, even though several hundred applications are reported to have been received. And what is that elephant? Read on.\n\n\n\n\n\n\n\nWhilst the endeavours of the Macau government are clearly well intentioned, the lack of suitably qualified and experienced workers in the identified key areas of need raises several questions. For example, how is it that the thousands of local students who graduate each year from Macau\u2019s higher education institutions with Master\u2019s and doctorate, and undergraduate degrees in the areas of need, are unsuitable for meeting the local needs, or who decide to work outside Macau, or to work in other employment? Why do local, highly talented people leave Macau or do not return from overseas? Why are suitably experienced international workers not only difficult to recruit but also difficult to retain? Why don\u2019t they want to come to, or stay in, Macau?\n\n\n\nIn conducting a situational analysis of work opportunities, it is important to look at not only the upside of Macau, but also its downside. On the one hand, Macau is a safe city, most of its residents are delightful, it has some interesting sites, its low tax rate is attractive, and, for senior staff, it pays well. On the other hand, and this is the elephant in the room: (i) career development prospects are very limited in terms of promotion and diversity, with narrow fields of employment; (ii) many of its work cultures are over-hierarchical and over-authoritarian, with handed-down instructions for workers to obey compliantly; (iii) the labyrinthine bureaucracy of visas, work permits, and residency status is forbidding; (iv) government intrusion into private enterprises is oppressive; (v) Macau is monstrously overcrowded with both residents and tourists; (vi) it is a noisy, light-polluted, concrete jungle that lacks countryside and a nature-friendly environment, and its back streets are filthy and congested; (vii) accommodation is expensive; (viii) job security of international workers is fragile (they can be fired at the drop of a hat, as happened when thousands were kicked out at two weeks\u2019 notice in the Covid-19 pandemic); (ix) with only a few exceptions, its mass schooling is like turning back the clock 50+ years; (x) health services are suspect (people go outside Macau for diagnosis and treatment); (xi) Macau has become more geared to tourists than to its locals; (xii) Macau\u2019s residents have few societal and community benefits from the massive gaming income.\n\n\n\nThe point here is that offering people cash to stay in Macau or to come to it for work pales into relative insignificance when balanced with quality of life, i.e. things that cash cannot buy. Macau seems to have talent in offering disincentives.", "date_published": "June 16, 2024", "date_modified": "June 15, 2024 - 01:39", "author": { "name": "Keith Morrison", "url": "https://www.macaubusiness.com/author/keith-morrison/", "avatar": "https://secure.gravatar.com/avatar/2cbea4555b349452d65f06d8dd037154?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2017/08/talents.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "You may have watched America\u2019s Got Talent, Britain\u2019s Got Talent, Australia\u2019s Got Talent. In fact, many countries have their own similar reality shows. But put those aside, because now Macau\u2019s got talent." }, { "id": "https://www.macaubusiness.com/special-report-four-medal-hopes/", "url": "https://www.macaubusiness.com/special-report-four-medal-hopes/", "title": "Special Report \u2013 Four medal hopes", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/03/Hoi-Long-wins-the-Macao-womens-athlete-title.-150x150.jpg\")
\nMacau boasts champions in wushu yet hopes to secure medals in other disciplines. These four athletes represent the main prospects for hoisting the Macau flag atop the podium. Notable mentions also include Kuok Kin Hang (karate) and Lei On Kei (swimming).
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/3_LiYi.jpg\")
Li Yi (Wushu, Changquan Variant)
\n\n\n\nLi Yi emerged as the standout performer at the 2023 Asian Games, clinching the gold medal in a stirring final where she narrowly defeated her Hong Kong counterpart. This triumph marked a pinnacle in her career, which includes two previous silver medals and two world championships.
\n\n\n\nCommencing her journey at the tender age of 8 in mainland China, Li has amassed a plethora of medals, with her inaugural victory in 2013 while representing the People’s Republic of China. Since her transition to Macau in 2017 for university studies, she has been a stalwart representative, capturing two gold medals in jianshu and qiangshu variants, and a silver in changquan at the 2019 Wushu World Championships.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/3_Huang-1028x685.jpg\")
Huang Junhua (Wushu, Nanquan Variant)
\n\n\n\nHuang Junhua secured the bronze medal in wushu, nanquan variant, at the recent Asian Games, adding to his gold from the 2018 Jakarta Games. Despite contemplating retirement due to advancing age, Huang remains motivated by the prospect of competing on home soil, should wushu events be held in Macau.
\n\n\n\nExpressing his desire for another accolade, Huang aims for gold at the upcoming Asian Wushu Championship. In his potential absence, hopes in men’s wushu pivot towards Song Chi Kuan, the bronze medalist in the changquan variant at the 2023 Asian Games.
\n\n\n\nChan Man Man (Olympic Boxing)
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/3_Chan-Man-Man_creditoCheong-Kam-Ka-1028x685.jpg\")
Macau boasts a cadre of talented female boxers, with Chan Man Man distinguishing herself by representing the territory at the Chinese National Games. Despite aspirations to turn professional, the 22-year-old, also a local school teacher, faces challenges due to sparse competitive opportunities. Nonetheless, Chan draws strength from past experiences, having competed regionally and internationally, including during her tenure at Beijing Sports University.
\n\n\n\n(Mak Kit I was the first female boxer to represent Macau at the 2010 and 2014 Asian Games, while Tang Choi Ieng merits recognition as the territory’s inaugural professional boxer).
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/3_hoilong.jpg\")
Hoi Long (Triathlon or Marathon?)
\n\n\n\nHoi Long stands as one of Macau’s most decorated athletes, excelling across local, national, and international competitions. Notably proficient in both triathlon and marathon disciplines, she holds the women’s half-marathon record for Macau. Furthermore, Hoi competes in adapted sports, demonstrating versatility despite hearing impairment.
\n\n\n\nClaiming a bronze medal in triathlon at the 2018 Asian Games, Hoi’s journey in sports commenced through swimming and cycling, with running becoming her final passion. Balancing athletic pursuits with a full-time civil service role and doctoral studies at the Polytechnic University, Hoi’s versatility is unmatched.
\n\n\n\nThe choice between triathlon and marathon at the upcoming National Games remains to be seen, underscoring Hoi Long’s multifaceted athletic prowess.
\n\n\n\nPrevious | Many sports, few athletes
\n", "content_text": "Macau boasts champions in wushu yet hopes to secure medals in other disciplines. These four athletes represent the main prospects for hoisting the Macau flag atop the podium. Notable mentions also include Kuok Kin Hang (karate) and Lei On Kei (swimming).\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\n\n\n\n\nLi Yi (Wushu, Changquan Variant)\n\n\n\nLi Yi emerged as the standout performer at the 2023 Asian Games, clinching the gold medal in a stirring final where she narrowly defeated her Hong Kong counterpart. This triumph marked a pinnacle in her career, which includes two previous silver medals and two world championships.\n\n\n\nCommencing her journey at the tender age of 8 in mainland China, Li has amassed a plethora of medals, with her inaugural victory in 2013 while representing the People’s Republic of China. Since her transition to Macau in 2017 for university studies, she has been a stalwart representative, capturing two gold medals in jianshu and qiangshu variants, and a silver in changquan at the 2019 Wushu World Championships.\n\n\n\n\n\n\n\nHuang Junhua (Wushu, Nanquan Variant)\n\n\n\nHuang Junhua secured the bronze medal in wushu, nanquan variant, at the recent Asian Games, adding to his gold from the 2018 Jakarta Games. Despite contemplating retirement due to advancing age, Huang remains motivated by the prospect of competing on home soil, should wushu events be held in Macau.\n\n\n\nExpressing his desire for another accolade, Huang aims for gold at the upcoming Asian Wushu Championship. In his potential absence, hopes in men’s wushu pivot towards Song Chi Kuan, the bronze medalist in the changquan variant at the 2023 Asian Games.\n\n\n\nChan Man Man (Olympic Boxing)\n\n\n\n\n\n\n\nMacau boasts a cadre of talented female boxers, with Chan Man Man distinguishing herself by representing the territory at the Chinese National Games. Despite aspirations to turn professional, the 22-year-old, also a local school teacher, faces challenges due to sparse competitive opportunities. Nonetheless, Chan draws strength from past experiences, having competed regionally and internationally, including during her tenure at Beijing Sports University.\n\n\n\n(Mak Kit I was the first female boxer to represent Macau at the 2010 and 2014 Asian Games, while Tang Choi Ieng merits recognition as the territory’s inaugural professional boxer).\n\n\n\n\n\n\n\nHoi Long (Triathlon or Marathon?)\n\n\n\nHoi Long stands as one of Macau’s most decorated athletes, excelling across local, national, and international competitions. Notably proficient in both triathlon and marathon disciplines, she holds the women’s half-marathon record for Macau. Furthermore, Hoi competes in adapted sports, demonstrating versatility despite hearing impairment.\n\n\n\nClaiming a bronze medal in triathlon at the 2018 Asian Games, Hoi’s journey in sports commenced through swimming and cycling, with running becoming her final passion. Balancing athletic pursuits with a full-time civil service role and doctoral studies at the Polytechnic University, Hoi’s versatility is unmatched.\n\n\n\nThe choice between triathlon and marathon at the upcoming National Games remains to be seen, underscoring Hoi Long’s multifaceted athletic prowess.\n\n\n\nPrevious | Many sports, few athletes", "date_published": "June 15, 2024", "date_modified": "June 15, 2024 - 01:52", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/03/Hoi-Long-wins-the-Macao-womens-athlete-title..jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Macau boasts champions in wushu yet hopes to secure medals in other disciplines. These four athletes represent the main prospects for hoisting the Macau flag atop the podium. Notable mentions also include Kuok Kin Hang (karate) and Lei On Kei (swimming)." }, { "id": "https://www.macaubusiness.com/special-report-many-sports-few-athletes/", "url": "https://www.macaubusiness.com/special-report-many-sports-few-athletes/", "title": "Special Report \u2013 Many sports, few athletes", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/2_pickleball-150x150.jpg\")
\nEven in the most popular sports, there remains a shortage of athletes to sustain a competitive standard.
\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/sports-pickleball-1028x705.png\")
Are you familiar with pickleball? A fusion of tennis, badminton, and ping-pong, this emerging sport has garnered attention. For enthusiasts seeking to play, an association in Macau has been active since April, dedicated to promoting this family-friendly activity originating from the 1960s in the United States.
\n\n\n\nPickleball is just one among approximately 50 sports officially recognized in Macau, boasting duly registered associations with the Sports Bureau (ID). The roster encompasses globally acclaimed sports such as football, rugby, basketball, handball, and cricket, alongside regional favourites like various martial arts, as well as niche pursuits including Gateball (popular among the elderly in Japan), Woodball (akin to golf), and even the Macau Ice Sports Federation.
\n\n\n\nThe challenge lies not merely in the scarcity of offerings but rather in the shortage of facilities (as detailed in a prior section of this special report) and the insufficient participation to ensure a minimally competitive environment.
\n\n\n\nConsider the plight of the Macau Black Bears, the first-ever professional basketball team in Macau, compelled to compete in the ASEAN Basketball League due to the local scenario.
\n\n\n\nAccording to the latest data from ID disclosed to Macau Business, there are presently 57 sports associations and clubs in Macau endowed with association privileges, catering to over 2,000 athletes across training teams. As of April 15th, a total of 83 elite athletes from 14 sports have been identified.
\n\n\n\nThe predicament faced by football serves as an apt metaphor for the local sporting landscape. Despite being the world’s most popular sport, football contends with a scarcity of pitches for 11-a-side games and a shortfall of players, prompting the rise of 7-a-side football as an alternative.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/2_3x3bask.jpg\")
Furthermore, adaptations like 3×3 basketball and touch rugby (with six players per team) have emerged out of necessity due to the requirement for fewer participants.
\n\n\n\nDelving deeper into rugby’s status in Macau, approximately a hundred young enthusiasts rally around the Macau Bats project. However, without regular competitive opportunities, how can these budding talents progress? Organizers aim to facilitate at least one monthly fixture against teams from Hong Kong.
\n\n\n\nSimilarly, cricket, overseen by the Macau Cricket Association, boasts around 40 players. Yet, the challenge remains in enticing more youth to embrace sports in Macau.
\n\n\n\nThe recent 17th Asian Mass Sports Association Seminar, held in Macau, spotlighted the pivotal role of parents in fostering a sporting culture among children. Wolfgang Baumann, President of the Association for International Sport for All, emphasized the significance of parental involvement in shaping children’s attitudes toward physical activity.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/sports-macau-rugby.png\")
\u201cFor me, parents are the number one educator for children regarding sport for all. I can’t imagine any other entity that could do better. Why? Because we all know that the six years between zero and six are extremely important to shape the habits and interests of a child.\u201d
\n\n\n\n\u201cSchool cannot do it alone. It needs active parents. Parents need to be educated. It\u2019s not only important to play the piano or to learn any language, but also to do physical activity,\u201d Mr. Baumann commented, quoted by Macau Daily Times.
\n\n\n\nAs new sports emerge, others wane. The closure of the Jockey Club has sealed the fate of horse racing in Macau. Two decades ago, Macau hosted 1,200 races annually, outnumbering even Hong Kong. Yet, not even that prevented the demise of the Jockey Club.
\n\n\n\nOlympic Games
\n\n\n\nIn July 2021, many people in Macau wondered why an athlete from Hong Kong was receiving a gold medal at the Olympic Games (Edgar Cheung, in fencing) while athletes from Macau were not participating in the same competition.
\n\n\n\nAlthough Macau has an Olympic and Sports Committee (known as the Macau Olympic Committee since 1987) which belongs to the Olympic Council of Asia (OCA), it is not part of the International Olympic Committee (IOC).
\n\n\n\nBefore the changes that prevented non-state separate jurisdictions from participating, Hong Kong applied for membership. As a result, it has been competing in the Olympic Games since 1952.
\n\n\n\nThe pre-handover Portuguese authorities in Macau, for their part, failed to complete the application process on time before those changes.
\n\n\n\nThere are still those who argue that Macau should make a formal request to the IOC, especially since it never received an official negative response, and it can be taken into account that the process was opened at the end of the 1980s.
\n\n\n\nPrevious | Macau lacks new sports venues\u2026
\n", "content_text": "Even in the most popular sports, there remains a shortage of athletes to sustain a competitive standard.\n\n\n\nMacau Business | June 2024 | Special Report | One year to the National Games\n\n\n\n\n\n\n\n\n\n\n\nAre you familiar with pickleball? A fusion of tennis, badminton, and ping-pong, this emerging sport has garnered attention. For enthusiasts seeking to play, an association in Macau has been active since April, dedicated to promoting this family-friendly activity originating from the 1960s in the United States.\n\n\n\nPickleball is just one among approximately 50 sports officially recognized in Macau, boasting duly registered associations with the Sports Bureau (ID). The roster encompasses globally acclaimed sports such as football, rugby, basketball, handball, and cricket, alongside regional favourites like various martial arts, as well as niche pursuits including Gateball (popular among the elderly in Japan), Woodball (akin to golf), and even the Macau Ice Sports Federation.\n\n\n\nThe challenge lies not merely in the scarcity of offerings but rather in the shortage of facilities (as detailed in a prior section of this special report) and the insufficient participation to ensure a minimally competitive environment.\n\n\n\nConsider the plight of the Macau Black Bears, the first-ever professional basketball team in Macau, compelled to compete in the ASEAN Basketball League due to the local scenario.\n\n\n\nAccording to the latest data from ID disclosed to Macau Business, there are presently 57 sports associations and clubs in Macau endowed with association privileges, catering to over 2,000 athletes across training teams. As of April 15th, a total of 83 elite athletes from 14 sports have been identified.\n\n\n\nThe predicament faced by football serves as an apt metaphor for the local sporting landscape. Despite being the world’s most popular sport, football contends with a scarcity of pitches for 11-a-side games and a shortfall of players, prompting the rise of 7-a-side football as an alternative.\n\n\n\n\n\n\n\nFurthermore, adaptations like 3×3 basketball and touch rugby (with six players per team) have emerged out of necessity due to the requirement for fewer participants.\n\n\n\nDelving deeper into rugby’s status in Macau, approximately a hundred young enthusiasts rally around the Macau Bats project. However, without regular competitive opportunities, how can these budding talents progress? Organizers aim to facilitate at least one monthly fixture against teams from Hong Kong.\n\n\n\nSimilarly, cricket, overseen by the Macau Cricket Association, boasts around 40 players. Yet, the challenge remains in enticing more youth to embrace sports in Macau.\n\n\n\nThe recent 17th Asian Mass Sports Association Seminar, held in Macau, spotlighted the pivotal role of parents in fostering a sporting culture among children. Wolfgang Baumann, President of the Association for International Sport for All, emphasized the significance of parental involvement in shaping children’s attitudes toward physical activity.\n\n\n\n\n\n\n\n \u201cFor me, parents are the number one educator for children regarding sport for all. I can’t imagine any other entity that could do better. Why? Because we all know that the six years between zero and six are extremely important to shape the habits and interests of a child.\u201d\n\n\n\n\u201cSchool cannot do it alone. It needs active parents. Parents need to be educated. It\u2019s not only important to play the piano or to learn any language, but also to do physical activity,\u201d Mr. Baumann commented, quoted by Macau Daily Times.\n\n\n\nAs new sports emerge, others wane. The closure of the Jockey Club has sealed the fate of horse racing in Macau. Two decades ago, Macau hosted 1,200 races annually, outnumbering even Hong Kong. Yet, not even that prevented the demise of the Jockey Club.\n\n\n\n\n\n\n\nOlympic Games\n\n\n\nIn July 2021, many people in Macau wondered why an athlete from Hong Kong was receiving a gold medal at the Olympic Games (Edgar Cheung, in fencing) while athletes from Macau were not participating in the same competition.\n\n\n\nAlthough Macau has an Olympic and Sports Committee (known as the Macau Olympic Committee since 1987) which belongs to the Olympic Council of Asia (OCA), it is not part of the International Olympic Committee (IOC).\n\n\n\nBefore the changes that prevented non-state separate jurisdictions from participating, Hong Kong applied for membership. As a result, it has been competing in the Olympic Games since 1952.\n\n\n\nThe pre-handover Portuguese authorities in Macau, for their part, failed to complete the application process on time before those changes.\n\n\n\nThere are still those who argue that Macau should make a formal request to the IOC, especially since it never received an official negative response, and it can be taken into account that the process was opened at the end of the 1980s.\n\n\n\nPrevious | Macau lacks new sports venues\u2026", "date_published": "June 09, 2024", "date_modified": "June 08, 2024 - 11:23", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/2_pickleball.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Even in the most popular sports, there remains a shortage of athletes to sustain a competitive standard." }, { "id": "https://www.macaubusiness.com/sino-lusophone-tech-drive/", "url": "https://www.macaubusiness.com/sino-lusophone-tech-drive/", "title": "Sino-Lusophone tech drive", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-1-150x150.png\")
\nA delegation of tech enterprises from Portuguese-speaking countries visited Macau, Hengqin, and other Greater Bay Area cities. During the tour, two Brazilian technology firms were incorporated in Macau, and six cooperation agreements were signed
\n\n\n\nBy Tony Lai
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-2-1028x634.png\")
From 19 to 25 May, the delegation\u2014consisting of nearly 30 representatives from eight incubators and institutions, as well as ten technology firms in healthcare, new materials, artificial intelligence, and other fields from Portuguese-speaking countries\u2014embarked on a visit to Macau, Hengqin, Zhuhai, and Guangzhou. During their stay in the Greater Bay Area, which was organised by the Economic and Technological Development Bureau of Macau (DSEDT) and hosted by the Macau Young Entrepreneur Incubation Centre, they also participated in the BEYOND International Science and Technology Innovation Expo (BEYOND Expo), one of Asia\u2019s emerging technology trade shows, held in Macau.
\n\n\n\n\u201cThe DSEDT has always maintained close ties and cooperation with universities, technology companies, incubators, and other institutions in Portuguese-speaking countries, particularly Portugal and Brazil. The Bureau is committed to promoting exchanges and cooperation between science and technology entities in Mainland China and Portuguese-speaking countries,\u201d stated Tai Kin Ip, the director of DSEDT.
\n\n\n\nIn addition to the Greater Bay Area visit, the DSEDT has undertaken various initiatives in recent years to advocate for technology exchanges between the two sides through Macau. These initiatives include hosting the annual Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal since 2021, as well as facilitating meetings and collaborations between entities from Portuguese-speaking countries and various mainland provinces and cities.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-3.png\")
Via Macau
\n\n\n\nThe establishment of the \u201cCentre for Science and Technology Exchange and Cooperation between China and Portuguese-Speaking Countries\u201d (CSTCP) last year strengthened the city\u2019s platform role, Mr. Tai highlighted. The CSTCP, supported by the Chinese Ministry of Science and Technology, operates in two centres\u2014one in Macau and the other in Hengqin\u2014with the Macau centre being managed by the DSEDT.
\n\n\n\n\u201c[The goal of the CSTCP] is to enable the technology entrepreneurship community in Portuguese-speaking countries to gain a deeper understanding of the technology ecosystem and policy advantages of Macau and Mainland China,\u201d Mr. Tai explained.
\n\n\n\nSince its implementation, the CSTCP has assisted four technology companies from Brazil and Portugal in incorporating in Macau and has facilitated the signing of 12 cooperation agreements. These agreements involve various parties, including technology companies, universities, and incubators from Brazil, Portugal, Macau and Hengqin.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-4.png\")
Two roadshows in one trip
\n\n\n\nDuring the Greater Bay Area trip in May, for example, two Brazilian technology firms were incorporated in Macau, and six cooperation agreements were signed. These agreements focused on strengthening cooperation between Brazilian and Portuguese incubation institutions and their counterparts in Macau, increasing capital support from Mainland China for projects from Portuguese-speaking countries, and enhancing product research and development among enterprises.
\n\n\n\nDuring the Greater Bay Area trip in May, three Brazilian technology firms were incorporated in Macau with the help of DSEDT, and eight cooperation agreements were signed in two roadshows held in Macau and Hengqin respectively. These agreements focused on strengthening cooperation between Brazilian and Portuguese incubation institutions and their counterparts in Macau, increasing capital support from Mainland China for projects from Portuguese-speaking countries, and enhancing product research and development among enterprises.
\n\n\n\nAs part of their participation in the trip, the delegation had the opportunity to exhibit at BEYOND Expo 2024 from 22 to 24 May. \u201cAs BEYOND Expo brings together the latest technology products and services from around the world, it serves to broaden the horizons of the delegation participants and provides them with opportunities to exchange ideas with their peers,\u201d added Mr. Tai.
\n\n\n\nIn addition to attending the BEYOND Expo, the seven-day trip encompassed visits to various locations, including the CSTCP Macau Centre, the Supporting Office to the Secretariat of China and Portuguese-Speaking Countries Economic Cooperation Forum in Macau, the Macau-Hengqin Youth Entrepreneurship Valley, and the Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macau in Hengqin. The delegation also toured the Xiangzhou Innovation Center in Zhuhai.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/%E5%B1%8F%E5%B9%95%E6%88%AA%E5%9B%BE-2024-06-08-050332-1028x539.png\")
\u201cConvenient\u201d in language
\n\n\n\nOne of the two firms that incorporated and settled in Macau amidst the trip this year was Yosen Nanotechnology, a Brazilian technology firm specialising in nanotechnology-based nutraceutical products with lipidic release systems. Yosen Nanotechnology also signed two cooperation agreements with Macau and Hengqin companies linked to the University of Macau.
\n\n\n\nGustavo Cadurim, CEO of Yosen Nanotechnology, highlighted the \u201csignificance\u201d of their participation in the trip, particularly as they have just established a company in Macau for market development in China. The two cooperation agreements signed in the trip focus on research and development of new products based on nanotechnology and traditional Chinese medicine techniques, he added.
\n\n\n\nThe CEO also hailed the \u201cplatform role\u201d of Macau, stating, \u201cThe environment in Macau is very favourable for us\u2014companies from Portuguese-speaking countries\u2014as Portuguese is one of the official languages [of Macau]. It’s convenient for us to set up a company here as all the communication and documents can be undertaken in Portuguese.\u201d
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-5.png\")
Support via Macau
\n\n\n\nThe Brazilian company has also received various forms of support, including financial assistance, for its development through Macau, Mr. Cadurim added. As the second runner-up in the 2022 Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal, Yosen Nanotechnology participated in last year’s Greater Bay Area trip organised by the DSEDT. The firm was also recommended to participate and won a prize in the 3rd Hengqin International Scientific and Technological Innovation and Entrepreneurship Competition organised by the authorities of the in-depth cooperation zone in Hengqin.
\n\n\n\nWith its new company in Macau, Yosen plans to recruit about 3 new employees locally to assist in administrative work and accounting, as well as research and development of new products with their partners, the CEO remarked. \u201cThe support received via Macau is fundamental for our presence and establishment here in the region,\u201d he said.
\n\n\n\nYosen’s nutraceutical products, including Vitamin B12, Vitamin D3, and Melatonin, have been available for sales in the mainland Chinese market via the social media platform Douyin since June. \u201cWe hope to reach an annual revenue of around RMB60 million by the end of 2027 from our sales in China,\u201d Mr. Cadurim envisioned.
\n\n\n\nDuring the seven-day trip in May, the delegation met with representatives from over 50 technology companies, venture capital funds, universities, and government departments in the Greater Bay Area. They visited several Mainland Chinese technology firms based in Hengqin, Zhuhai, and Guangzhou, including the microchip enterprise Guangdong LeapFive Technology Co., Ltd, the automobile maker GAC Aion New Energy Automobile Co., the online sales firm Vipshop Holdings, and the medical and healthcare firm Zhuhai Sanmed Biotech Inc.
\n\n\n\nFrom West to East
\n\n\n\nEva Andrade, the science and technology manager of the University of Aveiro in Portugal, which also provides entrepreneurship incubation service, was part of this year’s delegation. “Through joining the BEYOND Expo and this trip, we discovered that Macau has excellent infrastructure and favourable services for enterprises,\u201d she indicated. \u201cMacau is truly a good platform that can provide opportunities for sci-tech enterprises in Portugal and even Europe.\u201d
\n\n\n\nThe University of Aveiro, a long-standing supporting unit of the Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal, also signed a partnership agreement with the Macau Young Entrepreneur Incubation Centre during this trip. In the future, she hopes to establish collaborations with more institutions in Macau for various initiatives such as research projects and student exchanges. \u201cInitiatives of different natures can be carried out between the University of Aveiro and Macau, which, in turn, can bring more opportunities to enterprises in Portugal,\u201d she added.
\n\n\n\nMs. Andrade also recognised the potential for entrepreneurship and technology in the in-depth cooperation zone in Hengqin after this trip. \u201cOur biggest takeaway from this trip is that we should shift our focus more from the European or American markets to the Asian market\u2014[Portuguese firms] can explore opportunities in Macau, mainland China, and Asia,\u201d she remarked.
\n\n\n\nFollowing the organisation of this Greater Bay Area trip, Mr. Tai of DSEDT emphasised that both CSTCP and DSEDT will continue to carry out more initiatives and activities to promote technology exchange between China and the Lusophone world. \u201cWe hope to leverage the mechanisms and resources in Macau and Hengqin to attract more high-quality companies from Portuguese-speaking countries to incorporate and settle in Macau and Hengqin,\u201d he remarked.
\n\n\n\n“On the other hand, we also aim to facilitate outstanding enterprises from the mainland, which hope to internationalise their businesses, to use Macau as a platform to explore markets in Portuguese-speaking countries,\u201d he concluded.
\n", "content_text": "A delegation of tech enterprises from Portuguese-speaking countries visited Macau, Hengqin, and other Greater Bay Area cities. During the tour, two Brazilian technology firms were incorporated in Macau, and six cooperation agreements were signed\n\n\n\nBy Tony Lai\n\n\n\n\n\n\n\n\n\n\n\nFrom 19 to 25 May, the delegation\u2014consisting of nearly 30 representatives from eight incubators and institutions, as well as ten technology firms in healthcare, new materials, artificial intelligence, and other fields from Portuguese-speaking countries\u2014embarked on a visit to Macau, Hengqin, Zhuhai, and Guangzhou. During their stay in the Greater Bay Area, which was organised by the Economic and Technological Development Bureau of Macau (DSEDT) and hosted by the Macau Young Entrepreneur Incubation Centre, they also participated in the BEYOND International Science and Technology Innovation Expo (BEYOND Expo), one of Asia\u2019s emerging technology trade shows, held in Macau. \n\n\n\n\u201cThe DSEDT has always maintained close ties and cooperation with universities, technology companies, incubators, and other institutions in Portuguese-speaking countries, particularly Portugal and Brazil. The Bureau is committed to promoting exchanges and cooperation between science and technology entities in Mainland China and Portuguese-speaking countries,\u201d stated Tai Kin Ip, the director of DSEDT.\n\n\n\nIn addition to the Greater Bay Area visit, the DSEDT has undertaken various initiatives in recent years to advocate for technology exchanges between the two sides through Macau. These initiatives include hosting the annual Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal since 2021, as well as facilitating meetings and collaborations between entities from Portuguese-speaking countries and various mainland provinces and cities.\n\n\n\n\n\n\n\nVia Macau\n\n\n\nThe establishment of the \u201cCentre for Science and Technology Exchange and Cooperation between China and Portuguese-Speaking Countries\u201d (CSTCP) last year strengthened the city\u2019s platform role, Mr. Tai highlighted. The CSTCP, supported by the Chinese Ministry of Science and Technology, operates in two centres\u2014one in Macau and the other in Hengqin\u2014with the Macau centre being managed by the DSEDT.\n\n\n\n\u201c[The goal of the CSTCP] is to enable the technology entrepreneurship community in Portuguese-speaking countries to gain a deeper understanding of the technology ecosystem and policy advantages of Macau and Mainland China,\u201d Mr. Tai explained. \n\n\n\nSince its implementation, the CSTCP has assisted four technology companies from Brazil and Portugal in incorporating in Macau and has facilitated the signing of 12 cooperation agreements. These agreements involve various parties, including technology companies, universities, and incubators from Brazil, Portugal, Macau and Hengqin. \n\n\n\n\n\n\n\nTwo roadshows in one trip\n\n\n\nDuring the Greater Bay Area trip in May, for example, two Brazilian technology firms were incorporated in Macau, and six cooperation agreements were signed. These agreements focused on strengthening cooperation between Brazilian and Portuguese incubation institutions and their counterparts in Macau, increasing capital support from Mainland China for projects from Portuguese-speaking countries, and enhancing product research and development among enterprises.\n\n\n\nDuring the Greater Bay Area trip in May, three Brazilian technology firms were incorporated in Macau with the help of DSEDT, and eight cooperation agreements were signed in two roadshows held in Macau and Hengqin respectively. These agreements focused on strengthening cooperation between Brazilian and Portuguese incubation institutions and their counterparts in Macau, increasing capital support from Mainland China for projects from Portuguese-speaking countries, and enhancing product research and development among enterprises.\n\n\n\nAs part of their participation in the trip, the delegation had the opportunity to exhibit at BEYOND Expo 2024 from 22 to 24 May. \u201cAs BEYOND Expo brings together the latest technology products and services from around the world, it serves to broaden the horizons of the delegation participants and provides them with opportunities to exchange ideas with their peers,\u201d added Mr. Tai.\n\n\n\nIn addition to attending the BEYOND Expo, the seven-day trip encompassed visits to various locations, including the CSTCP Macau Centre, the Supporting Office to the Secretariat of China and Portuguese-Speaking Countries Economic Cooperation Forum in Macau, the Macau-Hengqin Youth Entrepreneurship Valley, and the Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between Guangdong and Macau in Hengqin. The delegation also toured the Xiangzhou Innovation Center in Zhuhai.\n\n\n\n\n\n\n\n\u201cConvenient\u201d in language\n\n\n\nOne of the two firms that incorporated and settled in Macau amidst the trip this year was Yosen Nanotechnology, a Brazilian technology firm specialising in nanotechnology-based nutraceutical products with lipidic release systems. Yosen Nanotechnology also signed two cooperation agreements with Macau and Hengqin companies linked to the University of Macau. \n\n\n\nGustavo Cadurim, CEO of Yosen Nanotechnology, highlighted the \u201csignificance\u201d of their participation in the trip, particularly as they have just established a company in Macau for market development in China. The two cooperation agreements signed in the trip focus on research and development of new products based on nanotechnology and traditional Chinese medicine techniques, he added. \n\n\n\nThe CEO also hailed the \u201cplatform role\u201d of Macau, stating, \u201cThe environment in Macau is very favourable for us\u2014companies from Portuguese-speaking countries\u2014as Portuguese is one of the official languages [of Macau]. It’s convenient for us to set up a company here as all the communication and documents can be undertaken in Portuguese.\u201d\n\n\n\n\n\n\n\nSupport via Macau\n\n\n\nThe Brazilian company has also received various forms of support, including financial assistance, for its development through Macau, Mr. Cadurim added. As the second runner-up in the 2022 Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal, Yosen Nanotechnology participated in last year’s Greater Bay Area trip organised by the DSEDT. The firm was also recommended to participate and won a prize in the 3rd Hengqin International Scientific and Technological Innovation and Entrepreneurship Competition organised by the authorities of the in-depth cooperation zone in Hengqin.\n\n\n\nWith its new company in Macau, Yosen plans to recruit about 3 new employees locally to assist in administrative work and accounting, as well as research and development of new products with their partners, the CEO remarked. \u201cThe support received via Macau is fundamental for our presence and establishment here in the region,\u201d he said. \n\n\n\nYosen’s nutraceutical products, including Vitamin B12, Vitamin D3, and Melatonin, have been available for sales in the mainland Chinese market via the social media platform Douyin since June. \u201cWe hope to reach an annual revenue of around RMB60 million by the end of 2027 from our sales in China,\u201d Mr. Cadurim envisioned.\n\n\n\nDuring the seven-day trip in May, the delegation met with representatives from over 50 technology companies, venture capital funds, universities, and government departments in the Greater Bay Area. They visited several Mainland Chinese technology firms based in Hengqin, Zhuhai, and Guangzhou, including the microchip enterprise Guangdong LeapFive Technology Co., Ltd, the automobile maker GAC Aion New Energy Automobile Co., the online sales firm Vipshop Holdings, and the medical and healthcare firm Zhuhai Sanmed Biotech Inc.\n\n\n\nFrom West to East\n\n\n\nEva Andrade, the science and technology manager of the University of Aveiro in Portugal, which also provides entrepreneurship incubation service, was part of this year’s delegation. “Through joining the BEYOND Expo and this trip, we discovered that Macau has excellent infrastructure and favourable services for enterprises,\u201d she indicated. \u201cMacau is truly a good platform that can provide opportunities for sci-tech enterprises in Portugal and even Europe.\u201d\n\n\n\nThe University of Aveiro, a long-standing supporting unit of the Innovation and Entrepreneurship Competition (Macau) for Technology Enterprises from Brazil and Portugal, also signed a partnership agreement with the Macau Young Entrepreneur Incubation Centre during this trip. In the future, she hopes to establish collaborations with more institutions in Macau for various initiatives such as research projects and student exchanges. \u201cInitiatives of different natures can be carried out between the University of Aveiro and Macau, which, in turn, can bring more opportunities to enterprises in Portugal,\u201d she added.\n\n\n\nMs. Andrade also recognised the potential for entrepreneurship and technology in the in-depth cooperation zone in Hengqin after this trip. \u201cOur biggest takeaway from this trip is that we should shift our focus more from the European or American markets to the Asian market\u2014[Portuguese firms] can explore opportunities in Macau, mainland China, and Asia,\u201d she remarked. \n\n\n\nFollowing the organisation of this Greater Bay Area trip, Mr. Tai of DSEDT emphasised that both CSTCP and DSEDT will continue to carry out more initiatives and activities to promote technology exchange between China and the Lusophone world. \u201cWe hope to leverage the mechanisms and resources in Macau and Hengqin to attract more high-quality companies from Portuguese-speaking countries to incorporate and settle in Macau and Hengqin,\u201d he remarked.\n\n\n\n“On the other hand, we also aim to facilitate outstanding enterprises from the mainland, which hope to internationalise their businesses, to use Macau as a platform to explore markets in Portuguese-speaking countries,\u201d he concluded.", "date_published": "June 09, 2024", "date_modified": "June 10, 2024 - 02:17", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-tech-expo-1.png", "tags": [ "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ], "summary": "A delegation of tech enterprises from Portuguese-speaking countries visited Macau, Hengqin, and other Greater Bay Area cities. During the tour, two Brazilian technology firms were incorporated in Macau, and six cooperation agreements were signed" }, { "id": "https://www.macaubusiness.com/special-report-macau-lacks-new-sports-venues/", "url": "https://www.macaubusiness.com/special-report-macau-lacks-new-sports-venues/", "title": "Special Report \u2013 Macau lacks new sports venues\u2026", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/1_imagem_Canidromo-150x150.jpg\")
\n… but are they necessary? Some argue that Macau boasts some of the finest sports infrastructure in all of Asia
\n\n\n\nMacau Business | June 2024 | Special Report\u00a0| One\u00a0year\u00a0to\u00a0the\u00a0National\u00a0Games
Hong Kong will take advantage of the 2025 National Games to showcase the world’s largest investment ever in sports infrastructure: the new Kai Tak Sports Park.
\n\n\n\nGuangzhou, on the other hand, has long been investing in the Yuexiu district, aiming to establish it as “the nation’s sports industry model base.” Some National Games competitions will occur in various existing spaces.
\n\n\n\nMeanwhile, Macau has opted not to allocate funds for new sports facilities, instead focusing on repairing and adapting existing ones.
\n\n\n\nThis decision has drawn both applause and criticism, particularly from those who believe there is a shortage of sports facilities in Macau, whether for residents or international competitions.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/1_imagem2Galaxy.jpg\")
The government acknowledges Macau’s need for additional space and plans to convert the old Canidrome into a sports park. However, these renovations will not be completed in time for the National Games, despite the closure of the former dog-racing track in 2018.
\n\n\n\nAccording to Elsie Ao Ieong, the secretary responsible for sports, the design phase for the project is set to commence this quarter.
\n\n\n\nThe former Canidrome will undergo a transformation into a family-friendly facility aimed at promoting physical activity among residents. It will feature two sports pavilions, a formal athletics track, and other amenities.
\n\n\n\nOne prominent voice expressing concerns in recent months is Francisco Manh\u00e3o, president of the Football Veterans Association and a former local athlete who has earned several medals.
\n\n\n\nManh\u00e3o believes that “the sporting achievements in the MSAR, despite the efforts of athletes, have not been exemplary compared to their counterparts in Hong Kong or elsewhere in the region.” He attributes this, among other factors, to the “lack of adequate spaces for sports activities.”
\n\n\n\n“During the last fifteen years, no improvements have been noted in terms of the construction of new sports facilities worthy of note, with the exception of the existing complex in Mong-Ha which, despite being beautiful, is still insufficient for the practice of high-level competition sports,” says the director, for whom the old Canidrome is “a unique opportunity,” which is “located in an area of the city where everyone can have access without having to travel too far. We believe that in that space it will be possible to design another sports complex for practicing the most varied sports, such as football and, indoors, volleyball, basketball, handball, futsal, badminton, among others”.
\n\n\n\nLawmaker Leong Sun Iok recently proposed transforming the recently closed Macau Jockey Club space into a sports and leisure destination, capable of hosting sports events and activities like cycling and football. Ho Iat Seng answered recently that “we will maximise the land by turning it into a multi-purpose space,” but did not provide details. On the same occasion, he revealed that Macau will have a venue for 50,000 spectators in Taipa, but no specific reference was made to a stadium.
\n\n\n\nBut after all, does Macau have a lack of sports spaces?
\n\n\n\n\u201cFrom a facilities perspective, from a hospitality and tourism perspective, and in terms of air travel or crossing the border from the mainland, Macau is probably the best situated place in all of Asia,\u201d said Matt Beyer, CEO and co-founder of East Asia Super League, the champions league of East Asian basketball covering Greater China, Japan, South Korea and the Philippines, interviewed by Macau Closer magazine. \u201cMacau has more basketball arenas than the city of Manila and many other cities that have 10 times the population. And they\u2019re great facilities,” he said.
\n\n\n\nMatt Beyer does not forget that \u201cthe new Galaxy Arena, Sands Cotai Arena, Studio City and even the Macau Dome and Tap Seac Multisports Stadium are all very good arenas. Of course, the new Galaxy Arena is state-of-the-art and nicer than most NBA facilities, to be honest. You can\u2019t even compare it with any facility in Asia. And the advantage of a facility like Tap Seac is its proximity to the city centre and residential areas. It\u2019s pretty amazing.\u201d
\n\n\n\nThis is why Kevin Ho, member of the Sports Council and the Sports and Olympic Committee of Macau, understands that “there will never be enough, but with the different stadiums within the gaming concessionaire, Macau has some state-of-the art places that can host different games. We also need to remember the size and population of Macau, and the utilisation after the big games.”
\n\n\n\nInterviewed by Macau Business, Ho argues that “I think we should focus on what we have and maximise it while we can. “If we have opportunities to build a bigger place in the future, we can look into it.”
\n\n\n\n\n\n\n\n\u201cWith the different stadiums within the gaming concessionaire, Macau has some state-of-the-art places that can host different games\u201d \u2013 Kevin Ho
More community spaces
\n\n\n\nA study carried out last year by the University of Macau, at the request of the Sports Bureau (ID in the Portuguese acronym), revealed that the area of sports facilities \u201cper capita\u201d increased by 14.2 per cent between 2017 and 2022, exceeding the population growth rate (3.4%) in the same time period.
\n\n\n\nThe results of the study showed that there was an increase of 0.19 square metres in the area of sports facilities \u201cper capita,” having gone from 1.34 m2 in 2017 to 1.53 m2 in 2022.
\n\n\n\nThe same study, however, shows that some housing areas, such as Barra or Conselheiro Ferreira de Almeida, have areas of sports facilities per capita of less than 0.2 square metres, which leads ID to recognise that \u201cif finds it limited to develop spaces for sporting purposes due to the high population density found in these areas, making it difficult to increase the area of sports facilities per capita.\u201d.
\n\n\n\nThere are plans to increase community sports spaces in at least two areas of the city. The second phase of the South Shore Waterfront Green Promenade will include a dozen different leisure areas and sports facilities, like a leisure trail, a cycle track, a skate park, and several fitness and outdoor exercise areas.
\n\n\n\nThe two new sports facilities planned for Zone A of the new landfills will only be built at the end of the \u201clast part of the development of Zone A,\u201d Secretary Elsie Ao Ieong stated.
\n\n\n\n\n", "content_text": "… but are they necessary? Some argue that Macau boasts some of the finest sports infrastructure in all of Asia\n\n\n\nMacau Business | June 2024 | Special Report\u00a0| One\u00a0year\u00a0to\u00a0the\u00a0National\u00a0Games\n\n\n\n\n\n\n\nHong Kong will take advantage of the 2025 National Games to showcase the world’s largest investment ever in sports infrastructure: the new Kai Tak Sports Park.\n\n\n\nGuangzhou, on the other hand, has long been investing in the Yuexiu district, aiming to establish it as “the nation’s sports industry model base.” Some National Games competitions will occur in various existing spaces.\n\n\n\nMeanwhile, Macau has opted not to allocate funds for new sports facilities, instead focusing on repairing and adapting existing ones.\n\n\n\nThis decision has drawn both applause and criticism, particularly from those who believe there is a shortage of sports facilities in Macau, whether for residents or international competitions.\n\n\n\n\n\n\n\nThe government acknowledges Macau’s need for additional space and plans to convert the old Canidrome into a sports park. However, these renovations will not be completed in time for the National Games, despite the closure of the former dog-racing track in 2018.\n\n\n\nAccording to Elsie Ao Ieong, the secretary responsible for sports, the design phase for the project is set to commence this quarter.\n\n\n\nThe former Canidrome will undergo a transformation into a family-friendly facility aimed at promoting physical activity among residents. It will feature two sports pavilions, a formal athletics track, and other amenities.\n\n\n\nOne prominent voice expressing concerns in recent months is Francisco Manh\u00e3o, president of the Football Veterans Association and a former local athlete who has earned several medals.\n\n\n\nManh\u00e3o believes that “the sporting achievements in the MSAR, despite the efforts of athletes, have not been exemplary compared to their counterparts in Hong Kong or elsewhere in the region.” He attributes this, among other factors, to the “lack of adequate spaces for sports activities.”\n\n\n\n“During the last fifteen years, no improvements have been noted in terms of the construction of new sports facilities worthy of note, with the exception of the existing complex in Mong-Ha which, despite being beautiful, is still insufficient for the practice of high-level competition sports,” says the director, for whom the old Canidrome is “a unique opportunity,” which is “located in an area of the city where everyone can have access without having to travel too far. We believe that in that space it will be possible to design another sports complex for practicing the most varied sports, such as football and, indoors, volleyball, basketball, handball, futsal, badminton, among others”.\n\n\n\nLawmaker Leong Sun Iok recently proposed transforming the recently closed Macau Jockey Club space into a sports and leisure destination, capable of hosting sports events and activities like cycling and football. Ho Iat Seng answered recently that “we will maximise the land by turning it into a multi-purpose space,” but did not provide details. On the same occasion, he revealed that Macau will have a venue for 50,000 spectators in Taipa, but no specific reference was made to a stadium.\n\n\n\nBut after all, does Macau have a lack of sports spaces?\n\n\n\n\n\n\n\n\u201cFrom a facilities perspective, from a hospitality and tourism perspective, and in terms of air travel or crossing the border from the mainland, Macau is probably the best situated place in all of Asia,\u201d said Matt Beyer, CEO and co-founder of East Asia Super League, the champions league of East Asian basketball covering Greater China, Japan, South Korea and the Philippines, interviewed by Macau Closer magazine. \u201cMacau has more basketball arenas than the city of Manila and many other cities that have 10 times the population. And they\u2019re great facilities,” he said.\n\n\n\nMatt Beyer does not forget that \u201cthe new Galaxy Arena, Sands Cotai Arena, Studio City and even the Macau Dome and Tap Seac Multisports Stadium are all very good arenas. Of course, the new Galaxy Arena is state-of-the-art and nicer than most NBA facilities, to be honest. You can\u2019t even compare it with any facility in Asia. And the advantage of a facility like Tap Seac is its proximity to the city centre and residential areas. It\u2019s pretty amazing.\u201d\n\n\n\nThis is why Kevin Ho, member of the Sports Council and the Sports and Olympic Committee of Macau, understands that “there will never be enough, but with the different stadiums within the gaming concessionaire, Macau has some state-of-the art places that can host different games. We also need to remember the size and population of Macau, and the utilisation after the big games.”\n\n\n\nInterviewed by Macau Business, Ho argues that “I think we should focus on what we have and maximise it while we can. “If we have opportunities to build a bigger place in the future, we can look into it.”\n\n\n\n\n\n\n\n\u201cWith the different stadiums within the gaming concessionaire, Macau has some state-of-the-art places that can host different games\u201d \u2013 Kevin Ho\n\n\n\n\n\n\n\nMore community spaces\n\n\n\nA study carried out last year by the University of Macau, at the request of the Sports Bureau (ID in the Portuguese acronym), revealed that the area of sports facilities \u201cper capita\u201d increased by 14.2 per cent between 2017 and 2022, exceeding the population growth rate (3.4%) in the same time period.\n\n\n\nThe results of the study showed that there was an increase of 0.19 square metres in the area of sports facilities \u201cper capita,” having gone from 1.34 m2 in 2017 to 1.53 m2 in 2022.\n\n\n\nThe same study, however, shows that some housing areas, such as Barra or Conselheiro Ferreira de Almeida, have areas of sports facilities per capita of less than 0.2 square metres, which leads ID to recognise that \u201cif finds it limited to develop spaces for sporting purposes due to the high population density found in these areas, making it difficult to increase the area of sports facilities per capita.\u201d.\n\n\n\nThere are plans to increase community sports spaces in at least two areas of the city. The second phase of the South Shore Waterfront Green Promenade will include a dozen different leisure areas and sports facilities, like a leisure trail, a cycle track, a skate park, and several fitness and outdoor exercise areas.\n\n\n\nThe two new sports facilities planned for Zone A of the new landfills will only be built at the end of the \u201clast part of the development of Zone A,\u201d Secretary Elsie Ao Ieong stated.", "date_published": "June 09, 2024", "date_modified": "June 08, 2024 - 10:59", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/1_imagem_Canidromo.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "... but are they necessary? Some argue that Macau boasts some of the finest sports infrastructure in all of Asia" }, { "id": "https://www.macaubusiness.com/opinion-investors-on-the-verge-of-a-nervous-breakdown/", "url": "https://www.macaubusiness.com/opinion-investors-on-the-verge-of-a-nervous-breakdown/", "title": "OPINION \u2013 Investors on the verge of a nervous breakdown", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Investment-150x150.png\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/04/paulo-azevedo.jpg\")
By Paulo A. Azevedo
\n\n\n\nFounder of Macau Business
\n\n\n\nChairman of Project Asia Corporation
\n\n\n\nDuring the process of casino gaming concession renewals, the government created press releases and compelled operators to send them as if they were their own. The initial shock and even the attempts to refuse by some, considering it an absolute absurdity to have their responsibilities overtaken and to see the government entering the exclusive sphere of activity of private companies listed internationally on the stock exchange, were eventually appeased by the respective teams.
\n\n\n\nAll in the name of a renewal that only lasted ten years, far below the initial expectations given the volume of investments made over the last two decades. However, despite everything, it turned out to be ‘better’ than some people had thought. Years of uncertainty regarding the removal of one operator or another to open the door to others, from the region or even from the SAR, made those who felt most attacked reluctantly accept the situation.
\n\n\n\nThis all-hands-on-deck example of Ho Iat Seng’s apparent leadership strategy extends to other sectors as well. Construction is also suffering, with investors complaining that they win a project but then cannot choose the subcontractors or companies they turn to for services and are presented with ‘suggestions’ for partners.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/shutterstock_562946938-1-1028x685.jpg\")
The most generous individuals could turn a blind eye to the very fine line between morality and procedural legality, confirming the veracity of the complaints made by several involved parties. If, by any chance, absolutely unquestionable values were at stake, such as national honour and national security\u2014the usual reasons of state invoked whenever a leader wants to create exceptional cases, bypassing the scrutiny of the law, both in its letter and spirit. But the truth is that nothing in Macau justifies a government autocracy. Even worse, when it exists, the tendency is always to think that authoritarianism is present to prevent anyone from seeking the true reasons behind such an intense effort, so that no one questions it to avoid being excluded. As the saying goes: “There is no smoke without fire.”
\n\n\n\nAs Macau is not, and will never be, in a phase of dissonance with Beijing, despite there sometimes being different interpretations of matters under consideration, it would be appropriate for the government to allow investors to continue investing in the development of their businesses transparently. Yes, regulation is necessary, but it should be guided by legislative norms and not by whims or decisions that are difficult to explain in light of the rule of law.
\n", "content_text": "By Paulo A. Azevedo\n\n\n\nFounder of Macau Business \n\n\n\nChairman of Project Asia Corporation\n\n\n\n\n\n\n\nDuring the process of casino gaming concession renewals, the government created press releases and compelled operators to send them as if they were their own. The initial shock and even the attempts to refuse by some, considering it an absolute absurdity to have their responsibilities overtaken and to see the government entering the exclusive sphere of activity of private companies listed internationally on the stock exchange, were eventually appeased by the respective teams.\n\n\n\n All in the name of a renewal that only lasted ten years, far below the initial expectations given the volume of investments made over the last two decades. However, despite everything, it turned out to be ‘better’ than some people had thought. Years of uncertainty regarding the removal of one operator or another to open the door to others, from the region or even from the SAR, made those who felt most attacked reluctantly accept the situation.\n\n\n\nThis all-hands-on-deck example of Ho Iat Seng’s apparent leadership strategy extends to other sectors as well. Construction is also suffering, with investors complaining that they win a project but then cannot choose the subcontractors or companies they turn to for services and are presented with ‘suggestions’ for partners.\n\n\n\n\n\n\n\nThe most generous individuals could turn a blind eye to the very fine line between morality and procedural legality, confirming the veracity of the complaints made by several involved parties. If, by any chance, absolutely unquestionable values were at stake, such as national honour and national security\u2014the usual reasons of state invoked whenever a leader wants to create exceptional cases, bypassing the scrutiny of the law, both in its letter and spirit. But the truth is that nothing in Macau justifies a government autocracy. Even worse, when it exists, the tendency is always to think that authoritarianism is present to prevent anyone from seeking the true reasons behind such an intense effort, so that no one questions it to avoid being excluded. As the saying goes: “There is no smoke without fire.”\n\n\n\nAs Macau is not, and will never be, in a phase of dissonance with Beijing, despite there sometimes being different interpretations of matters under consideration, it would be appropriate for the government to allow investors to continue investing in the development of their businesses transparently. Yes, regulation is necessary, but it should be guided by legislative norms and not by whims or decisions that are difficult to explain in light of the rule of law.", "date_published": "June 08, 2024", "date_modified": "June 08, 2024 - 15:52", "author": { "name": "Paulo A. Azevedo", "url": "https://www.macaubusiness.com/author/paulo-a-azevedo/", "avatar": "https://secure.gravatar.com/avatar/49095a8530cb124522e2b14c9de18198?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Investment.png", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "As Macau is not, and will never be, in a phase of dissonance with Beijing, despite there sometimes being different interpretations of matters under consideration, it would be appropriate for the government to allow investors to continue investing in the development of their businesses transparently. Yes, regulation is necessary, but it should be guided by legislative norms and not by whims or decisions that are difficult to explain in light of the rule of law." }, { "id": "https://www.macaubusiness.com/banking-ups-and-downs/", "url": "https://www.macaubusiness.com/banking-ups-and-downs/", "title": "Banking ups and downs", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/BOC-BNU-Macau-downtown-150x150.png\")
\nThe two Bank of China licenses continued to dominate the rankings last year, although with lower profits. While it was a tough time for Tai Fung and Luso International, BNU and Bank of Communications had a rosy 2023, lifting them to the city\u2019s top five performers
\n\n\n\n\n\n\n\nJo\u00e3o Paulo Meneses
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/02/Capture-4.jpg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/china-bank_5W9A7655.jpg\")
Of the 33 banks operating in Macau that regularly present results, “only” 12 reported losses in 2023, compared to seven in 2022. However, this number is not the standout feature when reviewing the SAR\u2019s banking sector performance for the year. A reshuffle occurred in the top five most profitable banks.
\n\n\n\nAlthough the two Bank of China licenses remain the leaders, they recorded an aggregated drop of MOP 4.5 billion compared to 2022. The banks that followed in the profitability ranking suffered significant losses and have now fallen to the bottom of the table.
\n\n\n\nThe bank that was third (Industrial and Commercial Bank of China, Macau SA) dropped to 15th, while the fourth (Tai Fung) is now the one with the most losses. This shift also includes Luso International Bank, which was among the top five most profitable but now ranks at the bottom.
\n\n\n\nAs these banks moved down, others ascended: Bank of Communications (previously 6th) and Banco Nacional Ultramarino (8th in 2022) are now the third and fourth most profitable, respectively.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/04/1200px-Wing_Lung_Bank_Tsuen_Wan_Branch_Hong_Kong-1028x685.jpeg\")
This dramatic shift from profitability to losses among the leading banks contributed to a 53.5 percent decline in overall profits for Macau\u2019s banking sector compared to 2022. In total, Macau banks recorded profits of MOP 6.14 billion.
\n\n\n\nThe Monetary Authority of Macau (AMCM) has attributed the drop in banking sector profits primarily to a negative performance in the last quarter of 2023. According to AMCM, local banks lost MOP 4.09 billion in the three-month period ending in December alone, compared to profits of MOP 10.2 billion during the first nine months of the year.
\n\n\n\nThe regulator explained that the main reason for the decrease in profits was an 11.4 percent drop in the interest margin, which fell to MOP 19.5 billion. The interest margin is the difference between income from loans and expenses on deposits.
\n\n\n\nThis decline occurred despite the AMCM having approved three increases in the main reference interest rate in 2023, with the last being a 0.25 percentage point increase in May, following the US Federal Reserve.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/02/2_MDB_caixa.jpg\")
![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2016/12/luso-bank.jpg\")
What the banks say
\n\n\n\nConsulting the reports and accounts of some of the banks that recorded the most losses, it is clear, however, that there are other reasons, in addition to those highlighted by AMCM.
\n\n\n\nLuso International Bank, for example, lists several reasons for the abrupt drop in its accounts: “In 2023, the global political and economic situation changed substantially, the engine of the world economy slowed down due to divergences, cyclical and structural contradictions from China have increased even further.”
\n\n\n\nThe bank’s management also speaks of “problems such as the periodic misalignment of monetary policy between China and the USA, the risk of real estate credit and the reduction in pressure from debts contracted by local governments continued to be evident.”
\n\n\n\nThe management of the Bank of China SA (which had its first full activity in 2023) speaks of the “overlapping geopolitical conflicts and the impact of high interest rates” which “aggravated fluctuations in the global financial market.”
\n\n\n\nAccording to the Tai Fung Bank Report, “the core inflation rate of the main economies remained at a high level, the real estate sector in Mainland China registered a slower recovery than expected, Macau’s economy recovered in an unbalanced manner and the total assets and asset quality of the local banking sector have declined.”
\n\n\n\nTai Fung’s managers also justify the results with “the great environmental impact” which “put pressure on the quality of the Bank’s assets and with a view to prudent risk management, with the Bank significantly increasing provisions.”
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/ocbc-1028x578.jpeg\")
Among the smaller ones, which also had ‘red’ results, it is known, for example, that the management of Chong Hing Bank blames, in addition to the pressure caused by inflation, “the global economy that continued to gradually recover from the impacts of the pandemic of the new type of coronavirus, as well as the war between Russia and Ukraine.”
\n\n\n\nAt the Bank of East Asia, it is highlighted that “the pace of domestic demand and the recovery of local consumption was slower than expected,” which is why “2023 was a year full of challenges” for the bank: “the quality of assets general continued to be affected, mainly due to the weak outlook for activities in the real estate sector and small and medium-sized companies.”
\n\n\n\nFinally, CMB Wing Lung, whose managers highlight “the continuation of inflation and high interest rates in the main world economies, as well as the weak recovery of the Chinese economy, resulting from the inertia of the real estate sector and the decrease in external demand.”
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/China-Construction-bank-BNU-5W9A7663.jpg\")
A little different is the analysis of the administration of the Macau Chinese Bank (of the Nam Yue Commercial and Industrial Agency): the bank lost more than MOP800 million in 2023 and its managers justify the fact thus: “the internal and external circumstance that the Chinese Bank of Macau faced a severe, complex and changeable era. With the reinforced support of shareholders, the supervisory authority and various sectors of society, Macao Chinese Bank fought to resolve existing problems and difficulties, explored boldly, made constant progress, and overcame the challenges. difficulties, withstood harsh tests, ensured the normal functioning of the Bank, effectively controlled and reduced risk, consolidated the basis for the Bank’s long-term development.\u201d
\n\n\n\nBanks that improved results
\n\n\n\nIn the midst of the turmoil that was the banking year in 2023, almost half of the banks operating in Macau managed to improve their results (15 out of 33).
\n\n\n\nIn some cases, the profits obtained last year almost doubled those of the previous year (Banco Nacional Ultramarino, or The Shanghai Banking Corporation), but there are some examples in which this increase was even greater (the Commercial Bank of Macau, for example, went from MOP23.9 million to MOP114.4 million).
\n\n\n\nThese 15 positive performances are, however, not enough to avoid the final result, since the gains in question are clearly below what they lost, for example, the two Bank of China licenses (MOP4.5 billion) or the sum of Bank of China (Macao), Tai Fung and Luso International together (MOP3.4 billion).
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/07/china-everbright-bank.jpeg\")
First year of Everbright Bank of China
\n\n\n\n2023 was not only the first year of full activity for Bank of China SA. The Everbright Bank of China, which opened its doors in July 2022, also had its first full financial year last year.
\n\n\n\n“Faced with a complex and severe economic environment, the Bank has always adhered to the concept of prudent and stable operation, achieving coordinated development in terms of scale, quality and efficiency,” says the administration.
\n\n\n\nThe bank’s total asset size reached MOP5.63 billion under global risk control, “which is a hard-won achievement.”
\n\n\n\nThis did not prevent the bank from closing the year with MOP58.2 million in losses.
\n\n\n\nAnnual net income in MOP million (last year\u2019s tanking position)
\n\n\n\n| Bank (ranked in 2022) | 2023 | 2022 | |
| 1 | Bank of China (Macau Branch) (1) | 3.424 | 4.830 |
| 2 | Bank of China (Macao) SA (2) | 1.572 | 4.730 |
| 3 | Bank of Communications (6) | 738.2 | 681.6 |
| 4 | Banco Nacional Ultramarino (8) | 587.3 | 362.8 |
| 5 | OCBC Bank* (9) | 349.7 | 278.4 |
| 6 | The Hongkong and Shanghai Banking Corporation (12) | 277.5 | 182.2 |
| 7 | Well Link Bank (11) | 237.5 | 210.8 |
| 8 | China Construction Bank (7) | 195.2 | 463.6 |
| 9 | Sinopak Bank (15) | 154.7 | 127.8 |
| 10 | Industrial and Commercial Bank of China (Macau Branch) (17) | 149.5 | 75.5 |
| 11 | Commercial Bank of Macau (19) | 114.4 | 23.9 |
| 12 | Hang Seng Bank (14) | 83.5 | 145 |
| 13 | Banco Comercial Portugu\u00eas (16) | 81,6 | 123 |
| 14 | Haitong Bank (18) | 69.6 | 27.7 |
| 15 | Industrial and Commercial Bank of China (Macau) SA (3) | 64.1 | 2.293 |
| 16 | DBS Bank (26) | 39.6 | 7.8 |
| 17 | Caixa Econ\u00f3mica Postal (23) | 37.1 | 15.7 |
| 18 | Hua Nan Bank (20) | 19.9 | 18 |
| 19 | First Commercial Bank (25) | 18.5 | 9.8 |
| 20 | CITIC (24) | 8.4 | 12.5 |
| 21 | Standard Chartered Bank (27) | 4.9 | (2) |
| 22 | Agricultural Bank of China (33) | 2.2 | (1.843) |
| 23 | CMB Wing Lung (13) | (14.5) | 172.7 |
| 24 | Citibank (28) | (15) | (3.5) |
| 25 | Ant Bank (30) | (49.8) | (37) |
| 26 | Everbright Bank (31) | (58.2) | (38.5) |
| 27 | Bank of East Asia (22) | (111.2) | 16.3 |
| 28 | Chong Hing Bank (29) | (142.5) | (6.6) |
| 29 | Macao Development Bank (32) | (199.9) | (237.7) |
| 30 | Luso International Bank (5) | (432.8) | 1.800 |
| 31 | China Guangfa Bank (10) | (459.6) | 250.9 |
| 32 | Macao Chinese Bank (21) | (835.7) | (45.8) |
| 33 | Tai Fung Bank (4) | (1.419) | 1.821 |
(source: Annual reports on Official Gazette)
\n\n\n\n* Previously known as OCBC Weng Hang Bank, it became just OCBC Bank in 2023
\n", "content_text": "The two Bank of China licenses continued to dominate the rankings last year, although with lower profits. While it was a tough time for Tai Fung and Luso International, BNU and Bank of Communications had a rosy 2023, lifting them to the city\u2019s top five performers\n\n\n\n\n\n\n\nJo\u00e3o Paulo Meneses\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOf the 33 banks operating in Macau that regularly present results, “only” 12 reported losses in 2023, compared to seven in 2022. However, this number is not the standout feature when reviewing the SAR\u2019s banking sector performance for the year. A reshuffle occurred in the top five most profitable banks.\n\n\n\nAlthough the two Bank of China licenses remain the leaders, they recorded an aggregated drop of MOP 4.5 billion compared to 2022. The banks that followed in the profitability ranking suffered significant losses and have now fallen to the bottom of the table.\n\n\n\nThe bank that was third (Industrial and Commercial Bank of China, Macau SA) dropped to 15th, while the fourth (Tai Fung) is now the one with the most losses. This shift also includes Luso International Bank, which was among the top five most profitable but now ranks at the bottom.\n\n\n\nAs these banks moved down, others ascended: Bank of Communications (previously 6th) and Banco Nacional Ultramarino (8th in 2022) are now the third and fourth most profitable, respectively.\n\n\n\n\n\n\n\nThis dramatic shift from profitability to losses among the leading banks contributed to a 53.5 percent decline in overall profits for Macau\u2019s banking sector compared to 2022. In total, Macau banks recorded profits of MOP 6.14 billion.\n\n\n\nThe Monetary Authority of Macau (AMCM) has attributed the drop in banking sector profits primarily to a negative performance in the last quarter of 2023. According to AMCM, local banks lost MOP 4.09 billion in the three-month period ending in December alone, compared to profits of MOP 10.2 billion during the first nine months of the year.\n\n\n\nThe regulator explained that the main reason for the decrease in profits was an 11.4 percent drop in the interest margin, which fell to MOP 19.5 billion. The interest margin is the difference between income from loans and expenses on deposits.\n\n\n\nThis decline occurred despite the AMCM having approved three increases in the main reference interest rate in 2023, with the last being a 0.25 percentage point increase in May, following the US Federal Reserve.\n\n\n\n\n\n\n\n\n\n\n\nWhat the banks say\n\n\n\nConsulting the reports and accounts of some of the banks that recorded the most losses, it is clear, however, that there are other reasons, in addition to those highlighted by AMCM.\n\n\n\nLuso International Bank, for example, lists several reasons for the abrupt drop in its accounts: “In 2023, the global political and economic situation changed substantially, the engine of the world economy slowed down due to divergences, cyclical and structural contradictions from China have increased even further.”\n\n\n\nThe bank’s management also speaks of “problems such as the periodic misalignment of monetary policy between China and the USA, the risk of real estate credit and the reduction in pressure from debts contracted by local governments continued to be evident.”\n\n\n\nThe management of the Bank of China SA (which had its first full activity in 2023) speaks of the “overlapping geopolitical conflicts and the impact of high interest rates” which “aggravated fluctuations in the global financial market.”\n\n\n\nAccording to the Tai Fung Bank Report, “the core inflation rate of the main economies remained at a high level, the real estate sector in Mainland China registered a slower recovery than expected, Macau’s economy recovered in an unbalanced manner and the total assets and asset quality of the local banking sector have declined.”\n\n\n\nTai Fung’s managers also justify the results with “the great environmental impact” which “put pressure on the quality of the Bank’s assets and with a view to prudent risk management, with the Bank significantly increasing provisions.”\n\n\n\n\n\n\n\nAmong the smaller ones, which also had ‘red’ results, it is known, for example, that the management of Chong Hing Bank blames, in addition to the pressure caused by inflation, “the global economy that continued to gradually recover from the impacts of the pandemic of the new type of coronavirus, as well as the war between Russia and Ukraine.”\n\n\n\nAt the Bank of East Asia, it is highlighted that “the pace of domestic demand and the recovery of local consumption was slower than expected,” which is why “2023 was a year full of challenges” for the bank: “the quality of assets general continued to be affected, mainly due to the weak outlook for activities in the real estate sector and small and medium-sized companies.”\n\n\n\nFinally, CMB Wing Lung, whose managers highlight “the continuation of inflation and high interest rates in the main world economies, as well as the weak recovery of the Chinese economy, resulting from the inertia of the real estate sector and the decrease in external demand.”\n\n\n\n\n\n\n\nA little different is the analysis of the administration of the Macau Chinese Bank (of the Nam Yue Commercial and Industrial Agency): the bank lost more than MOP800 million in 2023 and its managers justify the fact thus: “the internal and external circumstance that the Chinese Bank of Macau faced a severe, complex and changeable era. With the reinforced support of shareholders, the supervisory authority and various sectors of society, Macao Chinese Bank fought to resolve existing problems and difficulties, explored boldly, made constant progress, and overcame the challenges. difficulties, withstood harsh tests, ensured the normal functioning of the Bank, effectively controlled and reduced risk, consolidated the basis for the Bank’s long-term development.\u201d\n\n\n\nBanks that improved results\n\n\n\nIn the midst of the turmoil that was the banking year in 2023, almost half of the banks operating in Macau managed to improve their results (15 out of 33).\n\n\n\nIn some cases, the profits obtained last year almost doubled those of the previous year (Banco Nacional Ultramarino, or The Shanghai Banking Corporation), but there are some examples in which this increase was even greater (the Commercial Bank of Macau, for example, went from MOP23.9 million to MOP114.4 million).\n\n\n\nThese 15 positive performances are, however, not enough to avoid the final result, since the gains in question are clearly below what they lost, for example, the two Bank of China licenses (MOP4.5 billion) or the sum of Bank of China (Macao), Tai Fung and Luso International together (MOP3.4 billion).\n\n\n\n\n\n\n\nFirst year of Everbright Bank of China\n\n\n\n2023 was not only the first year of full activity for Bank of China SA. The Everbright Bank of China, which opened its doors in July 2022, also had its first full financial year last year.\n\n\n\n“Faced with a complex and severe economic environment, the Bank has always adhered to the concept of prudent and stable operation, achieving coordinated development in terms of scale, quality and efficiency,” says the administration.\n\n\n\nThe bank’s total asset size reached MOP5.63 billion under global risk control, “which is a hard-won achievement.”\n\n\n\nThis did not prevent the bank from closing the year with MOP58.2 million in losses.\n\n\n\n\n\n\n\nAnnual net income in MOP million (last year\u2019s tanking position)\n\n\n\n Bank (ranked in 2022) 2023 20221 Bank of China (Macau Branch) (1) 3.424 4.8302 Bank of China (Macao) SA (2) 1.572 4.7303 Bank of Communications (6) 738.2 681.64 Banco Nacional Ultramarino (8) 587.3 362.85 OCBC Bank* (9) 349.7 278.46 The Hongkong and Shanghai Banking Corporation (12) 277.5 182.27 Well Link Bank (11) 237.5 210.88 China Construction Bank (7) 195.2 463.69 Sinopak Bank (15) 154.7 127.810 Industrial and Commercial Bank of China (Macau Branch) (17) 149.5 75.511 Commercial Bank of Macau (19) 114.4 23.912 Hang Seng Bank (14) 83.5 14513 Banco Comercial Portugu\u00eas (16) 81,6 12314 Haitong Bank (18) 69.6 27.715 Industrial and Commercial Bank of China (Macau) SA (3) 64.1 2.29316 DBS Bank (26) 39.6 7.817 Caixa Econ\u00f3mica Postal (23) 37.1 15.718 Hua Nan Bank (20) 19.9 1819 First Commercial Bank (25) 18.5 9.820 CITIC (24) 8.4 12.521 Standard Chartered Bank (27) 4.9 (2)22 Agricultural Bank of China (33) 2.2 (1.843)23 CMB Wing Lung (13) (14.5) 172.724 Citibank (28) (15) (3.5)25 Ant Bank (30) (49.8) (37)26 Everbright Bank (31) (58.2) (38.5)27 Bank of East Asia (22) (111.2) 16.328 Chong Hing Bank (29) (142.5) (6.6)29 Macao Development Bank (32) (199.9) (237.7)30 Luso International Bank (5) (432.8) 1.80031 China Guangfa Bank (10) (459.6) 250.932 Macao Chinese Bank (21) (835.7) (45.8)33 Tai Fung Bank (4) (1.419) 1.821\n\n\n\n(source: Annual reports on Official Gazette)\n\n\n\n* Previously known as OCBC Weng Hang Bank, it became just OCBC Bank in 2023", "date_published": "June 08, 2024", "date_modified": "June 10, 2024 - 00:19", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/BOC-BNU-Macau-downtown.png", "tags": [ "Finance", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ], "summary": "The two Bank of China licenses continued to dominate the rankings last year, although with lower profits. While it was a tough time for Tai Fung and Luso International, BNU and Bank of Communications had a rosy 2023, lifting them to the city\u2019s top five performers" }, { "id": "https://www.macaubusiness.com/evolving-show-brand/", "url": "https://www.macaubusiness.com/evolving-show-brand/", "title": "G2E Asia + Asian IR Expo kick off", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/G2-E-Asia-press-conference-2024-150x150.jpeg\")
\nAs Macau and its gaming operators focus on expanding their non-gaming offerings, trade show G2E Asia, held in conjunction with Asian IR Expo, caters to their evolving needs. The 3-day trade show and related conferences kick off today (Tuesday).
\n\n\n\n\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/IMG_0906.jpg\")
The Global Gaming Expo (G2E) Asia, a highly anticipated and long-standing trade show in the regional gaming community, is returning to Macau this month, accompanied by the non-gaming segment, the Asian IR Expo. As this trade show brand celebrates its 15th anniversary, it continues to evolve in order to cater to the latest demands of casinos and integrated resorts, according to its organisers.
\n\n\n\nScheduled to take place from June 4 to 6 at The Venetian Macao, the G2E Asia 2024 + Asian IR Expo, organised by RX (Reed Exhibitions) and presented by the American Gaming Association, will feature over 100 exhibitors from both the gaming and non-gaming segments on an exhibition floor of about 20,000 square metres. With expectations of attracting over 8,000 visitors, including more than 800 serious buyers and decision-makers, the event will facilitate over 500 pre-arranged meetings, providing ample opportunities for interactions and networking among industry stakeholders.
\n\n\n\nThe G2E Asia 2024 + Asian IR Expo will also present two separate conference programmes: the G2E Asia Conference and the Asian IR Summit. These conferences will host over 100 speakers and experts from various fields, delivering more than 30 sessions.
\n\n\n\nThis year marks the second time that G2E Asia and the Asian IR Expo will be held concurrently, with the latter focusing on the non-gaming aspects of integrated resorts. In a media briefing about the event, RX President (Asia-Pacific) Chien-Ee Yeh stated, \u201c[Our] profile has changed and evolved over the years.\u201d
\n\n\n\n\u201cGaming operators are now diversifying into integrated resorts,\u201d he continued, addressing the tie-up of the two expos. \u201cWe need to evolve ourselves to meet their needs [and] to understand what they\u2019re looking for, the technologies they are going after, [and] the suppliers they want to talk to.\u201d
\n\n\n\nThe introduction of the Asian IR Expo last year, coinciding with G2E Asia, aligns with the efforts of Macau gaming operators to explore non-gaming offerings, especially with the commencement of the new 10-year gaming concessions in the city in 2023. \u201cIn the mid-term, I don’t see that we are going to separate the two [shows]. They are going to be co-located because that only makes sense for our customers and visitors,\u201d Mr. Yeh said.
\n\n\n\nThe organisers are optimistic about the reception of the two shows. \u201cWe’re very excited to come back this year, full-scale. I think we\u2019re going to see a much stronger demand and response from the market,\u201d expressed the RX executive. \u201cThey need a platform like G2E Asia for them to meet their visitors and potential buyers. This is the perfect platform for them once a year.\u201d
\n\n\n\nOne of the exciting new highlights of G2E Asia 2024 + Asian IR Expo is the Technology Zone and Tech Talk Stage on the exhibition floor. This new specialised zone will showcase the latest industry innovations and feature presentations on identity management, security, hospitality, and customer relationship management.
\n\n\n\nEnhancing the event\u2019s appeal is the Sports and Entertainment Zone, a fresh addition this year. This zone will host exhibitors specialising in sports marketing, sports event management, and live entertainment, including renowned Hong Kong television broadcaster Television Broadcasts (TVB).
\n\n\n\n
\u201cGaming operators are now diversifying into integrated resorts (\u2026) We need to evolve ourselves to meet their needs [and] to understand what they\u2019re looking for, the technologies they are going after, [and] the suppliers they want to talk to.\u201d – Chien-Ee Yeh, RX President (Asia-Pacific)
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/IMG_1271.jpg\")
Emerging markets and smart tables
\n\n\n\nMeanwhile, the G2E Asia Conference and the Asian IR Summit will commence with a keynote address by Bill Miller, President and CEO of the American Gaming Association (AGA), on June 4.
\n\n\n\nThe first day of the G2E Asia Conference will delve into various gaming-related topics, starting with a presentation on the outlook of the Asian gaming market by Praveen Choudhary, Managing Director of brokerage Morgan Stanley Asia Limited. Additionally, two panels will focus on emerging gaming markets such as Thailand and the Middle East. Esteemed speakers contributing their insights include: Daniel Li, an advisor of the Cambodia Commercial Gambling Management Commission, Udorn Olsson, an advisor to Thai lawmakers on casino legislation, and Fredric E. Gushin, Managing Director and CEO of Spectrum Gaming Group, among others.
\n\n\n\nThe second day of the conference will centre around technology and innovation in gaming. Engaging discussions will cover topics such as smart table innovations, artificial intelligence (AI), machine learning, and their impact on casino marketing, as well as cybersecurity.
\n\n\n\nThe line-up of speakers includes: Graeme Croft, Vice President of Table Operations at MGM China; Rick McDonald, General Manager (Table Games Strategy) of Australian operator Star Entertainment Group; and Jerry Chan, Senior Vice President of Electronic Gaming and Special Project at Okada Manila. Senior executives from gaming equipment and content suppliers will also join the discussions like Aristocrat Gaming, Light & Wonder, and Angel Australia.
\n\n\n\nOn the final day of the G2E Asia Conference, attendees will be treated to a keynote address by Alejandro H. Tengco, Chairman and Chief Executive Officer of the Philippine Amusement and Gaming Corporation (PAGCOR), the gaming regulator and operator of the Southeast Asian nation. The programme will then shift its focus to compliance and regulation challenges in the Asian gaming industry, data protection measures, and the latest advancements in combating financial crime.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/G2E-Asia-trade-show-1028x685.jpeg\")
Sustainable tourism and more
\n\n\n\nOn the other hand, the Asian IR Summit, also spanning three days, will address a variety of topics, with a particular focus on the non-gaming aspects of integrated resorts. These topics will include sustainable tourism, arts, sports, entertainment, and Macau’s non-gaming initiatives.
\n\n\n\nThe programme will showcase speakers from diverse fields, bringing their expertise to the forefront. Maria Helena de Senna Fernandes, Director of the Macau Government Tourist Office (MGTO), Leong Wai Man, President of the Macau Cultural Affairs Bureau, and Albert Yip, Director General of the Sanya Tourism Board, among others, will be part of the prolific lineup.
\n\n\n\nSenior executives from the city’s gaming operators will also participate in the Asian IR Summit, including: Devonne Iao, Senior Vice President and Chief Marketing Officer of Sands China; Akiko Takahashi, Executive Vice President and Chief of Staff to the Chairman and CEO of Melco Resorts & Entertainment; and Christine Hong Barbosa, Vice President of Retail & Event Development at Lisboeta Macau.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/IMG_0909.jpg\")
Significant role of Macau
\n\n\n\nIn 2019, prior to the COVID-19 pandemic, G2E Asia, primarily focusing on gaming offerings, attracted an impressive turnout. Over 16,500 local and international visitors, along with about 200 exhibitors, from 105 countries and regions, participated in the event.
\n\n\n\nThese tallies exceeded the expectations set by RX this year, considering the evolving focus of G2E Asia towards land-based casinos and resorts, as explained by Mr. Yeh of RX. \u201cRight now, we don\u2019t really have e-gaming elements in the show, [as it is now] more for casino operators and integrated resort operators,\u201d he added.
\n\n\n\nAfter being held in Singapore for two years during the COVID era, G2E Asia returned to Macau last year following the lifting of COVID-related travel restrictions. The organisers made a strategic decision to host the event, which debuted in 2007, in Macau rather than the Southeast Asian state. \u201cIn Macau, it\u2019s very different. It\u2019s really the hub of Asia Pacific,\u201d Mr. Yeh said.
\n\n\n\n\u201cSo we see no reason why we need to be in Singapore because our customers are telling us that they want to come back to Macau,\u201d he concluded.
\n\n\n\n\n", "content_text": "As Macau and its gaming operators focus on expanding their non-gaming offerings, trade show G2E Asia, held in conjunction with Asian IR Expo, caters to their evolving needs. The 3-day trade show and related conferences kick off today (Tuesday).\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n The Global Gaming Expo (G2E) Asia, a highly anticipated and long-standing trade show in the regional gaming community, is returning to Macau this month, accompanied by the non-gaming segment, the Asian IR Expo. As this trade show brand celebrates its 15th anniversary, it continues to evolve in order to cater to the latest demands of casinos and integrated resorts, according to its organisers.\n\n\n\nScheduled to take place from June 4 to 6 at The Venetian Macao, the G2E Asia 2024 + Asian IR Expo, organised by RX (Reed Exhibitions) and presented by the American Gaming Association, will feature over 100 exhibitors from both the gaming and non-gaming segments on an exhibition floor of about 20,000 square metres. With expectations of attracting over 8,000 visitors, including more than 800 serious buyers and decision-makers, the event will facilitate over 500 pre-arranged meetings, providing ample opportunities for interactions and networking among industry stakeholders.\n\n\n\nThe G2E Asia 2024 + Asian IR Expo will also present two separate conference programmes: the G2E Asia Conference and the Asian IR Summit. These conferences will host over 100 speakers and experts from various fields, delivering more than 30 sessions.\n\n\n\nThis year marks the second time that G2E Asia and the Asian IR Expo will be held concurrently, with the latter focusing on the non-gaming aspects of integrated resorts. In a media briefing about the event, RX President (Asia-Pacific) Chien-Ee Yeh stated, \u201c[Our] profile has changed and evolved over the years.\u201d\n\n\n\n\u201cGaming operators are now diversifying into integrated resorts,\u201d he continued, addressing the tie-up of the two expos. \u201cWe need to evolve ourselves to meet their needs [and] to understand what they\u2019re looking for, the technologies they are going after, [and] the suppliers they want to talk to.\u201d\n\n\n\nThe introduction of the Asian IR Expo last year, coinciding with G2E Asia, aligns with the efforts of Macau gaming operators to explore non-gaming offerings, especially with the commencement of the new 10-year gaming concessions in the city in 2023. \u201cIn the mid-term, I don’t see that we are going to separate the two [shows]. They are going to be co-located because that only makes sense for our customers and visitors,\u201d Mr. Yeh said.\n\n\n\nThe organisers are optimistic about the reception of the two shows. \u201cWe’re very excited to come back this year, full-scale. I think we\u2019re going to see a much stronger demand and response from the market,\u201d expressed the RX executive. \u201cThey need a platform like G2E Asia for them to meet their visitors and potential buyers. This is the perfect platform for them once a year.\u201d\n\n\n\nOne of the exciting new highlights of G2E Asia 2024 + Asian IR Expo is the Technology Zone and Tech Talk Stage on the exhibition floor. This new specialised zone will showcase the latest industry innovations and feature presentations on identity management, security, hospitality, and customer relationship management.\n\n\n\nEnhancing the event\u2019s appeal is the Sports and Entertainment Zone, a fresh addition this year. This zone will host exhibitors specialising in sports marketing, sports event management, and live entertainment, including renowned Hong Kong television broadcaster Television Broadcasts (TVB).\n\n\n\n \u201cGaming operators are now diversifying into integrated resorts (\u2026) We need to evolve ourselves to meet their needs [and] to understand what they\u2019re looking for, the technologies they are going after, [and] the suppliers they want to talk to.\u201d – Chien-Ee Yeh, RX President (Asia-Pacific) \n\n\n\n\n\n\n\nEmerging markets and smart tables\n\n\n\nMeanwhile, the G2E Asia Conference and the Asian IR Summit will commence with a keynote address by Bill Miller, President and CEO of the American Gaming Association (AGA), on June 4.\n\n\n\nThe first day of the G2E Asia Conference will delve into various gaming-related topics, starting with a presentation on the outlook of the Asian gaming market by Praveen Choudhary, Managing Director of brokerage Morgan Stanley Asia Limited. Additionally, two panels will focus on emerging gaming markets such as Thailand and the Middle East. Esteemed speakers contributing their insights include: Daniel Li, an advisor of the Cambodia Commercial Gambling Management Commission, Udorn Olsson, an advisor to Thai lawmakers on casino legislation, and Fredric E. Gushin, Managing Director and CEO of Spectrum Gaming Group, among others.\n\n\n\nThe second day of the conference will centre around technology and innovation in gaming. Engaging discussions will cover topics such as smart table innovations, artificial intelligence (AI), machine learning, and their impact on casino marketing, as well as cybersecurity.\n\n\n\nThe line-up of speakers includes: Graeme Croft, Vice President of Table Operations at MGM China; Rick McDonald, General Manager (Table Games Strategy) of Australian operator Star Entertainment Group; and Jerry Chan, Senior Vice President of Electronic Gaming and Special Project at Okada Manila. Senior executives from gaming equipment and content suppliers will also join the discussions like Aristocrat Gaming, Light & Wonder, and Angel Australia.\n\n\n\nOn the final day of the G2E Asia Conference, attendees will be treated to a keynote address by Alejandro H. Tengco, Chairman and Chief Executive Officer of the Philippine Amusement and Gaming Corporation (PAGCOR), the gaming regulator and operator of the Southeast Asian nation. The programme will then shift its focus to compliance and regulation challenges in the Asian gaming industry, data protection measures, and the latest advancements in combating financial crime.\n\n\n\n\n\n\n\nSustainable tourism and more\n\n\n\nOn the other hand, the Asian IR Summit, also spanning three days, will address a variety of topics, with a particular focus on the non-gaming aspects of integrated resorts. These topics will include sustainable tourism, arts, sports, entertainment, and Macau’s non-gaming initiatives.\n\n\n\nThe programme will showcase speakers from diverse fields, bringing their expertise to the forefront. Maria Helena de Senna Fernandes, Director of the Macau Government Tourist Office (MGTO), Leong Wai Man, President of the Macau Cultural Affairs Bureau, and Albert Yip, Director General of the Sanya Tourism Board, among others, will be part of the prolific lineup.\n\n\n\nSenior executives from the city’s gaming operators will also participate in the Asian IR Summit, including: Devonne Iao, Senior Vice President and Chief Marketing Officer of Sands China; Akiko Takahashi, Executive Vice President and Chief of Staff to the Chairman and CEO of Melco Resorts & Entertainment; and Christine Hong Barbosa, Vice President of Retail & Event Development at Lisboeta Macau.\n\n\n\n\n\n\n\n Significant role of Macau\n\n\n\nIn 2019, prior to the COVID-19 pandemic, G2E Asia, primarily focusing on gaming offerings, attracted an impressive turnout. Over 16,500 local and international visitors, along with about 200 exhibitors, from 105 countries and regions, participated in the event.\n\n\n\nThese tallies exceeded the expectations set by RX this year, considering the evolving focus of G2E Asia towards land-based casinos and resorts, as explained by Mr. Yeh of RX. \u201cRight now, we don\u2019t really have e-gaming elements in the show, [as it is now] more for casino operators and integrated resort operators,\u201d he added.\n\n\n\nAfter being held in Singapore for two years during the COVID era, G2E Asia returned to Macau last year following the lifting of COVID-related travel restrictions. The organisers made a strategic decision to host the event, which debuted in 2007, in Macau rather than the Southeast Asian state. \u201cIn Macau, it\u2019s very different. It\u2019s really the hub of Asia Pacific,\u201d Mr. Yeh said.\n\n\n\n\u201cSo we see no reason why we need to be in Singapore because our customers are telling us that they want to come back to Macau,\u201d he concluded.", "date_published": "June 03, 2024", "date_modified": "June 06, 2024 - 12:05", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/G2-E-Asia-press-conference-2024.jpeg", "tags": [ "Gaming", "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "As Macau and its gaming operators focus on expanding their non-gaming offerings, trade show G2E Asia, held in conjunction with Asian IR Expo, caters to their evolving needs" }, { "id": "https://www.macaubusiness.com/opinion-international-gamblers-myth/", "url": "https://www.macaubusiness.com/opinion-international-gamblers-myth/", "title": "OPINION \u2013 International gamblers myth", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/casino-revenue-chips-150x150.jpg\")
\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/01/Picture2.png\")
Ant\u00f3nio Lobo Vilela\u00a0is a lawyer based in Macau
\n\n\n\nand the author of the Macau Gaming Law Book
\n\n\n\n\n\n\n\nAlthough not original, the idea of ‘incentivising’ Macau’s casino gaming concessionaires to attract international gamblers is interesting.
\n\n\n\nThis idea was introduced in the 2022 amendments to Macau\u2019s gaming laws, emphasising the need for concessionaires to broaden the base of foreign customers, understood as those who “enter the Macau SAR for tourism and commercial purposes and who hold a travel document issued by a country or region outside the People’s Republic of China.” The “descriptive memo” outlining the plans for the “expansion of foreign customer markets” has become a criterion in selecting and evaluating proposals for awarding concessions to operate casino games of chance. In addition, the “origin of international visitors” was deemed of public interest and listed in the Investment Plans attached to the concession contracts as the first of the nine areas to be covered by the investment projects. Furthermore, a clause on the “expansion of foreign customer markets” is now mandatory in concession contracts. The one included requires concessionaires to implement these plans per the content and criteria of the awarding proposals submitted.
\n\n\n\nUnlike the tax exemption on the profits from operating casino games of chance (and their distribution to shareholders), which was granted by the Chief Executive without any (known) consideration to support the “expansion of foreign customer markets,” concessionaires can benefit from a reduction or exemption of up to 5 per cent of gross gaming revenues (which corresponded to USD 1.14 billion in 2023).
\n\n\n\nThe implementation of plans for the “expansion of foreign customer markets” began on January 1, 2023, but has not been successful thus far. Official figures show that in 2023, only 5.17 per cent of total arrivals (approximately 1.46 million people) were foreign passport holders, representing 48 per cent of the number of foreign visitors that Macau had in 2019, before the pandemic.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/CKK_5228-1028x685.jpg\")
Several reasons can be cited for this failure.
\n\n\n\nFirstly, the inertia of the concessionaires derived from the lack of need to expand their existing player base, especially when the number of gamblers from mainland China is on an upward curve. Secondly, the (natural) lack of ability of concessionaires to promote casino games of chance on a large scale, a role previously carried out by gaming promoters replaced by the so-called “money changers” who simply ‘make funds available’ to gamblers in Macau while snaking around casinos. Thirdly, after a cost-benefit analysis, some concessionaires may not see the justification in the “expansion of foreign customers markets,” even if they use the (generous) percentage of the investment obligation totalling MOP 142.65 billion for the ten years of the concessions (the execution of which is not yet known) earmarked for ‘operating expenses.’
\n\n\n\nThe adoption of the same idea had a different fate in Singapore. When the city-state decided to legalise gambling, it did so with the main political objective of establishing itself as a true tourist destination. It used the excess Return on Invested Capital (ROIC) and the profits generated by a quasi-monopolistic casino industry as a driving force to reinforce its status as a tourist destination for visitors from afar, rather than as a destination for overnight stays or a casino market for locals.
\n\n\n\nCreating barriers to market entry, especially in the case of monopolies or quasi-monopolies, allows a jurisdiction to charge a higher economic rent. Singapore, however, has opted for a different approach, preferring the long-term economic benefits of attracting tourists from far and wide. Despite only allowing two licences to operate casino gaming, Singapore’s current tiered gaming tax rate structure is 8 or 12% for VIP gaming and 18 or 22% for non-VIP gaming. This differentiation aims to incentivise Singaporean casino operators to focus on attracting VIP gamblers while also creating a competitive advantage for their casinos over other jurisdictions, particularly Macau, where the overall tax rate on gaming is five times higher than the lowest rate applied in Singapore.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/wengang-zhai-Jg5de3v42y0-unsplash.jpg\")
To this extent, it is not surprising that, for example, Venetian, which also operates in Singapore, is not primarily motivated to implement any plan to attract international gamblers to Macau in exchange for a tax reduction or exemption of up to 5 per cent of the 40 per cent overall tax rate on gaming, when in Singapore it only pays 8 or 12 per cent. The same applies to Melco about the jurisdictions where it operates and where the gaming tax is significantly lower. The same is true for MGM and Wynn, which also operate in Nevada, where the tax rate is 6.75 per cent.
\n\n\n\n
All that remains for Macau is to eventually shuffle the cards and use pragmatism to recognise that the bet was international, but the result is regional.
On the other hand, international gamblers generally have a less gambling-centred attitude than gamblers from mainland China. They are also less likely to participate in excursions and let people decide when and where to gamble. This means that a concessionaire may incur costs to bring players to Macau who end up (also) playing in competing casinos, perhaps looking for the hustle and bustle that can’t be found in the isolated foreigner-only gaming rooms.
\n\n\n\nIn addition, the introduction of chips and gaming tables with radio frequency identification (RFID) functionality may, for privacy reasons, not be conducive to attracting international gamblers, who prefer to remain anonymous during their forays into casinos.
\n\n\n\nFinally, emerging new gaming jurisdictions in Southeast Asia, notably Thailand, could be another factor in international gamblers’ deviation.
\n\n\n\nAll that remains for Macau is to eventually shuffle the cards and use pragmatism to recognise that the bet was international, but the result is regional.
\n\n\n\nMoreover, the bet was not just lost on the “expansion of foreign customer markets.” The same can be said for Air Macau, Macau Airport, the University of Macau, Macau Union Hospital, Macau Jockey Club, taxis, Uber, outdoor seating areas, ‘modern finance’\u2026 and, most recently, the Macau Grand Prix Formula 3, replaced by a simple ‘Macau Prix’ Formula Regional.
\n\n\n\n\n", "content_text": "Ant\u00f3nio Lobo Vilela\u00a0is a lawyer based in Macau \n\n\n\nand the author of the Macau Gaming Law Book\n\n\n\n(www.macaugaminglaw.com)\n\n\n\n\n\n\n\nAlthough not original, the idea of ‘incentivising’ Macau’s casino gaming concessionaires to attract international gamblers is interesting.\n\n\n\nThis idea was introduced in the 2022 amendments to Macau\u2019s gaming laws, emphasising the need for concessionaires to broaden the base of foreign customers, understood as those who “enter the Macau SAR for tourism and commercial purposes and who hold a travel document issued by a country or region outside the People’s Republic of China.” The “descriptive memo” outlining the plans for the “expansion of foreign customer markets” has become a criterion in selecting and evaluating proposals for awarding concessions to operate casino games of chance. In addition, the “origin of international visitors” was deemed of public interest and listed in the Investment Plans attached to the concession contracts as the first of the nine areas to be covered by the investment projects. Furthermore, a clause on the “expansion of foreign customer markets” is now mandatory in concession contracts. The one included requires concessionaires to implement these plans per the content and criteria of the awarding proposals submitted.\n\n\n\nUnlike the tax exemption on the profits from operating casino games of chance (and their distribution to shareholders), which was granted by the Chief Executive without any (known) consideration to support the “expansion of foreign customer markets,” concessionaires can benefit from a reduction or exemption of up to 5 per cent of gross gaming revenues (which corresponded to USD 1.14 billion in 2023).\n\n\n\nThe implementation of plans for the “expansion of foreign customer markets” began on January 1, 2023, but has not been successful thus far. Official figures show that in 2023, only 5.17 per cent of total arrivals (approximately 1.46 million people) were foreign passport holders, representing 48 per cent of the number of foreign visitors that Macau had in 2019, before the pandemic.\n\n\n\n\n\n\n\nSeveral reasons can be cited for this failure.\n\n\n\nFirstly, the inertia of the concessionaires derived from the lack of need to expand their existing player base, especially when the number of gamblers from mainland China is on an upward curve. Secondly, the (natural) lack of ability of concessionaires to promote casino games of chance on a large scale, a role previously carried out by gaming promoters replaced by the so-called “money changers” who simply ‘make funds available’ to gamblers in Macau while snaking around casinos. Thirdly, after a cost-benefit analysis, some concessionaires may not see the justification in the “expansion of foreign customers markets,” even if they use the (generous) percentage of the investment obligation totalling MOP 142.65 billion for the ten years of the concessions (the execution of which is not yet known) earmarked for ‘operating expenses.’\n\n\n\nThe adoption of the same idea had a different fate in Singapore. When the city-state decided to legalise gambling, it did so with the main political objective of establishing itself as a true tourist destination. It used the excess Return on Invested Capital (ROIC) and the profits generated by a quasi-monopolistic casino industry as a driving force to reinforce its status as a tourist destination for visitors from afar, rather than as a destination for overnight stays or a casino market for locals.\n\n\n\nCreating barriers to market entry, especially in the case of monopolies or quasi-monopolies, allows a jurisdiction to charge a higher economic rent. Singapore, however, has opted for a different approach, preferring the long-term economic benefits of attracting tourists from far and wide. Despite only allowing two licences to operate casino gaming, Singapore’s current tiered gaming tax rate structure is 8 or 12% for VIP gaming and 18 or 22% for non-VIP gaming. This differentiation aims to incentivise Singaporean casino operators to focus on attracting VIP gamblers while also creating a competitive advantage for their casinos over other jurisdictions, particularly Macau, where the overall tax rate on gaming is five times higher than the lowest rate applied in Singapore.\n\n\n\n\n\n\n\nTo this extent, it is not surprising that, for example, Venetian, which also operates in Singapore, is not primarily motivated to implement any plan to attract international gamblers to Macau in exchange for a tax reduction or exemption of up to 5 per cent of the 40 per cent overall tax rate on gaming, when in Singapore it only pays 8 or 12 per cent. The same applies to Melco about the jurisdictions where it operates and where the gaming tax is significantly lower. The same is true for MGM and Wynn, which also operate in Nevada, where the tax rate is 6.75 per cent.\n\n\n\n All that remains for Macau is to eventually shuffle the cards and use pragmatism to recognise that the bet was international, but the result is regional. \n\n\n\nOn the other hand, international gamblers generally have a less gambling-centred attitude than gamblers from mainland China. They are also less likely to participate in excursions and let people decide when and where to gamble. This means that a concessionaire may incur costs to bring players to Macau who end up (also) playing in competing casinos, perhaps looking for the hustle and bustle that can’t be found in the isolated foreigner-only gaming rooms.\n\n\n\nIn addition, the introduction of chips and gaming tables with radio frequency identification (RFID) functionality may, for privacy reasons, not be conducive to attracting international gamblers, who prefer to remain anonymous during their forays into casinos.\n\n\n\nFinally, emerging new gaming jurisdictions in Southeast Asia, notably Thailand, could be another factor in international gamblers’ deviation.\n\n\n\nAll that remains for Macau is to eventually shuffle the cards and use pragmatism to recognise that the bet was international, but the result is regional.\n\n\n\nMoreover, the bet was not just lost on the “expansion of foreign customer markets.” The same can be said for Air Macau, Macau Airport, the University of Macau, Macau Union Hospital, Macau Jockey Club, taxis, Uber, outdoor seating areas, ‘modern finance’\u2026 and, most recently, the Macau Grand Prix Formula 3, replaced by a simple ‘Macau Prix’ Formula Regional.", "date_published": "June 03, 2024", "date_modified": "June 03, 2024 - 22:52", "author": { "name": "Ant\u00f3nio Lobo Vilela", "url": "https://www.macaubusiness.com/author/avilela/", "avatar": "https://secure.gravatar.com/avatar/d2a8ffae8f0ca7337aa634d77eb3ce86?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/casino-revenue-chips.jpg", "tags": [ "Gaming", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "All that remains for Macau is to eventually shuffle the cards and use pragmatism to recognise that the bet was international, but the result is regional" }, { "id": "https://www.macaubusiness.com/smart-tables-eying-better-gains/", "url": "https://www.macaubusiness.com/smart-tables-eying-better-gains/", "title": "Smart tables (eyeing) better gains", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/angel-playing-cards-gaming-smart-table-rfid-150x150.png\")
\nThe introduction of “smart” gaming tables in Macau casinos has ignited industry interest due to their efficient gameplay data analysis. Analysts project significant revenue growth, leading to widespread implementation this year
\n\n\n\nNelson Moura
\n\n\n\nThe implementation of \u201csmart\u201d gaming tables in Macau casinos has become a hot topic of late, due to their capacity to collect and analyse gameplay data.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/09/Gaming-changer.png\")
In the current market, casinos have three choices of smart tables, namely, those with radio frequency identification (RFID) technology embedded in the table, float, and chips to track gameplay and patron activity, those equipped with cameras, including in some instances facial and body recognition, to track gameplay and patron activity; and hybrid tables, utilize a blend of RFID combined with video analytics to track gameplay and patron activity.
\n\n\n\nIn a recent report, Citi revealed that such tables now represent approximately 10 percent of all tables in the SAR, citing its use across various casinos in the city, including observations at MGM, Londoner Casino, and Wynn, and plans for further rollout by Galaxy, Melco, and SJM throughout 2024, the brokerage added,
\n\n\n\nFor analysts George Choi and Ryan Cheung, such technology has the potential for a 5.9 percent increase in GGR for every five seconds saved per game of baccarat, an acceleration expected to contribute significantly to revenue growth without relying on higher footfall.
\n\n\n\nThe brokerage considered that gaming operators have a widespread plan to implement smart gaming tables across all baccarat tables, with some aiming to complete the rollout by the end of this year.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2017/05/gamingcards-1028x680.jpg\")
One by one
\n\n\n\nSmart gaming tables have already been deployed in Asia Pacific integrated resorts, namely, in Singapore and Australia, with Macau now progressing with its adaptation to the technology with the backing of local gaming regulatory authorities.
\n\n\n\nIn March of this year, during a meeting with Macau gaming operators, the casino regulatory body, the Gaming Inspection and Coordination Bureau (DICJ), urged them to update their monitoring systems on the gaming floor, and implement \u2018comprehensive management through technology\u2019.
\n\n\n\nThis specific term used by the DICJ seemed to indirectly address the installation of smart gaming tables, as a way to improve the efficiency of casino operation and management, and of course, assets the gaming watchdog to oversee gambling operations.
\n\n\n\nRecently, some of the SAR\u2019s six gaming concessionaires mentioned the implementation of this technology in their properties in their most recent financial reports for the first quarter of 2024.
\n\n\n\nThe Chairman of Galaxy Entertainment Group, Lui Che Woo, indicated that the gaming operator is in the process of “implementing smart tables, which will drive further efficiency across the gaming floor.”.
\n\n\n\nBrokerage Jefferies Hong Kong Ltd, in a note citing key points discussed by Galaxy Entertainment\u2019s management during a conference call on the recent results, stated that smart table deployment by GEG will be launched from July onwards and be \u201ccompleted by year-end.\u201d.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/08/IMG_1270.jpg\")
In a previous conference call, GEG\u2019s CFO, Ted Chan Ying Tat, stated that RFID would contribute to a lot of improvements in the effectiveness of the gaming floor as well as its “integrity.”.
\n\n\n\n\u201cWe\u2019re already starting the process, and we are planning to launch out all these technology-related initiatives during the year,\u201d he said at the time.
\n\n\n\nIn MGM China\u2019s first quarter conference call, the group\u2019s CFO and President, Hubert Wang, gave a comprehensive explanation of the multiple benefits of smart tables.
\n\n\n\n\u201cFirst of all, you have game security. Everything is tracked, and it’s very difficult to cheat a game; it\u2019s almost impossible. We have cases where people thought that they got away, but as long as the chips come back, they were caught,\u201d Wang noted.
\n\n\n\nThere is also operating efficiency because it could require far less supervision, and manning. These are just from a basic operations standpoint.
\n\n\n\nThe MGM China CFO also described how, thanks to the capability of tracking all the play, smart tables allow operators to have a lot more data to be used for precision marketing based on various customers’ playing levels and for real-time rewards.
\n\n\n\n\u201cIt allows us to develop new games as well. For instance, we already launched insurance back in this market, and this is impossible to do manually. And with this technology, we can do it. And it’s also very favourably viewed by the regulators in this environment,\u201d he described.
\n\n\n\n\u201cEverybody is trying to implement that, and I think that we have at least several years of lead in the implementation and also take advantage of this technology to execute various programmes.\u201d
\n\n\n\nIn their respective first quarter conference call, the CEO of Melco Resort & Entertainment Limited described that once every operator implements smart tables, illegal activities such as those connected to \u201cunlicensed junkets\u201d, will be eliminated.
\n\n\n\nIn the same call, Geoffrey Stuart Davis Executive VP and CFO of Melco revealed the group would receive the delivery of its first set of tables in the second quarter, with full implementation by approximately the same time next year.
\n\n\n\n\u201cAlthough it will be a small enough number, it will be more on a pilot or trial basis as we continue to do our learnings with full-scale adoption pacing out really over the next year until we have our full force of tables. In the short term, we’re looking at how we might deploy them within specific areas within the property,\u201d Davis described.
\n\n\n\nIn response to questions submitted by Macau Business about the use of AI, RFID, and facial recognition in smart gaming tables, the Director of the Office for Personal Data Protection (DSPDP) highlighted that these technologies fall under the purview of the Personal Data Protection Act (Law no. 8/2005). Based on these provisions, the Office stated that if smart gaming tables collect and process personal data, they must adhere to these regulations. Specifically, facial recognition technology may involve sensitive data, requiring strict compliance with the outlined conditions for lawful processing and principles like data adequacy and security. The DSPDP added that all electronic surveillance and operational equipment used by gaming operators in Macau must be approved by the Gaming Inspection and Coordination Bureau (DICJ).
\n\n\n\nMacau Business contacted the DICJ with a series of questions on this matter, including how many gaming concessionaires have requested to implement these smart tables in their properties, how many smart tables are currently being used in Macau, and if the Bureau has made any special requests regarding what data these tables should collect or what functions they should provide. We also asked the gaming watchdog if it is actively incentivising gaming companies to implement smart tables and what advantages the technology could offer for regulatory purposes. However, no response had been provided by the DICJ at the time of printing.
\n\n\n\n
\u201cSmart tables will change the way table game operates. It’s a big thing. It’s a big change for users as well\u201d – Asuka Kurahashi, Angel Macau President
\u201cWhile the primary interest of casino operators is data collection and security enhancement, they also prioritize maintaining game speed and table layout flexibility to optimize player experience and revenue generation\u201d – Asuka Kurahashi, Angel Macau President
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/asuka-kurahashi-angel-macau-president-gaming--1028x698.png\")
The supplier side
\n\n\n\nFor Angel Macau President, Asuka Kurahashi, smart table technology offers considerable advantages in improving gaming operations efficiency and security while maintaining the pace of live casino games.
\n\n\n\nIn an interview for Macau Business, Kurahashi highlighted that smart tables collect data using AI and RFID technology, digitising bet movements without disrupting gameplay, and were able to reduce supervision workload rather than necessitate additional personnel.
\n\n\n\nMostly known for its playing cards and card shoes in the casino equipment supply market, the Japan-based Angel Group is also taking a chance in the smart tables business, having developed an AI-RFID hybrid design.
\n\n\n\nAI and RFID enable the real-time capture of data, such as game results per table, betting amounts, and casino chip inventory. By comparing the digital information of the game result, the bet amount for each bet location, and the chip inventory in the chip float, the theoretically correct balance of the game can be analyzed. Game progress can be confirmed, by checking the collection and payout conducted by the dealer at each table, and by checking for any fraud during the game.
\n\n\n\n\u201cWhile the primary interest of casino operators is data collection and security enhancement, they also prioritise maintaining game speed and table layout flexibility to optimise player experience and revenue generation,\u201d Kurahashi noted.
\n\n\n\nKurahashi noted the successful implementations of smart tables in other gaming markets like Singapore and Australia, emphasising the significant operational changes associated with adopting this technology.
\n\n\n\n\u201cThe main interest of the casino operators is, of course, they want to obtain all those data of that table games, how much betting is taking place and how much they are playing on each hand. But of course, they want to increase the security,\u201d she described.
\n\n\n\n\u201cThey want to have those kinds of data and they want to secure the game integrity. But at the same time, their concern is that they don’t want to slow the game speed because of the system. Because it’s revenue, right? If they slow the game, then they lose the revenue.
\n\n\n\nOperators also do not want to have to change the table\u2019s layout or design, or if implanting changes, they do not want the system to limit the table layout design.
\n\n\n\n\u201cThis is because the table layout design impacts how players bet. A side bet is much higher than a house bet, right? So the casino wants more side bets and wants to encourage the player to side bet,\u201d Kurahashi adds.
\n\n\n\n\u201cTo do this table layout design is very important. So the casino wants to have a free experience. Any table layer they can use and system their system can support.\u201d
\n\n\n\nAngel is currently working with a Macau concessionaire, initially only in one Cotai property but with plans to progressively roll out smart tables across all properties, with an initial focus on Baccarat tables.
\n\n\n\nAt the same time, Angel has maintained negotiations with operators across various Asian countries, including South Korea, Australia, the Philippines, Singapore, and Malaysia.
\n\n\n\nSmart table technology has been in development for over a decade, with Angel foreseeing its market entry. However, the complexity of smart table development, along with external factors like the COVID-19 pandemic, delayed its adoption.
\n\n\n\n\u201cSmart tables will change the way table game operates. It’s a big thing. It’s a big change for users as well. It involves a load of different departments. One is table operation, of course. One is surveillance because they need to monitor the game security,\u201d Kurahashi told MB.
\n\n\n\n\u201cAnother is the marketing team because now they can get the data of each patron’s betting history. It’s a huge project.\u201d
\n\n\n\n\n", "content_text": "The introduction of “smart” gaming tables in Macau casinos has ignited industry interest due to their efficient gameplay data analysis. Analysts project significant revenue growth, leading to widespread implementation this year\n\n\n\nNelson Moura\n\n\n\n\n\n\n\nThe implementation of \u201csmart\u201d gaming tables in Macau casinos has become a hot topic of late, due to their capacity to collect and analyse gameplay data.\n\n\n\n\n\n\n\nIn the current market, casinos have three choices of smart tables, namely, those with radio frequency identification (RFID) technology embedded in the table, float, and chips to track gameplay and patron activity, those equipped with cameras, including in some instances facial and body recognition, to track gameplay and patron activity; and hybrid tables, utilize a blend of RFID combined with video analytics to track gameplay and patron activity.\n\n\n\nIn a recent report, Citi revealed that such tables now represent approximately 10 percent of all tables in the SAR, citing its use across various casinos in the city, including observations at MGM, Londoner Casino, and Wynn, and plans for further rollout by Galaxy, Melco, and SJM throughout 2024, the brokerage added,\n\n\n\nFor analysts George Choi and Ryan Cheung, such technology has the potential for a 5.9 percent increase in GGR for every five seconds saved per game of baccarat, an acceleration expected to contribute significantly to revenue growth without relying on higher footfall. \n\n\n\nThe brokerage considered that gaming operators have a widespread plan to implement smart gaming tables across all baccarat tables, with some aiming to complete the rollout by the end of this year. \n\n\n\n\n\n\n\nOne by one\n\n\n\nSmart gaming tables have already been deployed in Asia Pacific integrated resorts, namely, in Singapore and Australia, with Macau now progressing with its adaptation to the technology with the backing of local gaming regulatory authorities.\n\n\n\nIn March of this year, during a meeting with Macau gaming operators, the casino regulatory body, the Gaming Inspection and Coordination Bureau (DICJ), urged them to update their monitoring systems on the gaming floor, and implement \u2018comprehensive management through technology\u2019.\n\n\n\nThis specific term used by the DICJ seemed to indirectly address the installation of smart gaming tables, as a way to improve the efficiency of casino operation and management, and of course, assets the gaming watchdog to oversee gambling operations.\n\n\n\nRecently, some of the SAR\u2019s six gaming concessionaires mentioned the implementation of this technology in their properties in their most recent financial reports for the first quarter of 2024.\n\n\n\nThe Chairman of Galaxy Entertainment Group, Lui Che Woo, indicated that the gaming operator is in the process of “implementing smart tables, which will drive further efficiency across the gaming floor.”.\n\n\n\nBrokerage Jefferies Hong Kong Ltd, in a note citing key points discussed by Galaxy Entertainment\u2019s management during a conference call on the recent results, stated that smart table deployment by GEG will be launched from July onwards and be \u201ccompleted by year-end.\u201d.\n\n\n\n\n\n\n\nIn a previous conference call, GEG\u2019s CFO, Ted Chan Ying Tat, stated that RFID would contribute to a lot of improvements in the effectiveness of the gaming floor as well as its “integrity.”. \n\n\n\n\u201cWe\u2019re already starting the process, and we are planning to launch out all these technology-related initiatives during the year,\u201d he said at the time.\n\n\n\nIn MGM China\u2019s first quarter conference call, the group\u2019s CFO and President, Hubert Wang, gave a comprehensive explanation of the multiple benefits of smart tables. \n\n\n\n\u201cFirst of all, you have game security. Everything is tracked, and it’s very difficult to cheat a game; it\u2019s almost impossible. We have cases where people thought that they got away, but as long as the chips come back, they were caught,\u201d Wang noted.\n\n\n\nThere is also operating efficiency because it could require far less supervision, and manning. These are just from a basic operations standpoint. \n\n\n\nThe MGM China CFO also described how, thanks to the capability of tracking all the play, smart tables allow operators to have a lot more data to be used for precision marketing based on various customers’ playing levels and for real-time rewards.\n\n\n\n\u201cIt allows us to develop new games as well. For instance, we already launched insurance back in this market, and this is impossible to do manually. And with this technology, we can do it. And it’s also very favourably viewed by the regulators in this environment,\u201d he described.\n\n\n\n\u201cEverybody is trying to implement that, and I think that we have at least several years of lead in the implementation and also take advantage of this technology to execute various programmes.\u201d\n\n\n\nIn their respective first quarter conference call, the CEO of Melco Resort & Entertainment Limited described that once every operator implements smart tables, illegal activities such as those connected to \u201cunlicensed junkets\u201d, will be eliminated.\n\n\n\nIn the same call, Geoffrey Stuart Davis Executive VP and CFO of Melco revealed the group would receive the delivery of its first set of tables in the second quarter, with full implementation by approximately the same time next year.\n\n\n\n\u201cAlthough it will be a small enough number, it will be more on a pilot or trial basis as we continue to do our learnings with full-scale adoption pacing out really over the next year until we have our full force of tables. In the short term, we’re looking at how we might deploy them within specific areas within the property,\u201d Davis described.\n\n\n\nIn response to questions submitted by Macau Business about the use of AI, RFID, and facial recognition in smart gaming tables, the Director of the Office for Personal Data Protection (DSPDP) highlighted that these technologies fall under the purview of the Personal Data Protection Act (Law no. 8/2005). Based on these provisions, the Office stated that if smart gaming tables collect and process personal data, they must adhere to these regulations. Specifically, facial recognition technology may involve sensitive data, requiring strict compliance with the outlined conditions for lawful processing and principles like data adequacy and security. The DSPDP added that all electronic surveillance and operational equipment used by gaming operators in Macau must be approved by the Gaming Inspection and Coordination Bureau (DICJ).\n\n\n\nMacau Business contacted the DICJ with a series of questions on this matter, including how many gaming concessionaires have requested to implement these smart tables in their properties, how many smart tables are currently being used in Macau, and if the Bureau has made any special requests regarding what data these tables should collect or what functions they should provide. We also asked the gaming watchdog if it is actively incentivising gaming companies to implement smart tables and what advantages the technology could offer for regulatory purposes. However, no response had been provided by the DICJ at the time of printing.\n\n\n\n \u201cSmart tables will change the way table game operates. It’s a big thing. It’s a big change for users as well\u201d – Asuka Kurahashi, Angel Macau President \n\n\n\n \u201cWhile the primary interest of casino operators is data collection and security enhancement, they also prioritize maintaining game speed and table layout flexibility to optimize player experience and revenue generation\u201d – Asuka Kurahashi, Angel Macau President \n\n\n\nAsuka Kurahashi, Angel Macau President and COO\n\n\n\nThe supplier side\n\n\n\n For Angel Macau President, Asuka Kurahashi, smart table technology offers considerable advantages in improving gaming operations efficiency and security while maintaining the pace of live casino games. \n\n\n\nIn an interview for Macau Business, Kurahashi highlighted that smart tables collect data using AI and RFID technology, digitising bet movements without disrupting gameplay, and were able to reduce supervision workload rather than necessitate additional personnel.\n\n\n\nMostly known for its playing cards and card shoes in the casino equipment supply market, the Japan-based Angel Group is also taking a chance in the smart tables business, having developed an AI-RFID hybrid design.\n\n\n\nAI and RFID enable the real-time capture of data, such as game results per table, betting amounts, and casino chip inventory. By comparing the digital information of the game result, the bet amount for each bet location, and the chip inventory in the chip float, the theoretically correct balance of the game can be analyzed. Game progress can be confirmed, by checking the collection and payout conducted by the dealer at each table, and by checking for any fraud during the game.\n\n\n\n\u201cWhile the primary interest of casino operators is data collection and security enhancement, they also prioritise maintaining game speed and table layout flexibility to optimise player experience and revenue generation,\u201d Kurahashi noted.\n\n\n\nKurahashi noted the successful implementations of smart tables in other gaming markets like Singapore and Australia, emphasising the significant operational changes associated with adopting this technology. \n\n\n\n\u201cThe main interest of the casino operators is, of course, they want to obtain all those data of that table games, how much betting is taking place and how much they are playing on each hand. But of course, they want to increase the security,\u201d she described. \n\n\n\n\u201cThey want to have those kinds of data and they want to secure the game integrity. But at the same time, their concern is that they don’t want to slow the game speed because of the system. Because it’s revenue, right? If they slow the game, then they lose the revenue. \n\n\n\nOperators also do not want to have to change the table\u2019s layout or design, or if implanting changes, they do not want the system to limit the table layout design.\n\n\n\n\u201cThis is because the table layout design impacts how players bet. A side bet is much higher than a house bet, right? So the casino wants more side bets and wants to encourage the player to side bet,\u201d Kurahashi adds. \n\n\n\n\u201cTo do this table layout design is very important. So the casino wants to have a free experience. Any table layer they can use and system their system can support.\u201d\n\n\n\nAngel is currently working with a Macau concessionaire, initially only in one Cotai property but with plans to progressively roll out smart tables across all properties, with an initial focus on Baccarat tables.\n\n\n\nAt the same time, Angel has maintained negotiations with operators across various Asian countries, including South Korea, Australia, the Philippines, Singapore, and Malaysia.\n\n\n\nSmart table technology has been in development for over a decade, with Angel foreseeing its market entry. However, the complexity of smart table development, along with external factors like the COVID-19 pandemic, delayed its adoption. \n\n\n\n\u201cSmart tables will change the way table game operates. It’s a big thing. It’s a big change for users as well. It involves a load of different departments. One is table operation, of course. One is surveillance because they need to monitor the game security,\u201d Kurahashi told MB.\n\n\n\n\u201cAnother is the marketing team because now they can get the data of each patron’s betting history. It’s a huge project.\u201d", "date_published": "June 03, 2024", "date_modified": "June 04, 2024 - 01:19", "author": { "name": "Nelson Moura", "url": "https://www.macaubusiness.com/author/nelson-moura/", "avatar": "https://secure.gravatar.com/avatar/8580623bdcd7b18171598f6c6c4d3f59?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/angel-playing-cards-gaming-smart-table-rfid.png", "tags": [ "Gaming", "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "The introduction of \"smart\" gaming tables in Macau casinos has ignited industry interest due to their efficient gameplay data analysis. Analysts project significant revenue growth, leading to widespread implementation this year" }, { "id": "https://www.macaubusiness.com/pearl-in-the-palm/", "url": "https://www.macaubusiness.com/pearl-in-the-palm/", "title": "Pearl in the palm", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/gallery004421_02-150x150.jpg\")
\nMainland authorities are set to unveil more supportive measures for Macau following the recent visit by Beijing’s top official in charge of the SARs, Xia Baolong, observers say. The city is required to enhance its international metropolis status and further focus on Hengqin’s co-development
\n\n\n\nBy Tony Lai
\n\n\n\nMacau is the \u201cpearl in the palm\u201d of the country, meaning it holds a special place in China’s heart. This sentiment was echoed by Xia Baolong, a senior official overseeing Hong Kong and Macau affairs, during his recent seven-day visit to the city. Observers believe that this visit may pave the way for increased measures and incentives from Beijing, specifically tailored for Macau’s future.
\n\n\n\nMr. Xia, who has been serving as the director of the Hong Kong and Macau Affairs Office of the central government since 2020, visited Macau from May 13 to 19, including touring the nearby Guangdong-Macau In-depth Cooperation Zone in Hengqin. This visit follows his previous four-day tour of Macau in May 2023, which took place after the reform of the Hong Kong and Macau Affairs Office.
\n\n\n\nDuring his latest visit, the senior central government official stayed in Macau for a longer duration and took the opportunity to explore more of the city’s infrastructure and facilities. He also met with local officials and a diverse range of representatives from the community, broadening his engagement with the city, as he conducted nearly 40 inspections across Macau and Hengqin.
\n\n\n\nSome of the notable infrastructure projects and facilities Mr. Xia visited include the new Macau Bridge, the fourth cross-sea bridge connecting the Macau Peninsula to Taipa; the new Islands Healthcare Complex \u2013 Macao Medical Centre of Peking Union Medical College Hospital in Cotai; the Macau East Asian Games Dome; the Macau Young Entrepreneur Incubation Centre; local schools and associations; and the Hengqin Port and facilities in the In-depth Cooperation Zone.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Xia-Baolong-news103811_08.jpg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Xia-Baolong-news103811_09.jpg\")
Macau\u2019s six advantages
\n\n\n\nMr. Xia emphasised the six unique advantages of Macau in a meeting with the Macau Chamber of Commerce. These advantages, according to him, are: the institutional advantage of the \u201cOne Country, Two Systems\u201d principle, ample development space, a highly internationalised business environment, a robust economic foundation, a harmonious blend of Chinese and Western cultures, and a traditional patriotic spirit.
\n\n\n\nThe senior official from Beijing believes that these advantages can accelerate the socio-economic development of Macau, and the community should collectively enhance Macau’s reputation as \u201can international metropolis,” referring to it as the \u201cgolden business card\u201d of the city.
\n\n\n\nLao Ngai Leong, a Macau deputy to the Chinese National People’s Congress (NPC), points out that this inspection tour \u201cdemonstrates the central government’s care for Macau.” Mr. Xia’s meetings with representatives from all sectors of the community, as well as his visits to various facilities and venues, demonstrate the central government’s concern for the city’s well-being, he adds.
\n\n\n\n\u201c[Mr. Xia] also pointed out that Macau has six major advantages, and the community should work together to consolidate Macau’s status as an international metropolis,\u201d Mr. Lao continues. “This affirmation is also [the central government’s] expectation for the future development of Macau, which can guarantee the long-term prosperity and stability of Macau.\u201d
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Xia-Baolong-news103811_05.jpg\")
\u201c[Xia Baolong] also pointed out that Macau has six major advantages, and the community should work together to consolidate Macau’s status as an international metropolis.\u201d
Macau NPC Deputy Lao Ngai Leong
\u201cIt is hoped that Director Xia’s inspection will pave the way for [more] policies and measures to support Macau’s economic diversification and development.\u201d
Legislator Lei Leong Wong
Hengqin for Macau
\n\n\n\nFurthermore, the cooperation zone in Hengqin holds significant importance for Macau, as emphasised by Mr. Xia’s visit to the nearby island for a day, Mr. Lao comments. The 106-square-metre cooperation zone, established in 2021, operates under the joint governance of authorities from Guangdong province and Macau.
\n\n\n\nIn a media briefing summarising Mr. Xia’s visit, Macau Chief Executive Ho Iat Seng also emphasised the importance of the co-development of Macau and Hengqin. The central government reaffirmed that the establishment of the cooperation zone aimed to expedite the development of Macau’s major non-gaming industries, the Chief Executive exemplified.
\n\n\n\nMr. Ho further highlighted the Macau government’s commitment to exploring additional overseas tourist markets and attracting a greater number of international tourists. The authorities would deepen integration within the \u201ctourism+\u201d sectors, transforming Macau into a \u201ccity of performing arts\u201d and a \u201ccity of sports.\u201d The city\u2019s top official added: \u201cThen tourists from all over the world can truly experience Macau as an international metropolis.\u201d
\n\n\n\nIn addition to consolidating Macau’s status as an international metropolis, Mr. Xia\u2019s visit also drew attention to the city’s potential to become an \u201cinternational medical hub\u201d through the development of its healthcare industry, including high-end medical services and medical tourism.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Xia-Baolong-news103811_10.jpg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/gallery004415_01-1028x685.jpg\")
More supportive measures
\n\n\n\n\u201cDirector Xia’s visit to Macau this time is conducive to further uniting the various sectors of Macau’s society, providing clear directions for the prosperous and stable development of Macau,\u201d legislator Lei Leong Wong remarks. \u201cThis year also marks the 25th anniversary of the handover of Macau, and the central government has attached great importance to Macau’s development\u2014various measures benefiting Macau have been rolled out in recent times.\u201d
\n\n\n\nSince the beginning of this year, the central government has expanded the Individual Visit Scheme (IVS) twice for mainlanders travelling to Hong Kong and Macau. This expansion has made an additional 10 mainland cities eligible under the scheme. With these recent changes, mainlanders from 59 cities and regions in Mainland China can now apply for an IVS visa to Macau, providing a new boost to Macau’s tourism industry.
\n\n\n\nIn April, the Chinese National Immigration Administration also introduced a series of visa-policy easing measures for mainlanders visiting Macau. These measures include the introduction of a multiple-entry visa between Macau and Hengqin for mainlanders participating in package tours between the two areas, as well as a visa allowing multiple visits to Macau per year for mainlanders attending exhibitions, performances, or medical appointments. There are also online visa applications for individuals from 20 major mainland cities such as Guangzhou, Shenzhen, and Shanghai to Macau.
\n\n\n\nAs Macau’s economy is still in the recovery stage in the post-pandemic era, with some businesses and non-tourism sectors facing challenges amid the rebound of tourism, Mr. Lei acknowledges the need for more favourable policies from the central government. \u201cIt is hoped that Director Xia’s inspection will pave the way for such policies and measures to support Macau’s economic diversification and development,\u201d the legislator adds.
\n\n\n\nSamuel Tong Kai Chung, president of the Macau Institute of Management, also anticipates the introduction of more favourable measures and incentives for Macau. \u201cIn view of protectionism in some western economies, the nation might [require Macau] for more exchanges with other parts of the world,\u201d the scholar says.
\n\n\n\n\u201cThus, there could be more new measures that facilitate the flow of people [between the mainland and Macau]… particularly measures that expedite the capital flow between Macau and Hengqin,\u201d he adds. Being part of Mainland China, the in-depth cooperation zone in Hengqin currently adheres to the nation’s strict capital control policies, posing challenges for companies and individuals in moving money between Macau and the zone.
\n\n\n\n
\u201cThis visit also shows that Director Xia is satisfied with the city’s performance in the economy and international connection, particularly the exchange with Portuguese-speaking countries.\u201d
Macau scholar Samuel Tong
\u201cThe central authorities treat both SARs equally without perpetuating the old image of any \u2018big Hong Kong, small Macau\u2019.\u201d
Hong Kong-based political scientist Sonny Lo
Room for development
\n\n\n\n\u201cThis visit also shows that Director Xia is satisfied with the city’s performance in the economy and international connection, particularly the exchange with Portuguese-speaking countries,\u201d Mr. Tong remarks. \u201cHe is also confident in the city’s post-Covid recovery, under the support of the central government and the principle of the ‘1+4’ development.\u201d
\n\n\n\nThe \u20181+4\u2019 appropriate diversification development strategy, introduced by the Macau government in recent years, outlines the city’s aim to develop four emerging non-gaming sectors alongside the integrated tourism and gaming sector. These nascent industries encompass healthcare, modern finance, technology, and convention and exhibition, sports, commerce, and trade.
\n\n\n\nAdditionally, the central government official reminded Macau to seize opportunities arising from the development of the 106-square-kilometre cooperation zone in Hengqin and the maritime area of 85 square kilometres granted by Beijing, Mr. Tong illustrates. \u201cThis allocation of space resources, spanning over 200 square kilometres, provides Macau with a vast area for development,\u201d he adds.
\n\n\n\nSonny Shiu-Hing Lo, a Hong Kong-based political scientist and Macau Business analyst, also highlighted the vast potential for development in Macau. \u201cMacau\u2019s physical space has expanded tremendously, creating more space for socio-economic development\u2014an unprecedented experiment, even unrivalled in Hong Kong,\u201d he wrote in an MNA column about Mr. Xia\u2019s visit.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/gallery004415_02-1028x685.jpg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Xia-Baolong-news103811_07.jpg\")
Equal position
\n\n\n\n\u201cThe message [Xia] gave was clear: Macau, as with Hong Kong, should project itself as a unique international city,\u201d the political scientist said, emphasising that Macau should focus on its role as a \u201cpara-diplomatic\u201d platform for mainland China to enhance its relations with Portuguese-speaking countries, countries in the European Union, and Southeast Asia.
\n\n\n\nThe two visits by Mr. Xia to the two special administrative regions (SARs) this year, including his seven-day inspection of Hong Kong in February, highlight the equal standing of the two cities in the eyes of the central government, Mr. Lo pointed out. \u201cThe central authorities treat both SARs equally without perpetuating the old image of any \u2018big Hong Kong, small Macau\u2019,\u201d he explained.
\n\n\n\n\u201cXia’s visit to Macau had significant similarities with his previous visit to Hong Kong, demonstrating how the Beijing authorities have been adopting central pro-activity on the development of both Macau and Hong Kong. Such central proactivity [includes] inspection study visits, open comments, public remarks on the two cities, and direct and explicit policy advice given to the high-level officials in Macau and Hong Kong,\u201d he added.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/gallery004424_02-1028x685.jpg\")
Chief Executive election
\n\n\n\nThe visit by the senior official from the central government also coincided with the city\u2019s preparations for the upcoming chief executive election, scheduled to take place in October at the earliest. Furthermore, the electoral college, consisting of 400 local political heavyweights who will select the city’s top leader for a five-year term, is set to be elected on August 11.
\n\n\n\nThe incumbent Chief Executive, Mr. Ho, clarified that Mr. Xia did not discuss or address the elections during the seven-day visit. Additionally, Mr. Ho revealed that he has not yet decided whether he will run for another term to lead the Macau government starting from 20 December 2024.
\n\n\n\nNonetheless, Mr. Ho might have the blessing from Beijing. Xia’s remarks indicate that the central government supports the actions taken by the Macau Chief Executive and SAR government, the Hong Kong-based political scientist explained. \u201cRegardless of the final decision of Ho, Xia\u2019s visit and remarks appeared to inject a strong sense of confidence into Ho, if he decides to run for another term,\u201d he added.
\n\n\n\n\n", "content_text": "Mainland authorities are set to unveil more supportive measures for Macau following the recent visit by Beijing’s top official in charge of the SARs, Xia Baolong, observers say. The city is required to enhance its international metropolis status and further focus on Hengqin’s co-development\n\n\n\nBy Tony Lai\n\n\n\n\n\n\n\nMacau is the \u201cpearl in the palm\u201d of the country, meaning it holds a special place in China’s heart. This sentiment was echoed by Xia Baolong, a senior official overseeing Hong Kong and Macau affairs, during his recent seven-day visit to the city. Observers believe that this visit may pave the way for increased measures and incentives from Beijing, specifically tailored for Macau’s future.\n\n\n\nMr. Xia, who has been serving as the director of the Hong Kong and Macau Affairs Office of the central government since 2020, visited Macau from May 13 to 19, including touring the nearby Guangdong-Macau In-depth Cooperation Zone in Hengqin. This visit follows his previous four-day tour of Macau in May 2023, which took place after the reform of the Hong Kong and Macau Affairs Office.\n\n\n\nDuring his latest visit, the senior central government official stayed in Macau for a longer duration and took the opportunity to explore more of the city’s infrastructure and facilities. He also met with local officials and a diverse range of representatives from the community, broadening his engagement with the city, as he conducted nearly 40 inspections across Macau and Hengqin.\n\n\n\nSome of the notable infrastructure projects and facilities Mr. Xia visited include the new Macau Bridge, the fourth cross-sea bridge connecting the Macau Peninsula to Taipa; the new Islands Healthcare Complex \u2013 Macao Medical Centre of Peking Union Medical College Hospital in Cotai; the Macau East Asian Games Dome; the Macau Young Entrepreneur Incubation Centre; local schools and associations; and the Hengqin Port and facilities in the In-depth Cooperation Zone.\n\n\n\n\n\n\n\n\n\n\n\nMacau\u2019s six advantages\n\n\n\nMr. Xia emphasised the six unique advantages of Macau in a meeting with the Macau Chamber of Commerce. These advantages, according to him, are: the institutional advantage of the \u201cOne Country, Two Systems\u201d principle, ample development space, a highly internationalised business environment, a robust economic foundation, a harmonious blend of Chinese and Western cultures, and a traditional patriotic spirit.\n\n\n\nThe senior official from Beijing believes that these advantages can accelerate the socio-economic development of Macau, and the community should collectively enhance Macau’s reputation as \u201can international metropolis,” referring to it as the \u201cgolden business card\u201d of the city.\n\n\n\nLao Ngai Leong, a Macau deputy to the Chinese National People’s Congress (NPC), points out that this inspection tour \u201cdemonstrates the central government’s care for Macau.” Mr. Xia’s meetings with representatives from all sectors of the community, as well as his visits to various facilities and venues, demonstrate the central government’s concern for the city’s well-being, he adds.\n\n\n\n\u201c[Mr. Xia] also pointed out that Macau has six major advantages, and the community should work together to consolidate Macau’s status as an international metropolis,\u201d Mr. Lao continues. “This affirmation is also [the central government’s] expectation for the future development of Macau, which can guarantee the long-term prosperity and stability of Macau.\u201d\n\n\n\n\n\n\n\n \u201c[Xia Baolong] also pointed out that Macau has six major advantages, and the community should work together to consolidate Macau’s status as an international metropolis.\u201d Macau NPC Deputy Lao Ngai Leong \n\n\n\n \u201cIt is hoped that Director Xia’s inspection will pave the way for [more] policies and measures to support Macau’s economic diversification and development.\u201d Legislator Lei Leong Wong \n\n\n\nHengqin for Macau\n\n\n\nFurthermore, the cooperation zone in Hengqin holds significant importance for Macau, as emphasised by Mr. Xia’s visit to the nearby island for a day, Mr. Lao comments. The 106-square-metre cooperation zone, established in 2021, operates under the joint governance of authorities from Guangdong province and Macau. \n\n\n\nIn a media briefing summarising Mr. Xia’s visit, Macau Chief Executive Ho Iat Seng also emphasised the importance of the co-development of Macau and Hengqin. The central government reaffirmed that the establishment of the cooperation zone aimed to expedite the development of Macau’s major non-gaming industries, the Chief Executive exemplified. \n\n\n\nMr. Ho further highlighted the Macau government’s commitment to exploring additional overseas tourist markets and attracting a greater number of international tourists. The authorities would deepen integration within the \u201ctourism+\u201d sectors, transforming Macau into a \u201ccity of performing arts\u201d and a \u201ccity of sports.\u201d The city\u2019s top official added: \u201cThen tourists from all over the world can truly experience Macau as an international metropolis.\u201d\n\n\n\nIn addition to consolidating Macau’s status as an international metropolis, Mr. Xia\u2019s visit also drew attention to the city’s potential to become an \u201cinternational medical hub\u201d through the development of its healthcare industry, including high-end medical services and medical tourism.\n\n\n\n\n\n\n\n\n\n\n\nMore supportive measures\n\n\n\n\u201cDirector Xia’s visit to Macau this time is conducive to further uniting the various sectors of Macau’s society, providing clear directions for the prosperous and stable development of Macau,\u201d legislator Lei Leong Wong remarks. \u201cThis year also marks the 25th anniversary of the handover of Macau, and the central government has attached great importance to Macau’s development\u2014various measures benefiting Macau have been rolled out in recent times.\u201d\n\n\n\nSince the beginning of this year, the central government has expanded the Individual Visit Scheme (IVS) twice for mainlanders travelling to Hong Kong and Macau. This expansion has made an additional 10 mainland cities eligible under the scheme. With these recent changes, mainlanders from 59 cities and regions in Mainland China can now apply for an IVS visa to Macau, providing a new boost to Macau’s tourism industry.\n\n\n\nIn April, the Chinese National Immigration Administration also introduced a series of visa-policy easing measures for mainlanders visiting Macau. These measures include the introduction of a multiple-entry visa between Macau and Hengqin for mainlanders participating in package tours between the two areas, as well as a visa allowing multiple visits to Macau per year for mainlanders attending exhibitions, performances, or medical appointments. There are also online visa applications for individuals from 20 major mainland cities such as Guangzhou, Shenzhen, and Shanghai to Macau. \n\n\n\nAs Macau’s economy is still in the recovery stage in the post-pandemic era, with some businesses and non-tourism sectors facing challenges amid the rebound of tourism, Mr. Lei acknowledges the need for more favourable policies from the central government. \u201cIt is hoped that Director Xia’s inspection will pave the way for such policies and measures to support Macau’s economic diversification and development,\u201d the legislator adds. \n\n\n\nSamuel Tong Kai Chung, president of the Macau Institute of Management, also anticipates the introduction of more favourable measures and incentives for Macau. \u201cIn view of protectionism in some western economies, the nation might [require Macau] for more exchanges with other parts of the world,\u201d the scholar says.\n\n\n\n\u201cThus, there could be more new measures that facilitate the flow of people [between the mainland and Macau]… particularly measures that expedite the capital flow between Macau and Hengqin,\u201d he adds. Being part of Mainland China, the in-depth cooperation zone in Hengqin currently adheres to the nation’s strict capital control policies, posing challenges for companies and individuals in moving money between Macau and the zone.\n\n\n\n \u201cThis visit also shows that Director Xia is satisfied with the city’s performance in the economy and international connection, particularly the exchange with Portuguese-speaking countries.\u201d Macau scholar Samuel Tong \n\n\n\n \u201cThe central authorities treat both SARs equally without perpetuating the old image of any \u2018big Hong Kong, small Macau\u2019.\u201d Hong Kong-based political scientist Sonny Lo \n\n\n\nRoom for development \n\n\n\n\u201cThis visit also shows that Director Xia is satisfied with the city’s performance in the economy and international connection, particularly the exchange with Portuguese-speaking countries,\u201d Mr. Tong remarks. \u201cHe is also confident in the city’s post-Covid recovery, under the support of the central government and the principle of the ‘1+4’ development.\u201d\n\n\n\nThe \u20181+4\u2019 appropriate diversification development strategy, introduced by the Macau government in recent years, outlines the city’s aim to develop four emerging non-gaming sectors alongside the integrated tourism and gaming sector. These nascent industries encompass healthcare, modern finance, technology, and convention and exhibition, sports, commerce, and trade.\n\n\n\nAdditionally, the central government official reminded Macau to seize opportunities arising from the development of the 106-square-kilometre cooperation zone in Hengqin and the maritime area of 85 square kilometres granted by Beijing, Mr. Tong illustrates. \u201cThis allocation of space resources, spanning over 200 square kilometres, provides Macau with a vast area for development,\u201d he adds.\n\n\n\nSonny Shiu-Hing Lo, a Hong Kong-based political scientist and Macau Business analyst, also highlighted the vast potential for development in Macau. \u201cMacau\u2019s physical space has expanded tremendously, creating more space for socio-economic development\u2014an unprecedented experiment, even unrivalled in Hong Kong,\u201d he wrote in an MNA column about Mr. Xia\u2019s visit.\n\n\n\n\n\n\n\n\n\n\n\nEqual position \n\n\n\n\u201cThe message [Xia] gave was clear: Macau, as with Hong Kong, should project itself as a unique international city,\u201d the political scientist said, emphasising that Macau should focus on its role as a \u201cpara-diplomatic\u201d platform for mainland China to enhance its relations with Portuguese-speaking countries, countries in the European Union, and Southeast Asia.\n\n\n\nThe two visits by Mr. Xia to the two special administrative regions (SARs) this year, including his seven-day inspection of Hong Kong in February, highlight the equal standing of the two cities in the eyes of the central government, Mr. Lo pointed out. \u201cThe central authorities treat both SARs equally without perpetuating the old image of any \u2018big Hong Kong, small Macau\u2019,\u201d he explained.\n\n\n\n\u201cXia’s visit to Macau had significant similarities with his previous visit to Hong Kong, demonstrating how the Beijing authorities have been adopting central pro-activity on the development of both Macau and Hong Kong. Such central proactivity [includes] inspection study visits, open comments, public remarks on the two cities, and direct and explicit policy advice given to the high-level officials in Macau and Hong Kong,\u201d he added.\n\n\n\n\n\n\n\nChief Executive election\n\n\n\nThe visit by the senior official from the central government also coincided with the city\u2019s preparations for the upcoming chief executive election, scheduled to take place in October at the earliest. Furthermore, the electoral college, consisting of 400 local political heavyweights who will select the city’s top leader for a five-year term, is set to be elected on August 11.\n\n\n\nThe incumbent Chief Executive, Mr. Ho, clarified that Mr. Xia did not discuss or address the elections during the seven-day visit. Additionally, Mr. Ho revealed that he has not yet decided whether he will run for another term to lead the Macau government starting from 20 December 2024.\n\n\n\nNonetheless, Mr. Ho might have the blessing from Beijing. Xia’s remarks indicate that the central government supports the actions taken by the Macau Chief Executive and SAR government, the Hong Kong-based political scientist explained. \u201cRegardless of the final decision of Ho, Xia\u2019s visit and remarks appeared to inject a strong sense of confidence into Ho, if he decides to run for another term,\u201d he added.", "date_published": "June 02, 2024", "date_modified": "June 02, 2024 - 18:14", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/gallery004421_02.jpg", "tags": [ "Greater Bay", "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Mainland authorities are set to unveil more supportive measures for Macau following the recent visit by Beijing's top official in charge of the SARs, Xia Baolong, observers say. The city is required to enhance its international metropolis status and further focus on Hengqin's co-development" }, { "id": "https://www.macaubusiness.com/editorial-shifting-gears/", "url": "https://www.macaubusiness.com/editorial-shifting-gears/", "title": "EDITORIAL \u2013 Shifting gears", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/shifting-gear-2-150x150.jpg\")
\nMacau Business magazine l June 2024
By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe recent seven-day visit of Xia Baolong, Beijing\u2019s top official in charge of the SARs, was no ordinary \u201cinspection\u201d.
\n\n\n\nIt was the second tour of its kind in one year, mirroring Xia\u2019s visits to the neighbouring Hong Kong SAR. And for Macau it carried a different tone, substance and context compared to the one in May 2023. A key takeaway was the focus on \u201cpolishing the golden business card of Macau as an international metropolis\u201d. While those less enthusiastic might suggest this sounds like \u201cold wine in new bottles\u201d, we believe that Xia\u2019s message, with such emphasis at this juncture, carries special significance.
\n\n\n\nIt brings to light unfinished tasks and serves as a mobilising and encouraging factor in the drive to meet targets and swiftly implement policies. Government and key economic and social actors are required to rise to the challenge. We need to get this right. The city\u2019s \u201cinternationalisation\u201d bar has just been raised by the central authorities \u2013 a much-welcome development.
\n\n\n\nAs suggested by the Director of the Hong Kong and Macau Affairs Office, leveraging the SAR\u2019s advantages is of paramount importance. These advantages are closely intertwined with Macau\u2019s distinctive features, which can be turned into a maximised competitive edge. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact.
\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas. At the risk of sounding like a “broken record\u201d, we reiterate: bold measures are more advisable than a piecemeal approach.
\n\n\n\nAs suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact
A polished international metropolis implies stronger efforts in welcoming more highly skilled professionals from around the world. That metropolis should have the ambition to compete with peer hubs such as Singapore, Hong Kong and Dubai in attracting top-notch talent in designated areas. The talent attraction scheme, launched last year, was presented as the missing tool to level up the city\u2019s attractiveness. It was certainly a key step, but is it yielding results quickly and broadly enough given the intense competition from metropolises in Greater China and the Asia-Pacific region? The case for recalibrating and expanding this mechanism is growing stronger.
\n\n\n\nOn the visitation front, while tourism recovery gains steam, there remains a gap between the pace of recovery of overall visitors and that of foreign arrivals. As we move forward, one expects that gap to gradually close, hopefully as a result of the intense promotional roadshows recently held in Southeast and Northeast Asia. Additional moves are expected in this respect. Here, the expansion of multilingual customer service surfaces as a key direction, which also implies further opening the imported labour door, in addition to better equipping the local workforce.
\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas
An issue \u2013 a rather embarrassing one \u2013 that has been plaguing visitor experience and annoying locals is the same old taxi woes. Old habits die hard, right? The long-awaited additional 500 licences to be awarded may be a step forward, but it\u2019s likely to be too little, too late. Tackling the taxi lobby\u2019s vested interests head-on is a must, as is implementing thoughtful arrangements allowing ride-sharing services and platforms, which are tested and well-functioning elsewhere (starting in the neighbouring Greater Bay Area cities).
\n\n\n\nAll this can leverage the important \u201ctourism+\u201d strategy, which emerges as a key pillar in polishing Macau\u2019s international allure. This is reflected in the “City of Performing Arts” and “City of Sports Events” directions. While there has been much focus on developing the city\u2019s concert economy \u2013 more international acts are highly desirable in this respect \u2013 sports events are also a key direction, as elaborated in this issue\u2019s special report. As we are one year away from being one of the host cities of the National Games, this is, as we point out, \u201can opportunity that cannot be missed\u201d for Macau, nearly two decades after the SAR was home to the East Asian Games, the first of three multisport international events held between 2005 and 2007.
\n\n\n\nAll in all, with the bar raised and higher stakes, it\u2019s time to jump higher and shift gears.
\n", "content_text": "Macau Business magazine l June 2024 \n\n\n\n\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nThe recent seven-day visit of Xia Baolong, Beijing\u2019s top official in charge of the SARs, was no ordinary \u201cinspection\u201d.\n\n\n\n It was the second tour of its kind in one year, mirroring Xia\u2019s visits to the neighbouring Hong Kong SAR. And for Macau it carried a different tone, substance and context compared to the one in May 2023. A key takeaway was the focus on \u201cpolishing the golden business card of Macau as an international metropolis\u201d. While those less enthusiastic might suggest this sounds like \u201cold wine in new bottles\u201d, we believe that Xia\u2019s message, with such emphasis at this juncture, carries special significance.\n\n\n\nIt brings to light unfinished tasks and serves as a mobilising and encouraging factor in the drive to meet targets and swiftly implement policies. Government and key economic and social actors are required to rise to the challenge. We need to get this right. The city\u2019s \u201cinternationalisation\u201d bar has just been raised by the central authorities \u2013 a much-welcome development.\n\n\n\nAs suggested by the Director of the Hong Kong and Macau Affairs Office, leveraging the SAR\u2019s advantages is of paramount importance. These advantages are closely intertwined with Macau\u2019s distinctive features, which can be turned into a maximised competitive edge. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact.\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas. At the risk of sounding like a “broken record\u201d, we reiterate: bold measures are more advisable than a piecemeal approach.\n\n\n\nAs suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact\n\n\n\nA polished international metropolis implies stronger efforts in welcoming more highly skilled professionals from around the world. That metropolis should have the ambition to compete with peer hubs such as Singapore, Hong Kong and Dubai in attracting top-notch talent in designated areas. The talent attraction scheme, launched last year, was presented as the missing tool to level up the city\u2019s attractiveness. It was certainly a key step, but is it yielding results quickly and broadly enough given the intense competition from metropolises in Greater China and the Asia-Pacific region? The case for recalibrating and expanding this mechanism is growing stronger.\n\n\n\nOn the visitation front, while tourism recovery gains steam, there remains a gap between the pace of recovery of overall visitors and that of foreign arrivals. As we move forward, one expects that gap to gradually close, hopefully as a result of the intense promotional roadshows recently held in Southeast and Northeast Asia. Additional moves are expected in this respect. Here, the expansion of multilingual customer service surfaces as a key direction, which also implies further opening the imported labour door, in addition to better equipping the local workforce.\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas \n\n\n\nAn issue \u2013 a rather embarrassing one \u2013 that has been plaguing visitor experience and annoying locals is the same old taxi woes. Old habits die hard, right? The long-awaited additional 500 licences to be awarded may be a step forward, but it\u2019s likely to be too little, too late. Tackling the taxi lobby\u2019s vested interests head-on is a must, as is implementing thoughtful arrangements allowing ride-sharing services and platforms, which are tested and well-functioning elsewhere (starting in the neighbouring Greater Bay Area cities).\n\n\n\nAll this can leverage the important \u201ctourism+\u201d strategy, which emerges as a key pillar in polishing Macau\u2019s international allure. This is reflected in the “City of Performing Arts” and “City of Sports Events” directions. While there has been much focus on developing the city\u2019s concert economy \u2013 more international acts are highly desirable in this respect \u2013 sports events are also a key direction, as elaborated in this issue\u2019s special report. As we are one year away from being one of the host cities of the National Games, this is, as we point out, \u201can opportunity that cannot be missed\u201d for Macau, nearly two decades after the SAR was home to the East Asian Games, the first of three multisport international events held between 2005 and 2007.\n\n\n\nAll in all, with the bar raised and higher stakes, it\u2019s time to jump higher and shift gears.", "date_published": "June 02, 2024", "date_modified": "June 02, 2024 - 15:37", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/shifting-gear-2.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "As suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact" }, { "id": "https://www.macaubusiness.com/seizing-opportunities-tackling-uncertainties/", "url": "https://www.macaubusiness.com/seizing-opportunities-tackling-uncertainties/", "title": "Seizing opportunities, tackling uncertainties", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-expo-tech-hengqin-chip-150x150.png\")
\nThe fourth edition of the annual major tech gathering, BEYOND Expo 2024, placed the spotlight on the latest tech trends, opportunities in the Greater Bay Area, and the importance of multilateral cooperation against the backdrop of heightened uncertainties
\n\n\n\nBy Tony Lai
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-expo-tech-robot-1028x629.png\")
+800
No. of exhibitors at BEYOND Expo 2024
One of the annual must-attend events on the regional tech calendar, the BEYOND International Science and Technology Innovation Expo (BEYOND Expo), concluded in late May, bringing together industry stakeholders, tech experts, and enthusiasts in Macau while shedding light on the future development of the sector and potential opportunities.
\n\n\n\nThe fourth edition of the BEYOND Expo, held from May 22 to May 25 at The Venetian Macao, embraced the theme \u201cEmbracing the Uncertainties.\u201d Organised by the Macau Technology General Association and supported by various entities, the four-day event featured over 800 exhibitors\u2014including Fortune 500 companies from Asia, multinational corporations, unicorn companies, and startups\u2014within an exhibition floor of over 100,000 square metres. The expo also hosted nearly 100 panel sessions, business matching sessions, and other activities, with more than 250 industry leaders and professionals as speakers.
\n\n\n\nAt the opening ceremony, Jason Ho, co-founder of BEYOND Expo, highlighted the significance of the Asian market and the rapid pace of technological innovation in the region. \u201cWe are a region with a huge market size and a lot of opportunities. Technology innovation is happening here faster than ever before,\u201d he said. \u201cSo companies in Asia deserve to be seen, and we hope BEYOND could be the platform for that.\u201d
\n\n\n\nConsidering the prevailing uncertainties, such as economic downturns and geopolitical conflicts, which may impede industry development, Mr. Ho emphasised the importance of unity. \u201cAs an entrepreneur, investor, or business leader, we often see a lot of uncertainties, and most of it is out of our control,\u201d he illustrated. \u201cWe believe that with the right mindset, partners, strategies, or even platforms like BEYOND, we should be able to embrace these uncertainties together.\u201d
\n\n\n\n
\u201cWe are a region with a huge market size and a lot of opportunities. Technology innovation is happening here faster than ever before. So companies in Asia deserve to be seen and we hope BEYOND could be the platform for that.\u201d
BEYOND Expo co-founder Jason Ho
Multilateralism
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/jason-ho-beyond.png\")
Siddharth Chatterjee, the United Nations Resident Coordinator in China, also addressed the theme of uncertainties during the opening ceremony, emphasising the role of multilateralism in resolving global issues like climate change. \u201cIt is a once-in-a-generation, a lifetime opportunity to look at how we reposition multilateralism so that at least we can converge around the issues that challenge us in health, climate conflicts, inequalities, and economic disruptions,\u201d he indicated. \u201cTherefore, to me, events like Beyond Expo are how we harness new partnerships.\u201d
\n\n\n\nThe conference programme of BEYOND Expo 2024 consisted of three main summits centred around healthcare, consumer tech, and climate tech, apart from a range of panels and forums such as the Global Investment Summit and Wealth Summit. This year, the event introduced the SheTech Summit, which aimed to address gender inequality and highlight the achievements of female leaders in the tech industry, as well as new sessions focusing on regional opportunities like the Asia-Latam Tech Forum and Japan Tech Forum.
\n\n\n\nOne of the panellists at the event, Steven Drost, the Chief Strategy Officer of CodeBase, the largest technology incubator in the United Kingdom, highlighted the significance of collaboration, particularly partnerships between European tech firms and China, leveraging the latter’s manufacturing capacity. \u201cIt’s really important for European start-ups to reach out to the Chinese ecosystem to stay relevant and have places to dock and build their projects. It’s one of the areas where everyone can agree and work together for a win-win situation,\u201d he indicated.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/IMG_0303-1028x603.jpg\")
GBA spotlight
\n\n\n\nWithin the context of this year’s event, which focuses on uncertainties, Thomas Tsao, co-founder of Gobi Partners, emphasised the potential for investments despite economic downturns and other challenges. Gobi Partners, an Asia-focused venture capital firm affiliated with Chinese conglomerate Alibaba Group, currently manages about US$1.6 billion in assets and has invested in over 380 start-ups.
\n\n\n\n\u201cWhen everybody is negative, when everybody says the sky is falling, it’s the best time to deploy, and we have found this to be the case in China,\u201d remarked Mr. Tsao, one of the panellists. \u201cThe valuation for Chinese start-ups is now a little bit more reasonable than it was a couple of years ago.\u201d
\n\n\n\nHe also highlighted the shifting investment landscape for technology and start-ups in China, with a focus on transitioning from Beijing and Shanghai to the Guangdong-Hong Kong-Macau Greater Bay Area, largely due to the support of the Chinese central government. \u201cThe Greater Bay Area is China’s attempt to create the world’s first megalopolis,\u201d he explained, referring to the region that includes the two Chinese special administrative regions and nine cities in Guangdong province.
\n\n\n\n\u201cIt’s as if they’re trying to take the financial hub of New York and combine it with the venture capital ecosystem of San Francisco, the universities in Boston, the entertainment hub of [Las] Vegas, and the manufacturing power of Detroit. All of these elements are put together into one super city,\u201d he said.
\n\n\n\nMacau and Hengqin
\n\n\n\nThe role of Macau in the ever-evolving advancements of technology and innovation was also underscored at the BEYOND Expo. Guo Guangchang, chairman of Fosun International, a Chinese conglomerate involved in various sectors, exemplified how the city could assist Mainland Chinese firms in expanding their international presence. As an example, he mentioned Fosun International\u2019s acquisition of a controlling stake in Portuguese insurer Fidelidade after learning about the insurer and the related opportunity during a business meeting in Macau in 2014.
\n\n\n\n\u201cWhile Macau may not be a large market, it serves as a crucial gateway for China, connecting the Portuguese-speaking and Spanish-speaking regions,\u201d Mr. Guo continued. \u201cTherefore, I believe it is important for us to continue receiving support from Macau during the internationalisation of our business.\u201d
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-expo-tech-summit-investment-1028x624.png\")
Established in Macau in 2021, BEYOND Expo aims to emerge as Asia’s premier annual technology event, fostering innovation upgrades across diverse industries and regions. The inception of the event aligns with the city’s recent endeavours to diversify its economy beyond gaming, as Macau’s authorities have identified technology as one of the four emerging sectors. Additionally, the Guangdong-Macau In-depth Cooperation Zone in Hengqin, also established in 2021 under the co-governance of Guangdong and Macau authorities, plays a crucial role in supporting Macau\u2019s economic diversification efforts.
\n\n\n\nAt this year’s BEYOND Expo, the administration of the in-depth cooperation zone in Hengqin coordinated the participation of more than 120 firms specialising in microchips, biochemicals, and traditional Chinese medicine as exhibitors. This arrangement showcased the achievements and progress of the tech industries in Hengqin, highlighting the collaborative efforts between Mainland China and Macau.
\n\n\n\nAnt\u00f3nio Lei Chi Wai, the director of the Economic Development Bureau in the cooperation zone, expressed, \u201c[Through BEYOND Expo], we aim to showcase to the international community the tremendous opportunities presented by the joint development of Macau and Hengqin.\u201d
\n\n\n\n
\u201cWhile Macau may not be a large market, it serves as a crucial gateway for China, connecting the Portuguese-speaking and Spanish-speaking regions.\u201d
Guo Guangchang, chairman of Fosun International
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/Guo-Guangchang-Fosun-1028x628.jpg\")
Celebrities and parties
\n\n\n\nIn addition, the BEYOND Expo 2024 featured an impressive array of exhibitors from various sectors worldwide, showcasing cutting-edge technology and products. Prominent electric vehicle manufacturer Tesla unveiled their latest car model, the Cybertruck, at the event, while XPENG AEROHT, the largest flying car company in Asia, presented their latest innovations.
\n\n\n\nAffiliated companies of Alibaba Group, including Alibaba Cloud, Taobao, Macau Pass, Alipay, and Fliggy, also displayed their latest services at the expo. Among the diverse exhibitors were oral healthcare manufacturer Oclean, professional consultancy Deloitte, 6G communication tech firm Cygnusemi, and others. US multinational conglomerate Microsoft was also present, along with several Chinese tech start-ups nurtured under the Microsoft for Startups programme.
\n\n\n\nBeyond the exhibitions and conferences, the BEYOND Expo 2024 offered a range of networking activities to enhance industry connections. These included a charity Texas Hold ’em night for investors, a pool party held at the Wynn Palace, and a music party at Studio City. The event also attracted celebrities such as football legend David Beckham, former basketball player and NBA star Stephon Marbury, and Olympic champion and former Chinese table tennis player Deng Yaping. The expo concluded with an electrifying after-party headlined by pop sensation and rapper Jackson Wang.
\n\n\n\nTech expo
\n\n\n\nGang Lu, another co-founder of BEYOND Expo, expressed that this year’s event embraced a greater level of internationalisation\u2014panel discussions on Latin America and Japan were included, while the event attracted speakers and guests from the United Kingdom, Japan, Portugal, and Southeast Asia.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-expo-tech-child-robot.png\")
The expo served as a platform for overseas firms to gain insights into cutting-edge technologies and the development of Chinese technology companies, and this exchange of knowledge created additional business opportunities for Chinese innovation and entrepreneurship, Mr. Lu stated. \u201cWe also hope more technology and innovation companies from Asia and Portuguese-speaking countries can be attracted to establish a presence in the Greater Bay Area and thrive in the mainland China market [through the expo],\u201d he indicated.
\n\n\n\nFurthermore, he emphasised the necessity of an international tech gathering for Asia, drawing parallels to prominent tech events in the West, such as the CES organised by the Consumer Technology Association in Las Vegas and the MWC dedicated to the mobile communications industry in Barcelona. \u201cMore elements will be incorporated into BEYOND Expo [in the future], which will not only be a tech expo… but a carnival,\u201d he said.
\n\n\n\n\n", "content_text": "The fourth edition of the annual major tech gathering, BEYOND Expo 2024, placed the spotlight on the latest tech trends, opportunities in the Greater Bay Area, and the importance of multilateral cooperation against the backdrop of heightened uncertainties\n\n\n\nBy Tony Lai\n\n\n\n\n\n\n\n\n\n\n\n +800 No. of exhibitors at BEYOND Expo 2024 \n\n\n\nOne of the annual must-attend events on the regional tech calendar, the BEYOND International Science and Technology Innovation Expo (BEYOND Expo), concluded in late May, bringing together industry stakeholders, tech experts, and enthusiasts in Macau while shedding light on the future development of the sector and potential opportunities.\n\n\n\nThe fourth edition of the BEYOND Expo, held from May 22 to May 25 at The Venetian Macao, embraced the theme \u201cEmbracing the Uncertainties.\u201d Organised by the Macau Technology General Association and supported by various entities, the four-day event featured over 800 exhibitors\u2014including Fortune 500 companies from Asia, multinational corporations, unicorn companies, and startups\u2014within an exhibition floor of over 100,000 square metres. The expo also hosted nearly 100 panel sessions, business matching sessions, and other activities, with more than 250 industry leaders and professionals as speakers.\n\n\n\nAt the opening ceremony, Jason Ho, co-founder of BEYOND Expo, highlighted the significance of the Asian market and the rapid pace of technological innovation in the region. \u201cWe are a region with a huge market size and a lot of opportunities. Technology innovation is happening here faster than ever before,\u201d he said. \u201cSo companies in Asia deserve to be seen, and we hope BEYOND could be the platform for that.\u201d\n\n\n\nConsidering the prevailing uncertainties, such as economic downturns and geopolitical conflicts, which may impede industry development, Mr. Ho emphasised the importance of unity. \u201cAs an entrepreneur, investor, or business leader, we often see a lot of uncertainties, and most of it is out of our control,\u201d he illustrated. \u201cWe believe that with the right mindset, partners, strategies, or even platforms like BEYOND, we should be able to embrace these uncertainties together.\u201d\n\n\n\n \u201cWe are a region with a huge market size and a lot of opportunities. Technology innovation is happening here faster than ever before. So companies in Asia deserve to be seen and we hope BEYOND could be the platform for that.\u201d BEYOND Expo co-founder Jason Ho \n\n\n\nMultilateralism \n\n\n\n\n\n\n\nSiddharth Chatterjee, the United Nations Resident Coordinator in China, also addressed the theme of uncertainties during the opening ceremony, emphasising the role of multilateralism in resolving global issues like climate change. \u201cIt is a once-in-a-generation, a lifetime opportunity to look at how we reposition multilateralism so that at least we can converge around the issues that challenge us in health, climate conflicts, inequalities, and economic disruptions,\u201d he indicated. \u201cTherefore, to me, events like Beyond Expo are how we harness new partnerships.\u201d\n\n\n\nThe conference programme of BEYOND Expo 2024 consisted of three main summits centred around healthcare, consumer tech, and climate tech, apart from a range of panels and forums such as the Global Investment Summit and Wealth Summit. This year, the event introduced the SheTech Summit, which aimed to address gender inequality and highlight the achievements of female leaders in the tech industry, as well as new sessions focusing on regional opportunities like the Asia-Latam Tech Forum and Japan Tech Forum.\n\n\n\nOne of the panellists at the event, Steven Drost, the Chief Strategy Officer of CodeBase, the largest technology incubator in the United Kingdom, highlighted the significance of collaboration, particularly partnerships between European tech firms and China, leveraging the latter’s manufacturing capacity. \u201cIt’s really important for European start-ups to reach out to the Chinese ecosystem to stay relevant and have places to dock and build their projects. It’s one of the areas where everyone can agree and work together for a win-win situation,\u201d he indicated.\n\n\n\n\n\n\n\nGBA spotlight \n\n\n\nWithin the context of this year’s event, which focuses on uncertainties, Thomas Tsao, co-founder of Gobi Partners, emphasised the potential for investments despite economic downturns and other challenges. Gobi Partners, an Asia-focused venture capital firm affiliated with Chinese conglomerate Alibaba Group, currently manages about US$1.6 billion in assets and has invested in over 380 start-ups.\n\n\n\n\u201cWhen everybody is negative, when everybody says the sky is falling, it’s the best time to deploy, and we have found this to be the case in China,\u201d remarked Mr. Tsao, one of the panellists. \u201cThe valuation for Chinese start-ups is now a little bit more reasonable than it was a couple of years ago.\u201d\n\n\n\nHe also highlighted the shifting investment landscape for technology and start-ups in China, with a focus on transitioning from Beijing and Shanghai to the Guangdong-Hong Kong-Macau Greater Bay Area, largely due to the support of the Chinese central government. \u201cThe Greater Bay Area is China’s attempt to create the world’s first megalopolis,\u201d he explained, referring to the region that includes the two Chinese special administrative regions and nine cities in Guangdong province.\n\n\n\n\u201cIt’s as if they’re trying to take the financial hub of New York and combine it with the venture capital ecosystem of San Francisco, the universities in Boston, the entertainment hub of [Las] Vegas, and the manufacturing power of Detroit. All of these elements are put together into one super city,\u201d he said.\n\n\n\nMacau and Hengqin\n\n\n\nThe role of Macau in the ever-evolving advancements of technology and innovation was also underscored at the BEYOND Expo. Guo Guangchang, chairman of Fosun International, a Chinese conglomerate involved in various sectors, exemplified how the city could assist Mainland Chinese firms in expanding their international presence. As an example, he mentioned Fosun International\u2019s acquisition of a controlling stake in Portuguese insurer Fidelidade after learning about the insurer and the related opportunity during a business meeting in Macau in 2014.\n\n\n\n\u201cWhile Macau may not be a large market, it serves as a crucial gateway for China, connecting the Portuguese-speaking and Spanish-speaking regions,\u201d Mr. Guo continued. \u201cTherefore, I believe it is important for us to continue receiving support from Macau during the internationalisation of our business.\u201d\n\n\n\n\n\n\n\nEstablished in Macau in 2021, BEYOND Expo aims to emerge as Asia’s premier annual technology event, fostering innovation upgrades across diverse industries and regions. The inception of the event aligns with the city’s recent endeavours to diversify its economy beyond gaming, as Macau’s authorities have identified technology as one of the four emerging sectors. Additionally, the Guangdong-Macau In-depth Cooperation Zone in Hengqin, also established in 2021 under the co-governance of Guangdong and Macau authorities, plays a crucial role in supporting Macau\u2019s economic diversification efforts.\n\n\n\nAt this year’s BEYOND Expo, the administration of the in-depth cooperation zone in Hengqin coordinated the participation of more than 120 firms specialising in microchips, biochemicals, and traditional Chinese medicine as exhibitors. This arrangement showcased the achievements and progress of the tech industries in Hengqin, highlighting the collaborative efforts between Mainland China and Macau.\n\n\n\nAnt\u00f3nio Lei Chi Wai, the director of the Economic Development Bureau in the cooperation zone, expressed, \u201c[Through BEYOND Expo], we aim to showcase to the international community the tremendous opportunities presented by the joint development of Macau and Hengqin.\u201d\n\n\n\n \u201cWhile Macau may not be a large market, it serves as a crucial gateway for China, connecting the Portuguese-speaking and Spanish-speaking regions.\u201d Guo Guangchang, chairman of Fosun International \n\n\n\n\n\n\n\nCelebrities and parties\n\n\n\nIn addition, the BEYOND Expo 2024 featured an impressive array of exhibitors from various sectors worldwide, showcasing cutting-edge technology and products. Prominent electric vehicle manufacturer Tesla unveiled their latest car model, the Cybertruck, at the event, while XPENG AEROHT, the largest flying car company in Asia, presented their latest innovations.\n\n\n\nAffiliated companies of Alibaba Group, including Alibaba Cloud, Taobao, Macau Pass, Alipay, and Fliggy, also displayed their latest services at the expo. Among the diverse exhibitors were oral healthcare manufacturer Oclean, professional consultancy Deloitte, 6G communication tech firm Cygnusemi, and others. US multinational conglomerate Microsoft was also present, along with several Chinese tech start-ups nurtured under the Microsoft for Startups programme.\n\n\n\nBeyond the exhibitions and conferences, the BEYOND Expo 2024 offered a range of networking activities to enhance industry connections. These included a charity Texas Hold ’em night for investors, a pool party held at the Wynn Palace, and a music party at Studio City. The event also attracted celebrities such as football legend David Beckham, former basketball player and NBA star Stephon Marbury, and Olympic champion and former Chinese table tennis player Deng Yaping. The expo concluded with an electrifying after-party headlined by pop sensation and rapper Jackson Wang.\n\n\n\nTech expo\n\n\n\nGang Lu, another co-founder of BEYOND Expo, expressed that this year’s event embraced a greater level of internationalisation\u2014panel discussions on Latin America and Japan were included, while the event attracted speakers and guests from the United Kingdom, Japan, Portugal, and Southeast Asia.\n\n\n\n\n\n\n\nThe expo served as a platform for overseas firms to gain insights into cutting-edge technologies and the development of Chinese technology companies, and this exchange of knowledge created additional business opportunities for Chinese innovation and entrepreneurship, Mr. Lu stated. \u201cWe also hope more technology and innovation companies from Asia and Portuguese-speaking countries can be attracted to establish a presence in the Greater Bay Area and thrive in the mainland China market [through the expo],\u201d he indicated. \n\n\n\nFurthermore, he emphasised the necessity of an international tech gathering for Asia, drawing parallels to prominent tech events in the West, such as the CES organised by the Consumer Technology Association in Las Vegas and the MWC dedicated to the mobile communications industry in Barcelona. \u201cMore elements will be incorporated into BEYOND Expo [in the future], which will not only be a tech expo… but a carnival,\u201d he said.", "date_published": "June 02, 2024", "date_modified": "June 02, 2024 - 01:56", "author": { "name": "Tony Lai", "url": "https://www.macaubusiness.com/author/tony-lai/", "avatar": "https://secure.gravatar.com/avatar/a5b778e54892854e651e4df2f269cb0d?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/beyond-expo-tech-hengqin-chip.png", "tags": [ "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ], "summary": "The fourth edition of the annual major tech gathering, BEYOND Expo 2024, placed the spotlight on the latest tech trends, opportunities in the Greater Bay Area, and the importance of multilateral cooperation against the backdrop of heightened uncertainties" }, { "id": "https://www.macaubusiness.com/special-report-one-year-to-the-national-games/", "url": "https://www.macaubusiness.com/special-report-one-year-to-the-national-games/", "title": "Special Report \u2013 One year to the National Games", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/06/CbsbeeE007002_20230612_CBMFN0A002-150x150.jpg\")
\nMacau Business | June 2024 | Special Report | One year to the National Games
An Opportunity that can’t be Missed
\n\n\n\nWithin this special report, readers will encounter two sentences that are bound to provoke thought: \u201cFrom a facilities perspective, from a hospitality and tourism perspective, and in terms of air travel or crossing the border from the mainland, Macau is probably the best situated place in all of Asia,\u201d and “the new Galaxy Arena is state-of-the-art and nicer than most NBA facilities.”
\n\n\n\nIn other words, Macau’s potential as a hub for sports is undeniable. However, it\u2019s more accurate to envision it as a city for sporting events rather than solely as a hub for professional athletes, given its current landscape.
\n\n\n\nThe upcoming National Games serve as an excellent litmus test, but their impact will be limited without sustained efforts. Macau\u2019s previous mega sporting events date back to 2007, emphasising the urgency for continuous engagement.
\n\n\n\nTo truly establish itself as a sports destination, Macau must host more competitions, with several being significant enough to leave a lasting impression, as per expert recommendations.
\n\n\n\nP.S. The 2025 Grand Prix will coincide with the National Games, presenting an intriguing opportunity to assess the combined tourist attraction potential of these two events.
\n\n\n\nCoordinated by Jo\u00e3o Paulo Meneses
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/rafaelle-1028x685.jpeg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Xi-Jinping-Putin-in-Beijing-2024-150x150.jpg\")
\nBy Jorge Costa Oliveira
\n\n\n\nPartner and CEO of JCO Consultancy
\n\n\n\nAs the war on Ukraine raged on, China re-affirmed its \u201cneutrality\u201d, albeit adopting a de facto stance of \u201ccollaborative [pro-Russian] neutrality\u201d towards Russia. The reasons for this stance are evident \u2013 China has much to gain and little to lose from it. Thus, until recently, it was arguable whether China was interested in a quick end to the Ukraine war. In fact, it looked as if it was interested in its continuity (as the US, although for different reasons). Trade between Russia and China grew tremendously after the beginning of the war (Feb 2022) having reached in 2023 a record number of 240 billion US dollars (the number gets much higher if one adds the increase in indirect trade, via Central Asia).
\n\n\n\nOn the other hand, the progressive isolation from Western markets is making Russia and its companies dependent on Chinese firms or China\u2019s authorities. Russia sells (often at discount prices) oil, natural gas, critical metals, agrifoods to Chinese companies, and buys from China cars, machinery and critical components for its defense industry (e.g., drone and missile engines, semiconductors). The growing interdependence between the two countries has provided good business deals for Chinese companies (the top six foreign car brands sold in Russia are now all Chinese, Xiaomi and Tecno have eclipsed Apple and Samsung, the same in home appliances and other everyday items). This dependence has even led to Russian strategic companies relocating to China part of the value chain of relevant products, such as the Norilsk Nickel smelters. In recent months, Russia is boosting China\u2019s military capability by providing Beijing with advanced aerospace technology, as well as advanced air defense systems and technology used in China’s new silent submarines. It is true that, within the framework of the Shanghai Cooperation Organization and other agreements, Moscow and Beijing already had a good cooperation in the areas of security and defense. However, only in recent months has Russia made advanced military and aerospace technology available.
\n\n\n\nOn the other hand, China maintains a good relationship with many Western countries (mostly European) whose rich markets are the destination of a sizable part of China\u2019s exports and from which advanced technology and investment comes to China. China clearly intends to maintain this situation, as well as avoid financial sanctions that have been imposed on Russia.
\n\n\n\nWhilst combating an international order dominated by the main Western powers remains the long-term goal of China, an openly confrontational path with the West \u2013 as Russia did \u2013 is dangerous and entails significant costs, especially in terms of financial sanctions. China stance thus far shows its leadership fully understands this, yet does not want Russia to become too weak from the war effort.
\n\n\n\nHowever, the recent escalation of the war effort on both the Russian and the Ukrainian sides, the increased pro-Ukrainian commitment of Western countries, in particular the European ones, and the non-veiled threats by the US governments as regards the supply to Russia of dual use goods, seem to have provoked a change in the Chinese stance as regards the continuity of the war.
\n\n\n\nIt is not in China\u2019s interest to have Russia significantly weakened. However, the war has claimed the lives of hundreds of thousands of Russians, the replacement of military capability is severely jeopardized and the economy of Russia is being transformed into a war economy with progressive allocation of resources for military and defense purposes. Furthermore, on top of the American pressure for Europe to decouple from China (thus far unsuccessfully), several opinion polls show that the image of China in Europe is being eroded at a fast pace. That is creating already significant hurdles and difficulties for Chinese companies in Europe. Moreover, China\u2019s international image is also being damaged, and the dominance of Western media and entertainment globally does not bode well for China\u2019s willingness to reinforce its soft power with developing countries, including as a potential peacemaker of international conflicts.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/president-xi-jinping-vladimir-putin-2.png\")
The Russian leadership, behind the mask of a hardline speech, seems to be aware of its country\u2019s growing fragility. And both the Russian leadership and elites are fearful of this situation of growing dependence from and reliance on China. It is not surprising that Putin keeps reiterating his readiness for a peace agreement in Ukraine. Moreover, the timing for peace talks is good for Russia given the current military situation on the battle fields.
\n\n\n\nThe Beijing leadership, although certainly pleased by Russia’s growing reliance on China, seems to have brought into the equation other relevant concerns of China. It is in this light that the statements made by Chinese officials before and on the occasion of the 16-17 May visit to Beijing by the “lao pengyou” (old friend) Putin should be analyzed.
\n\n\n\nA month before the visit, Feng Yujun \u2013 one of China\u2019s leading Russia experts and a professor at Beijing University\u2019s School of International Studies \u2013 published in The Economist an article whose title is: \u201cRussia is sure to lose in Ukraine\u201d. It is hardly credible that such an article in a high profile international magazine was published without the express consent of the Chinese authorities, rather it is likely that it was written upon request. Feng Yujun lists 4 reasons why he thinks the Russian Federation will lose to Ukraine: (i) the extraordinary level of resistance and national unity shown by Ukrainians; (ii) the international support for Ukraine, which, though recently falling short of the country\u2019s expectations, remains broad; (iii) the nature of modern warfare, a contest that turns on a combination of industrial might and command, control, communications and intelligence systems; (iv) information as a key factor in decision-making; Putin and his national-security team lack access to accurate intelligence and the system they operate lacks an efficient mechanism for correcting errors, while their Ukrainian counterparts are more flexible and effective. Prof. Feng\u2019s conclusions are also very interesting: (i) Russia will be forced to withdraw from all occupied Ukrainian territories, including Crimea; (ii) Russia’s nuclear capability is no guarantee of success (he gives the example of the US, which left Vietnam, Korea, and Afghanistan with no less nuclear potential); (iii) Kyiv has proven that Moscow is not invincible, so a Korean-type armistice is ruled out; (iv) the war is a turning-point for Russia; it has consigned Putin\u2019s regime to broad international isolation and forced it to deal with difficult domestic political undercurrents \u2013 from the rebellion of the Wagner Group to other pockets of the military to ethnic tensions in several Russian regions and the recent terrorist attack in Moscow; all these show that political risk in Russia is very high; (v) after the war, Ukraine will have the chance to join both the EU and NATO, while Russia will be further away from the former Soviet republics because they see Putin’s aggression in Ukraine as a threat to their sovereignty and territorial integrity; (vi) the war has made Europe wake up to the enormous threat that Russia\u2019s military aggression poses to the continent\u2019s security and the international order, bringing post-cold-war EU-Russia d\u00e9tente to an end.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/president-xi-jinping-vladimir-putin-783x1028.png\")
As Prof. Feng points out, the war has highlighted that \u201cChina and Russia are very different countries\u201d with increasingly differing objectives in their foreign affairs. \u201cRussia is seeking to subvert the existing international and regional order by means of war,\u201d he writes. \u201cWhereas China wants to resolve disputes peacefully\u201d and without exacerbating the current tensions between China and the West. In the words of Prof. Feng Yujun, \u201cshrewd observers note that China\u2019s stance towards Russia has reverted from the \u2018no limits\u2019 stance of early 2022, before the war, to the traditional principles of \u2018non-alignment, non-confrontation and non-targeting of third parties\u2019\u201d. And he adds that \u201cno one should doubt China\u2019s desire to end this cruel war through negotiations.\u201d This wish, Prof. Feng says, \u201cshows that China and Russia are very different countries. Russia is seeking to subvert the existing international and regional order by means of war, whereas China wants to resolve disputes peacefully.\u201d
\n\n\n\nPutin\u2019s recent visit to Beijing was a way for the leaders of China and Russia to show a united front and reiterate their \u201ccomprehensive strategic partnership\u201d. Nonetheless, it is especially important to pay attention to a \u201crestrictive meeting\u201d of Xi and Putin in Zhongnanhai (the new Forbidden City, in Beijing), \u201cduring which they had in-depth exchanges on strategic issues of common concern\u201d, as written in a statement by China\u2019s state agency Xinhua, posted on the Chinese government\u2019s website. In this \u201crestrictive meeting\u201d, Xinhua reported, \u201cXi said China supports the convening of an international peace conference recognized by Russia and Ukraine at an appropriate time with equal participation and fair discussion of all options, so as to push for an early political settlement of the Ukraine issue\u201d and that \u201cChina stands ready to continue to play a constructive role in this regard.\u201d
\n\n\n\nThe warnings in Prof. Feng Yujun’s article, and the demand for \u201can early political settlement of the Ukraine issue\u201d constitute an evolution of China\u2019s stance. Europe should use this window of opportunity to join efforts with China to actively promote a ceasefire and realistic peace negotiations, i.e., with both sides at the table.
\n", "content_text": "Jorge Costa Oliveira – Partner and CEO of JCO Consultancy \n\n\n\nBy Jorge Costa Oliveira\n\n\n\nPartner and CEO of JCO Consultancy\n\n\n\n\n\n\n\nAs the war on Ukraine raged on, China re-affirmed its \u201cneutrality\u201d, albeit adopting a de facto stance of \u201ccollaborative [pro-Russian] neutrality\u201d towards Russia. The reasons for this stance are evident \u2013 China has much to gain and little to lose from it. Thus, until recently, it was arguable whether China was interested in a quick end to the Ukraine war. In fact, it looked as if it was interested in its continuity (as the US, although for different reasons). Trade between Russia and China grew tremendously after the beginning of the war (Feb 2022) having reached in 2023 a record number of 240 billion US dollars (the number gets much higher if one adds the increase in indirect trade, via Central Asia). \n\n\n\nOn the other hand, the progressive isolation from Western markets is making Russia and its companies dependent on Chinese firms or China\u2019s authorities. Russia sells (often at discount prices) oil, natural gas, critical metals, agrifoods to Chinese companies, and buys from China cars, machinery and critical components for its defense industry (e.g., drone and missile engines, semiconductors). The growing interdependence between the two countries has provided good business deals for Chinese companies (the top six foreign car brands sold in Russia are now all Chinese, Xiaomi and Tecno have eclipsed Apple and Samsung, the same in home appliances and other everyday items). This dependence has even led to Russian strategic companies relocating to China part of the value chain of relevant products, such as the Norilsk Nickel smelters. In recent months, Russia is boosting China\u2019s military capability by providing Beijing with advanced aerospace technology, as well as advanced air defense systems and technology used in China’s new silent submarines. It is true that, within the framework of the Shanghai Cooperation Organization and other agreements, Moscow and Beijing already had a good cooperation in the areas of security and defense. However, only in recent months has Russia made advanced military and aerospace technology available.\n\n\n\nOn the other hand, China maintains a good relationship with many Western countries (mostly European) whose rich markets are the destination of a sizable part of China\u2019s exports and from which advanced technology and investment comes to China. China clearly intends to maintain this situation, as well as avoid financial sanctions that have been imposed on Russia.\n\n\n\nWhilst combating an international order dominated by the main Western powers remains the long-term goal of China, an openly confrontational path with the West \u2013 as Russia did \u2013 is dangerous and entails significant costs, especially in terms of financial sanctions. China stance thus far shows its leadership fully understands this, yet does not want Russia to become too weak from the war effort.\n\n\n\nHowever, the recent escalation of the war effort on both the Russian and the Ukrainian sides, the increased pro-Ukrainian commitment of Western countries, in particular the European ones, and the non-veiled threats by the US governments as regards the supply to Russia of dual use goods, seem to have provoked a change in the Chinese stance as regards the continuity of the war.\n\n\n\nIt is not in China\u2019s interest to have Russia significantly weakened. However, the war has claimed the lives of hundreds of thousands of Russians, the replacement of military capability is severely jeopardized and the economy of Russia is being transformed into a war economy with progressive allocation of resources for military and defense purposes. Furthermore, on top of the American pressure for Europe to decouple from China (thus far unsuccessfully), several opinion polls show that the image of China in Europe is being eroded at a fast pace. That is creating already significant hurdles and difficulties for Chinese companies in Europe. Moreover, China\u2019s international image is also being damaged, and the dominance of Western media and entertainment globally does not bode well for China\u2019s willingness to reinforce its soft power with developing countries, including as a potential peacemaker of international conflicts.\n\n\n\n\n\n\n\nThe Russian leadership, behind the mask of a hardline speech, seems to be aware of its country\u2019s growing fragility. And both the Russian leadership and elites are fearful of this situation of growing dependence from and reliance on China. It is not surprising that Putin keeps reiterating his readiness for a peace agreement in Ukraine. Moreover, the timing for peace talks is good for Russia given the current military situation on the battle fields.\n\n\n\nThe Beijing leadership, although certainly pleased by Russia’s growing reliance on China, seems to have brought into the equation other relevant concerns of China. It is in this light that the statements made by Chinese officials before and on the occasion of the 16-17 May visit to Beijing by the “lao pengyou” (old friend) Putin should be analyzed.\n\n\n\nA month before the visit, Feng Yujun \u2013 one of China\u2019s leading Russia experts and a professor at Beijing University\u2019s School of International Studies \u2013 published in The Economist an article whose title is: \u201cRussia is sure to lose in Ukraine\u201d. It is hardly credible that such an article in a high profile international magazine was published without the express consent of the Chinese authorities, rather it is likely that it was written upon request. Feng Yujun lists 4 reasons why he thinks the Russian Federation will lose to Ukraine: (i) the extraordinary level of resistance and national unity shown by Ukrainians; (ii) the international support for Ukraine, which, though recently falling short of the country\u2019s expectations, remains broad; (iii) the nature of modern warfare, a contest that turns on a combination of industrial might and command, control, communications and intelligence systems; (iv) information as a key factor in decision-making; Putin and his national-security team lack access to accurate intelligence and the system they operate lacks an efficient mechanism for correcting errors, while their Ukrainian counterparts are more flexible and effective. Prof. Feng\u2019s conclusions are also very interesting: (i) Russia will be forced to withdraw from all occupied Ukrainian territories, including Crimea; (ii) Russia’s nuclear capability is no guarantee of success (he gives the example of the US, which left Vietnam, Korea, and Afghanistan with no less nuclear potential); (iii) Kyiv has proven that Moscow is not invincible, so a Korean-type armistice is ruled out; (iv) the war is a turning-point for Russia; it has consigned Putin\u2019s regime to broad international isolation and forced it to deal with difficult domestic political undercurrents \u2013 from the rebellion of the Wagner Group to other pockets of the military to ethnic tensions in several Russian regions and the recent terrorist attack in Moscow; all these show that political risk in Russia is very high; (v) after the war, Ukraine will have the chance to join both the EU and NATO, while Russia will be further away from the former Soviet republics because they see Putin’s aggression in Ukraine as a threat to their sovereignty and territorial integrity; (vi) the war has made Europe wake up to the enormous threat that Russia\u2019s military aggression poses to the continent\u2019s security and the international order, bringing post-cold-war EU-Russia d\u00e9tente to an end.\n\n\n\n\n\n\n\nAs Prof. Feng points out, the war has highlighted that \u201cChina and Russia are very different countries\u201d with increasingly differing objectives in their foreign affairs. \u201cRussia is seeking to subvert the existing international and regional order by means of war,\u201d he writes. \u201cWhereas China wants to resolve disputes peacefully\u201d and without exacerbating the current tensions between China and the West. In the words of Prof. Feng Yujun, \u201cshrewd observers note that China\u2019s stance towards Russia has reverted from the \u2018no limits\u2019 stance of early 2022, before the war, to the traditional principles of \u2018non-alignment, non-confrontation and non-targeting of third parties\u2019\u201d. And he adds that \u201cno one should doubt China\u2019s desire to end this cruel war through negotiations.\u201d This wish, Prof. Feng says, \u201cshows that China and Russia are very different countries. Russia is seeking to subvert the existing international and regional order by means of war, whereas China wants to resolve disputes peacefully.\u201d \n\n\n\nPutin\u2019s recent visit to Beijing was a way for the leaders of China and Russia to show a united front and reiterate their \u201ccomprehensive strategic partnership\u201d. Nonetheless, it is especially important to pay attention to a \u201crestrictive meeting\u201d of Xi and Putin in Zhongnanhai (the new Forbidden City, in Beijing), \u201cduring which they had in-depth exchanges on strategic issues of common concern\u201d, as written in a statement by China\u2019s state agency Xinhua, posted on the Chinese government\u2019s website. In this \u201crestrictive meeting\u201d, Xinhua reported, \u201cXi said China supports the convening of an international peace conference recognized by Russia and Ukraine at an appropriate time with equal participation and fair discussion of all options, so as to push for an early political settlement of the Ukraine issue\u201d and that \u201cChina stands ready to continue to play a constructive role in this regard.\u201d\n\n\n\nThe warnings in Prof. Feng Yujun’s article, and the demand for \u201can early political settlement of the Ukraine issue\u201d constitute an evolution of China\u2019s stance. Europe should use this window of opportunity to join efforts with China to actively promote a ceasefire and realistic peace negotiations, i.e., with both sides at the table.", "date_published": "June 02, 2024", "date_modified": "June 03, 2024 - 01:24", "author": { "name": "Jorge Costa Oliveira", "url": "https://www.macaubusiness.com/author/jcoliveira/", "avatar": "https://secure.gravatar.com/avatar/61f6addb50097930d533e4bbee2df34b?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Xi-Jinping-Putin-in-Beijing-2024.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "As the war on Ukraine raged on, China re-affirmed its \u201cneutrality\u201d, albeit adopting a de facto stance of \u201ccollaborative [pro-Russian] neutrality\u201d towards Russia. The reasons for this stance are evident \u2013 China has much to gain and little to lose from it." }, { "id": "https://www.macaubusiness.com/special-report-what-stays-the-same-when-everything-else-changes/", "url": "https://www.macaubusiness.com/special-report-what-stays-the-same-when-everything-else-changes/", "title": "Special Report \u2013 What stays the same when everything (else) changes", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/000009a-150x150.jpg\")
\nRevisiting the opening text of this special report prompts us to ponder: amidst the whirlwind of change, what remains constant?
\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes
Macau today is a vastly different city than it was 20 years ago, and as we identified a list of 20 changes, some of them stark, this became very evident. Yet, amid these changes, certain phenomena elude the scrutiny of our list. These include shifts that commenced before 2004, falling beyond the purview of our two-decade analysis.
\n\n\n\nConsider, for instance, the ongoing land reclamations. While emblematic of Macau’s perpetual growth, this process has unfolded over the span of a century. Another example: a level of uncertainty persists regarding what life will be like after 2049. While some argue that the uncertainty is less today, others would say that what is known today does not substantially differ from what was known in 1999.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/AdobeStock_226038388-1028x640.jpg\")
Structural issues, too, persist across time. The scarcity of highly skilled personnel, a longstanding concern, has assumed greater visibility in recent years. Likewise, despite concerted efforts, public works continue to grapple with deadline constraints. Speaking of which, how many years have citizens been asking for a tidal barrier in the Inner Harbour to deal with flooding?
\n\n\n\nAnd then there are those aspects that never seem to change. Some examples? Air Macau’s monopoly, despite assurances of liberalisation, endures since its inception. Similarly, Macau’s reliance on mainland China for energy remains steadfast. Or, not to be exhaustive, despite the recent approval of the trade union law, the right to go on strike remains unregulated.
\n\n\n\nLast but not least, notwithstanding the impact of the expansion of the urban area and the influx of mass tourism, those who live here can attest that it remains a convenient place to live\u2013 unparalleled in many ways \u2013 and a special city.
\n\n\n\nPrevious | Finally, the universal minimum wage regime
\n", "content_text": "Revisiting the opening text of this special report prompts us to ponder: amidst the whirlwind of change, what remains constant?\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes\n\n\n\n\n\n\n\n Macau today is a vastly different city than it was 20 years ago, and as we identified a list of 20 changes, some of them stark, this became very evident. Yet, amid these changes, certain phenomena elude the scrutiny of our list. These include shifts that commenced before 2004, falling beyond the purview of our two-decade analysis.\n\n\n\nConsider, for instance, the ongoing land reclamations. While emblematic of Macau’s perpetual growth, this process has unfolded over the span of a century. Another example: a level of uncertainty persists regarding what life will be like after 2049. While some argue that the uncertainty is less today, others would say that what is known today does not substantially differ from what was known in 1999.\n\n\n\n\n\n\n\nStructural issues, too, persist across time. The scarcity of highly skilled personnel, a longstanding concern, has assumed greater visibility in recent years. Likewise, despite concerted efforts, public works continue to grapple with deadline constraints. Speaking of which, how many years have citizens been asking for a tidal barrier in the Inner Harbour to deal with flooding?\n\n\n\nAnd then there are those aspects that never seem to change. Some examples? Air Macau’s monopoly, despite assurances of liberalisation, endures since its inception. Similarly, Macau’s reliance on mainland China for energy remains steadfast. Or, not to be exhaustive, despite the recent approval of the trade union law, the right to go on strike remains unregulated.\n\n\n\nLast but not least, notwithstanding the impact of the expansion of the urban area and the influx of mass tourism, those who live here can attest that it remains a convenient place to live\u2013 unparalleled in many ways \u2013 and a special city.\n\n\n\nPrevious | Finally, the universal minimum wage regime", "date_published": "May 31, 2024", "date_modified": "May 30, 2024 - 13:19", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/000009a.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Revisiting the opening text of this special report prompts us to ponder: amidst the whirlwind of change, what remains constant?" }, { "id": "https://www.macaubusiness.com/special-report-finally-the-universal-minimum-wage-regime/", "url": "https://www.macaubusiness.com/special-report-finally-the-universal-minimum-wage-regime/", "title": "Special Report \u2013 Finally, the universal minimum wage regime", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/04800430-150x150.jpg\")
\nThe universal minimum wage for all professions was only created in 2020. Despite the weight that workers’ associations have in Macau, there was never enough strength to pass a law that would establish a minimum wage for local workers, protecting them from overly low wages (domestic workers and those with disabilities were excluded).
\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes
The new law has expressly revoked the minimum wage for cleaners and security workers in the property administration industry, the only beneficiaries of the regime in force until 2020. Failure to pay the new minimum wage will result in a fine ranging between MOP20,000 and MOP50,000 per worker. Furthermore, failure to follow the new rules of calculation for overtime will result in a fine ranging between MOP5,000 and MOP10,000 per worker. At the time of the vote,
\n\n\n\nWang Sai Man, lawmaker representing the business sector, said: \u201cMore than 90 per cent of companies in Macau are small and medium-sized companies. The immediate implementation of the minimum wage will have an impact on all aspects and may affect companies’ costs. The implementation of the minimum wage is a Government commitment, which should have been implemented gradually. With this radical implementation, it could affect the labour market.\u201d
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/04/Sucesso-no-primeiro-dia-de-aula-de-%E2%80%9CFormac%CC%A7a%CC%83o-subsidiada%E2%80%9D.jpg\")
On January 1st, the monthly amount was updated from MOP6,656 to MOP7,072. Curiously, and after so many years of discussion and opposition from employers’ associations, the first almost-universal regulation to set a minimum wage in Macau was approved by the Legislative Assembly in the middle of the pandemic. This new regime was applied to all labour contracts (for both local and non-resident workers) which are executed before the law enters into force and are ongoing.
\n\n\n\nWhat has changed:
\n\n\n\nThere are few places in the world without a law regulating the allocation of a minimum wage. In 2020, it finally arrived in Macau.
\n\n\n\nPrevious | Proudly UNESCO-listed
\n", "content_text": "The universal minimum wage for all professions was only created in 2020. Despite the weight that workers’ associations have in Macau, there was never enough strength to pass a law that would establish a minimum wage for local workers, protecting them from overly low wages (domestic workers and those with disabilities were excluded). \n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes\n\n\n\n\n\n\n\nThe new law has expressly revoked the minimum wage for cleaners and security workers in the property administration industry, the only beneficiaries of the regime in force until 2020. Failure to pay the new minimum wage will result in a fine ranging between MOP20,000 and MOP50,000 per worker. Furthermore, failure to follow the new rules of calculation for overtime will result in a fine ranging between MOP5,000 and MOP10,000 per worker. At the time of the vote,\n\n\n\n Wang Sai Man, lawmaker representing the business sector, said: \u201cMore than 90 per cent of companies in Macau are small and medium-sized companies. The immediate implementation of the minimum wage will have an impact on all aspects and may affect companies’ costs. The implementation of the minimum wage is a Government commitment, which should have been implemented gradually. With this radical implementation, it could affect the labour market.\u201d \n\n\n\n\n\n\n\nOn January 1st, the monthly amount was updated from MOP6,656 to MOP7,072. Curiously, and after so many years of discussion and opposition from employers’ associations, the first almost-universal regulation to set a minimum wage in Macau was approved by the Legislative Assembly in the middle of the pandemic. This new regime was applied to all labour contracts (for both local and non-resident workers) which are executed before the law enters into force and are ongoing.\n\n\n\nWhat has changed:\n\n\n\nThere are few places in the world without a law regulating the allocation of a minimum wage. In 2020, it finally arrived in Macau.\n\n\n\nPrevious | Proudly UNESCO-listed", "date_published": "May 30, 2024", "date_modified": "May 29, 2024 - 16:36", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/04800430.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "The universal minimum wage for all professions was only created in 2020. Despite the weight that workers' associations have in Macau, there was never enough strength to pass a law that would establish a minimum wage for local workers, protecting them from overly low wages (domestic workers and those with disabilities were excluded). " }, { "id": "https://www.macaubusiness.com/special-report-proudly-unesco-listed/", "url": "https://www.macaubusiness.com/special-report-proudly-unesco-listed/", "title": "Special Report \u2013 Proudly UNESCO-listed", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/Tourism-recovery-Saint-Paul-Ruins-150x150.jpg\")
\nMacau, with the support of the Central Government, applied to have the historic centre of the city recognised as a World Heritage Site and received a positive response in July 2005.
\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes
At the time, there were critics who pointed out that the classified zone consisted of “more than 25 historical monuments and public squares, of which 20 pertain to Western architecture built by the Portuguese during the last four centuries, while only five sites are typical buildings of southern China.” However, subsequent events proved this opinion to be a minority view.
\n\n\n\nThe Historic Centre of Macau, classified by UNESCO, not only became a brand image that the Government features in all promotional campaigns but also spurred a type of activism previously unseen in Macau. Since 2005, several local groups have reported to UNESCO what they perceive as violations of the commitments made during the candidacy process. It’s noteworthy that Portuguese associations did not take the lead in this regard.
\n\n\n\nVarious studies indicate that residents, in general, take pride in this space and consider it an integral part of the city’s identity.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/66326206f3e8279bd1b9f921_570x.jpg\")
However, the question arises: why did the Plan for the Safeguarding and Management of the Historic Centre of Macau, mandated by Macau laws since 2014 and repeatedly requested by UNESCO, only come into force more than 10 years later, on June 1?
\n\n\n\nPerhaps the answer lies in UNESCO reports, which cite factors affecting the classification such as high-rise buildings, the potential visual impact of new developments, land disputes, or the absence of a management plan.
\n\n\n\n(Macau is so pleased with the UNESCO classification that it has applied again, this time as a Creative City in Gastronomy. The distinction was granted in October 2017, recognising Macau’s rich culinary heritage, which has evolved over 400 years.)
\n\n\n\nWhat has changed
\n\n\n\nMacau\u2019s Historic Centre has been a World Heritage Site since 2005. It has become a centrepiece of the city\u2019s allure and identity, where Portuguese heritage plays a key role
\n\n\n\n\n", "content_text": "Macau, with the support of the Central Government, applied to have the historic centre of the city recognised as a World Heritage Site and received a positive response in July 2005.\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes\n\n\n\n\n\n\n\nAt the time, there were critics who pointed out that the classified zone consisted of “more than 25 historical monuments and public squares, of which 20 pertain to Western architecture built by the Portuguese during the last four centuries, while only five sites are typical buildings of southern China.” However, subsequent events proved this opinion to be a minority view.\n\n\n\nThe Historic Centre of Macau, classified by UNESCO, not only became a brand image that the Government features in all promotional campaigns but also spurred a type of activism previously unseen in Macau. Since 2005, several local groups have reported to UNESCO what they perceive as violations of the commitments made during the candidacy process. It’s noteworthy that Portuguese associations did not take the lead in this regard.\n\n\n\nVarious studies indicate that residents, in general, take pride in this space and consider it an integral part of the city’s identity.\n\n\n\n\n\n\n\nHowever, the question arises: why did the Plan for the Safeguarding and Management of the Historic Centre of Macau, mandated by Macau laws since 2014 and repeatedly requested by UNESCO, only come into force more than 10 years later, on June 1?\n\n\n\nPerhaps the answer lies in UNESCO reports, which cite factors affecting the classification such as high-rise buildings, the potential visual impact of new developments, land disputes, or the absence of a management plan.\n\n\n\n(Macau is so pleased with the UNESCO classification that it has applied again, this time as a Creative City in Gastronomy. The distinction was granted in October 2017, recognising Macau’s rich culinary heritage, which has evolved over 400 years.)\n\n\n\nWhat has changed\n\n\n\nMacau\u2019s Historic Centre has been a World Heritage Site since 2005. It has become a centrepiece of the city\u2019s allure and identity, where Portuguese heritage plays a key role\n\n\n\nPrevious | Mass tourism", "date_published": "May 29, 2024", "date_modified": "May 28, 2024 - 16:14", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/Tourism-recovery-Saint-Paul-Ruins.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "Macau, with the support of the Central Government, applied to have the historic centre of the city recognised as a World Heritage Site and received a positive response in July 2005." }, { "id": "https://www.macaubusiness.com/special-report-mass-tourism/", "url": "https://www.macaubusiness.com/special-report-mass-tourism/", "title": "Special Report \u2013 Mass tourism", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/66326207f3e8279bd1b9f93f_570x-150x150.jpg\")
\nAt the beginning of 2005, the front pages of newspapers could be seen reporting on the spectacular increase in the number of tourists who had visited Macau the previous year: from 10.5 million in 2003 to 15.1 million.
\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes
During that time, concerns began to arise regarding the anticipated continued growth in the number of tourists (no properties had yet been opened at Cotai…) and how to accommodate them, especially on the Peninsula.
\n\n\n\nIn 2019, all records were shattered with a staggering 39.4 million visitors, a figure that is difficult to compare with the 31 million recorded in 2014.
\n\n\n\nBy then, the issue of excess tourists had become a major concern for the public and officials alike, to the extent that discussions were underway regarding the implementation of a tourist tax, akin to the one in Venice, to address certain excesses in specific areas of the historic city. Some voices even contemplated the creation of such a tax as early as 2019.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/01/Tourists-night-shopping-1028x771.jpeg\")
However, while Macau was still deliberating on the limit of tourists the region could sustain annually, the pandemic struck.
\n\n\n\nThe city was suddenly devoid of visitors, and never before had so many people longed for the influx of tourists.
\n\n\n\nFinally, from the first half of 2023, tourists began to return en masse and in force. By the end of last year, a new record was set, with 175,000 visitors in just 24 hours.
\n\n\n\nPredictably, complaints quickly resurfaced about the repercussions of overcrowding in certain areas, such as litter, noise, and disruptions to residents’ lives.
\n\n\n\n[Will the 2019 record be surpassed in the next three years? Care to place a bet?]
\n\n\n\nWhat has changed
\n\n\n\nIn 2003, Macau recorded 10.5 million visitor arrivals. Since then, the figure has soared to a peak of 39.4 million in 2019. As the post-pandemic rebound continues, the region now aims to surpass 40 million tourists
\n\n\n\nPrevious | Public housing focus
\n", "content_text": "At the beginning of 2005, the front pages of newspapers could be seen reporting on the spectacular increase in the number of tourists who had visited Macau the previous year: from 10.5 million in 2003 to 15.1 million.\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes\n\n\n\n\n\n\n\nDuring that time, concerns began to arise regarding the anticipated continued growth in the number of tourists (no properties had yet been opened at Cotai…) and how to accommodate them, especially on the Peninsula.\n\n\n\nIn 2019, all records were shattered with a staggering 39.4 million visitors, a figure that is difficult to compare with the 31 million recorded in 2014.\n\n\n\nBy then, the issue of excess tourists had become a major concern for the public and officials alike, to the extent that discussions were underway regarding the implementation of a tourist tax, akin to the one in Venice, to address certain excesses in specific areas of the historic city. Some voices even contemplated the creation of such a tax as early as 2019.\n\n\n\n\n\n\n\nHowever, while Macau was still deliberating on the limit of tourists the region could sustain annually, the pandemic struck.\n\n\n\nThe city was suddenly devoid of visitors, and never before had so many people longed for the influx of tourists.\n\n\n\nFinally, from the first half of 2023, tourists began to return en masse and in force. By the end of last year, a new record was set, with 175,000 visitors in just 24 hours.\n\n\n\nPredictably, complaints quickly resurfaced about the repercussions of overcrowding in certain areas, such as litter, noise, and disruptions to residents’ lives.\n\n\n\n[Will the 2019 record be surpassed in the next three years? Care to place a bet?]\n\n\n\nWhat has changed\n\n\n\nIn 2003, Macau recorded 10.5 million visitor arrivals. Since then, the figure has soared to a peak of 39.4 million in 2019. As the post-pandemic rebound continues, the region now aims to surpass 40 million tourists\n\n\n\nPrevious | Public housing focus", "date_published": "May 28, 2024", "date_modified": "May 27, 2024 - 15:43", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/66326207f3e8279bd1b9f93f_570x.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "At the beginning of 2005, the front pages of newspapers could be seen reporting on the spectacular increase in the number of tourists who had visited Macau the previous year: from 10.5 million in 2003 to 15.1 million." }, { "id": "https://www.macaubusiness.com/locally-rooted-going-global/", "url": "https://www.macaubusiness.com/locally-rooted-going-global/", "title": "Locally rooted, going global \u00a0", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-5-150x150.jpeg\")
\nCheong Kun Pain Reliever Oil goes international with roots firmly planted in Macau.
\n\n\n\nThe legacy of Cheong Kun Pain Reliever Oil, a historic traditional Chinese medicine brand from Macau, continues to thrive under the management of the Cheong family’s third generation. With a new 2,000-square-metre factory in the Seac Pai Van Industrial Park, the company has ambitious expansion plans, aiming to reach production of 10 million bottles in three years and explore Portuguese-speaking markets.
\n\n\n\nBy Nelson Moura
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-4-1028x771.jpeg\")
It was already in the 1950s that Cheong Kun He established a clinic on Rua dos Vendilh\u00f5es where he would produce and sell his Cheong Kun Analgesic Oil.
\n\n\n\nThe founder’s grandson, now the company’s technical director, Cheong Lok Kei tells Macau Business how his grandfather was inspired by his experience as a sailor to come up with this remedy.
\n\n\n\n“Sailors were regularly injured during navigation, and with limited first aid resources on the ship, injured workers could only let wounds heal on their own and endure the pain. My grandfather decided that there should be a portable medicine that could be taken for navigation,” Cheong explains.
\n\n\n\n\u201cWhen they went out to sea they would get injuries and wounds that could easily bleed and also become infected by bacteria. After years of experience, he refined his recipe and in the 1960s licensed Cheung Kun Oil,\u201d the director points out in an interview at the brand\u2019s new factory in Seac Pai Van.
\n\n\n\nThe recommended use for the oil has remained the same: pain relief and treatment of wounds, including burns, haemorrhages, or rheumatisms.
\n\n\n\nHowever, according to the director of the company – officially Cheong Kun Pain Reliever Oil Chinese Medicine Factory (Macau) Ltd. – the brand is now promoting a larger use for sports injuries and children.
\n\n\n\n\u201cWhen applied to the wound, the oil anaesthetizes and stops bleeding quickly. That’s why mothers feel safe applying the oil to their children. This is how Chinese medicine can be passed on to the next generation,\u201d Cheng tells Macau Business.
\n\n\n\nAs for the process of selecting Chinese herbs, the company followed Cheng Kun’s original recipe, with the entire process, from extraction to bottling, carried out in Macau, following industrial quality standards. “In the past, my grandfather produced the oil in his clinic. He made it in the kitchen and then sold it in the shop in the same building. He made his packaging,” the manager recounts.
\n\n\n\n
\u201cWhen applied to the wound, the oil anaesthetizes and stops bleeding quickly. That’s why mothers feel safe applying the oil to their children. This is how Chinese medicine can be passed on to the next generation\u201d – Cheong Lok Kei
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-8-1028x771.jpeg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-8-1-1028x771.jpeg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-6-1028x771.jpeg\")
Growing in scale
\n\n\n\nAfter his grandfather passed away in 1998, Cheong’s father bought a factory in the Tamagnini Barbosa north district neighbourhood in 1999.
\n\n\n\n“At that time, sector regulations changed, and Chinese medicine had to be produced in factories and meet certain requirements. Some traditional Macau brands did not make the change and only sold in their clinic or shop,” he says. Only with these improvements did it become possible to gain greater confidence from an international audience, with Cheong highlighting that the most difficult thing for the industry is for people to think that it has no scientific support. After studying management and Chinese medicine in the United States and Hong Kong, Cheong decided to apply his knowledge to not only continue the family legacy but also to reach another level.
\n\n\n\nThe move to the Seac Pai Van Industrial Park marks a step towards this goal, allowing for a significant expansion of production capacity and production standards while maintaining the brand\u2019s Macau roots.
\n\n\n\nThe new factory got its licence early on, around March of last year, and after three months of testing, it opened in June. With the factory following international Good Manufacturing Practice standards, it can now sell all over the world.
\n\n\n\n\u201cWhen the oil reaches the standards we want, we place it in a tank, and the entire batch is transferred to the filling and packaging process. We will send samples for safety testing and distribute them ourselves. The entire process is 100 percent done in Macau,\u201d Cheng adds.
\n\n\n\nPreviously, production was limited to less than 1 million bottles per year, but now the company aims to produce up to 1.5 million bottles in 2024, with ambitious plans to triple this capacity by 2027.
\n\n\n\n“But we will study the market demand. We sell about a third in Macau in 400 pharmacies, a third in Hong Kong, and a third in China, mainly in Guangdong. We recently sold our first batch to Singapore, a market where we see a lot of potential,” he describes.
\n\n\n\nDespite the incentives provided for TCM companies to establish themselves in Hengqin, the choice for the new factory fell on RAEM, with Cheong justifying the decision with the family’s strong emotional bond with the region and the desire to become an international brand that maintains its local roots. “We are a local brand from Macau, created by residents of Macau, but we believe that we can become an international brand. We hope to be a ‘unicorn,'” he describes.
\n\n\n\nTheir efforts also brought some public recognition, with Cheong Kun awarded the Medal of Merit for Industry and Commerce last year from the Macau SAR government.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-2-1028x771.jpeg\")
Reaching Mozambique and beyond
\n\n\n\nHowever, it was with the support of the Traditional Chinese Medicine Science and Industrial Park in Hengqin that the company started selling to Mozambique in 2017.
\n\n\n\nAt the time, Cheung Kund and Chinese COVID-19 medication, Liangwen Qingwen were the first two TCM products to undergo a translation and registration process for sale to Lusophone countries.
\n\n\n\n\u201dThe Park went to Mozambique to understand the government requirements and the herb registration process. We consider Mozambique as a gateway to Lusophone countries, and as a Macau brand, we have advantages in this connection. In two or three years, we want to reach another country, perhaps Brazil or Portugal,” he describes.
\n\n\n\nIn the Portuguese-speaking African country, the oil is distributed to local pharmacies and also to schools or TCM clinics, where doctors use it.
\n\n\n\n“These therapists teach acupuncture and also massage skills and how to apply Chinese medicine to different symptoms. This is more practical because people who use it end up buying it. I think this is the easiest way for people to better understand Chinese medicine,” Cheong highlights.
\n\n\n\nWith a new store on Rua dos Ervan\u00e1rios and a diverse line of merchandising products, the company now seeks not only to attract tourists but also to educate local customers about the benefits of the oil and its history.
\n\n\n\n“We target two types of customers. One is not familiar with the brand and to whom we have to explain its history and uses. The others are repeat customers, who may have only partial knowledge of the oil and how to use it. But by entering the store, they can better understand how to use it to treat the elderly, children, and in different scenarios,” he describes. “This is how Chinese medicine can pass on to the next generation.”
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cheong-Kun-Oil-1-1028x771.jpeg\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/8-seacpaivan_HOUSING_SET22-150x150.jpg\")
\n\u00a0In Denmark, South Africa, Canada, or New Zealand, housing consistently ranks among the top concerns when you ask people about their priorities.
\n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes
However, in Macau, the situation is far more dire: with just 33.3 km\u00b2, it holds the title for the highest population density worldwide, with land being one of the scarcest resources. Moreover, in 2004, there were just over 440,000 inhabitants; today, that number has nearly reached 700,000. This stark reality underscores the crucial need for public intervention, as a significant portion of the population would be unable to secure housing in Macau otherwise. By 2021, the cumulative number of social and ‘economic’ housing units (under the subsidised home-ownership scheme) in Macau, had reached 52,000.
\n\n\n\nRecognising the severity of the situation, various governments over the past two decades have invested in the construction of public housing. Currently, an ambitious plan is underway to address the housing crisis by 2030, primarily through the development of several land plots in New Urban Zone A. According to the Study on Housing Policy for Residential Purposes from the Policy Research and Regional Development Bureau, as of the end of June 2021, Macau boasted a total of 238,464 housing units, with 15,037 designated as social housing (6.3 percent of the total), 36,963 as affordable housing (15.5 percent), and 186,464 as private housing (78.2 percent).
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2018/09/social_housing-5W9A0191_2_rgb-e1536335710566-1028x685.png\")
The study projects a median total social housing demand of 17,394 units for 2025 and 18,166 units for 2030. The government has pledged to meet this demand in the coming years. Interestingly, indications at the end of last year suggested that the government anticipated the number of public housing units in 2023 to adequately meet residents’ needs at that time, even foreseeing a surplus of more than 13,000 public housing units by 2026.
\n\n\n\nWhile many governments around the world focus solely on providing public housing for the poorest, the situation in Macau demands a more nuanced approach. It necessitates several layers of intervention, taking into account various income brackets, including the middle class. The government has committed to providing 23,950 units of affordable housing and introduced a new ‘sandwich class’ category for those with higher incomes, although this initiative was eventually suspended. Meeting the housing needs of older individuals presents its own set of challenges, as many require spaces tailored to their physical and health needs.
\n\n\n\nWhat has changed\u00a0
\n\n\n\nThe Government has embarked on an ambitious plan for public housing construction, crucial for ensuring that tens of thousands of residents can find homes in Macau.
\n\n\n\nPrevious | The Lusophone platform
\n", "content_text": "\u00a0In Denmark, South Africa, Canada, or New Zealand, housing consistently ranks among the top concerns when you ask people about their priorities. \n\n\n\nMacau Business | May 2024 | Special Report | 20 years, 20 changes\n\n\n\n\n\n\n\nHowever, in Macau, the situation is far more dire: with just 33.3 km\u00b2, it holds the title for the highest population density worldwide, with land being one of the scarcest resources. Moreover, in 2004, there were just over 440,000 inhabitants; today, that number has nearly reached 700,000. This stark reality underscores the crucial need for public intervention, as a significant portion of the population would be unable to secure housing in Macau otherwise. By 2021, the cumulative number of social and ‘economic’ housing units (under the subsidised home-ownership scheme) in Macau, had reached 52,000.\n\n\n\nRecognising the severity of the situation, various governments over the past two decades have invested in the construction of public housing. Currently, an ambitious plan is underway to address the housing crisis by 2030, primarily through the development of several land plots in New Urban Zone A. According to the Study on Housing Policy for Residential Purposes from the Policy Research and Regional Development Bureau, as of the end of June 2021, Macau boasted a total of 238,464 housing units, with 15,037 designated as social housing (6.3 percent of the total), 36,963 as affordable housing (15.5 percent), and 186,464 as private housing (78.2 percent).\n\n\n\n\n\n\n\nThe study projects a median total social housing demand of 17,394 units for 2025 and 18,166 units for 2030. The government has pledged to meet this demand in the coming years. Interestingly, indications at the end of last year suggested that the government anticipated the number of public housing units in 2023 to adequately meet residents’ needs at that time, even foreseeing a surplus of more than 13,000 public housing units by 2026.\n\n\n\nWhile many governments around the world focus solely on providing public housing for the poorest, the situation in Macau demands a more nuanced approach. It necessitates several layers of intervention, taking into account various income brackets, including the middle class. The government has committed to providing 23,950 units of affordable housing and introduced a new ‘sandwich class’ category for those with higher incomes, although this initiative was eventually suspended. Meeting the housing needs of older individuals presents its own set of challenges, as many require spaces tailored to their physical and health needs.\n\n\n\nWhat has changed\u00a0\n\n\n\nThe Government has embarked on an ambitious plan for public housing construction, crucial for ensuring that tens of thousands of residents can find homes in Macau.\n\n\n\nPrevious | The Lusophone platform", "date_published": "May 27, 2024", "date_modified": "May 27, 2024 - 05:21", "author": { "name": "Jo\u00e3o Paulo Meneses", "url": "https://www.macaubusiness.com/author/joao-paulo-meneses/", "avatar": "https://secure.gravatar.com/avatar/65cce644a14f20eda9029182721bd65f?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/8-seacpaivan_HOUSING_SET22.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured" ], "summary": "In Denmark, South Africa, Canada, or New Zealand, housing consistently ranks among the top concerns when you ask people about their priorities. However, in Macau, the situation is far more dire" }, { "id": "https://www.macaubusiness.com/opinion-experiencing-the-real-macau-rent-a-local-unlock-the-citys-soul/", "url": "https://www.macaubusiness.com/opinion-experiencing-the-real-macau-rent-a-local-unlock-the-citys-soul/", "title": "OPINION \u2013 Experiencing the real Macau: Rent a local, unlock the city\u2019s soul", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/66326207f3e8279bd1b9f950_570x-150x150.jpg\")
\nBy Jos\u00e9 Pinto
\n\n\n\nAssistant Professor, City University of Macau
\n\n\n\nWhat if visitors to Macau had a way to truly immerse themselves in the diverse local culture beyond just seeing the major tourist attractions? How could they gain an authentic window into the city’s rich traditions, vibrant neighbourhoods, and genuine lifestyles?
\n\n\n\nHow might a programme that facilitates one-on-one interactions with local residents help address overcrowding issues at iconic sites?
\n\n\n\nAnd what benefits could it provide in terms of sustainable tourism practices and an image of authenticity?
\n\n\n\nBeyond just economic impacts, what potential societal benefits could a “rent-a-local” model provide for Macau residents themselves?
\n\n\n\nHow could it create purpose, income opportunities, and avenues to celebrate local cultural identities?
\n\n\n\nWith global travel becoming increasingly experiential, how could enabling these types of hyper-personalised, transformative cultural exchanges position Macau to capitalise on rising demands for authentic travel, namely, increasing their stay in Macau?
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/Night-Life13_Oswald-Vas.jpg\")
One potential concept that has emerged is the “rent-a-local” trend.
\n\n\n\nThe hypothetical idea allows visitors to hire temporary local friends, family members, or guides to serve as personal cultural ambassadors during their stay.
\n\n\n\nThis facilitates one-on-one interactions that could not only provide authentic cultural immersion but also help address overcrowding at iconic sites by dispersing visitors into other residential areas. Rather than relying on static tours, these personal human connections allow curiosity to flow both ways, creating opportunities for mutual learning and understanding (and co-creating).
\n\n\n\nSuch a model could provide significant benefits beyond just economic impacts. For destinations like Macau, it presents potential solutions to pressing societal challenges. Retirees, many of whom face boredom and lack of purpose in their golden years, could find newfound value and engagement by sharing their lifetime of cultural wisdom as guides. This increased sense of usefulness can provide mental and emotional reinvigoration.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/Night-Life11_Oswald-Vas.jpg\")
Consider Mrs. Lai, a warm and spritely 70-year-old retired school teacher born and raised in Macau. After decades spent educating generations of children, her retirement initially felt aimless. The structure and sense of purpose she derived from shaping young minds was gone. Though financially stable, Mrs. Lai struggled with boredom and a lack of meaningful engagement as the days felt increasingly long and empty.
\n\n\n\nHowever, through Macau’s rent-a-local programme, Mrs. Lai found a rewarding new purpose in sharing her lifetime of cultural wisdom and personal anecdotes with visiting families. Suddenly, her unparalleled knowledge of Macau’s traditions, historic neighbourhoods, and childhood games became a valuable asset again. Tourists clamoured for her services as the archetypal “rented auntie” to provide cultural context and oversee immersive, memorable experiences.
\n\n\n\nOn any given day, Mrs. Lai could be found leading multigenerational families around the winding alleyways of the Inner Harbour district. She delighted in sharing the significance of neighborhood temples, introducing visitors to her favorite past bakeries still making iconic Portuguese egg tarts, and teaching young visitors traditional children’s rhymes in Cantonese. Her eyes danced with youthful joy as she observed kids learning cultural nuances firsthand.
\n\n\n\nThe meaningful work provided Mrs. Lai with independence, engagement, and a renewed zest for life. Imparting her cultural expertise and seeing it enrich others’ travels filled her with immense pride and satisfaction. The reasonable supplemental income was welcome, but it was the sense of usefulness and community connection that truly reinvigorated her golden years.
\n\n\n\nFrom a woman at risk of festering loneliness, Mrs. Lai experienced an incredible mental and emotional uplift. Her days now brimmed with social fulfilment as an honoured custodian of Macau’s intangible cultural heritage. The rent-a-local programme provided an invaluable outlet to apply her wealth of knowledge, combat isolation, and find new purpose sharing the city’s treasures she held so dear.
\n\n\n\nAdditionally, underemployed individuals or those struggling to make ends meet could monetize their inherent local knowledge as a supplemental income stream through the rent-a-local program. The flexible earning opportunities allow residents to derive income from their city familiarity without the constraints of rigid schedules.
\n\n\n\nMiguel was a 28-year-old artist and part-time barista struggling to make ends meet in Macau. Despite his passion for the local arts and culture scene, he found himself working long hours slinging coffee just to afford the city’s high cost of living. Miguel’s true callings – creating vibrant graphic art pieces and immersing himself in Macau’s underground creative communities – constantly took a backseat to the grind of making rent.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/Night-Life9_Oswald-Vas.jpg\")
That’s when he discovered the rent-a-local programme and its flexible earning potential. Miguel’s deep-rooted familiarity with Macau’s cutting-edge street art, music venues, galleries, and trendy enclaves meant he could monetize that indigenous knowledge flexibly on his own terms. He signed up to provide personalized tours catering to overty millennials, students, and culture enthusiasts seeking an authentic taste of the city’s gritty artistic underbelly.
\n\n\n\nOn days off from the cafe or after evening shifts, Miguel would guide small groups from all over the world through Macau’s kaleidoscope of creative subcultures. One day, you might find him taking visitors to an edgy live music haunt or explaining the symbolic meanings behind bold new murals in the street art district. Next, he could be sneaker shopping at a prized vintage boutique or sampling daring fusion fare from an up-and-coming foodie hotspot.
\n\n\n\nMiguel’s unparalleled street cred as an embedded creative made him a sought-after rent-a-local guide. Visitors relished his passion, insights, and behind-the-scenes access into Macau’s boundary-pushing arts movements. They walked away feeling like they experienced slices of the city most tourists never see.
\n\n\n\nThe supplemental income stream from tours allowed Miguel to pursue his creative endeavours with greater financial freedom. The flexible schedule meant he could monetize his expertise around his unpredictable day job rather than adhere to rigid shifts that risked stunting his artistic growth.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/Night-Life14_Oswald-Vas.jpg\")
What had previously felt like a striving struggle soon blossomed into sustainable self-actualization thanks to rent-a-local. Miguel gained not just financial stability from sharing his cultural know-how but a profound sense of pride and urbanity – all without sacrificing his artistic identity. The program unlocked his inherent real-world knowledge as a modern-day resource.
\n\n\n\nThis creates new pathways towards financial stability and entrepreneurship. Even working professionals in Macau may find the ability to earn disposable income by sharing their city passions on a flexible schedule to be an attractive prospect. The extra income could improve standards of living and work-life balance. Ultimately, by incentivizing residents across ages and socioeconomic levels to celebrate their multifaceted cultural identities as ambassadors, the programme fosters civic pride.
\n\n\n\nWith global travel becoming increasingly experience-driven and demanding authenticity, enabling these types of hyper-personalised, transformative cultural exchanges through a “rent-a-local” programme could position Macau to capitalise on rising demands. It offers a distinct advantage over conventional tours by unlocking the true soul of the destination through meaningful person-to-person encounters, as one hypothetical resident observes.
\n\n\n\nPioneering such a hyper-customised model would allow Macau to simultaneously mitigate over-tourism while enriching visitor experiences and addressing key societal needs – making travel more impactful and sustainable on both sides. This directly aligns with recent central government directives for Macau to diversify beyond its longtime gaming focus and develop as a world-class tourism and leisure destination, highlighting its East-meets-West cultural heritage.
\n\n\n\nBy dispersing visitors into local neighbourhoods, reducing mobility stresses on iconic areas, and incentivizing residents’ roles as cultural ambassadors, the rent-a-local concept could reduce over-tourism strains. It celebrates Macau’s unique multicultural identity, born from its history as a European colonial outpost in China – the exact blend the central government aims to showcase.
\n", "content_text": "By Jos\u00e9 Pinto\n\n\n\nAssistant Professor, City University of Macau \n\n\n\n\n\n\n\nWhat if visitors to Macau had a way to truly immerse themselves in the diverse local culture beyond just seeing the major tourist attractions? How could they gain an authentic window into the city’s rich traditions, vibrant neighbourhoods, and genuine lifestyles?\n\n\n\nHow might a programme that facilitates one-on-one interactions with local residents help address overcrowding issues at iconic sites?\n\n\n\nAnd what benefits could it provide in terms of sustainable tourism practices and an image of authenticity?\n\n\n\nBeyond just economic impacts, what potential societal benefits could a “rent-a-local” model provide for Macau residents themselves?\n\n\n\nHow could it create purpose, income opportunities, and avenues to celebrate local cultural identities?\n\n\n\nWith global travel becoming increasingly experiential, how could enabling these types of hyper-personalised, transformative cultural exchanges position Macau to capitalise on rising demands for authentic travel, namely, increasing their stay in Macau?\n\n\n\n\n\n\n\nOne potential concept that has emerged is the “rent-a-local” trend.\n\n\n\nThe hypothetical idea allows visitors to hire temporary local friends, family members, or guides to serve as personal cultural ambassadors during their stay.\n\n\n\nThis facilitates one-on-one interactions that could not only provide authentic cultural immersion but also help address overcrowding at iconic sites by dispersing visitors into other residential areas. Rather than relying on static tours, these personal human connections allow curiosity to flow both ways, creating opportunities for mutual learning and understanding (and co-creating).\n\n\n\nSuch a model could provide significant benefits beyond just economic impacts. For destinations like Macau, it presents potential solutions to pressing societal challenges. Retirees, many of whom face boredom and lack of purpose in their golden years, could find newfound value and engagement by sharing their lifetime of cultural wisdom as guides. This increased sense of usefulness can provide mental and emotional reinvigoration. \n\n\n\n\n\n\n\nConsider Mrs. Lai, a warm and spritely 70-year-old retired school teacher born and raised in Macau. After decades spent educating generations of children, her retirement initially felt aimless. The structure and sense of purpose she derived from shaping young minds was gone. Though financially stable, Mrs. Lai struggled with boredom and a lack of meaningful engagement as the days felt increasingly long and empty.\n\n\n\nHowever, through Macau’s rent-a-local programme, Mrs. Lai found a rewarding new purpose in sharing her lifetime of cultural wisdom and personal anecdotes with visiting families. Suddenly, her unparalleled knowledge of Macau’s traditions, historic neighbourhoods, and childhood games became a valuable asset again. Tourists clamoured for her services as the archetypal “rented auntie” to provide cultural context and oversee immersive, memorable experiences.\n\n\n\nOn any given day, Mrs. Lai could be found leading multigenerational families around the winding alleyways of the Inner Harbour district. She delighted in sharing the significance of neighborhood temples, introducing visitors to her favorite past bakeries still making iconic Portuguese egg tarts, and teaching young visitors traditional children’s rhymes in Cantonese. Her eyes danced with youthful joy as she observed kids learning cultural nuances firsthand.\n\n\n\nThe meaningful work provided Mrs. Lai with independence, engagement, and a renewed zest for life. Imparting her cultural expertise and seeing it enrich others’ travels filled her with immense pride and satisfaction. The reasonable supplemental income was welcome, but it was the sense of usefulness and community connection that truly reinvigorated her golden years.\n\n\n\nFrom a woman at risk of festering loneliness, Mrs. Lai experienced an incredible mental and emotional uplift. Her days now brimmed with social fulfilment as an honoured custodian of Macau’s intangible cultural heritage. The rent-a-local programme provided an invaluable outlet to apply her wealth of knowledge, combat isolation, and find new purpose sharing the city’s treasures she held so dear.\n\n\n\nAdditionally, underemployed individuals or those struggling to make ends meet could monetize their inherent local knowledge as a supplemental income stream through the rent-a-local program. The flexible earning opportunities allow residents to derive income from their city familiarity without the constraints of rigid schedules. \n\n\n\nMiguel was a 28-year-old artist and part-time barista struggling to make ends meet in Macau. Despite his passion for the local arts and culture scene, he found himself working long hours slinging coffee just to afford the city’s high cost of living. Miguel’s true callings – creating vibrant graphic art pieces and immersing himself in Macau’s underground creative communities – constantly took a backseat to the grind of making rent.\n\n\n\n\n\n\n\nThat’s when he discovered the rent-a-local programme and its flexible earning potential. Miguel’s deep-rooted familiarity with Macau’s cutting-edge street art, music venues, galleries, and trendy enclaves meant he could monetize that indigenous knowledge flexibly on his own terms. He signed up to provide personalized tours catering to overty millennials, students, and culture enthusiasts seeking an authentic taste of the city’s gritty artistic underbelly.\n\n\n\nOn days off from the cafe or after evening shifts, Miguel would guide small groups from all over the world through Macau’s kaleidoscope of creative subcultures. One day, you might find him taking visitors to an edgy live music haunt or explaining the symbolic meanings behind bold new murals in the street art district. Next, he could be sneaker shopping at a prized vintage boutique or sampling daring fusion fare from an up-and-coming foodie hotspot.\n\n\n\nMiguel’s unparalleled street cred as an embedded creative made him a sought-after rent-a-local guide. Visitors relished his passion, insights, and behind-the-scenes access into Macau’s boundary-pushing arts movements. They walked away feeling like they experienced slices of the city most tourists never see.\n\n\n\nThe supplemental income stream from tours allowed Miguel to pursue his creative endeavours with greater financial freedom. The flexible schedule meant he could monetize his expertise around his unpredictable day job rather than adhere to rigid shifts that risked stunting his artistic growth.\n\n\n\n\n\n\n\nWhat had previously felt like a striving struggle soon blossomed into sustainable self-actualization thanks to rent-a-local. Miguel gained not just financial stability from sharing his cultural know-how but a profound sense of pride and urbanity – all without sacrificing his artistic identity. The program unlocked his inherent real-world knowledge as a modern-day resource.\n\n\n\nThis creates new pathways towards financial stability and entrepreneurship. Even working professionals in Macau may find the ability to earn disposable income by sharing their city passions on a flexible schedule to be an attractive prospect. The extra income could improve standards of living and work-life balance. Ultimately, by incentivizing residents across ages and socioeconomic levels to celebrate their multifaceted cultural identities as ambassadors, the programme fosters civic pride.\n\n\n\nWith global travel becoming increasingly experience-driven and demanding authenticity, enabling these types of hyper-personalised, transformative cultural exchanges through a “rent-a-local” programme could position Macau to capitalise on rising demands. It offers a distinct advantage over conventional tours by unlocking the true soul of the destination through meaningful person-to-person encounters, as one hypothetical resident observes.\n\n\n\nPioneering such a hyper-customised model would allow Macau to simultaneously mitigate over-tourism while enriching visitor experiences and addressing key societal needs – making travel more impactful and sustainable on both sides. This directly aligns with recent central government directives for Macau to diversify beyond its longtime gaming focus and develop as a world-class tourism and leisure destination, highlighting its East-meets-West cultural heritage.\n\n\n\nBy dispersing visitors into local neighbourhoods, reducing mobility stresses on iconic areas, and incentivizing residents’ roles as cultural ambassadors, the rent-a-local concept could reduce over-tourism strains. It celebrates Macau’s unique multicultural identity, born from its history as a European colonial outpost in China – the exact blend the central government aims to showcase.", "date_published": "May 26, 2024", "date_modified": "May 25, 2024 - 09:45", "author": { "name": "Jos\u00e9 Pinto", "url": "https://www.macaubusiness.com/author/josepinto/", "avatar": "https://secure.gravatar.com/avatar/9e756ed0c5d68b0aa68b8bc33bd6b2fc?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/66326207f3e8279bd1b9f950_570x.jpg", "tags": [ "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "What if visitors to Macau had a way to truly immerse themselves in the diverse local culture beyond just seeing the major tourist attractions? How could they gain an authentic window into the city's rich traditions, vibrant neighbourhoods, and genuine lifestyles?" }, { "id": "https://www.macaubusiness.com/opinion-unleashing-macaus-green-goldmine-waste-upcycling-for-sustainable-innovation/", "url": "https://www.macaubusiness.com/opinion-unleashing-macaus-green-goldmine-waste-upcycling-for-sustainable-innovation/", "title": "OPINION \u2013 Unleashing Macau\u2019s Green Goldmine: Waste Upcycling for Sustainable Innovation", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/06/Screen-Shot-2020-06-19-at-6.59.19-PM-150x150.png\")
\nDeepa Alex Mora
\n\n\n\nMember
\n\n\n\nMacau Institute for Corporate Social Responsibility in Greater China (MICSRGC)
\n\n\n\nAs Macau gears up to welcome over 39 million visitors in 2024, its thriving tourism industry faces a hidden challenge: a mounting waste problem. In 2019 alone, the city generated a staggering 550,249 tons of waste. But what if this wasn’t just a burden, but a hidden treasure trove waiting to be unlocked? Waste upcycling presents a significant opportunity for Macau to redefine its commitment to sustainability and innovation, transforming its waste into valuable resources and creating significant economic opportunities, while aligning with global initiatives like the United Nations’ Sustainable Development Goals (SDGs) and promoting a circular economy.
\n\n\n\nWaste Upcycling: Breathing New Life into Discarded Materials
\n\n\n\nImagine a future where the 37% of Macau’s waste stream, composed of food scraps, is reborn as clean energy, bioplastic, or high-value bioproducts, while textile waste from hotels is upcycled into stylish, eco-friendly fashion accessories and home decor, reflecting the unique blend of cultures that define Macau. Discarded playing cards from casinos, emblematic of Macau’s vibrancy, can be reinvented as sustainable construction materials, and used cooking oil from restaurants is transformed into biodiesel for energy, or biosurfactant for use in eco-friendly cleaning solutions. This isn’t science fiction; it’s the transformative power of upcycling, turning waste into valuable resources and minimizing environmental impact, all while showcasing Macau’s creativity and innovation.
\n\n\n\nCities like Amsterdam and San Francisco are paving the way for a circular economy. Boasting a staggering 53% waste diversion rate, Amsterdam utilizes innovative sorting and upcycling facilities that breathe new life into everyday waste, transforming it into valuable resources like bioplastics, textiles, and even furniture. San Francisco takes a different but equally effective approach, actively promoting upcycling through collaborations with local artists, designers, and businesses. With its unique infrastructure and unwavering focus on innovation, Macau has the potential to become a frontrunner in waste upcycling innovation.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/shutterstock_2319538303-Converted-1028x467.jpg\")
Macau’s Compact Catalyst: A Springboard for Upcycling Innovation
\n\n\n\nUnlike sprawling cities with vast landfills or land-rich areas that rely on composting, Macau faces a unique challenge. Its limited land area restricts traditional waste management methods like large-scale composting. But here’s the beauty: this very limitation presents a remarkable opportunity to become a global leader in waste upcycling innovation. With the waste export ban to mainland China and the anticipated tourist surge, Macau needs creative solutions.
\n\n\n\nMacau’s compactness presents a unique catalyst for upcycling. Envision waste traveling short distances for innovative processing, minimizing transportation emissions and maximizing resource recovery. Macau’s concentrated infrastructure can foster close collaboration between stakeholders, accelerating upcycling research, development, and implementation. This compact environment becomes a breeding ground for ground-breaking solutions, propelling Macau to the forefront of the global upcycling movement.
\n\n\n\nMacau’s government holds the key to unlocking the full potential of its waste stream through accelerated upcycling innovation. Grant programs dedicated to upcycling research and development would be a powerful driver. Imagine research grants fueling projects that transform Macau’s abundant seafood waste into bioplastics, offering a sustainable alternative to traditional packaging, or the development of innovative construction materials made from single-use plastic waste. Cutting-edge advancements in biotechnology, synthetic biology, material engineering, artificial intelligence, and sustainable technologies hold immense promise for upcycling waste into valuable resources.
\n\n\n\nBiotechnology and synthetic biology, in particular, offer promising avenues for transforming waste into biofuels, biodegradable packaging, value-added consumer products, eco-friendly construction materials, and even precious metals from electronic waste. By harnessing the power of microorganisms and engineering biological systems, we unlock the potential of waste, turning it from a burden into a source of innovation and value creation.
\n\n\n\nMacau’s universities, with their emphasis on science, technology, engineering, and math (STEM) subjects, provide a strong foundation for upcycling innovation. This focus equips graduates with the skills to develop solutions for transforming waste into valuable resources. Picture bustling labs where young minds develop methods to transform used cooking oils into biofuels, or crafting biodegradable IoT sensors from upcycled materials! Entrepreneurs are the catalysts, fostering economic diversification by developing innovative “waste-to-product” solutions.
\n\n\n\nCollaboration between all stakeholders creates a robust ecosystem for upcycling innovation. By embracing upcycling, Macau can not only tackle its waste challenge but also create a thriving green economy, positioning itself as a sustainable tourism leader on the world stage.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/04/AdobeStock_460329881.jpeg\")
A Sustainable Legacy: Integrating CSR and Upcycling for Macau’s Future
\n\n\n\nUpcycling creates a ripple effect of positive benefits for Macau. Upcycling initiatives naturally raise public awareness about responsible waste management, contributing to a cultural shift towards a more sustainable future. When young people are involved in upcycling projects, they gain valuable skills for building a greener future. Upcycling fosters an environment where creativity flourishes, empowering entrepreneurs to develop innovative “waste-to-product” solutions and build sustainable businesses.
\n\n\n\nMany Integrated Resorts (IRs) in Macau have already taken significant steps towards responsible waste management, focusing on practices such as reduction and reuse, which underscore their ongoing commitment to Corporate Social Responsibility (CSR). However, as they continue to pursue sustainability goals, there’s an exciting opportunity for these resorts to further distinguish themselves as leaders in CSR through upcycling. Consider the possibilities: discarded carpets from routine refurbishments, cardboard packaging, and even playing cards repurposed into innovative construction elements for future projects. By embracing upcycling initiatives, these resorts can significantly contribute to Macau’s reputation for sustainable tourism practices. Such initiatives are likely to resonate with environmentally conscious travelers seeking destinations that prioritize sustainability. Moreover, upcycling initiatives addressing the IRs’ specific waste challenges hold immense potential for uncovering innovative solutions, benefiting both the resorts and the broader goal of advancing sustainability across the region.
\n\n\n\nMacau’s journey towards a sustainable future hinges on innovation, collaboration, and a commitment to environmental responsibility. As the city embarks on this path, a fascinating question emerges: What potential lies hidden within Macau’s waste streams? \u00a0Upcycling initiatives offer a glimpse into a future where these discarded materials are no longer a burden, but a source of endless possibilities.
\n\n\n\n