6. DEVELOPMENT STRATEGIES
6.1 Strategy One - Better Utilize Our Strengths
6.1.1 Casino business
Casino business is the most important contributor to Macau's economy and a trump card of the Government. Under Article 118 of the Basic Law of theSpecial Administrative Region of Macau, it says, "The Macao Special Administrative Region shall, on its own, make policies on tourism and recreation in the light of its overall interest." This indicates that the casino business can be further developed and enhanced. Also, in view of safeguarding the overall interest of the community, the Macau SAR Government has the full autonomy to formulate relevant policies. The casino business is now being operated in the form of franchise. This can ensure effective government control, but at the same time it has produced adverse effects. Due to the lack of competition, the business operator will be reluctant to modify its operation model but inclined to shift its profit and overlook the overall interest of the community. As the license right will soon expire, the public has strongly urged the Government to open up competition. It is expected that introducing a competition mechanism will promote the casino business, generate higher returns, increase government revenue, and create significant chain actions that will lead the territory into a new economic growth cycle. Hence, opening up the casino sector will be a significant test to the Government's ability in policy making as how to enforce effective supervision over this industry. We feel that three principles should be adhered: (1) Observe the authority prescribed by the Basic Law; (2) Respond to the overall interest of the Macau community; and (3) Improve rapidly the casino industry to international standard with Macau's unique features. As the casino business is so important to our overall economy, we should be careful in handling its future development.
6.1.2 A new and special administration model
As Macau had been ruled by Portugal for a long period of time, many social and economic issues remained unresolved when the territory reunited with China and the Government of Macau SAR commenced administration. Weneed to set up a procedure to solve the remaining problems and handle the new issues. With the support of the Central Government and the authorization of the Basic Law, the Macau SAR Government is able to and must adopt an entirely new development concept. With its unique features, Macau should fully utilize its position in the global market and build up a new international cooperation and connection network. Also, in the overall interest of the community, the Government should establish a civil service that is for the people and convenient to the people. It should be innovative and creative to develop a new model of administration for the territory.
6.1.3 Mini economy
Macau is a typical mini economy. "For a mini economy, its scale can be small but its economic effect can be large. It has tremendous constraint in resources, but it can position itself in the international market. It has its own strengths, but it should not overlook its weaknesses. It should beware of its limitation, but it can overcome that by persistently improving and enhancing itself with its own hard effort. It may not have sufficient talented people, but it can intelligently deploy and fully utilize its existing manpower by creating an environment of fair competition and innovation. In summary, the development of a territory may not necessarily be bound by limited land resources or small population. For a mini economy, it should pursue a development based on its limitation of being small. As this fundamental limitation may not be changed, a mini economy should develop in a more delicate and concentrated manner with high quality and education so that it can earn the respect of other people."↑12 The current critical issue is to maintain, vitalize and increase the existing productivefactors. In the new development process, high growth rate and high quality are equally important. We need to elevate the quality of economic growth as well as our living standard.
6.1.4 Unique culture
As a cultural exchange centre, Macau has its unique culture, which should be carefully developed and protected. The territory itself is a big museum and has a rich collection of both Chinese and European culture. As Macau has been a converging point of the East and West for a long period of time, it is qualified to apply to the United Nations for the title of "The World's Cultural Heritage".We should completely revise our city plan and mingle the historical zones with the newly developed districts. We should also turn the city into a tourist centre that is highly elegant and efficient, with multiple functions and themes. For example, we can develop a shopping, entertainment and food centre at Avenida de Almeida Ribeiro and its intersection with Rua dos Mercadores, Rua de Cinco de Qutubro, Rua das Estalagens, Rua da Felicidade, Praca de Ponte e Horta, and Praca do ex-Casino Flutuante. We can develop an integrated traditional cultural centre at the district from Rua de S. Paulo, Rua da Palha to Rua de S. Domingos.We can develop a conference and exhibition centre and an integrated modern Chinese and Western cultural centre at NAPE (Zona de Aterro do Porto Exterion),Sovereignty Hand-over Square, Centro Ecumenico Kun Iam and Parque Dr.Carlos D'Assumpcao. Also, we should fully utilize the relics and remains of the celebrities such as Dr Sun Yat Sen, Cheng Guan Yin and Luis de Camoes. We should scientifically categorize different districts in the city and add statues,galleries, flowers, lawn and pedestrian zones. We should develop more scenic spots, shopping centres, and facilities and venues of food, exhibition,entertainment and leisure. We should rapidly establish Macau as a tourist centrethat has rich cultural contents. We should also expedite the development of Lagos da Praia Grande as a new shopping, cultural and tourist district that can generate economic benefits.
6.2 Strategy Two - Promote Regional Cooperation
6.2.1 Promote a fair and mutually beneficial cooperation with the Pearl River Delta Region that has Guangzhou as the centre We should properly and flexibly position ourselves in the Pearl River Delta Region. We should serve the surrounding areas and achieve a complementary effect. As seriously limited by the physical environment, Macau should promote cooperation and fully utilize the advantages of the region. For example, we can make use of the region's cheap labour, transportation and communication network, educated and trained personnel, tourism resources and new economy such as the rapidly growing information industry. These advantages can make up for our shortfalls.
6.2.2 Macau and Zhuhai are born to be partners. Both cities can complement each other and have a broad base of mutual benefits. The two cities can expand their existing cooperation in infrastructure, tourism, business, trading, new industries development and personnel training. As the cooperation is mutually beneficial to both cities, we should adhere to the principle of "proper allocation of resources, interactive business development and mutual benefits", which will fulfill the common objective of residents in both cities.
6.2.2.1 We should enhance the understanding of mutually beneficial cooperation between Macau and Zhuhai, quickly determine the cooperation base and select testing points for breakthrough. The joint development of Hengqin Island byboth cities is critical and urgent. If Hengqin can be established as a special region within the Special Administrative Region and has its rights of ownership and administration separate, Macau and Zhuhai can fully cooperate and develop this island. It will have tremendous positive impact to both cities. Also, Macau and Zhuhai should strive to enhance the cooperation in free trade zones, export processing zones and new industrial development zones.
6.2.2.2 Zhuhai is actively developing its higher education, which will be a challenge as well as an opportunity to Macau that has recently developed its higher education. If Macau can enhance its research and management capability and combine the unique strengths of both, the higher education of Macau and Zhuhai will become a mutual advantage for both cities.
6.2.2.3 Macau and Zhuhai should work together to improve the customs procedures.As an entity under the policy of "One Country, Two Systems", Macau should have its own customs and inspection points. However, the customs procedures should be simplified as much as possible to ensure an efficient flow of man,goods and information.
6.2.3 Actively cooperate with Hong Kong and play a complementary role It is undeniable that Hong Kong is a very important city. Due to various factors such as geographical proximity, historical background and social system,Macau and Hong Kong can fully cooperate. The key for Macau is to flexibly position itself, properly perform its role and actively cooperate on the allocation and coordination of resources, technologies and trained personnel.
6.2.4 Fully cooperate with Taiwan
Macau has been the place where Dr Sun Yat Sen started his revolution career. Also, it is the second special administrative region in China that guarantees the implementation of capitalism for another 50 years. With the existingcooperation base, Macau can properly position itself under the principle of "One Country, Two Systems" and further enhance the cooperation with Taiwan.
6.2.5 Macau should properly borrow and utilize the capital, technologies,information and management experience from Asian developed countries like Japan, South Korea and Singapore.
The above three countries have different strengths in economy and technologies. We can, under the name of "Macao China" as prescribed by the Basic Law, actively develop connection with them to expand our external network.
6.2.6 Develop cooperation with ASEAN and other regions and countries in Asia A strong and united entity, the Association of South East Asian Nations (ASEAN) has become a significant member ofAPEC. Due to the geographical proximity and the well established cooperation base, Macau should further enhance the economic and business cooperation with the ASEAN.
6.3 Strategy Three - Enhance Ties with the European Union andExplore the Portuguese World
6.3.1 Due to the historical background, Macau has long been connected with the European Union. Its unique status is highly recognized by the European Union."For the European Union, Macau shall continuously perform a more significant role than Hong Kong."↑13 There is a well established cooperation base between Macau and the European Union on business and trading, personnel exchange,languages, religions, cultures and arts. We should strive to consolidate and further expand the cooperation with the European Union.
6.3.2 There are more than ten countries or regions that speak Portuguese. With the same language, Macau has an advantage to link up with them. Occupied half of the area and population of the Latin America, Brazil is a developing country that has tremendous potential. To rapidly establish a stable cooperation with Brazil should be Macau's chosen tactic.
6.4 Strategy Four - The Critical Issue to Enhance InternationalCompetitiveness
6.4.1 "The future competition is a competition for talented people and a competition of the quality of people among different countries."↑14 Hence, when considering how to improve our international competitiveness, we should first of all focus on how to effectively enhance the quality of our people. In a competitive environment and a competitive age, we should have the courage and intelligence to participate in the competition. In a lawful environment and society, we should have the courage to compete with other people at an equal starting point.
6.4.2 Refresh our entrepreneurs' thinking
Through the hard work of over two generations, Macau has achieved an outstanding performance for many years. Our new generation of entrepreneurs who are active in many sectors have mostly received post secondary education.They have a good understanding of the international market and can easily adapt to the new economy. However, as a traditional society, Macau has many corporations that are still managed mainly in a family style. They are limited by many factors, in particular the operation scale. Generally, most established and leading entrepreneurs are more conservative. However, the present situation is urging them to actively upgrade themselves, change a new way of thinking, and keep up with a sense of competitiveness, risk management, law spirit, innovative ideas and international vision. Also, it urges them to cultivate a modern and unique Macau management style, and introduce new concepts, ideas and philosophy. With Macau's present environment and conditions, we should by the timeline set by this report nurture and train up a group of new entrepreneurs who have a solid financial strength (with assets worth over MOP 100 million)and the knowledge of modern management. They will significantly contribute to Macau's future economic development.
6.4.3 Professionals to make insightful suggestions
Macau is not highly developed yet and has only a limited number of professionals in different sectors. Fortunately, some young entrepreneurs are professionals people themselves. Also, in the last twenty years, a group of academics and experts have come to Macau and made here as their home. They are the community's valuable assets, yet their contribution has not been fully recognized. Under Macau's new environment, they will have a much bigger room to make contribution. If they can actively voice out their opinions and make insightful suggestions, they will be gradually recognized by the community."Basic research is the driving force of civilization, and the origin and support oftechnology advancement and economic growth."↑15 This principle will be understood and accepted by the community of Macau.
6.4.4 Workers of all industries to upgrade themselves
Due to the new model of economy, our society is undergoing a dramatic transformation and new industries that are technology oriented, such as the information industry, have accelerated their development. Under such situation,all workers in different sectors, whether looking for jobs or planning future careers, should strive to upgrade themselves. They should continuously leam new knowledge and enhance their skills. In addition to basic working skills,they should also learn and master foreign languages, computer knowledge and technical skills such as driving and maintenance work. This will help them upgrade themselves and enhance their value to the companies.
6.4.5 Promote the ethical, cultural and professional quality of Macau people
We should strive to upgrade our young and middle-aged workers to senior secondary or even higher education level in 20 years. This should be done by providing training and evaluation for the working population through various levels and channels. The Government, private organizations and individuals should work together to improve our education and administration system. In accordance with the Basic Law, we should introduce 12 years free education for our children in the near future and prevent undesirable dropouts in primary and secondary schools. We should also raise the ethical and cultural standard of Macau people to enrich the quality of our pure and simple community. This can be achieved by introducing appropriate rules and regulations, law enforcement and self-restraint.
6.4.6 Care about the less privileged community members
We are striving towards the goal of establishing Macau as a prestigious international city. We need therefore to ensure the administration of the society is in a fair, orderly and efficient manner. We should also care about the less privileged community members, reduce the proportion of the low income class,and help more people become rich. These are critical issues that we should seriously deal with.
We have recently expanded our social welfare services through both the Government and private organizations, which has alleviated the difficulties of the low-income families. However, due to economic recession, they are still suffering tremendously. This may easily cause new social problems. We should therefore systematically handle all the social issues such as providing the minimum social security and children education and arrangement of re-entry into the community for the low income families, the handicapped, mentally retarded, victims of industrial accidents, and families with relatives in prison.
6.5 Strategy Five -- Promote English Learning and Build up anEnvironment for the Development of New Economy
6.5.1 Promote English learning and create a better environment for communication
As the most popular language in the world, English has established a superior status in international business and cultural exchange. For countries that wish to go internationalized, English proficiency has become an important key. During the ruling of Portugal, Macau has failed to establish an English environment.However, ignoring the importance of English today means losing tremendous business opportunities. Also, without an English environment, Macau is unlikelyto go internationalized. Hence, we should put forward this issue for public discussion and encourage every household to place emphasis on learning English.In fact, promote English and appropriately develop Portuguese education are not contradicting to each other. However, if we have to choose between English and Portuguese, we should prefer English.
6.5.2 To adapt to the age of new economy, Macau should further improve relevant factors to cope with the changes.
6.5.2.1 The Macau SAR Government should introduce simple policies and clearly defined rules. It can study the features and procedures of commercial activities in Hong Kong and revise the commercial law accordingly.
6.5.2.2 The Government should enhance the quality of the civil servants and systematically provide training for the senior officials. It should improve the efficiency of administration and improve the service quality. By adopting flexible and effective measures, it should actively attract foreign investment, technologies and talented people. To attract more professionals, the Government can consider allowing the highly educated professionals, such as those with Master degrees or above in information technology, to become permanent residents of Macau immediately upon their application.
6.5.2.3 The Government should establish institutions, such as Technologies Development Council, to focus on the development of science and technologies.It should also consider the setting up of investment fund for new industries,which can expedite the development in this area and enhance the territory's function of modem financial services. In addition, we urge the Government to quickly inform the public its policy on the establishment of international schools and services to cope with the need of expatriates and foreign investors.
6.5.2.4 We should invite academic and research institutions, such as University ofMacau and Macau Productivity and Technology Transfer Center, to set up research centres for the study of information technologies and biochemical technologies. This will nurture capable persons for Macau's new economy. In addition, it will expedite the application of the results of research and development conducted inside and outside of the territory.
6.6 Strategy Six - Professionally Plan the Reclaimed Area of Coloaneand Taipa
6.6.1 The reclaimed area will soon make Coloane and Taipa become connected as one single piece of land, which will be approximately one fourth of the total area of Macau. When fully developed, this new city can become an area that concentrates on commercial activities. This will clearly define the functions of different districts in Macau and strengthen its image as a prestigious international city. The Macau SAR Government should quickly define the objectives and functions of this new city. When these are determined, the Government should proceed with global public tender and commence development for the new city as early as possible.
6.6.2 To coincide with the above development, the Government should simultaneously urge Zhuhai to jointly develop Hengqin Island. It should also urge the construction of a transport network of express train, light rail and highway in Guangzhou and Zhuhai.
6.6.3 To synchronize with the above development, the Government should actively discuss and negotiate with Hong Kong on the building of a bridge connecting Coloane of Macau and Lantau Island of Hong Kong, which has the shortest distance between the two cities.
6.7 Strategy Seven -- Expand Higher Education for New Growth Points
6.7.1 Education is an investment that generates two-fold benefits
Almost every modern and developed country has a well established education system, and their higher education that aims to train up professionals of different disciplines is an industry that may generate tremendous economic benefits. Western countries, such as the US, do not only receive large amount of revenue from foreign students, but also recruit the distinguished students to join their working population. It has become a steady supply of talented people to these countries and they can thus continue to extend their cultural influence to other countries.
6.7.2 Emerging higher education in Macau
Macau currently has various higher education institutions, including the University of Macau, Instituto Politecnico de Macau, Escola Superior das Forcas de Seguranca de Macau, Instituto de Formacao Turistica, Asia International Open University (Macau), Inter-University Institute of Macau, Universidade de Ciencia e Tecnologia de Macau, Kiang Wu Nursing College of Macau, and Macau Institute of Management, with a total of about 10,000 registered and active students. With a population of 430,000, Macau has each year about 2,000 secondary school graduates. Over 80% of them can pursue local university degrees or overseas studies in the Mainland, Taiwan or other countries. On the face of it, there seems no more room for Macau to expand its higher education.However, we can study the issue from another angle. There is a high dropout rate in the local primary and secondary schools, but with the joint effort of the community, we can prevent this and expand the number of senior secondary students. In addition, we can look beyond the local community. The Mainlandhas been actively expanding its higher education. Yet each year there are about 50% Mainland students, a figure of thousands and millions, that cannot enroll in universities. If we can better design our syllabus and programs, improve our teaching quality and enhance our image, we should be able to attract a few thousands of students from nearby cities to come to study in Macau.
6.7.3 Develop into an integrated professional training base
There are two directions for developing course programs for our higher education. First, we can utilize our strengths and set up professional programs in the disciplines of business management, tourism and economics, social sciences, Portuguese language and literature, Portuguese law, and media communication. Secondly, we can selectively set up new programs in the disciplines of international relationship, Latin language, foreign languages and literature, history, economics of Hong Kong and Macau, regional economics,and even literary theories, philosophy, information technology, fashion design,and modem advertising production. The qualified institutions and organizations should set up training centres and introduce new higher degree programs and short-term part-time certificate courses for the working professionals. The objective is to make Macau become a leading professional training base in the Far East and Asia Pacific Region in 10 years that may cultivate talents for the local community and surrounding areas. With our hard effort, this should be an achievable goal.
6.8 Strategy Eight - Fully Support Small and Medium Sized Enterprises
6.8.1 Macau is a typical mini economy, which can be reflected by the fact that small and medium sized enterprises make up 98% of the total 15,000 corporations.These small and medium sized enterprises have made significant contribution to Macau's economy in the past, and will still be a major contributor in the future.However, they are currently suffering from the economic recession.
6.8.2 To assist the small and medium sized enterprises will therefore create a positive effect for economic recovery, social stability and improvement of unemployment. To this end, the Government may properly reduce tax, provide loans at a low interest rate (the interest difference can be compensated by the Government), re-design the function of each district, centralize training, and share resources. The Government should form a dedicated department to follow up on these.
12. leong Wan Chong, The Mini-Economy: Its Orientation and Development, p. 36.
13. See European Commission, The EU and Macau: Beyond 2000, COM (1999) 484 final.
14. "Conversation between Chairman Jiang Zemin and American Reporters", People's Daily (Overseas Edition), 18 May 2000.
15. "Conversation between Chairman Jiang Zemin and American Reporters", People's Daily (Overseas Edition), 18 May 2000.
