CBN Special丨25 years of Macao SAR's shining achievements and greater potential

Today marks the 25th anniversary of Macao’s return to the motherland. The city is brimming with cheerful vibes, with anniversary-themed posters and floral decorations adorning popular sites such as the Ruins of St. Paul's, while national flags and Macao SAR flags flutter along the streets.

On December 20th, 1999, after more than 400 years of storms, Macao finally returned to the embrace of its motherland. These 25 years have been a period of hard work and prosperous development for Macao, as well as a successful implementation of the “One Country, Two Systems” policy.

Over the past 25 years, Macao’s economy has achieved a leapfrog development. With strong support from the government, Macao has fully leveraged its unique advantages, resulting in a staggering leap in GDP from 51.9 billion Macao patacas to an impressive 379.5 billion patacas in 2023—approximately $47 billion based on the 2023 average exchange rate.

This economic surge has catapulted Macao into the ranks of the world’s most developed economies. In a remarkable post-pandemic recovery, Macao’s GDP soared by 80.5% in 2023 compared to the previous year. The per capita GDP tells a similar success story, climbing from 15,000 patacas in 1999 to a noteworthy 69,000 patacas in 2023. Forbes Magazine listed Macao as the second-richest place in the world this year, behind Luxembourg.

Over these years, a social security system covering the entire life cycle of local residents has been established in the SAR, and the average life expectancy of Macao residents has increased to 83.1 years.

Since returning to the motherland in 1999, Macao’s economic structure has changed significantly. The city’s gaming industry has thrived, surpassing Las Vegas as the world’s leading gaming hub. The sector was opened up to international operators in 2002, creating new opportunities for tourism and foreign investment.

Macao has the international reputation of being the Las Vegas of the Far East, which, while being true, does not reflect the complete story. Macao has transformed into a modern, international metropolis with strong support from the central government, achieving remarkable progress in both economic development and residents' livelihoods.

A key driver of Macao's economic diversification, the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, located near Macao, was established in 2021 to expand living options and work opportunities for Macao residents.

Over the past three years, Hengqin has endeavored to aid in Macao’s moderately diversified industrial development while constructing a livable and workable space for its residents. To this end, the integration of Hengqin and Macao is setting the course for a new era of close collaboration between the two regions.

In terms of industrial planning, Hengqin’s “four new” sectors blend with Macao’s “1+4” industry diversification strategy, which involves promoting the growth of one key sector — tourism and leisure — alongside the advancement of the big health, modern finance and high-tech industries, as well as conventions, exhibitions, culture and sports.

According to official data, as of the end of October, there were 6,521 Macao-funded businesses in the cooperation zone. In the first three quarters of this year, the added value of Macao-funded industries reached 2.63 billion yuan, representing a year-on-year increase of 111.2 percent. As of the end of November, the number of “four new” industry enterprises had grown to 31,506, up 6.3 percent from the end of 2021. As well, in the first three quarters, the added value of “four new” industries reached 21.6 billion yuan, accounting for 57.8 percent of the cooperation zone’s GDP.

In addition, Macao’s economic diversification efforts have yielded notable results. In 2023, the added value of key sectors such as TCM and modern financial services surged to 39.05 billion Macao patacas, marking a 6.9 percent increase from 2019. Meanwhile, the gaming industry’s contribution to the local GDP saw a significant 14-percentage-point decline compared to 2019.

Hengqin has been steadfast in its commitment to establishing a destination that enhances the quality of life and employment opportunities for Macao residents. In a groundbreaking collaboration between the governments of Guangdong and Macao, the Macau New Neighborhood project was officially introduced in 2023 to satisfy the needs of Macao residents — many of whom have since relocated to Hengqin, benefiting from essential amenities such as Macao-centric schools, community services, and household assistance. As a result, the cooperation zone is progressively evolving into a distinctive enclave, embodying the essence of a fresh beginning for Macao residents.

This small place has also become well-connected because of the recent major and impressive infrastructure projects in and around Macao: the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Zhuhai Intercity Railway, and Hengqin Port. 

Standing at a new starting point of the silver jubilee of Macao’s return, this brilliant pearl of Macao will surely shine even brighter in the embrace of the motherland, as the next 25 years promise even more opportunities for growth and development, solidifying its place on the world stage.

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFCc