Mr Ho, who was answering legislators’ questions, said he understood that the increasing exchange rate of RMB had stimulated inflation; however, the pataca’s link exchange rate relationship with the Hong Kong dollar will not be changed in order to maintain financial stability.

At a press conference after the plenary session, the Secretary for Economy and Finance, Mr Francis Tam Pak Yuen, said an unstable monetary policy will cause impact to the entire financial system, and eventually affect the livelihood of residents in an all-round manner.

Therefore, any adjustment in monetary policy should be made after a thorough evaluation, Mr Tam said.

Moreover, some academics believed that adjusting Macao’s monetary policy may not curb inflation or might only have a slight impact on price index, Mr Tam said.

• Macau’s Pataca To Remain Pegged to US Dollar
• Macau Government Pledges to Safeguard Depositors
• Macau Suspends Realty Investment Residency
• New Visa Restrictions to Macau for Guangdong Residents
• Macau Regrets US Banco Delta Asia Decision (Update)

GDP of Macao for 2007 was estimated at US$19.20 billion, up by 27.3% in real terms and the per-capita GDP amounted to US$ 36,357. GDP for the fourth quarter of 2007 recorded an increase of 22.1% in real terms; meanwhile, the rates for the first and second quarters were revised downward from 25.7% and 31.6% to 25.2% and 30.8% respectively, but that for the third quarter was revised upward from 30.9% to 32.2%; for 2006, the rate of growth maintained at 17.0%.

The favourable factors that contributed to Macao’s relatively high economic growth in 2007 included:

- the continuous increase and improvement in the gaming and tourism facilities, rising number of visitor arrivals led the annual gross gaming revenue (excluding gratuities) soared significantly by 45.8% compared with 2006;
- the bright prospects for the prosperous gaming and tourism sector boosted the investment up by 23.0% in real terms over 2006;
- the annual number of visitor arrivals rose by 22.7% to 26,992,995, together with the increases in the per-capita spending of visitors in all quarters, total visitor spending (excluding gaming expenses) for 2007 registered a 13.9% growth in real terms;
- the notable increase in the employed population and employment income drove the annual private consumption expenditure up by 10.7% year-on-year in real terms.

Changes in the economic structure of Macao

As regards the economic structure, the following changes are observed in 2007:

- the 45.6% surge in the export of gaming services in 2007 fueled net exports of goods and services (exports of goods and services minus imports of goods and services) to accelerate at a faster pace than the level of overall economic growth, contributing to an apparent increase in the relative importance of net exports of goods and services, from 38.3% in 2006 to 43.3% in 2007;
- investment (gross fixed capital formation + changes in inventories) went up by 23.0% in 2007, lower than the overall economic growth, bringing its relative importance in GDP down from 27.5% in 2006 to 26.5% in 2007;
- although increases were registered in both private consumption expenditure and government final consumption expenditure, yet the rates of growth were lower than that of the overall economy. In consequence, the relative importance of private consumption expenditure in GDP went down from 26.2% in 2006 to 22.8% in 2007, while that of government final consumption expenditure decreased from 8.1% to 7.4%.

Photo 1

Photo 2

Courtesy: Macau Statistics and Census Service

• Macau 2005 GDP Grows at 6.7%
• Macau Q1 2008 Gross Domestic Product Expands by 31.6%
• Macau’s GDP rises 18.8 percent in first quarter of 2006
• Macau Tourist Price Index Up By 3.63%
• Macau Investment Forum to be Held 21-22 February 2008

“We are pleased to secure the site in view of the recent growth of the Macau economy led by the booming tourist and gaming industry,” said Donald Cheung, executive director of Emperor International. “The site is in a prime area for retail and commercial development. It demonstrates our strength in property investment and the continuous improvement of the Macau property market.”

A spokesperson said the property could be developed for commercial or retail purposes. Emperor International Holdings’ property portfolio in Hong Kong, Macau and the mainland was valued at about HK$10 billion(US$1,29 billion) at September 30, 2007.

• New Taipa Property Development
• Grand Emperor Hotel Macau profit up 34.2%
• Chinese Estates To Build US$230 Million Project
• eSun and Silver Point Capital to develop a $2 B hotel-casino-retail-TV studio project on Cotai Strip in Macau
• Macau Sites Sells for Ten Times Reserve

The Macau authorities have since been anxious to clean up the industry and attract more sophisticated western operators. In the past, the casino industry was dogged by a very unsavoury reputation, was tainted by organised crime, the occasional shooting and gang warfare that the Portuguese colonisers seemed ill-equipped to handle.

But these problems did little to diminish the allure of Macau as the haven of dreams. It’s the only part of China where this sort of gambling is permitted.

Every day you can see punters riding the one-hour jetfoil from Hong to chase their dreams. As mainland Chinese become wealthier, Macau has become an attractive option for them as well.

Not surprisingly, casinos also provide a convenient opportunity to mop up dodgy money, of which there’s plenty in China, especially amongst officials on the take.

In recent years, the gambling scene in Macau has been substantially gentrified, if such a thing can be said of this industry. Swanky world class casinos by the biggest Las Vegas players have mushroomed all over the place, replacing the drab, grotty crime-ridden gambling dens of old.

The new-style gaming houses are marketed as family-friendly establishments, with an extensive array of amenities and amusements, including fantastic food and resort-style hotels.

Also on offer are major musical and sporting events which Mr Ho would never have contemplated. Typical of this new style casino is the Venetian Macau, billed as the biggest casino-hotel in the world. Macau has now edged Las Vegas to claim the position of the world’s biggest casino market.

All this wonderful news about the good times and the booming economy has now vacated the front pages, to be replaced by a less flattering look at a darker side of the enclave.

The former head of transport and public works, Mr Ao Man-long is accused of taking bribes, money-laundering and abuse of power. The details are as murky as they come, but the gist of it is that he took bribes for approving juicy land deals and engaged in a host of other dishonest business deals.

If convicted, he faces a maximum of 25 years behind bars. He’s now 51. Amongst the assets found in his possession were cash and luxury goods worth a mind-boggling US$100 million.

It has been a while since a story of this magnitude has so riveted the tiny territory. What’s interesting about this case is how it mirrors the booming construction industry.

Mr Ao presided over the transformation of the cityscape during a construction boom unprecedented in Macau’s history. As the official who allocated land and approved public works, he has conceivably dealt with a large number of investors.

Which of these people offered bribes? Details will emerge in the coming weeks.

Graft-busters also accuse Mr Ao of demanding three percent for introducing local businesses to foreign property developers. One thing you can be sure of, this trial will have some very far-reaching ramifications for the entire Macau economy.

For the Chief executive, Edmund Ho, who appointed Mr Ao, the timing couldn’t be worse. Mr Ho has been credited with eradicating gang-related crime and turning Macau from a dangerous no-go zone to a tourist destination that now challenges Hong Kong.

The irony for Macau is that even though the economy grew by a bizarre 17% in 2006, there’s a segment of the population that has seen little to celebrate.

Discontent has been surfacing with demonstrations by the lowest paid who complain about rising costs of living and competition for jobs from workers from China who are prepared to accept lower wages which are often double what they make in China.

The details of illegally-acquired wealth now being splashed on headlines will only further alienate these people and heighten social instability. The glittering casino lights don’t shine for everyone. With a population of only 540,000, it beggars belief that as many as 17.5% are considered to be living in poverty in a land of milk and honey.

• Macau Minister Takes a Cool US$100 Million in Bribes
• Ao Macau’s Crooked Former Government Official Gets 27 Years Jail Term
• Online Casinos in Macau
• Macau vs. Las Vegas
• Packer, Melco Plan $1 Billion Macau IPO

“This year’s Forum will discuss the factors that will determine the future of Macau as an international investment center,” said Institutional Investor Conferences (IIC), the international organization responsible for the meeting.

See more details here 2nd Annual Investment Forum

• Macau Investment Forum April 26 and 27
• Macau Investment Forum to be Held 21-22 February 2008
• Macau Is Getting Ready For Expo Real Asia 2006
• There Is More To Macau Than Just Gambling
• December 5 & 6, 2006 : EXPO REAL ASIA in Macau

“This year’s Forum will discuss the factors that will determine the future of Macau as an international investment center,” said Institutional Investor Conferences (IIC), the international organization responsible for the meeting.

The IIC said that the meeting would discuss the issue of growth of the gaming sector and the possibility of boosting other sectors of local industry and the consequences for the real estate market if the government introduces new management policies for land and property.

Topics include:
* Cementing Macau’s Position as a Focus for Global Investor
* Macau’s Tourism & MICE Industry
* Analyzing Macau’s Future: The Sustainability of Gaming Vs Non-Gaming Revenues
* Retails Developments: Growth Prospects & Perspectives
* The Challenge for International Banks in the Macanese Project Finance Market
* What it takes to make Macau’s Non-Gaming Businesses Successful

The main speakers will include Peter Barge, of Jones Land LaSalle Asia Pacific, who will talk about the potential of the real estate market in Macau and Lawrence Ho, of Melco-PBL.

The Forum will also be attended by Tony Shale of Euromoney Institutional Investor Asia and Jonathan Stone of Skadden, Arps, Slate, Megher and Flom.

Technorati Tags: macau investment forum

• April 26 & 27 | 2nd Annual Investment Forum
• Macau Investment Forum to be Held 21-22 February 2008
• Macau Is Getting Ready For Expo Real Asia 2006
• Growth of gaming industry a boon to real estate
• December 5 & 6, 2006 : EXPO REAL ASIA in Macau

However, the growth potential rating of Hong Kong dropped significantly, with its rank dipping from second last year to fourth in 2006. Shenzhen, Macau and Beijing ran above Hong Kong.

The China Institute of City Competitiveness, which conducted the survey, said overall competitiveness of 289 cities is based on the development of economy, society, environment and culture. Growth competitiveness is based more on growth rate and sustainability.

It attributed Hong Kong’s success in maintaining its top spot to its better infrastructure, legal system, quality of citizens and a well-developed financial market.

Though it believes Shanghai, one of Hong Kong’s top competitors in the
region, will probably not overtake the territory for another 20 years, and that Shenzhen will trail for the next 10 years, the race will become tougher.

The institute said high land prices, high labor costs and pollution will threaten the growth of Hong Kong.
The improving financial infrastructure in the mainland, including share reform, will ultimately attract more capital. It suggests Hong Kong should look for alternatives in the logistics sector, rather than depend solely on its advantages in the financial sector.
In the ranking of growth competitiveness, Hong Kong was overtaken by Macau and Beijing, slipping from second last year to fourth.

The institute believes this is due to the rapid growth of the Macau economy backed by the booming gaming sector and, in Beijing, by the stimulation of preparations for the 2008 Olympics, and does not represent a deterioration in Hong Kong’s competitiveness.

Source | The Standard

• Macau Hotel Employment Surges By 57.8%
• WTTC signals continued growth and room for improvement in China and SARs
• Macau Real Estate Brokers to Be Regulated
• Macau Investment Forum to be Held 21-22 February 2008
• Macau 2007 Growth Domestic Product Up By 27.3%

According to the president of the Institute for Promotion of Trade and Investment, Lee Peng Hong, the 2006 fair, which will take place between September 23 and 26, and will have the largest attendance since the fair began in 1996. They are expecting 133 delegates from 39 countries.

The fair will coincide with the Ministerial Conference of the “Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries.”

This fair is growing bigger and bigger every year and is a must visit for anyone wishing to do business in booming Macau. Just note the dates down in your diary and maybe we will meet you at the fair!

The Macao International Trade and Investment Fair (MIF) is Macao’s largest international integrated exposition offering opportunities for trade promotion, product display, commercial partnering and sales promotion. Over the years, it has played an active role in attracting overseas investment, expanding imports and exports and facilitating trade and business co-operation. It has also provided a good channel for Macao and overseas exhibitors and business people to promote their products and services, enhance their corporate image and build client relationships.

After Macao’s handover to China, Macao has actively taken part in business co-operation throughout the region, of which regional co-operation in the Pan-Pearl River Delta will be extended to Guangdong, Fujian, Jiangxi, Hunan, Sichuan, Guizhou, Yunnan, Guangxi and Hainan. This, coupled with the SARs of Hong Kong and Macao, forms the “9+2” extensive hinterland covering 2 million square kilometres. Within this framework, Macao will be able to play a full role as an economic and trade service platform, especially between Mainland China and Portuguese-speaking countries.

Portuguese-speaking countries are a market with good development potential and will complement the economic development of China. Given its unique historical and cultural background, Macao will continue to strengthen its own competitive advantage to become the economic and trade co-operation platform between China and Portuguese-speaking countries. Since its inception MIF has always attracted delegates and entrepreneurs from Portuguese-speaking countries, to set up an exhibition featuring Portuguese-speaking countries as well as related activities, providing a good opportunity for other exposition participants to interact and co-operate with them.

We warmly welcome local and overseas government institutions, economic and trade organisations, chambers of commerce and various enterprises to the 11th Macao International Trade and Investment Fair. We hope that through the gathering of high profile industrial and commercial business people, this grand event will promote cross-regional economic co-operation and embrace new development opportunities.

Technorati Tags: macau investment, macau trade, macau business, macau economy, macau

• Macau International Fair to take place on September 23
• There Is More To Macau Than Just Gambling
• Meeting between Chinese and Portuguese-speaking ministers due in September in Macau
• CE Edmond Ho Meets Thai Foreign Minister
• Fifty Portuguese to attend Macau International Fair

As reported by XinHua - Macao’s unemployed population in the second quarter of 2006 decreased 100 over the previous quarter, according to official statistics issued Monday.

Full article on China Broadcast - The figures from the Statistics and Census Service showed that the number of jobless residents seeking their first job was around 1,000, or 9.6 percent of the unemployed population in the second quarter.

Macao’s total labor force was estimated at 274,000 in the period, the figures showed.

The special administrative region has a population of nearly 500,000.

Technorati Tags: macau employment, macau economy, macau business

• Macao sees stable jobless rate
• Macau Population Keeps on Growing
• Macau visitor expenditure Up
• Macau Package Tours Continue to Drop
• Macau Visitors Arrivals up 15.4%

The figures released by the government-run Statistics and Census Service (SCS) showed that visitors from the Chinese mainland took the lead on the expenditure list with 2,875 patacas (359 U.S. dollars).

As reported by China Economic Net - The per-capita shopping spending surged by 22 percent year-on-year to 668 patacas (83.5 U.S. dollars) in the quarter, the figures showed.

Meanwhile, the per-capita non-shopping spending increased by 2 percent to 800 patacas (100 U.S. dollars) in the period, according to the statistics.

Technorati Tags: macau business, macau tourism, macau economy

• Macau Visitors Spending in 2006 Up By 6%
• Visitor Arrivals in 2006 Up by 18% Over 2005
• Macau Has Record 27 Million Visitor Arrivals for 2007
• Macau Gaming Revenue Up And Up
• China’s economy grows 10.3% in 1Q (update)