Guangdong-Macau in-depth cooperation zone in Hengqin to be “pacesetter” for GBA development – Secretary for Administration

The Guangdong-Macau Intensive Cooperation Zone plan for Hengqin will be a “pacesetter” for the development of the Greater Bay Area and will be the “first step for Macau to integrate into the country’s development”, Secretary for Administration and Justice, André Cheong, said today (Thursday).

A special press conference was held today by the State Council Information Office concerning the development and construction of the Hengqin and Qianhai cooperation zones, with the presence of mainland, Hong Kong and Macau officials.

Secretary for Administration and Justice, André Cheong, was invited as the Macau SAR representative and took part in the press conference via videoconference, with Hong Kong Special Administrative Region Secretary for Administration, John Lee Ka-chiu, also present remotely.

The long-awaited guidelines for the development of the nearby Hengqin island were unveiled on September 5 underlining the Guangdong-Macau joint administration for the area and setting up four main focus areas that will assist with Macau’s economic diversification away from gaming, namely technology and high-end manufacturing, Traditional Chinese Medicine (TCM), tourism and MICE, and finance.

Inquired why these four areas were benchmarked for development, the deputy director of the National Development and Reform Commission, Cong Liang, said that the Chinese government took into consideration “Macau’s advantages”, the need to diversify its economy and the “expectations of its residents”.

“General Secretary Xi Jinping has highlighted that the original intention of establishing the Hengqin New Area [in 2009] is to create conditions for the diversified development of the Macau economy, so when we were formulating the plan we kept in mind this mission,” Cong added.

The official underlined technology and R&D are important “platforms for innovation” while the conference and exhibition industry sector have a “large foundation” in Macau, with finance and TCM are industries also repeatedly mentioned by the Chief Executive.

“Although Hengqin’s industrial foundation is not that strong, in order to promote the development of these key industries we identified a number of supportive policies in the plan,” Cong noted.

Meanwhile, the permanent Member of Provincial Committee and Deputy Executive Governor of Guangdong Province, Lin Keqing, indicated that in the 10 years since President Xi Jinping first announced plans for the development of Hengqin in 2009 the area has changed from a “remote island” to a “frontier of development”.

Lin highlighted the opening of the new Hengqin Port passenger checkpoint, the implementation of the “cooperative inspection, one-time clearance” customs clearance mode, and the completion of the main road network as important steps in developing the area and listed several data concerning the island’s Macau-linked economic progress.

A total of 4,578 Macau-funded enterprises have been registered and 314 Macao enterprises have cross-border offices in Hengqin, while the Guangdong-Macao Cooperation Industrial Park has provided land for 25 projects with an agreed investment of RMB79.3 billion.

“The Guangdong-Macao Cooperation Traditional Chinese Medicine Science and Technology Industrial Park has developed a total of 50 Macau pharmaceutical projects, and Macau’s 4 state key laboratories have established Hengqin branches,” Lin stated.

A special incubator in the area has also helped incubate 613 Macau innovation and entrepreneurship projects, and implemented one-way certification of professional qualifications for Hong Kong and Macau professionals.

“There are also 589 Hong Kong and Macau tour guides, 57 Hong Kong and Macau construction companies, 269 Hong Kong and Macau construction professionals, and 53 Macau medical practitioners and 7 social workers licensed to work in Hengqin,” official added.

Deputy Executive Governor of Guangdong Province, Lin Keqing

Some 537 government services can also be accessed online in the Greater Bay Area, and 237 administrative approval services can be handled online and across borders, Lin added.

The Chinese official also mentioned the start of the construction of the New Macau Neighborhood, project, which will provide housing units for 10,000 Macau residents, with, 756 Macau residents held residence permits to live in Hengqin, and nearly 100,000 local residents seeking will seek medical treatment in the area every year. 

The total quota for Macau’s single-plate vehicles in and out of Hengqin has also been increased to 10,000.

“The development of the real economy in Hengqin still needs to be improved and will continue to play a better goal in Macau’s diversified development. We understand that it is a major responsibility […] we will continue to grasp the strategic intention of the central committee and of the General Secretary,” the Deputy Executive Governor of Guangdong Province added.

Chinese government officials also indicated that the Hengqin/Macau and Qianhai/Hong Kong cooperation zone plans will allow for Guangdong to contribute to the development of the One Country, Two Systems principle’.

Hong Kong Special Administrative Region Secretary for Administration John Lee Ka-chiu underlined that two cities and their respective cooperation zones would be a “dual engine” for the development of the GBA.

It was also revealed today that the State Council would increase the size of the Qianhai cooperation zone from 14.9 to 120.6 square kilometres, a similar area to Hengqin’s 106 square kilometres set to offer a “wider stage” for Hong Kong to expand its growth and present opportunities for young people to seize new prospects in sectors such as finance and technology.

“We will encourage more and more young people to go live in Hengqin and create more favourable conditions for them”

Secretary for Administration and Justice, André Cheong

Asked to elaborate on what efforts have been carried out in recent years to diversify the Macau economy, Secretary Cheong underlined some of the legislative advancements to help promote the TCM, finance and high-tech sectors.

“A new law on the registration of Chinese medicine production has been formulated. This law will be implemented from next year. The Hengqin Guangdong-Macao Chinese Medicine Science and Technology Industrial Park has also formed a certain industrial hub atmosphere,”

“In the modern financial industry, relevant laws and regulations continue to improve, and the new ‘Trust Law’ and other bills will be submitted to the Executive Council for deliberation.

In terms of high technology, Cheong stated authorities have reorganized the Economic Affairs Bureau into the Economic and Technological Development Bureau, while creating a legal system for preferential taxation of enterprises engaged in the technological innovation business, with new subsidies for scientific research.

“In terms of conventions, exhibitions, cultural tourism and sports, the development of conventions and exhibitions has gradually shown a trend of professionalization and marketization. The market model of “tourism + conventions and exhibitions” has gradually strengthened and large-scale sports events have been held continuously to give full play to the brand effect of sports events,” the Secretary added.

Cheong also noted that the Macau SAR government has supported young people to set up businesses in Hengqin and as of May this year, incubators such as the Hengqin Macau Youth Entrepreneurship Valley and the International Science and Technology Innovation Center have incubated a total of 537 projects in Macau and have 121 projects under incubation. 

“We have also established a consulting platform to promote exchanges between mainland and Macau young people to set up businesses,” the Secretary added.