Executive Director of Macao Trade and Investment Promotion Institute

　　Where is the short cut to invest in Southeast Asia?swheresis the way to participate the business in Europe" It is good to read the interview with Mr Reic H. Y. Ho, Executive Director of Macao Trade and Investment Promotion Institute.

　　Journalist:Would you ming talking about the new improvement in the policy of the opening of gambeling industry" What opportunity and facility can it bring?

　　Director: As you know, we have signed contracts with "Yongli"and "Venetian"respectively on June 24 and 26. The former will invest 7 billion Macao dollars and the latter 8.8 Macao dollars. In view of this, there is a great increase in the next 5 years no matter in the investment of the gambling industry, tourist industry, or relative matching industries. Recently, the investors of Hong Kong, Europe and American shows great interest in Macao, showing that a good investment opportunity emerging in Macao. Mr Edmund Ho Hauwah paid much attention to develop the exhibition industry in Macao, which is have its great feasibility. For example, Venetiansgroupsis specialized in the convention and exhibition industry and is the fonder of COMDAQS, which is the biggest electric exhibition. Macao has all along been seeking the opportunity to develop convention and exhibition but was limited by the little investment in hardware investment. But now, through the investment of the Venetian Group, the exhibiting area will reach 100 thousand square meters, a rather large size even in Asia. In addition, the investment from Americans lays particular stress on the family entertainment and business travel, which will bring more customers to Macao.

　　Journalist: As far as I know, Macao is dedicated to become a regional conventional and exhibition center, what contribution can the convention and exhibition industry make to the local labors and matching enterprises and what opportunity can it offer to Mainland enterprises and foreign investors"?

　　Director:The development of convention and exhibition industry can move ahead relative industries, such as building and ornamental industry. According to our statistics, about 50 million people participate conventions in Asia each year. Macao enjoys fine travel facilities which is an advantages to develop convention and exhibition. In general, we manage the investing capital in various fields, especially in hotels and telecommunications, creating many business and employment opportunities. As to mainland enterprises, they can benefit from building and ornamental industry.

　　Journalist:The convention and exhibition industry has been booming in mainland in recent years. The success of APEC 2001, Boao Asia Forum has piled up many experience and produce a number of specialists. What's your opinion on the cooperation on the convention and exhibition industry between the mainland and Macao?

　　Director:According to our analysis, after the entrysintosthe WTO, the trade will be increased, so will the conventions. Macao acts as a hinge in the Pearl River region and the Southeast Asia region. Along with the development of economy and trade between Hong Kong, Macao, Taiwan and the mainland, the demand of the conventions is striking. Macao is window of China to the Southeast Asia and Europe, so personally I am favorable for the cooperation between the mainland and Macao on the development of the convention and exhibition industry. But it is depends on the enterprises to carry it out instead the government. Now I'd like to attract the attention of the businessmen of the mainland to the investment of the Venetian Group, which has project a great number of money on the development of the hardware of convention and exhibition. So there is no necessary to continue to throw money for the hardware construction. We are hungering for the development of the "software" Actually, it often loses money if one only investing in the hardware construction in the convention and exhibition industry. In the initial stage, the Venetiansgroupswill depend the revenue of its gambling industry to make both ends meet. In the long run, thesgroupswill earn more on the convention and exhibition service.

　　Journalist:In terms of the content of the convention and exhibition, Hong Kong enjoys its advantage of the capital of business and finance while Hainan triumphed in hosting the get-together of the Asian statesmen, What kind of unique feature does Macao show us as a regional convention and exhibition center?

　　Director:As a governmental department, we can not tell businessmen what you should do and what you shouldn't because we know they are more familiar with the market than us. Many of them are of the first rate in terms of dealing with the change of the market. I can't and I don't think there is necessary to give a clear and definite picture about the future of Macao's convention and exhibition industry. What I want to say is that the government of Macao SAR will spare no pain to set up platform for the cooperation between the mainland and Macao. Hong Kong lays stress on the international convention and exhibition while we pay much attention to developing regional cooperation such as the cooperation with the mainland, Southeast Asia, and so on. The cooperation between Macao and Zhuhai has long been undergoing. Actually, it fails to vain to deny or negate the economy combination of Hong Kong, Macao, Taiwan and the mainland because none can hold back the history trend. In general, Macao's economy expects much on the development of nongovernmental cooperation.

　　Journalist:What's the geography advantage of Macao?

　　Director:Macao is a destination of traveling and relaxing in the short term. So the profit is flowedsintosthe garment, toy and gambling industry currently. Along with the economy development of China, the people living in Macao take its geography advantage of the bridge linking the Chinese Mainland, Southeast Asia and Europe to develop itself to a regional center of convention and exhibition.

　　Journalist:What's your opinion on the cooperation among the small and middle sized enterprises between Macao and the mainland?

　　Director:Currently, the cooperation is carried out in the tourism, communication, distribution, construction, IT and finance but with a relative small value. It is rather thin to say the development of convention and exhibition industry and the opening of gambling industry can drive ahead many businesses. We have already to set up Macao Business Support Center with an area of 2000 square meters,swheresfree office, free information and free secretary service offer to investors. One of emphases of our work is to promote some concrete projects, such as guide-training program, multi-language souvenir, IT system in hotels. Macao International Trade and Investment Fair is the largest fair currently in Macao which will be convened on October with the theme of traveling and relaxing. The enterprises from the mainland, Hong Kong, and Taiwan will participated the gathering. In addition, with the theme of "green Enterprises for Sustainable Development" Eureka (meet) Asia-2002 will be held from November 25 to 29 in Macao. Situated in the most vibrant economic triangle linking Hong Kong, Guanzhou and Shenzhen in the south of China, Macao has the historical responsibility of facilitating cultural and technological exchange between the East and the West. Advocated by Portugal, who assumed Chairmanship of Eureka in 1998, and supported by the related department of China, Macao was chosen as the venue for holding the 1st Eureka (meet) Asia event. This is to foster cooperation and communication between Eureka members and scientific and technological units, academic institutions and enterprises in Asia, so as to enhance R&D, productivity and competitiveness for the ultimate objective of achieving sustainable development for the global economy. The international conventions in Macao cost about 50 percent less than in neighboring Hong Kong or Taiwan. Macao's low tax rate, good relations with the European Union and Portuguese-speaking counties, convenient sea, air and land transportation and good hotel accommodation are all factors that support its development as a center for small and medium sized regional conventions.

　　Journalist:What's your opinion about the cooperation between the mainland and Macao?

　　Director:Given the scarcity of resources in Macao, tourism will continue to be the economic mainstay in the foreseeable future. In addition, Macao is equipped with good telecommunication and transportation systems and enough hotel rooms to develop convention tourism. Macao will continue to be a bridge between the mainland and the Portuguese-speaking countries. Exchange of market and product information between the two sides can be strengthened and areas for cooperation can be expanded so as to boost economic development.

　　Links between Macao and the mainland have become increasingly closer since the reform and opening-up policies started at the end of 1970s. Macao's labor-intensive industries have been gradually transferred to the mainland, and the catering industry and real estate industry have also started to movesintosthe market of the mainland. Macao is lucky to have the mainland as its backup. Macao is on the coast, which facilitates its communications from the mainland via Macao. Thus, Macao is blessed with a powerful material provider and a vast market for its economic development. Economic cooperation between the mainland and Macao is gaining strength and, in particular, Macao's processing industry reflects very well the economic complementarity between Guangdong province and Macao. Export-geared manufacturing, gambling and tourism, real estate development and financial services are the four economic mainstays of Macao. There is a strong presence of Mainland Chinese capital in all these sectors. Statistics show that more than 200 Mainland Chinese enterprises have set up branches in Macao, with total assets over 40 billion patacas. They are in different lines of business and occupy a very strong position in Macao's economy. The total turnover of Chinese accounts for around 50 per cent in the financial and insurance sector, around 40 percent in the export industry and 40 percent in construction and property development. Mainland capital has become the largest source of outer investment in Macao. At the same time, the mainland is also the biggest supplier of Macao's essential goods, such as foodstuffs. Macao also acts its role as a special bridge for economic and trade relations between Taiwan and the Mainland to promote economic and trade exchanges between the two sides of the Taiwan Strait. Direct flights between Macao and Taiwan enable Macao to play a bigger role in contacts and exchanges between Taiwan and the mainland. A number of Taiwanese businessmen have set up companies in Macao before entering the market on the Mainland China. Generally speaking, cooperation and contacts between Macao and the Mainland in the past were non governmental and voluntary, therefore, lacking official co-ordination and communication mechanisms. Cooperation areas also needed to be expanded and cooperative levels had to be upgraded.