Representatives of Macao to the nation’s top legislature and political advisory body have called for closer integration between Macao and the Hengqin cooperation zone to assist the special administrative region’s attempts to diversify its economy.
They made the remarks in Beijing while attending the annual two sessions — the National People’s Congress and the Chinese People’s Political Consultative Conference National Committee.
The Guangdong-Macao In-depth Cooperation Zone in Hengqin, whose development plan was unveiled in 2021, has already laid out the foundation for further integration with the infrastructure and framework currently in place.
The 106-square-kilometer Hengqin, which geographically belongs to Zhuhai city in Guangdong, provides Macao with additional development space and the opportunity to bolster synergy with Guangdong.
It is one of the epitomes of integrated development within the 11-city cluster that makes up the Guangdong-Hong Kong-Macao Greater Bay Area. Advancing coordinated regional development was underscored as one of the nation’s major tasks this year in the Government Work Report delivered by Premier Li Qiang at the opening of the third session of the 14th National People’s Congress on March 5.
“The policy framework of Hengqin has been formed with clear development objectives, yet implementation can be further enhanced,” said Jose Chui Sai-peng, NPC deputy from Macao.
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Hengqin’s development roadmap until 2035 has been divided into three phases, according to the general plan issued by the central government in 2021. The initial phase, from 2021 to 2024, focused on establishing a preliminary framework for the integral development of Macao and Hengqin.
In 2024, the gross domestic product of Hengqin surpassed 53.8 billion yuan ($7.41 billion), a 5.3 percent year-on-year growth, with around 6,600 Macao enterprises operating in the zone.
The second phase will run from 2025 until 2029, which partially overlaps with the nation’s 15th Five-Year Plan (2026-30), prioritizing deeper regulatory links, more efficient cross-boundary flows, and a higher level of Macao’s appropriate economic diversification.
Chui noted the differences in the tax systems of Hengqin and Macao, saying that Macao imposes mainly direct taxes. The discrepancy in taxation may discourage Macao enterprises from entering Hengqin, said Chui.
With the increase in business activities between Hengqin and Macao, the two places’ different practices on receipts causes inconvenience, too. “Some merchants in Macao issue hand-written receipts, which is commonly acceptable in the city. But such notes may not be recognized by Hengqin authorities when business owners apply for tax deduction,” said Chui.
Chui offered suggestions to the top legislature which would accelerate the integration of Hengqin and Macao’s tax system. He said he hoped this would encourage more Macao enterprises to expand their business to Hengqin and speed up the integration process.
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To diversify the economy of Macao, a city once heavily-depended on its tourism and leisure sectors, policymakers from the SAR and central authorities have identified traditional Chinese medicine and big health, modern financial services, advanced technology, as well as conventions, exhibitions, trade, culture and sports as four sub-pillar industries to build a sustainable industrial structure in line with Macao’s strengths as well as national development.
Grace Wong Kit-cheng, a Macao member of the Chinese People’s Political Consultative Conference National Committee, stressed the importance for Macao to capitalize on Hengqin’s advantages to develop the TCM sector, in her proposal to the committee.
However, Wong said she observed some Macao TCM companies have faced inconvenience when exporting their products to Hengqin due to the differences in rules and regulations, which, in some cases, generated additional costs such as duties.
Wong also proposed to speed up the establishment of a fast channel for the Chinese mainland registration of Macao-developed medicines, which was listed in the central government’s Hengqin holistic development plan, to aid Macao’s TCM sector to tap into mainland and overseas markets.
As of June 2024, over 16,000 Macao residents were living, studying or working in the zone. The fast-growing Macao community is propelling the SAR’s healthcare and education sectors to extend their services across the border.
Ng Siu-lai, a Macao deputy to the NPC, proposed introducing elderly care services in line with Macao standards to Hengqin to benefit Macao and mainland seniors there.
Hengqin already has four community elderly care service centers providing myriad services. The zone has also set up five canteens tailored to the elderly’s needs.
In April last year, the Guangdong provincial government kicked off a pilot program in Hengqin to explore new modes of community-based elderly care services.
Ng, who is a veteran social worker, said Macao’s long-term practice of home-based elderly care would be a beneficial reference.
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Ng added that she hopes that the professional qualifications of elderly care service personnel in the two places can be mutually recognized to boost personal exchanges.
Hengqin and Macao can also jointly build a training base for elderly care service professionals, contributing more assistance to the country’s mounting elderly care challenges, Ng added.
