Confidence in the long-term future of Macao has been strengthened by President Xi Jinping’s keynote speech at the inauguration of the special administrative region’s new government under Chief Executive Sam Hou-fai, a former president of the Court of Final Appeal of Macao. The key takeaway of the Dec 20 speech was the reassurance that the principle of “one country, two systems” will be maintained for a long time. Faith in the long-term prosperity of Macao has been strengthened by the “four points of hope” put forward by the president. The unswerving determination to safeguard national security, together with the development strategies embedded in the “four points of hope”, provide an anchor of stability in a world of geopolitical and economic storms.

The principle of “one country, two systems” provides the best conceptual lens through which to understand the reasons Macao has been able to maintain stability and prosperity since the handover in December 1999. According to Xi, it is a good system for maintaining the long-term prosperity and stability of Hong Kong and Macao; it is a good system for helping build a stronger country and national rejuvenation; and it is a good system for realizing the peaceful coexistence and win-win cooperation of different social systems, which should be insisted on for a long time.

The “four points of hope” are: to promote moderately diversified economic development; to improve governance efficiency, including legal reforms; to create a higher level platform for promoting the city’s international connections; and to maintain the social stability. We will mainly focus on economic diversification, legal reforms and the creation of Macao’s international connections, which will also benefit the mainland economy and the financial sectors of the city. In addition to enormous trade opportunities, the huge Portuguese-speaking markets in Brazil, Angola and Mozambique will help Macao promote internationalization of the yuan among these countries. It will also help Macao move up the global ladder of financial competitiveness.

Economic diversification aims for non-gaming industries to contribute about 60 percent of Macao’s GDP. It has become the buzzword in Macao, a term associated with the “four-plus-one strategy”. “Four plus one” means a mix of the highly competitive gaming industry, high-tech, comprehensive healthcare, modern finance, and culture and tourism. The Hengqin project is viewed as a catalyst capable of transforming Macao from a casino-dominated economy into a hybrid economy with a solid and diverse economic base and a competitive edge in technology.

With a legal system similar to those of the PSC and with a large pool of bilingual professionals in relevant sectors, Macao has played a unique role in promoting trade between mainland enterprises and business entities in PSC. In fact, Macao is a commercial and trade cooperation service platform between the Chinese mainland and PSC

Ambitious as the Hengqin project is, the development plan should not be viewed as loud thunder with few raindrops. Since the establishment of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin in 2021, it has enjoyed rapid growth. Economic figures speak louder than words. According to figures released by the zone’s statistics bureau, its GDP in the first three quarters of this year totaled 37.35 billion yuan ($5.12 billion), up 7.1 percent year on year. Its economic prospects are promising.

More importantly, with strong support from the central government Hengqin has the potential to attract more tech companies from the Chinese mainland to establish research centers and manufacturing bases in the cooperation zone. The government blueprint aims to see the industrial added value of Macao firms established in Hengqin reach 9 billion yuan by 2029 – 10 times the value in 2022. The Macao SAR government is aware of the need to attract big tech corporations to set up operations in Hengqin. According to tech entrepreneur Tiago Lei, Beijing intends to add more industries in Hengqin. Xi warned that the authorities should not deviate from the original purpose of the cooperation zone.

Hopes have been raised that Macao can forge greater collaboration with Portuguese-speaking countries (PSC), which are spread across four continents with a total population of over 300 million. Macao has acted as an indispensable bridge between the Chinese mainland and those countries. With the support of the central government, the China and Portuguese-speaking Counties Cooperation and Development Fund is based in Macao and the China-Portuguese-speaking Countries Federation of Entrepreneurs in Macao was founded in the city.

Brazil is Macao’s largest trading partner, followed by Portugal, Angola and Mozambique. In the first six months this year, imports and exports between PSC and Macao totaled 656.4 million patacas ($82 million). Cross-border transactions usually carry a high potential for disputes. Macao may play a bigger role in resolving these trade disputes. With a legal system similar to those of the PSC and with a large pool of bilingual professionals in relevant sectors, Macao has played a unique role in promoting trade between mainland enterprises and business entities in PSC. In fact, Macao is a commercial and trade cooperation service platform between the Chinese mainland and PSC.

Legal modernization is very important, as mentioned in a recent article by Lei Wun-Kong, which reminds us that Macao should improve the legal systems and mechanisms for safeguarding national security. For instance, the administrative regulations of the Committee for Safeguarding National Security of the Macao Special Administrative Region must be reviewed. The five major Codes of Law (the Penal Code, the Criminal Procedure Code, the Civil Code, the Commercial Code and the Civil Procedure Code) and the Macau Administrative Procedure Code must also be reviewed. Besides, emerging fields (such as artificial intelligence and the low-altitude economy) should be legislated.

Lei Wun-kong is president of the Association of the Legal Promotion of Macau and a senior consultant at the Chinese Dream Think Tank.

Kacee Ting Wong is a barrister, part-time researcher at Shenzhen University Hong Kong and Macao Basic Law Research Censer, chairman of the Chinese Dream Think Tank and a district councilor.

The views do not necessarily reflect those of China Daily.