Macao, China WT/TPR/S/181 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Since the 1980s, Macao SAR has undergone a tr ansformation from a manufacturing centre to 
a predominantly service-oriented economy that relies heavily on gaming and tourism earnings;  
gaming tax accounted for 75% of government revenu e in 2006.  The services sector accounted for 
89% of GDP and 75% of total employment in 2005 (T ables IV.1 and IV.2).  The Government expects 
this trend to continue, owing to heavy investment s in resort and entertainment projects and related 
infrastructural development that are transforming Macao SAR into the world's leading gaming destination.  Gaming and tourism are set to remain  the keystones of economic growth by attracting 
higher-end tourists;  the Government is encour aging the development of  non-gaming attractions, 
building the image of a stable society and continui ng to manage gaming liberalization in an orderly 
manner.
1 
Table IV.1 
Production-based GDP at curre nt prices by sector, 2002-05 
(Per cent) 
 2002 2003 2004 2005 
Secondary sector 12.6 12.7 11.6 14.7 
Manufacturing 7.2 6.1 5.1 4.3 
Electricity, gas and water supply 2.8 2.6 2.1 1.8 
Construction 2.7 3.9 4.4 8.6 
Tertiary sector 92.7 91.4 91.6 88.8 
Wholesale, retail, repair, hotels and restaurants 12.5 11.7 12.8 12.1 
Transport, storage and communications 6.8 5.3 5.0 4.7 
Financial intermediation, real estate, re nting and business activ ities 21.7 20.2 19.4 22.5 
Public administrations, other community, social and personal services 
(including gaming) 51.7 54.2 54.4 49.5 
Less:  adjustment for FISIMa 5.3 4.1 3.1 3.5 
a Financial intermediation services measured indirectly. 
Source:  Macao Statistics and Census Service. 
Table IV.2 
Employed population by economic activity, 2003-05 
(Per cent) 
 2003 2004 2005 
Total (thousands) 202.6 218.0 237.8 
Manufacturing  18.3 16.4 14.9 
of which textiles and garments 14.2 12.7 11.6 
Construction 8.0 8.3 9.7 
Wholesale, retail, repair, hotel s and restaurants 27.1 27.1 25.4 
Transport, storage and communications 7.0 6.8 6.3 
Financial intermediation, real estate, renting and business activities 8.9 8.6 8.8 
Public administrations, other community, social and personal services 
(including gaming) 29.5 31.8 34.1 
Others 1.1 0.9 0.8 
Total 100 100 100 
Source:  Information provided by the Macao, China authorities.  
                                                      
1 In this respect, legislation passed in 2006 is an important step in fostering an effective anti-money-
laundering regime. WT/TPR/S/181 Trade Policy Review 
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2. The share of manufacturing in GDP declined to 4.3% in 2005, and around 15% of 
employment, indicating lagging productivity with re spect to the rest of the economy.  Macao SAR's 
status as a free port has ensured a competitive domes tic market for goods but low productivity in the 
manufacturing sector has hastened its relocation to Mainland China.  In response to the decline of 
manufacturing, dominated by textiles and clothing , and the abolition of textile quotas in 2005, the 
authorities are attempting to use the resources a nd opportunities offered by the Closer Economic 
Partnership Arrangement (CEPA) w ith Mainland China and are encouraging manufacturers to bring 
new industries into the newly established Macao-Z huhai Transborder Industrial Park to expand the 
base of the manufacturing structure.  Agriculture is negligible, and, therefore, there is no official 
information on its contribution to Macao SAR's GDP. 
3. At the time of Macao, China's previous Review , in 2001, it was suggested that competition in 
several services markets (provided by private comp anies with exclusive rights under government 
concessions) could be improved.  In particular , gaming services were a private monopoly.  By 
liberalizing gaming ownership and granting licen ces to three bidders in 2002, the Macao SAR 
authorities introduced competition and injected new dynamism into the sector, with positive spill-over 
effects on the rest of the economy.  Local casino magnates, and others from Hong Kong, China, the 
United States and Australia, are leading the gaming industry towards growth  and as their companies 
compete for market share, consum ers (including gamblers, conven tion goers and tourists) will be 
increasingly able to choose from a bigger variety of  mass market games, shows and entertainment, 
and hotels and restaurants.  The authorities have also partially liberalized the telecommunications 
sector, opening up mobile communications and inte rnet services to competition.  However, the 
competitiveness of other key services, such as basic telecommunications, electricity, water, and transport, is being severely tested by the frene tic pace of construction of new resort and casino 
projects, the requisite infrastructural development,  and the large and increasing influx of visitors, 
which reached nearly 22 million in 2006 in a city with a populatio n of around 500,000. 
(2) M
ANUFACTURING  
4. The manufacturing industry's contribution to GDP  has been in long-term decline, falling from 
20.6% in 1989 to 10.1% in 2000 and to 4.3% in 2005 (Tables IV.1 and IV.2);  similarly, manufacturing employment fell from 28.5% of the working population in 1992 to under 15% in 2005.  Generally, manufacturing has increasingly relocated to lower-cost Guandong province in China.  The 
gradual improvement of the investment environmen t in China has fuelled the shift of Macao SAR's 
low-value-added manufacturing industries to China's Pearl River Delta Region.  Macao SAR 
continues to produce manufactures for export, notab ly textiles, garments, toys, electronics, and 
footwear.  Manufacturing has long been export-orie nted, primarily producing garments and textile 
products.
2  The major manufacturing industry, garmen t manufacturing, has accounted for around 80% 
of domestic exports during the period under review  and textiles for around 10%, with footwear, 
electronic products and toys together accoun ting for around 6% of domestic exports. 
5. Well before the elimination of the internationa l quota on textiles and clothing in 2005, Macao 
SAR's textiles and clothing sector displayed signs of d ecline, both in absolute and relative terms.  The 
labour force in the garment and textile industry as a share of Macao's total labour force has decreased 
by 27% since 2001, to 9.4% of the total labour force in June 2006. 
                                                      
 2 Macao does not need to import all its raw materi als for local production of  "made in Macao" textile 
and clothing articles for export to its main markets (i .e. the EU and United States).  This is because Macao 
participates in an Outward Processing Arrangement (OPA) under which many manufacturing phases may be 
performed outside Macao, as long  as the rule of origin step is carried out locally.  Determination and application 
of origin varies by product and country (the importing countries specify the "essential" production stage to be carried out locally). Macao, China WT/TPR/S/181 
 Page 57 
 
 
(i) Textiles and clothing 
6. In spite of increasing competition from the Main land in textiles and garment manufacturing, 
Macao SAR still had over 1,200 manufacturing establishments in 20053, of which 44% were textiles 
or garment factories, employing over 80% of the i ndustrial workforce.  These factories contributed 
over 60% of gross manufacturing output and value ad ded, and 91% of domestic exports (Table IV.3). 
Table IV.3 
Structure of manufacturing industry, 2005 
(Per cent) 
Sub-sector Number of 
factories Persons 
employed Gross output Value added Share of 
domestic 
exportsa 
Total (number and P billi on) 1,238 34,688 13 3.1 14.4 
 (Per cent) 
Wearing apparel;  dressing and dyeing of 
fur 37 69 61 57 
Textiles 6 12 16 13 91b 
Tanning and dressing of leather;  luggage, 
handbags, saddlery, harness, and footwear 1 1 <1 <1 0c 
Publishing, printing, and reproduction of 
recorded media 11 3 2 3  
Other non-metallic mineral products 2 1 5 6  
Office, accounting, and computing 
machinery <1 1 4 3 8d 
Food products and beverages 14 4 2 4  
Electrical machinery and apparatus not 
elsewhere classified;  furniture;  and 
manufacturing n.e.c. 29 9 9 15  
a Due to rounding, the total does not correspond to the sum of partial figures. 
b Mainly knitted and woven clothing. 
c Footwear. d Other products. 
Source:  Macao Statistics and Census Service (2005), Industrial Survey . 
7. There were no changes to the textile quota allo cation during the period of 2001-04.  Macao 
SAR's utilization rates remained high with both the United States and the EU.  The abolition of international textile quota at the beginning of 2005 brought about a new trading environment for both 
exporters and importers.  In Macao SAR's case, lo cal producers have experienced intense competition 
from other suppliers, principally Mainland China.  Macao SAR's exports of textile and garment 
products dropped markedly until the last quarter  of 2005 as production moved across the border to 
Mainland China.  During 2005, the cumulative va lue of merchandise exports decreased by 15.1% 
compared to a year earlier.  A reversal in the d ecline of textile and garment exports began from the 
second half of 2005, however, as  restrictions placed on Mainland China's textile exports to the 
United States and the EU led to textile production being shifted back to Macao SAR.
4  According to 
the authorities, return of production to Macao ca n be viewed as a supplementary strategy for 
                                                      
3 According to the authorities, the cumulative number of closures during 2000-05 was 81 for textile 
companies and 250 for companies producing garments.  If the number of openings is taken under consideration, the net cumulative number of closures change s to 68 for textiles and 70 for garments. 
4 In 2005, Macao became eligible for the European Union's GSP + scheme and benefited from tariff 
reductions of 3.5 percentage points on EU duties.  Th e value of exports affected represented only 0.3% of 
Macao's total export earning s of textiles and clothing to the EU in 2005 . WT/TPR/S/181 Trade Policy Review 
Page 58 
 
 
Macao-invested Mainland manufacturers in order to  hedge against the risk of China's export 
uncertainty to the US/EU markets.  
(ii) Industrial diversification 
8. The Government response to the challenges facing its manufacturing sector, and more 
specifically its textile industry, is to pursue dive rsification and enhance competitiveness in industrial 
development.  There are number of strands to th is policy effort:  the creation of the Macao-Zhuhai 
Transborder Industrial Park (TIP), to compensate fo r the cost differential with neighbouring regions;  
pursuing opportunities for increased goods trad e with the Mainland created CEPA;  the 
implementation of tax exemptions and financial credit schemes to the corporate sector, focused on 
SMEs and intended to diversify Macao's manufactur ing sector (see Chapter III);  and the continued 
special support given to textile and clothing co mpanies for training, technological innovation, 
marketing strategies, and export promotion.5 
(a) Macao-Zhuhai Transborder Industrial Park 
9. In the face of significant challenges to Macao  SAR's manufacturing industry, the Government 
is committed to provide a more favourable business environment for its indus tries.  The industrial 
park is intended to help divers ify the SAR's industrial base and cushion the impact of the global 
abolition of textile quotas.  A Transborder Industr ial Park between Macao SAR and Zhuhai is in a 
preliminary stage of operation in order to combine the advantages of the two regions.6  The first phase 
of development has met with a favourable r esponse from industry;  companies are mainly 
concentrated in pharmaceutical and garment manufactu ring.  There have been joint promotion efforts 
to attract investment, which currently includ es production of medical products, health food, 
information technology equipment, and gaming equipment.  As far as trade facilitation is concerned, 
in June 2006, the State Council of China approved r ound-the-clock customs clearance at the dedicated 
Zhuhai checkpoint in the Park so that, according to  the authorities, the free movement of goods and 
labour in the transborder area is guaranteed and fully maximized.  The Macao SAR Government also hopes that the industrial park will attract higher-end industries and businesses with innovative 
technology, value-added content,  and know-how into the SAR. 
                                                     
 
 5 Notably through the Macao Produc tivity & Technology Transfer Cent re (CPTTM).  Local enterprises 
have been striving to move towards the fashion market, focusing on the activities with higher added value – 
fashion design, quality control, sale s and marketing, fabrics/accessories procurement, financial management, 
production coordination, logistics, distribution, etc, and exploiting higher-end markets – moving to ODM 
(Original Design Manufacturing), and further to OBM (Original Brand Manufacturing).  CPTTM provides 
advisory service to the industry on the use of advanced techniques, equipment and technology;  and organizes exhibitions to introduce to the industry the latest deve lopments in software systems, sewing and processing 
equipment, as well as accessories.  CPTTM also designs  and organizes training courses and seminars for 
garment industry personnel. 
6 In order to promote the diversification of M acao industries, the SAR Government submitted its 
proposal to Mainland China.  On 5 December 2003, the State Council of the PR C officially approved the 
introduction of th e Macao-Zhuhai Transborder Industrial Pa rk, which is located between Gongbei's 
Maoshengyuan and Macao's Ilha Verde di stricts, at the north-western tip of  the Macao Peninsula, at the mouth 
of the Pearl River and close to Hong Kong.  The industrial park is close to international shipping routes and Macao's container port, helpi ng to promote the development of industries  while, at the same time, serving as a 
logistics, transit trade and product exhibition and distribution centre.  The 400,000 m
2 cross-border industrial 
park (the Zhuhai Park has an area of 290,000 m2, and the Macao Park 110,000 m2), straddling the boundary 
between Macao and Zhuhai, was in a preliminary stage of operation in October 2006.  Macao, China WT/TPR/S/181 
 Page 59 
 
 
(b) CEPA (Closer Economic Pa rtnership Arrangement) 
10. The CEPA, signed in October 2003, aims to promote economic and trade cooperation and 
development between Mainland China and Macao SAR in goods and services, as well as trade and 
investment facilitation (Chapter II.5).  Mainland Chin a has agreed to apply a zero tariff to all imported 
goods from Macao, China from 1 January 2006 as long as they satisfy the CEPA origin rules and go 
through the required process to establish their origin.  Rules of origin for 625 tariff lines have been 
developed, including foodstuffs, chemicals, photogr aphic products, textiles and clothing, building 
stone, metal products, machinery and electronic produc ts, pharmaceutical products, plastic articles, 
and optical parts. 
11. The immediate benefit, with the removal of ta riffs, is the increase in price competitiveness of 
Macao SAR’s domestic exports of consumer products to the Mainland.  A longer-term effect of the 
zero-tariff agreement is the potential for attracting more manufacturing activities to locate in 
Macao SAR and promoting development of brand pr oducts made locally.  However, Macao producers 
may need time to understand the zero-tariff benef its from CEPA and to develop their customer 
network in the Mainland.  Consequently, only a certain number of Macao SAR's manufacturing firms 
have been able to take advantage of the CEPA concessions.7  Nevertheless, according to the 
Government, the zero tariff policy applied to im ported goods of Macao SAR origin, as well as the 
further opening up of the huge Mainland market for services, have become important  pillars that 
support the policy of diversifying local industries. 
(iii) Construction 
12. The construction industry, which was in the dol drums for years after the crash that followed 
the building boom of the mid 1990s, began to recove r in 2003.  In 2005, the prosperity of the 
construction sector continued to be led by the im plementation of various large-scale tourism and 
gaming projects and the lively real estate market.  Many once-empty buildings have been repaired, 
renovated or rebuilt and rented out, in particular as ap artments.  According to th e most recent official 
statistics (Table I.3), the construction sector em ployed over 31,000 resident workers in mid 2006, 
representing an almost 50% year-on-year increase.   In addition, the number of non-resident 
construction workers increased by 3,423 between June 2005 and June 2006, over half of whom are 
employed directly by gaming companies.  Clearly, the construction sector is receiving a boost from the work on casinos, hotels and resorts, and convention centres built by the new gaming licensees.  In 
2004, for example, Macao SAR's first Las Vegas-st yle casino opened on the Macao Peninsula.  Las 
Vegas Sands is also developing the Cotai Strip
8, on approximately 80 hectares of reclaimed land 
linking the islands of Taipa and Coloane.  Accord ing to the Macao Statistics and Census Service, a 
total of 651 companies were incorporated  in the construction sector in 2005.  
(3) SERVICES  
13. Services have been increasingly leading the lo cal economy in the last decades, and the 
contribution of the tourism and gaming sector has become of utmost importance to Macao, China's economy.  Notwithstanding the liberalization of th e gaming industry, ownership of a large part of 
Macao, China's tourism and related services remains highly concentrated under one entrepreneur – the 
previous gaming monopoly consortium, whose divers ified business covers a wide range of gaming 
                                                     
 
7 According to the authorities, as of June 2006 the aggregate value of zero tariff exports to the 
Mainland totalled around P 12.5 million, which saved bus inesses an estimated P 1.05 million in tariffs. 
8 The first phase of the Cotai Strip  is planned to include a US$1.8 billion flagship resort, gaming, 
convention and trade fair complex, scheduled to open in  2007.  The first phase will include six additional hotel 
resorts to be developed by other investors, for more than 10,000 guest rooms in total. WT/TPR/S/181 Trade Policy Review 
Page 60 
 
 
and tourism activities in Macao.9  The former dominance of this consortium, both in the gaming and 
the wider property and tourism markets, has b een somewhat diminished since new entrants 
(Hong Kong-based, Las Vegas-based, and Australia n conglomerates), have been competing in 
Macao's newly liberalized gaming and tourism market.  
14. Though Macao SAR has a small population and lack s natural resources, a number of factors 
make it distinct and competitive in the region as a tr ade and services platform.  It is a free port, which 
facilitates the free flow of goods.  Its strategic locati on, together with a well-established legal system,  
low taxation, unrestricted financial movements, social stability, relatively low operating and labour 
costs, and inexpensive rental charges and housing expenditure provide an environment that attracts 
investors in a range of service industries.  Th e Government has also in troduced an offshore tax 
scheme aimed at overseas companies that do not have their market and customer base in the territory.  
It offers competitive tax incentives, including exemption from income taxes and stamp duties, 
three years' exemption from salaries taxes for managers and technicians, and the use of 
non-Macao SAR currency for business activities.  
15. The CEPA and the Pan-Pearl River Delta Re gional Cooperation are helping to strengthen 
Macao's position as a services platform, and for enterprises to capture business opportunities in 
Mainland China, Macao and the overseas markets.   Under the CEPA, Macao SAR service companies 
gained early access to 18 sectors on the Mainland in  2004, and a further nine sectors in 2005, well 
ahead of the opening of those sectors to co mpanies from other WTO Members under China's 
accession agreement.10  In the medium and longer term , some of Macao SAR's best export 
opportunities may lie in supplying services – logistics,  shipping, financial a nd legal – to facilitate 
Mainland exports through Macao SAR to the rest of the world, and to facilitate inflows of goods and 
investment to the Mainland. 
16. Macao, China has been pursuing trade platfo rm opportunities between China and Portuguese 
speaking countries.  Macao, China hosted the first and second Forum for Economic and Trade Co-
operation between China and Portuguese-speaking countries, in October 2003 and September 2006.11  
China and the seven Portuguese-speaking countries (Angola, Brazil, Cape Verde, Guinea-Bissau, 
Mozambique, Portugal, and East Timor) sent governme nt and business delegations to this event.  
During the Forum, ministerial-level officials from China and seven Portuguese-speaking countries 
                                                      
9 The businesses are grouped under the privately held STDM or Soci edade de Turismo e Diversões de 
Macau and Hong Kong-listed Shun Tak Holdings.  STDM, the largest business group in  Macao, China, held the 
exclusive casino franchise between 1962 and 2002.  A subsidiary of STDM, Sociedade de Jogos de Macau 
(SJM) holds one of the three new gaming licences and is market leader in the gami ng industry. STDM is also 
active in recreation, hotel and catering, property developm ent, banking, retailing, tran sportation, infrastructure 
projects and aviation. Shun Tak, established in 1972, with market capitalization of over US$1 billion, is a 
conglomerate operating four core businesses: shipping (including the TurboJet ferry services between 
Hong Kong and Macao), property, hospitality, and investments.  
 10 In essence, the CEPA has conferred preferential treatment to Macao, China' s suppliers of:  legal 
services, accounting services, architectural  services, medical and dental services , real estate services, advertising 
services, management consulting services, convention a nd exhibition services, value-added telecommunication 
services, audiovisual services, constr uction and related engineering services, distribution services, insurance 
services, banking services, s ecurities services, tourism services, transport services, logistic services, airport 
operation services, information technology services, prof essionals and technicians qu alification examinations, 
cultural entertainment services, trademar k agency services, patent agency serv ices, job referral agency services, 
job intermediary services, and individually owned stores. 
11 Trade between China and Portu guese-speaking countries grew fr om US$11.028 billion in 2003, 
when the first Forum took place, to US$18.26 2 billion in 2004, up 66%.  (See "The 2nd Ministerial Meeting of 
China-Portuguese-speaking Coun tries Economic and Trade Co-operation Fo rum (Macao)", Macao Image , 
No. 44, June 2006.) Macao, China WT/TPR/S/181 
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signed an Economic and Trade Co-operation Action Plan and agreed to establish a permanent 
secretariat for the Forum in Macao. 
17. In the DDA negotiations, Macao SAR has tabled a revised offer in 73 service subsectors12, 
which represents a considerable expansion of the scope of potential liberalization compared to its 
Uruguay Round commitments.  The Government recogni zes that an open market regime is important 
to raise service quality standards and attract new tec hnology.  It is of the view that a well-regulated 
services sector, with comprehensive rules and a prop er institutional framework, is a pre-requisite for 
creating a fair and favourable market environment for both domestic and foreign enterprises.  Among 
the 11 main service categories, Macao SAR has made a conditional offer in all except three:  
distribution services, environmental services, and health related and social services.  At present, the 
Government is fine-tuning the rules with respect to environmental services.  Concurrently, it is 
conducting a medical system evaluation as a first st ep in overhauling public and private health 
services and will await the conclusion of the exercise before considering opening up relevant services.  
The Government is of the view that regulations governing distribution services need to be improved 
before considering liberaliza tion commitments under the WTO. 
(i) Telecommunications 
18. The Office for the Development of Telecommunications and Information Technology 
(GDTTI) was established in June 2000 with a view to building a legal framework for the 
telecommunications sector and ensuring that services m eet the needs of the market.  On 15 May 2006, 
the GDTTI was superseded by the Bureau of Telecommunications Regulation (DSRT) as the 
regulatory body.  The DSRT is charged with deve loping the communications infrastructure, issuing 
licences and maintaining quality control, price regulation,  and standardization of the network.  It is the 
authority responsible for formulating overall telecommunications policies and drafting and 
introducing commercial or techni cal regulations in telecommunications.  Further responsibilities 
include supervising the activities and the services pr ovided by the existing carriers, and evaluating 
telecommunications tariffs submitted by the operators for government's approval.  Most 
telecommunications service tariffs are subject to governmental approval. 
19. The telecommunications industry in Macao SAR has undergone significant changes since 
2001, with the liberalization of mobile communica tions and internet-related services in 2001.  Until 
the new licences were granted to two Hong-Kong-b ased telecoms companies Hutchison Telecom and 
Smartone Mobile Telecom, the sector was not open to competition due to the statutory monopoly held by Macao Telecommunications Company or Companhia de Telecomunicações de Macau (CTM).  A renegotiation of the concessionary agreement betw een the Government and CTM, signed in 1999, 
permitted gradual and partial liberalization of the ma rket for mobile, internet and other value-added 
services.  CTM's exclusive rights were renewed to provide fixed-line telephone services, data communications, and leased lines.  
20. Since liberalization, mobile telephony has grown rapidly, whereas fixed-line services seem to 
have reached a peak.  The high penetration rate of the liberalized services as well as the high usage of 
affordable and reasonable telecom services point towa rds the successful liberalization exercise of the 
telecommunications market in Macao SAR (Table IV.4). 
21. In July 2002, three permanent GSM network mobile licences were granted to:  CTM; 
Hutchison Telephone (Macao) Company Limited;  an d Smartone - Mobile Communications (Macao), 
Limited.  The licences allow operators to provide and operate mobile networ ks based on the current 
                                                     
 
12 WTO document TN/S/O/MAC/Rev.1, 28 July 2005. WT/TPR/S/181 Trade Policy Review 
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second generation (2G), and the trans itional 2.5G technology platforms.13  Two licences were granted 
on a merit basis and bidders were judged on vari ous criteria, such as planned capital investment, 
network coverage, serv ice quality and prices.14  The rate of mobile penetration has grown 
impressively with the opening of the mobile service  market and the corresponding price adjustments, 
and is now well over 100%.  The liberalization of  the mobile telephony market was immediately 
followed by internet services.  The opening of the internet service provider (ISP) market has boosted 
the rate of internet penetration in Macao SAR.  There was no fixed limit on the number of ISP government licences, and companies that can prove their commercial and technical viability may have 
their licences renewed for five-year periods.  The ISP licensees are not allowed to operate internet 
gaming businesses.  
Table IV.4 
Telecommunication market, 1999-05 
 31 December 1999 31 December 2005 Variance 
(%) 
Mobile operators (inc luding MVNO) 1 5 +400 
Mobile phone subscribers 118,101 532,758 +351 
Mobile penetration 27.47% 111% +304 
Mobile monthly subscription fee  
(basic package)  P 130  
(with 80 free local minutes) P 80  
(with 200 free local minutes) -38.4 
+150 
Mobile:  3-minute local call (peak rate) P 4.5  P 3  -33 
Mobile:  3-minute local call (off-peak rate) P 2.7  P 1.5  -44 
Fixed telephone lines n.a. 174,400 -0.1 
Annual international outgoing te lephone traffic  133 million mi nutes 184 million minutes +38 
Internet service providers 2 10 +400 
Internet content providers 2 8 +300 
Internet subscribers 17,169 88,694 +417 
Annual internet usage  5.7 m illion hours 79.2 mill ion hours +1,289 
Internet household pene tration 11.6% 66% +469 
Internet monthly subscription fee  
(basic package)  P 148 (with 70 free hours) 
(56K dial-up ) P 110 (with 60 free hours) 
(512K broadband) -26 
International internet bandwid th (Mbps) 19 1,125 (2004) +5,821 
Private leased circuits 4,689 7,011 (2004) +50 
Annual telecom investment P 204 million  P 389 million (2004) +91 
Total telecom services revenue P 1, 603 million  P 2,028 m illion (2004) +26.5 
Source:  Information provided by the Macao, China authorities.  
22. To foster fair competition, new telecommuni cations legislation and regulations were 
introduced, including the Basic Telecommunication Law, which specifies regulations and licensing 
requirements for mobile and internet services, which have been liberalized.  Licensing arrangements, 
as well as the governance of the operation of mobile and internet services are defined in 
Administrative Regulation No. 7/2002 and Administ rative Regulation No. 24/2002.  All the mobile 
licences have an effective period of eight years.  Qualified companies can apply for the licence for 
internet services at any time, and the effective period of the licence is five years.  Foreign companies 
                                                      
13 In October 2006, with regard to 3G licensing the Government announced that two WCDMA network 
mobile licences would be awarded, to CTM and Hutc hison Telephone (Macao) Comp any Limited, while one 
CDMA2000 1X EV-DO networ k mobile licence would be awarded to  Companhia de China Unicom (Macau) 
Limitada.   
14 In addition, one mobile virtual network operator (MVNO) licence was granted to one of the local 
paging companies, Kong Seng Paging Company, in October 2002.  One permanent CDMA2000 1X mobile 
licence was granted in August 2006 to further libera lize the local telecom market and cope with the 
communication requirements of the growing number of visitors to Macao, China.  Macao, China WT/TPR/S/181 
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may provide internet services, such as data processing, web hosting or e-commerce;  as of 
March 2006, there were ten ISPs and eight ICPs  (content providers) ope rating in Macao SAR. 
23. In the liberalized mobile phone services market the Government is concerned to safeguard a 
fair competitive environment.  Issues that have been examined include:  costing of the services 
provided; presence of unfair competition in the m obile phone service market;  social and regional 
policy considerations;  scope and nature of investme nts by operators;  as well as the maintenance of a 
"reasonable" price which, according to the authoritie s,  is consonant with the scale of operation and 
the level of public acceptability.  The Governme nt prevents internet service providers from 
establishing a new pricing scheme only when it is found to be anti-competitive in nature or is against 
the public interest in general.  According to Ar ticle 8 of the Macao Basic Telecommunications Law 
and the other related regulations, all forms of cross-subsidization or other practices that subvert 
competition or the user's freedom of choice are prohibited.   
24. In the Doha Round of negotiations, Macao SA R has tabled an offer in a number of 
telecommunications services, including mobile ra dio telephone services and radio paging services for 
local and international services; facsimile services,  electronic mail, voice mail, on-line information 
and data base retrieval, enhanced/value-added facsim ile services, code and protocol conversion, under 
the category of value-added services.  In add ition, Macao SAR has offered to commit to the 
obligations and regulatory principles contained in the Reference Paper on telecommunications 
services. 
25. Basic telecommunication services, however, continue to be provided by a private company, 
the CTM, under an exclusive concessionary agreement that will run until the end of 2011. CTM is a 
private joint venture with shareholders includi ng Cable & Wireless (51%), the Portugal Telecom 
Group (28%) and CITIC Pacific Limited (20%) and th e Government (1%).  Macao SAR did not (and 
the authorities say they will not) participate in  WTO negotiations on basic telecommunications 
services because CTM's exclusive ri ght under the 1981 government concession is in force for a further 
five years.  Nevertheless, the authorities state that they are committed in the long term to liberalizing 
the telecommunications sector, which, as an importa nt business input, will bring benefits to the 
overall economy.  Although the CTM concession was revised in December 1999, certain areas of 
basic telecommunications services  are still under exclusive operation:   CTM exclusively provides 
local and international services.  Tariffs are revised annually or upon request and cover the local fixed 
telephony service, data service, and the international service.  The factors incorporated in the tariff 
revision are the cost of service, profitability, price elasticity, affordability, tariff comparison with 
neighbouring countries or regions, and traffic forecasting;  it is also normal practice to obtain opinions 
from the Consumer Council, which represents the opinion of consumers in general.   
26. In subsectors other than basic telecom services, there are no restrictions on foreign ownership, 
size of share holdings, or other restrictions on inv estment by individuals or corporations.  However, 
all telecommunications operators have to be loca lly registered.  Taking into account the need to 
ensure security of supply and the basic needs of  residents, the authorities contend that the 
telecommunications regulations legislated in r ecent years observe the objectives and disciplines set 
out in the GATS reference paper on basic telecom services. 
27. Regarding future liberalization, with the em ergence of various technologies, broadband and 
information communication technology (ICT) developmen t is expected to take another important step 
in coming years.  With the aim of further adva ncing the existing telecom network, facilitating the 
introduction of more telecom services, and provide more choice to the public, the Government is 
currently undertaking a study on the feasibility of establishing a second fixed or wireless network for 
the provision of broadband services.  WT/TPR/S/181 Trade Policy Review 
Page 64 
 
 
(ii) Financial services  
28. Macao SAR's financial sector is relatively small. It has no stock market, but companies can 
seek a listing in  overseas stock markets.  Banks a nd insurance companies are the major providers of 
financial services and the former occupy a dominant position in the financial system, accounting for 
about 96% of the total assets of the local financia l institutions (Table IV.5 ).  The Macao Financial 
System Act (Decree-Law No. 32/93/M of 5 July 1993) laid down the regulatory framework for 
financial activities, except insurance business and management of pensi on funds.  Macao SAR's 
Uruguay Round commitments under the GATS reflect to a considerable extent the main provisions of 
the Financial System Act, notably in the absence of restrictions on commercial presence, whether in 
the form of juridical persons, participation of foreign capital, or the right to acquire existing 
companies, as well as the absence of discrimination between domestic and foreign suppliers in the 
application of laws and regulations. 
Table IV.5 
Major financial sector indicators, 2001-05 
(P million) 
 2001 2002 2003 2004 2005 
Banking sector      
Assets (end of year) 142,273.7 151,874.6 155,834.7 171,027.9a 216,124.0b 
Deposits from customers 110,547  119,572 129,663 142,845 184,838 
Operating results 585.1 906.6 966.3 1,393.4a 2,652.8b 
Capital adequacy ratio (end of year, %) 15.8  15.4 17.1a 15.7 14.5b 
Insurance sector      
Assets (end of year) 3,813.6 4,523.2 5,253.2 6,764.5a 8,701.4 
Life insurers 2,972.8 3,683.1 4.449.6 5,923.6a 7,761.0 
Non-life insurers 840.8 840.1 803.6 840.9a 940.4 
Gross premiums 1,287.8 1,436.7 1,584.3 1,891.6   2,243.1 
Financial results -37.9 1.4 9.6 68.3a 142.6 
a Revised figures. 
b Preliminary figures. 
Source:  Monetary Authority of Macao.  
(a) Banking services 
29. The banking sector of Macao SAR has long been  open  to foreign competition.  This has 
facilitated the internationalization of the local fi nancial markets and broadened financial services to 
support the growth of various business sectors.  At present there are 27 banking institutions in 
Macao SAR:  12 locally incorporated banks15, and 15 branches of banks incorporated outside 
Macao SAR (Table IV.6).  Banks with capital or iginally from China and Portugal had a combined 
market share of about 71% of total deposits in the banking system at the end of 2005.16 
30. Total deposits amounted to US$23.1 billion  at the end of 2005 and customer deposits 
continue to be the primary source of funds in the banking sector.  The majority of income for 
Macao SAR banks is still generated from the intere st differential between deposits and loans with 
                                                      
15 Including the Postal Savings Bank, a banking institution owned by the Macao SAR Government.  
The purpose of the bank is to give financial assistance to civil servants and public entities.  
 16 Apart from two banks incorporated with local capital, and the Postal Savings Bank owned by the 
Macao SAR Government, the remaining capital comes from Mainland China, Hong Kong SAR, Portugal, the 
United States, the United Kingdom, France, Singapore, and Chinese Taipei. Macao, China WT/TPR/S/181 
 Page 65 
 
 
mortgage lending as the main component of the lo an portfolios of most banks.  However, as the 
Monetary Authority of Macao points out17, in view of the increasing competition in the traditional 
lending business and the increased demand for higher  margin products, such as personal banking 
services, banks have been trying to diversify into  new business areas, such as financial advisory 
services, investment funds, structured products, a nd insurance brokerage, etc., to maintain their 
income growth.  The DDA services negotiations coul d provide Macao SAR with the possibility, by 
making commitments, of attracting foreign financial institutions to help M acao SAR banks diversify 
their products and services.18 
Table IV.6 
Financial institutions, 2001-05 
 2001 2002 2003 2004 2005 
Banks      
Totala 23 23 24 24 27 
Local 12 12 11 11 12 
With head-office abroad 11 11 13 13 15 
Number of banking outletsb 133 132 133   134 138 
Number of staff 3,639 3,556 3,596 3,682 3,672 
Insurers      
Total 24 26 26 26 24 
Local 7 9 9 9 8 
With head-office abroad 17 17 17 17 16 
By type of activity      
Life insurance 9 11 11 11 11 
Non-life insurance 15 15 15 15 13 
Private pension fund managers      
Total 2 6 8 8 8 
Life insurers      
Local 1 2 2 2 2 
With head-office abroad 1 4 5 5 5 
Management companies      
Local - - 1 1 1 
Number of staffc 332 324 332 343 352 
a Including offshore banks a nd Postal Savings Bank. 
b Including main offices, branches and s ub-branch offices in Macao included. 
c Employed by insurance companies and private pension fund managers. 
Source:  Macao, China authorities. 
31. The banking sector is dominated by a few institu tions.  At the end of 2005, the largest bank 
accounted for 25% of total banking sector assets, a nd the top four banks for approximately 56%.  
Asset quality has improved in recent years as the NPL ratio of the banking sector declined to 1.8% at 
the end of 2005, from 3.3% of the previous year, continuing a downward trend.  It appears that the strong economy has strengthened the cash flow of borrowers in servicing loans, and that banks have 
pursued prudent credit risk management, particul arly in relation to their exposures in property 
lending.  In 2005, banks in Macao  SAR maintained a capital adequacy  ratio at 14.5%, well above the 
minimum 8% recommended by the Basel Committee on Banking Supervision. 
32. Offshore financial businesses, including credit institutions, insurers and offshore trust 
management companies, are regulated and supervised  by the Monetary Authority of Macao.  Offshore  
                                                     
 
17 See AMCM (2005), p. 86. 
18 WTO document TN/S/O/MAC/Rev.1, 28 July 2005, Financial Services section.  WT/TPR/S/181 Trade Policy Review 
Page 66 
 
 
financial institutions can only carry out transactio ns with non-residents in currencies other than 
patacas while enjoying certain tax exemptions, such as profits tax and business registration tax.  At 
the end of 2005, three Portuguese offshore banks had a market share of 11% of the total assets of the 
banking sector. 
33. The Monetary Authority of Macao (AMCM) is the sole financial regulator of Macao SAR, 
and is responsible for central bank functions.  A ccording to its Statute (as approved by Decree-Law 
No. 14/96/M of 11 March 1996), the AMCM's main f unctions are to:  advise and assist the Chief 
Executive in formulating and applying monetary, fina ncial, exchange rate, and insurance policies;  
guide, coordinate and oversee the monetary, financial, foreign ex change, and insurance markets, 
ensure their smooth operation and supervise the ac tions of those operating within them;  issue 
currency and monitor internal monetary stability an d the external solvency of the local currency, 
ensuring its full convertibility19;  exercise the functions of a central monetary depository and manage 
the territory's currency reserves and other foreign as sets;  and monitor the stability of the financial 
system. 
34. In order to strengthen the regulatory frame work on anti-money-laundering (AML) and 
combat the financing of terrorism (CFT), the Government promulgated the Law on Prevention and 
Suppression of the Crimes of Money Laundering (L aw No. 2/2006) and the Law on Prevention and 
Suppression of the Crimes of Terrorism (Law No. 3/2006), which were gazetted on 3 and 10 April 2006, respectively.  The new laws are an important step towards establishing a more 
effective and systematic AML and CFT regime that meets global standards.
20  The legislation covers 
all financial institutions (including banks, insura nce companies, financial intermediaries, currency 
exchangers, and money transmitters), casinos21, pawnshops, property agents, and dealers in precious 
metals, gems, luxury vehicles, and ot her sellers of high value goods.  It also creates requirements for 
reporting suspicious transactions for professions that  have been used as intermediaries in money 
laundering schemes, including lawyers, solicitors, auditors, and accountants.  To implement and 
enforce the legislation effectively, the Govern ment enacted an Administrative Regulation in 
May 2006 stipulating detailed implemen tation measures for these two new laws.  
35. To this effect, a Financial Intelligence Unit (F IU) is being set up with experienced staff 
seconded from relevant government bodies. This unit will take up the responsibility for collecting, 
analysing, and distributing information recei ved from reported suspicious transactions. The 
responsibility of investigation rests with the Judiciary Police.22  In line with the new AML/CFT laws, 
the 40+9 Recommendations of the Financial Action Task Force on Money Laundering and the Basel 
Committee Paper on Customer Due Diligence, the AMCM revised the AML/CFT guidelines issued 
                                                      
 19 Two institutions other than the AMCM also issue currency.  They are Banco Nacional Ultramarino  
and the Macao Branch of Bank of Chin a.  Foreign exchange equivalent of their note issue should be deposited 
with the AMCM. 
20 In particular the Financial Action Task Force or FATF recommendations and the standards of the 
Asia Pacific Group on Money Laundering or APG.  In August 2002, the IMF concluded that Macao, China was 
materially non-compliant with the Basel Committee's anti-money-laundering principles and recommended a 
number of improvements (IMF, 2002).  
21 The legislation aims to make money laundering by casinos more difficult by allowing casinos and 
junket operators to make loans, in ch ips, to customers in an effort to prevent loan-sharking by outsiders and by 
requiring both casinos and junket operators to register w ith the Government.  According to the U.S. Department 
of State,  under the old gaming monopoly stru cture, organized crime groups were, and still are, involved in the 
gaming industry through their control of VIP gaming rooms and activities such as loan sharking, racketeering, and prostitution.  This provided an important avenue for the laundering of illicit funds and the unmonitored 
transfer of funds out of China (U.S. Department of State, 2006). 
 22 In 2005, the Judiciary Police r eceived a total of 194 suspicious transaction reports (STRs):  it 
undertook general investigations on 176 cases  and specialized investigations on 8 cases. Macao, China WT/TPR/S/181 
 Page 67 
 
 
in 2002, by taking into account Macao's own situ ation and experience since 1996 when the first AML 
guideline was enacted. These new guidelines were published in the Official Gazette  on 
1 November 2006 and took effect  on 12 November 2006.  These deve lopments underline Government 
efforts to strengthen and safeguard the integrity of the banking and financial services marketplace.  
Money laundering can erode a reputation for integrit y and credibility, which in turn can affect the 
stability of financial markets within a jurisdiction an d perhaps limit its ability to maintain and attract 
new investment.  
(b) Insurance 
36. Under the Macao Insurance Ordinance23, the Monetary Authority authorizes and monitors 
insurance companies. There are 11 life insurance companies and 13 non-life insurance companies.  
Only 352 employees were working for authorized in surance companies at the end of 2005, while there 
were 2,347 registered insurance intermediaries, the gr eat majority of which were individual agents.  
Overseas insurers accounted for 84% of the life in surance market, led by American International 
Assurance Co. (42%) and AXA (14%), whereas local  insurers had 78% of the non-life market. 
37. Total gross premium income from insurance ser vices amounted to US$280.4 million in 2005.  
As there is no local financial market in Macao SAR, the insurance companies invest their funds 
principally in the shares of companies listed on the Hong Kong Stock Exchange or in the debt 
securities of large companies in Hong Kong SAR with a strong corporate or financial base.  Mutual 
funds have become a popular investment vehicle for the insurance companies to diversify their investment risk.  In some cases, insurance compan ies delegate the investment management functions 
to asset management companies in Hong Kong SAR. 
38. The AMCM, the regulatory authority of the financia l system, is also in charge of  monitoring 
insurance activity.  Supervision, coordination, and inspection functions are carried out by the 
Insurance Supervision Department.  Insurance compan ies can be licensed as:  a locally incorporated 
company;  a branch with head office overseas, or a representative office.  While a locally incorporated 
company or a branch of a foreign insurance co mpany can conduct insurance business in the Macao 
SAR, a representative office of a foreign insurance company, is prohibited from transacting insurance 
business.  To enter the local insu rance market, applicants must meet certain capital requirements 
under the current legislation.
24  The AMCM regulates the conditions and premium rates of 
compulsory classes of insurance, i.e. motor vehi cle (third party risks)  insurance, employees’ 
compensation insurance, professional liability insu rance for travel agents, professional liability 
insurance for lawyers, public lia bility insurance for neon signs, and third party liability insurance for 
pleasure vessels.  In relation to non-compulsory in surance, insurers are free to design their own 
                                                      
 23 The Macao Insurance Ordinance regulates the conditions of access to and the carrying on of 
insurance and reinsurance activities in Macao SAR.  The major areas, regulated are:  licensing requirements;  filing of regular information to the supervisory authority (quarterly and yearly accounts and other statistical 
data);  setting up and guaranteeing of technical reserv es (life companies need to submit an annual valuation 
certificate on the adequacy of mathematical reserves, sign ed by a qualified actuary);  minimum solvency margin 
requirement (non-admitted assets for the purpose of calculation of the margin of solvency is determined by the 
AMCM by way of notices published in the Official Gazette );  setting up of legal reserves by insurers and 
reinsurers incorporated in the Macao SAR;  annual filings of details of qualified shareholding with AMCM by 
insurers incorporated in the Macao SAR;  powers of intervention and sa nctions;  and winding up procedures. 
24 For an insurer incorporated in the Macao SAR, the required capital is P 30 million to transact life 
insurance and P 15 million to transact non-life insurance.   The required establishment fund for a foreign insurer 
to establish a branch in th e Macao SAR is P 7.5 million to transact life business and P 5 million to transact 
non-life business.  In addition, the share capital of the he ad office of such insurer should not be less than the 
minimum capital required for a domestic life or non-life insurer. WT/TPR/S/181 Trade Policy Review 
Page 68 
 
 
insurance cover and to set up their own premium ra tes.  However, insurers are not permitted to 
conduct concurrently life and non-life business. 
39. The AMCM also regulates the management of  private pension funds. The respective  
legislation25, which was introduced in 1999, stipulates th at registered private pension schemes can 
only be managed by life insurers licensed to operate in Macao SAR or by companies set up 
specifically to manage pension funds.  At the end of 2005, eight service providers were active in the 
local market, of which seven were life insurers and one was a pension fund management company, 
managing 28 open pension funds an d five closed pension funds.  According to the AMCM, 
245 pension schemes were established under the applicab le legislation, of wh ich 240 were financed 
by open pension funds and five by closed pens ion funds.  There were a total of 42,874 scheme 
members, of which 41,808 were members of open pe nsion funds and 1,066 of closed pension funds.  
Total net assets of pension funds under manageme nt amounted to US$290.6 million at the end of 
2005. 
(iii) Transport 
40. Macao SAR is engaged in developing multiple transport projects to deal effectively with 
rising visitor numbers.  The MSAR expected to recei ve over 20 million tourists  in 2006 and with the 
central Chinese Government's decision to relax tr avel restrictions for 200 million people in nearby 
provinces, the number of Mainland tourists are expe cted to increase and change the way business is 
being done in Macao SAR.  Land and sea transport ar e the leading modes of transport:  in 2005, 58% 
of visitors arrived by land and 36% by sea (Table IV.7). 
Table IV.7 
Total visitor arrivals, by sou rce and method of travel, 2000-06  
  2000 2001 2002 2003 2004 2005 2006 
Total visitor arrivals 9,162,212  10,278,973  11,530,841  11,887,876  16,672,556  18,711,187  21,998,122 
Growth rate (%) 23 12 12 3 40 12 18 
Source        
Mainland China 2,274,713  3,005,722  4,240,446  5,742,036  9,529,739  10,462,966  11,985,617 
% of total 25 29 37 48 57 56 54 
Hong Kong, China 4,954,619  5,196,136  5,101,437  4,623,162  5,051,059  5,614,892  6,940,656 
% of total 54 51 44 39 30 30 32 
Chinese Taipei 1,311,035  1,451,826  1,532,929  1,022,830  1,286,949  1,482,483  1,437,824 
% of total 14 14 13 9 8 8 7 
International 621,845  625,289  656,029  499,848  804,809  1,150,846  1,634,025 
% of total 7 6 6 4 5 6 7 
Mode        
B y  s e a         
Outer harbour 4,909,897 5,127,825 5,576,583 5,086,283 6,168,004 6,503,195 7,284,102 
Inner harbour 280,620 139,909 124,128 88,304 136,559 216,700 371,753 
By air 834,203 861,795 905,387 654,603 861,783 1,040,101 1,236,178 
By land 3,137,492 4,149,444 4,924,743 6,058,686 9,506,210 10,951,191 13,106,089 
 
Source:  Macao Statistics and Census Service.  
                                                      
25 Decree-Law No. 6/99/M of 8 February 1999 (as amended by Law No. 10/2001 of 2 July 2001) 
regulates the setting up, management, and winding up of private pension plans and private pension funds.  The 
AMCM is empowered to supervise pension plans and pension funds set up under the terms of this legislation, including the respective custodians and fund management companies.  Macao, China WT/TPR/S/181 
 Page 69 
 
 
(a) Maritime transport 
41. Shun Tak Holdings, which, through its subsidia ry Far East Hydrofoil, owns Asia's largest 
high-speed jetfoil fleet, has an 80% market share of  the Hong Kong-Macao ferry route.  It is set to 
expand its passenger transportation network throughout the Pearl River Delta Region.  The company 
started its successful TurboJet Sea express service  from Hong Kong International airport in 2003, a 
complement to its Hong Kong-Macao and Macao-Shenzen  routes.  Shun Tak plans to expand its ferry 
routes and ports, as well as venture into other transport sectors such as air charter and cross-border coach services.  The aim is to move from the basic Hong Kong-Macao operation to a bigger network 
of regional sea ferry services.  Of the four co mpanies operating ferries carrying passengers to and 
from Macao SAR, Hong Kong, China, and the Mainland, Shun Tak is dominant, although no exclusive right is granted to any company. A ferry terminal, capable of handling 30 million 
passengers a year was inaugurated in 1993. 
42. In recent years, spurred by Macao’s dramatic economic growth, the number of visitors 
entering Macao by sea has risen rapidly, posing a challenge to the handling capacity of the Outer 
Harbour Ferry Terminal, which is expected to be stre tched to its limits soon. In view of the pressing 
situation, the terminal has been undergoing expans ion, chiefly of the arrival and departure hall.  
Two new ferry terminals, one on Macao Pe ninsula and the other on Taipa Island
26, are presently under 
construction to accommodate increasing passenger volume and the continuous development of 
transport operations.  Construction is expected to  be concluded in 2007 and 2008, respectively. 
43. Macao SAR, once the main Chinese cargo port in th e region, was bypassed in the last century 
because its surrounding waters were too shallow to provide a harbour for ocean-going cargo vessels.  
A new port, Ka-Ho on Coloane, began operating in  1991, handling both container and oil tanker 
traffic.  The container terminal (MACAOPORT Po rt Administration Ltd.) in Ka-Ho is the main 
international port of Macao SAR in which the Govern ment holds a stake of 31.84%.  It has an annual 
handling capacity of 80,000 TEU, and in 2005, the total volume of container cargo handled by the 
port was 66,611 TEU.  Most of the vessels that call on the port of Macao SAR fly either the national flag of Mainland China or the regional flag of H ong Kong, China and may be regarded as river trade 
vessels.  Although, declining, transport by sea is still by far the dominant mode used for export trade 
(Table IV.8) 
Table IV.8 
Total exports by means of transport, 2001-05 
 2001 2002 2003 2004 2005 
Means of transport (Percentage of pataca value) 
Sea 70.9 64.7 66.5 65.0 62.0 
Land 11.4 15.2 13.5 13.5 14.2 
Air 17.1 18.9 18.7 19.1 19.8 
Othera 0.6 1.2 1.3 2.5 4.1 
 (P '000) 
Total 18,472,949 18,925,409 20,700,104 22,561,082 19,823,342 
a Via power transmission network, post or courier. 
Source:  Macao Statistics and Census Service. 
                                                      
26 The Pac-On Passenger Ferry Terminal, being built in  Taipa Island's Pac-On district, is near Macao 
International Airport and will become another major cross-bo rder passenger ferry terminal.  It covers an area of 
over 17,000 square metres and is equipped with ten berths.  Like the Outer Harbour, this terminal is to be 
equipped with a helipad on its rooftop.  The Pac-On Passenger Ferry Terminal aims not only at easing the 
burden on the Outer Harbour Passenger Terminal but also improving Macao's  sea transportatio n links with its 
neighbouring cities and providing the basis for ex press sea-air transporta tion in the future.  WT/TPR/S/181 Trade Policy Review 
Page 70 
 
 
(b) Air transport 
44. Until 1995, access into the Macao SAR from Hong Kong was by ferry (hydrofoil or jetfoil) 
and helicopter,  and from Mainland China by road or  ferry.  The Macao SAR's transport infrastructure 
was significantly upgraded in December 1995 when a new international airport, built on reclaimed 
land on Taipa, opened for commercial flights.  The airport is a joint venture between the Macao SAR 
Government  and some local and Mainland Chinese co mpanies and is intended to be an international 
airport that mainly serves the Gr eater China and Southeast Asian re gions, enabling t ourists to fly 
directly  in and out of the Macao SAR.  In 2001, the joint venture, SAIM27 (55% government-owned 
and 33% owned by STDM) won a 25- year extension of its original 25-year concession until 2039.  In 
December 2001, SAIM unveiled a plan on the basis of  relatively low handling costs to develop a free 
trade logistics centre in which cargo could be c onsolidated and stored without passing through 
customs.  Annual cargo volume increased from 76,076 tonnes in 2001 to 227,232 tonnes in 2005.  
45. The air passenger business accounts for a relatively small share of tourist arrivals, less than 
6% of total visitors arrived by air in 2005.  Pe rhaps because of its comfortable catchment area with 
visitors from the Mainland and Hong Kong, China,  the Macao SAR has yet to develop international 
links.  Without a critical mass of foreign visitors  from the United States, Europe, and other Asian 
countries, there would be limited incentives for the ma jor international and regional airlines to operate 
regular flights to the Macao SAR.  As a result, th e airport has been under-utilized to a certain extent, 
with a 70% utilization rate in 2005 .  Up until two years ago, most foreign visitors appeared to visit 
Macao as a side trip while visiting Hong Kong, Ch ina.  But the situation has improved noticeably 
since the liberalization of the gaming industry and th e inscription of the Historic Centre of Macao on 
UNESCO's World Heritage List. 
46. The Civil Aviation Authority of Macao has enc ouraged low-cost carrier operations to the 
Macao SAR in order to increase direct air access.  More direct international air links would benefit Macao as a whole, and its tourism industry in pa rticular.  The airport is now emerging as a hub for 
low-cost carriers such as Malaysia's Air Asia , Singapore's Tiger Airways and a US$30 million budget 
airline joint venture involving Shun Tak Holdings, Air Macau
28, and the state-backed China National 
Aviation Company.  In addition, two other low-cost  airline companies have been incorporated in 
Macao and are in the process of obtaining th e necessary approvals to launch their services. 
47. Slots are allocated on a first-come-first-serve basis with priority given to scheduled flights.  
Airport ground handling and airpor t facilities are under a concession arrangement, and potential users 
are obliged to negotiate with the various sub-concessi on holders.  According to the authorities, aircraft 
repair and maintenance services are not available in the Macao SAR as the ground handling company 
that holds the sub-concession only undertakes line maintenance.  Air Macau and other aircraft 
operators, such as the helicopter or corporate jet operators, are obliged to have their equipment 
checked or repaired themselves or find a repair sta tion outside of the Macao SAR that is certified by 
the Civil Aviation Authority of Macao. 
                                                      
27 Sociedade do Aeroporto Internacional de Macau. 
 28 Air Macau was established with registered capital of US$50,000,000 held pr imarily by Chinese and 
Portuguese interests;  the Macao SAR Government holds a 5 % stake.  Air Macau curren tly has an aircraft fleet 
of 7 Airbus A321, 1 Airbus A320, 5 Airbus A319, 1 Airbus A300-600R and 5 A300B4F freighters.  It now flies 
to 17 scheduled destinations in the region and has approximately 47.8% of the total passenger market share and 42.9% of the total cargo market share.
 Macao, China WT/TPR/S/181 
 Page 71 
 
 
(c) Land transport 
48. Following the implementation of CEPA, land transport between Mainland China and Macao 
SAR has increased in volume.  In 2005, 10.95 mi llion visitors arrived in Macao SAR by land, 
representing a steep increase of 163.9% from 2001 and a 20-fold increase over a decade earlier.  The 
most significant infrastructure initiative in the Re gion is the planned 29-kilometre bridge linking 
Hong Kong, Macao SAR, and Zhuhai, which will make Macao SAR a mere 30-minute drive from Hong Kong.  The bridge would bolster Hong Kong's role as a logistics hub for southern China and 
will also improve access to Macao SAR from th e eastern parts of the Pearl River Delta.
29 
(iv) Tourism 
49. Macao SAR is the only place in China where gami ng is legal and the Chinese, encouraged by 
a lowering of visa restrictions, are visiting in larg e numbers.  The major reason for the robust growth 
in tourism in recent years has been the Individual  Traveller Scheme launche d in July 2003 under the 
Closer Economic Partnership Arra ngement (CEPA).  Moreover, with the signing of the Pan-Pearl 
River Delta Regional Cooperation Framework Agreement in 2004, wh ich covers tourism authorities 
from nine provinces of Mainland China (Guangdong, Hainan, Guangxi, Fujian, Jiangxi, Hunan, 
Guizhou, Yunnan, and Sichuan) plus Macao SA R and Hong Kong SAR, the combined competitive 
edge of the region is planned to be enhanced by  sharing resources and work ing on joint promotions. 
50. The total number of visitor arrivals increased 18% in 200630, to a record high of nearly 
22 million.  Visitors from Mainland China and Hong Kong, China accounted for 54% and 32% of the 
total, respectively (Table IV.7).  The hotel indus try recorded 4% growth and received over 4 million 
guests in 2005. 
51. The tourism sector has been a major contributor to Macao's economy and, in the past 
few years, has become the economy's backbone.  In  2005, total visitor receipts accounted for 72% of 
the territory's GDP and gaming receipts for 54% (T able IV.9).  The Government aims to turn 
Macao SAR into a tourism and gaming, business tourism, and leisure destination.  A series of new tourism and entertainment facilities are being developed to promote Ma cao as an Asian destination for 
meetings, incentives, conventions, and exhibitions (or MICE).  Its aspiration to become a business 
travel destination has hitherto been hampered by a shortage of suitable venues.  This, however, is 
being resolved by the on-going construction of  a number of quality facilities for meetings and 
conventions, with several billion U.S. dollars in i nvestment to build a series of new casino and hotel 
projects, which have started to come on stream.  The new projects could transform the territory's 
economy from being essentially a day-trip market relying heavily on gaming to a more developed 
resort and conference destination.  Non-gami ng revenue currently accounts for only 5% of casino 
resort revenue, compared with over 50% in Las Vegas, for example. 
                                                     
 
29 Economist Intelligence Unit  (2006), p. 9.  
30 The authorities distinguish  between "overnight guests" and "overnight stay visitors".  Both categories 
stay over 24 hours. Overnight guests are those staying in hotels and similar establishments while overnight visitors stay at entertainment and leisure facilities or w ith friends and relatives.  In 2005, 4 million visitors were 
overnight guests, 4% more than in 2004.  Nine million visitors stayed overnight, representing 48% of total 
visitor arrivals, up 8% over 2004.  Same-day visitors, wh o stayed less than 24 hours, amounted to 9.7 million, an 
increase of 16% over 2004, and re presented 51.8% of the total. WT/TPR/S/181 Trade Policy Review 
Page 72 
 
 
Table IV.9  
Macao, China visitors receipts, 2000-06 
(Million US$) 
 2000a 2001a 2002a 2003a 2004a,b 2005a,b Q1 to Q3  
2006b,c 
Gross domestic product 6,028.7 6,197.0 6,823.8 7,802.1 10,015.4 10,689.5 8,841.2 
Growth rate (%)d (+5.30) (+2.79) (+10.11) (+14.34) (+28.37) (+6.82) (+15.73) 
Total visitor receipts 3,207.1 3,648.9 4,274.1 5,097.0 7,323.3 7,746.9 6,529.3 
Growth rate (%)d (+22.45) (+13.78) (+17.14) (+19.25) (+43.68) (+5.78) (+13.95) 
Visitor gaming receipts  2,182.0 2,474.4 2,885.5 3,726.7 5,360.2 5,780.0 4,932.1 
Growth rate (%)d (+22.82) (+13.40) (+16.62) (+29.15) (+43.83) (+7.83) (+14.40) 
Visitor receipts (excluding 
gaming) 1,025.0 1,174.5 1,388.6 1,370.3 1,963.1 1,966.9 1,597.2 
Growth rate (%)d (+21.66) (+14.58) (+18.23) (-1.32) (+43.27) (+0.19) (+12.58) 
a Figures with constant (2002) prices. 
b Figures are subject to revision. c Figures with constant (2002) prices. 
d Growth rates may differ from the corresponding  official figures owing to the fluctuati on of the exchange rate with the U.S. d ollar 
during 1999-2006.   
Source:  Macao Statistics and Census Service (various issues), Estimates of GDP,  and Quarterly Gross Domestic Product . 
52. History and culture have been among Macao SAR' s biggest tourism attractions and, with the 
support of the Central Government, the "Historic Cent re of Macao", an urban area within the old city 
of Macao spanning eight squares and 22 histor ic buildings, was inscribed on UNESCO's World 
Heritage List in July 2005, making it the 31st designated World Heritage site in China. 
(v) Gaming 
53. Much of Macao SAR's transformation stems from the 2001 decision by the Government to 
end what had been 40-year monopoly in the gaming sector by one corporation, STDM.  When its license expired in 2002, the Government opened th e sector to new players, offering three licences 
(Box IV.1).
31 
54. In terms of regulation32, the broad objectives underlying the lib eralization were:  developing 
the casino industry through well regulated competiti on;  bringing employment benefits for local 
residents;  and ensuring the long-term development of the tourism industry, the main pillar of the 
economy, which had long been dominated by a single consortium.  In negotiating the concessions, the 
Macao SAR Government was able to secure a subs tantial and comprehensive economic package as a 
stimulus for the development of the tourism indus try (Table IV.10).  Although the casino concessions 
were restricted to three, each concessionaire can  grant sub-concessions and operate as many casinos 
and gaming tables as the market allows.  Each casino, sub-concession and gaming table, however,  must be licensed separately by the Government.  
 
                                                     
 
 31 Concessions were granted to:  Sociedade de Jogos de Macao (SJM), a subsidiary of STDM;  Galaxy 
Resort and Casino, S.A., a consortium of investors from Hong Kong who subsequently granted a sub-concession to the Venetian Group from Las Vegas;  and Wynn Resorts, also a major player in Las Vegas.  In 
December 2005, SJM followed in the foot steps of Galaxy by signing a sub- concession contract with MGM. 
32 Key legislation includes:  Law No. 16/2001 "Legal  Framework for the Operations of Casino Games 
of Fortune", which stipulates operational requirements, e ligibility of major shareholders and management of the 
casinos, and gaming tax to be levied;  Administrative Regulation No. 6/2002 of 1 April 2002 (rules and 
regulations for the junket promoters of casino games of fortune);  Law No. 5/2004 of 14 June 2004 (credit for games of fortune).  See also McCartney (2006). Macao, China WT/TPR/S/181 
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Box IV.1:  Key developments in the liberalization of the gaming sector 
2000 
September First-phase report on the gaming industries in various countries including the US, UK and 
Australia received from Arthur Anderson, commi ssioned by the MSAR G overnment to study 
the future development of the local gaming industry. 
2001 
August  Legislative Assembly passed Law No. 16/2001, the Gaming Industry Framework, laying out 
conditions and process for bidding 
December 21 companies submitted bids for three gaming li cences to be issued in line with the new gaming 
law 
2002 
January  Tender process moved to the stage of sc rutinizing and evaluating the bids:  18 bidders for 
three licences presented investment plans to the Gaming Tender Commission 
February The Tender Commission announced provisional casino concessions granted to SJM; 
Wynn Resorts (Macao) SA;  and Galaxy Casino SA.  Bidders' investment plans as well as 
experience in gaming and related businesses (resort management, entertainment, and exhibitions and conferences) were ta ken into consideration. 
March  Administrative Regulation No. 6/2002:  new regulations for junket promoters of casino games 
of fortune 
April  Government signed an 18-year casino gaming concession with SJM, effective 1 April 2002: 
11 casinos, 330 gaming tables, and about 7,000 employees were transferred from STDM, the former concessionaire and shareholding company of SJM 
June  Government signed 20-year gaming concession contracts with Wynn Resorts and Galaxy Casino 
December  Venetian Group became a sub-concession of Galaxy Casino's licence and authorized to operate 
casino gaming 
2003 
November Gaming Inspection and Coordination Bureau restructured to strengthen regulatory function 
2004 
May  Legislative Assembly passed Law No. 5/2004 on regulating credit related to gaming, to better 
regulate gaming-related loan activities 
  Venetian Group's first casino (Sands Macao), opened for business 
June  MGM Mirage, announced joint venture agreement, subject to government approvals, to run a 
casino resort in Macao via sub-concession of SJM 
December Melco International devel opment, STDM, and Australia's larg est casino operator Publishing and 
Broadcasting Ltd, entered joint venture to construct a 6-star casino hotel in Taipa  
  By the end of 2004, SJM estim ated to account for more than 80 % of total gaming revenues, with 
the remainder taken by new overseas licensees (Sands and Galaxy) 
2005 
December By the end of 2005, SJM es timated to account for less than 80 % of total gaming revenues, with 
the remainder taken by new overseas licensees (Sands and Galaxy) 
2006 
July  Gross gaming revenues in the MSAR reached US$3.1 billion, almost rivalling the comparable 
figure for Las Vegas of US$3.3 billion. 
September Wynn Macao casino opens for business October  Competition intensifies as Macao's 23
rd casino (Star World) opens. 
December According to press reports, Macao surpasse s Las Vegas in terms of total gambling revenue 
Source:   WTO Secretariat, based on Macao Yearbook  (2003), (2004) and (2005) and various press 
reports. 
 WT/TPR/S/181 Trade Policy Review 
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Table IV.10 
Investment projects of gaming conce ssionaires and sub-concessionaires, 2006 
Concessionaires SJM Wynn Resort Galaxy Holdings 
Term of concession 18 years (01.04.02 to 31.03.20) 20 years (27.06.02 to 26.06.22) 20 years (27.06. 02 to 26.06.22) 
Date of operation 1 April 2002  6 Se ptember 2006 18 May 2004 (The Sands 
Macao) and 4 July 2004 
(Galaxy Casino-hotel) 
Minimum investment P 4.7 billion P 4.0 billi on (in 7 years) P 8.8 billion (in 7 years) 
Investment plans Renovations of its 11 casinos, 
building an extension to Hotel 
Lisboa & Casino, Ponte 16, and Fishermen Wharf The first casino that includes 
resort, hotel, and entertainment 
theatres Development of the Venetian 
Macao, the Sands Macao, and 
Galaxy Casino-hotel) 
Employment Approximately 15,000 To be confirmed;  at least 2,000 
to 3,000  8,000 to 10,000  
1 35 35 35 
2 1.6 1.6 1.6 
3 1.4 2.4 2.4 Taxes and contributions 
for each year (as 
percentage of gross revenue) 
4 The responsibility for dredging 
watercourse   
Sub-concessionaires MGM Melco/PBL Venetian 
Term of concession 20.04.05 to 31.03.20 08.09.06 to 26.06.22 19.12.02 to 26.06.22 
Date of operation Casino not yet in operation Casino not yet in operation; 
21 September 2006 (Mocha 
Slot Lounge 18 May 2004 (Casino Sands) 
Minimum investment P 4.0 b illion P 4.0 billion P 4.4 billion 
Investment plans Resort-Hotel-Casino Complex Crown Casino Hotel, City of 
Dreams Casino Sands, Hotel and 
Convention Center in Cotai 
Employment .. .. .. 
1 35 35 35 
2 1.6 1.6 1.6 Taxes and contributions (as percentage of gross 
revenue) 3 2.4 2.4 2.4 
.. Not available. 
Notes: Annual percentage of gro ss revenue:  1 =  Special gaming tax;  2 = Cont ribution to the "Macao Foundation";  3 = Contribu tion to 
the development of urban construction, tourism and social security fund.  
Source:  Information provided by the Macao, China authorities;  Gaming Inspection and Coordination Bureau (DICJ). 
55. In 2006, the Gaming Inspection and Coordinatio n Bureau estimated that SJM's 16 casinos 
dominated nearly two thirds of the market, while the Venetian and Galaxy accounted for most of  the 
rest (Table IV.11).  In 2005, employment in the cultural, recreational, and gaming industry was 43,600, the largest share among all industries, representing nearly 20% of the total employed 
population.  Macao SAR currently has 23 casinos, whic h pay 35% of their gross revenue as direct tax 
to the Government and an additiona l 1.6% contribution to the Macao Foundation and 1.4% or 2.4% in 
compulsory social and welfare contributions. Gaming tax represented about 76% of total fiscal 
revenue in 2005 and, according to  the Government, benefits from the liberalization of gaming are 
leading to the development of other sectors and increasing Macao SAR's overall competitiveness.
33  
                                                      
33 According to the authorities, the MSAR Government  is studying ways of efficiently use the growing 
receipts from gaming to deal with the future growth in the numb er of tourists and to benefit the society as a 
whole.  Most revenues from the gami ng sectors are used to finance infrastr ucture projects in Macao, not only to 
attract more tourists but also for the well being of the citizens.  The Government is trying to diminish the risks of over-reliance on the gaming industry, by building up a strong foundation on the conventions and exhibitions 
business, refining the cultural and architectural attractions and bringing in new concepts such as sports tourism.  
Many construction works are forging ahead so that the related policies can be successfully and smoothly implemented.  For example, the Macao-Taipa undersea tunn el, which provides typhoon-proof traffic;  the Light Macao, China WT/TPR/S/181 
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Two more casinos (Wynn Macau and Galaxy Starworld), which opened in September and 
October 2006, are expected to increase compe tition and increase gaming revenue and taxes. 
Table IV.11 
Gross revenue of concessionaires and share of total gross revenue of games of fortune, 2002-06 
(P million and per cent) 
 2002 2003 2004 2005 2006a 
SJM 21,546 (100%) 27,849 (100%) 34,194 (85%) 33,424 (75%) 31,323 (64%) 
MGM      
Galaxy   2,986 (7%) 3,847 (9%) 5,649 (12%) 
Venetian   3,007 (7%) 7,453 (17%) 9,700 (20%) 
Wynn     1,841 (4%) 
Melco/PBL     102 (0%) 
Total 21,546 (100%) 27,849 (100%) 40,187 (100%) 44,725 (100%) 48,615 (100%) 
a Cumulative figure from January to November. 
Note: HK$1 = P 1. 
Source:  Information provided by the Macao, China authorities;  Gaming Inspection and Coordination Bureau (DICJ). 
56. The liberalization of gaming has turned Macao SAR into one of the world's fastest growing 
gaming markets;  according to some observers, it is  poised to replace the Las Vegas strip as the largest 
gaming market in terms of revenue.34  Once controlled by STDM, the market is expanding due to 
favourable demographics and the entry of interna tional gaming companies such as Wynn Resorts, Las 
Vegas Sands, MGM Mirage, Galaxy Casino, and Pub lishing and Broadcasting Ltd, each of which is, 
or is planning on, constructing Las Vegas-style casinos. 
57. Macao SAR generated about US$5.6 billion in gr oss "games of fortune" revenue during 2005;  
the figure rose to US$6.9 billion in 2006.  The revenue growth has been driven by gaming, 
characterized by high-limit gamblers both for tabl e games and slot machines (Table IV.12).  Over 
95% of gross gaming revenue is ge nerated by table games, although there are far fewer gaming tables 
than slot machines.  This rapid expansion has come, despite a lack of significant non-gaming 
amenities, such as restaurants, retail outlets, a nd convention/meeting space. Such amenities are a 
major impetus behind the significant capital investment on the Cotai Strip area. 
58. The success of the Sands Macau since its opening in 2004 suggests that the market is ready to 
replace old-style establishments with high-quality destination gaming and hotel facilities. A number 
of new casinos  will be opened in downtown Macao SAR during 2006 and 2007 that will cater to both 
the VIP and mass markets, with upscale amenities an d hotel rooms.  In 2007, several new facilities on 
the Cotai Strip35 are due to open for business and these w ill add hundreds of mass-market gaming 
tables and thousands of slot machines and hotel rooms. A great deal of retail space and huge 
residential developments are also planned, making early success in Cotai essential to financial 
stability.  The development of the Cotai Strip will introduce a major non-gaming component to a 
market currently characterized by  a customer base focused on gaming. It remains to be seen how the 
                                                                                                                                                                     
Train Rail (LTR) system, which aims to solve the glitche s of getting around in Macao, and more importantly, to 
define the future of public transport;  and the conversion of old districts into new residential areas or genuine landmarks for visitors.  Such projects have become feasible because of substantial gaming tax income.  
34 According to the leisure industry consultants Gl obalysis, Macao is set to earn US$6.8 billion in 
casino revenues in 2006 compared with Las Vegas US$6.6 billion (BBC News, "Tiny Macau overtakes Vegas 
Strip", 25 October 2006.  Viewed at:  http://news.bbc.co.uk/1/hi/business/6083624.stm;  and Financial Times,  
"Macao is poised to outshine the Las Vegas strip",  31 August 2006.  
35 For example, the Venetian Group plans to build, own and operate under a sub-concession the 
Venetian Macao, a US$1.8 billion all-suites hotel, casino, and convention centre complex.  WT/TPR/S/181 Trade Policy Review 
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tourist market can maintain high gaming volumes, cope with the huge planned development, and 
transform itself into a major resort destination. 
Table IV.12 
Overview of gaming in Macao, China,  2002-06 
 2002 2003 2004 2005 2006 
Number of casinos by concessionaire      
S.J.M. 11 11 13 15 17 
Galaxy Casino, S.A. - - 1 1 5 
Venetian Macau, S.A.a - - 1 1 1 
Wynn Resorts (Macau) S.A. - - - - 1 
Total 11 11 15 17 24 
Equipment      
Gaming tables 339 424 1,092 1,388 2,762 
Slot machines 808 814 2,254 3,421 6,546 
Pachinkos 188 188 188 .. .. 
Gross revenue by activity (P million)     
Games of fortune 21,546 27,849 40,187 44,725 54,998 
Greyhound racing 76 74 84 67 67 
Horse racing 539 1,003 1,566 636 437 
Total 22,843 29,476 42,306 45,800 55,884 
Gross revenue by game type (P million)      
Roulette 48 46 124 181 241 
Black jack 573 620 1,176 1,418 1,576 
VIP baccarat 15,864 21,532 28,916 28,023 35,711 
Baccarat 2,642 3, 016 5,458 9,648 11,575 
Cussec 623 664 1,180 1,484 1,871 
Slot machines 225 230 622 1,214 1,996 
Fish-prawn-crab 876 1,044 1,261 1,026 853 
3-card baccarat 133 149 218 250 240 
..  Not available. 
a Sub-concessionnaire. 
Source: Information provided by the Macao, China authorities.  
59. The liberalization of Macao SAR's casino indus try has coincided with, and even perhaps 
stimulated, a round of casino expansion in East Asia as governments in the region compete for 
tourism and gaming revenues.  In 2005, Singa pore dropped its ban on casino gambling and is 
evaluating bids to build and operate two casinos in  the city-state.  Malaysia, the Philippines, and 
South Korea already have casinos, and Thailand an d Indonesia are considering constructing gaming 
facilities.  As disposable incomes increase across the region, it seems th at casinos are being viewed as 
important tourist attractions. 
60. In terms of the future, Macao SAR's close proximity to the Mainland provides a base of 
potential gaming customers that is larger than anywhere  else in the world.  It is estimated that more 
than 100 million people reside within a three-hour drive and more than one billion people within three 
hours' flying time from Macao SAR.  As noted, during 2005, 10.5 million visitors to Macao SAR were from Mainland China, nearly 56% of total visitors;  Hong Kong accounting for about 30% of 
visitors.  Visitors from Mainland China tend to have  higher than average per-day spending and have 
longer lengths of stay than the average for the overa ll market;  together with the expected continual 
expansion of the individual traveller scheme, this will help to reinforce Macao SAR's healthy future 
performance.  Macao, China WT/TPR/S/181 
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AMCM (2005), Annual Report,  Economic and Financia l Review Section. 
Economist Intelligence Unit (2006), Country Report - Macau, London. 
International Monetary Fund (2002), Assessment of the Regulation and Supervision of the Financial 
Sector of Macao, Washington D.C. 
McCartney, G. (2006), " Casino Gambling in Macao:  Through Legalization to Liberalization",  in 
Casino Industry in Asia Pacific , ed. Cathy Hsu, Haworth Hospitality Press, New York.  
Macao Trade and Investment Promotion Institute (2005), Guide to Investing in Macao , Macao. 
MSAR Government Information Bureau (various years), Macao Yearbook,  Macao 
Transparency International (2006), Corruption Perception Index 2006.  Viewed at:  
www.transparency.org/news_r oom/in_focus/2006/CPI_2006_1.  
U.S. Department of State (2006), International Narcotics Control Strategy Report (Vol. II: Money 
Laundering and Financial Crimes – Macau),  Washington D.C.  
WTO (2001), Trade Policy Review – Macao, China, Geneva.