Anselmo Teng: Monetary Authority of Macao - celebrating 25 years
Speech by Mr Anselmo Teng, Chairman of the Monetary Authority of Macao, at the
25th Anniversary Annual Dinner, Macao, 10 July 2014.
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Honourable Secretary for Economy and Finance, Mr. Tam Pak Yuen
Members of the Audit Committee and the Advisory Council
Dear Guests and colleagues
Summer is a prosperous and vibrant season for all creatures. In this bird-cicada singing and
lotus-flower flagrant season, we gather together this evening to celebrate the
25th anniversary of the Monetary Authority of Macao (AMCM). First of all, we are honoured
to have Secretary Tam Pak Yuen making time out of his busy schedule to celebrate with us
this evening. On behalf of AMCM, I would like to extend a warm welcome to Secretary Tam.
Twenty five years ago, the then Macao Government promulgated Decree Law No.39/89/M
for the establishment of the Monetary and Foreign Exchange Authority of Macao (Autoridade
Monetária e Cambial de Macau (AMCM)). After Macao's return to the Motherland, in order to
be more in line with normal practice, the Monetary and Foreign Exchange Authority of Macao
was renamed the Monetary Authority of Macao. For the past twenty five years, AMCM has
been exercising its functions stipulated by laws in order to uphold the safety and stability of
the local financial system.
Establishing regulatory system is the foundation for effective supervision. For the past twenty
five years, in response to the changing situation and needs of Macao, and by making
reference to international regulatory standards, AMCM has been striving to amend or
introduce regulations and guidelines to cope with the development of financial markets and
ongoing supervision timely. At the same time, along with the ever-changing financial
markets; continuous financial innovation; and extensive use of information technology,
AMCM has changed its regulatory focus and mode gradually from more compliance based
supervision to the current both compliance and risk-based regulatory regime. While
monitoring compliance of the guidelines and regulations already established strictly, we also
ensure that financial institutions have adequate internal controls and risk management
measures to manage and prevent risks effectively.
Throughout the past twenty five years, the local financial industry witnessed rapid economic
growth in Macao and encountered a number of challenges. Macao's financial system took
shape in the 1980s. After years of effort and hard work, Macao's financial industry has
transformed itself into one with integrated services and management capabilities. Especially
since the return to the Motherland, the local financial industry has experienced robust
development along with strong gains in the domestic economy; the active promotion of
appropriate economic diversification and regional cooperation by the Macao Government.
Indeed, with the high degree of openness, Macao's economy and finance are susceptible to
external shocks and volatilities of global financial markets. Over the last twenty five years,
Macao's financial sector in its development process experienced challenges one after
another, for example, currency devaluation storms triggered by the change in floating
exchange regime for the Thai baht in 1997; global economic slowdown driven by tech-bubble
burst in 2000; SARS outbreak in neighbouring jurisdictions in 2003; and US-subprime-led
global financial crisis which started in 2007. Nevertheless, with the strong support and joint
efforts of all parties, the financial industry has managed to overcome such difficulties as the
local economy develops. As at the end of May this year, the NPL and CAR ratios of the
banking sector were 0.1% and 15.5% respectively; profitability was at all-time high.
Meanwhile, in terms of premiums and operating results, the insurance sector has also made
impressive achievements.
Apart from financial supervision, AMCM has been vested with the responsibility to manage
the foreign exchange reserves of Macao. Since the establishment of the Fiscal Reserve
Regime, AMCM has been assigned by the relevant legislation the responsibility of Fiscal
Reserve management. In managing the fiscal reserve and exchange reserves, AMCM has
observed relevant legal requirements while upholding safety and prudent management
principles. Furthermore, AMCM has diversified asset allocation and optimized investment
portfolios on a reasonable basis of balancing risks and capital preservation.
It goes without saying that the effort and hard work of every department of AMCM are
indispensable. I would like to take this opportunity, on behalf of AMCM, to express my candid
appreciation for the dedication of all our colleagues, present or retired, including those who
returned to Portugal after their retirement. We are grateful to Secretary Tam for his guidance,
support and trust. We would also like to thank the Audit Committee and the Advisory Council.
As we celebrate the 25th anniversary of AMCM this evening, it also marks the beginning of a
new phase. I sincerely hope that in the coming years, all my colleagues at AMCM will
continue to cope with the increasingly complex environment with effort, diligence and decent
attitude, as all along, and continue to perform their duties in a professional and responsible
manner, with a view to contributing to the sustainable development of Macao's financial
industry. Finally, I would like to wish you all good health and success in work.
Thank you!