  
  
WT/TPR/S/402/Rev.1  
9 February 2021  
(21-1023) Page: 1/126 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
MACAO, CHINA 
Revision  
This report, prepared for the fifth Trade Policy Review of Macao, China, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Macao, China on its trade policies and 
practices.  
 
Any technical questions ar ising from this report may be addressed to Angelo Silvy 
(tel.: 022 739 5249), Martha Lara  Fernández (tel.: 022 739 6033), Xinyi Li (tel.:  022 739 5579) , 
and Takako  Ikezuki (tel.:  022 739 5534) . 
 
Document WT/TPR/G/402 contains the policy statement submitted  by Macao, China.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 16 
1.2.1    Real sector  ................................ ................................ ................................ .............. 16 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 18 
1.2.3    Monetary and exchange rate policy  ................................ ................................ ............ 22 
1.2.4    Balance of payments  ................................ ................................ ................................ 23 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 25 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 25 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .25 
1.3.1.1.1    Overview  ................................ ................................ ................................ .......... 25 
1.3.1.1.2    Composition of trade  ................................ ................................ .......................... 26 
1.3.1.1.3    Direction of merchandise trade  ................................ ................................ ............ 27 
1.3.1.2    Trade in services  ................................ ................................ ................................ ...27 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 29 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  32 
2.1   General Framework  ................................ ................................ ................................ ....32 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 32 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 35 
2.3.1    WTO ................................ ................................ ................................ ...................... 35 
2.3.2    Regional preferential agreements  ................................ ................................ .............. 37 
2.3.3    Bilateral agreements  ................................ ................................ ................................ 38 
2.3.3.1    Closer Economic Partnership Arrangement with Mainland China (CEPA)  ....................... 38 
2.3.3.2    The Closer Economic Partnership Arrangement (CEPA) between Hong  Kong,  China  
and Macao,  China  ................................ ................................ ................................ .............. 40 
2.3.3.3    Cooperation arrangements in the region  ................................ ................................ ..41 
2.4   Investment Regime  ................................ ................................ ................................ ....42 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  44 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 44 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 44 
3.1.2    Customs valuation  ................................ ................................ ................................ ...48 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 48 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 48 
3.1.5    Other char ges affecting imports  ................................ ................................ ................. 49 
3.1.5.1    Import licensing  ................................ ................................ ................................ ....49 
3.1.5.2    Other restrictions  ................................ ................................ ................................ ..52 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 52 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 53 
3.2.1    Customs procedures and requirements  ................................ ................................ .......53 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 54 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 54 
3.2.4    Export support and promotion  ................................ ................................ ................... 55 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..55 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......55 
3.3.1    Taxation and incentives  ................................ ................................ ............................ 55 
3.3.1.1    Taxation  ................................ ................................ ................................ .............. 55 
3.3.1.1.1    Direct taxes  ................................ ................................ ................................ .......57 
3.3.1.1.2    Indirect taxes  ................................ ................................ ................................ ....57 
3.3.1.2    Incentives  ................................ ................................ ................................ ............ 59 
3.3.1.2.1    Tax incentives ................................ ................................ ................................ ....59 
3.3.1.2.2    Financial incentives and other forms of assistance  ................................ .................. 60 
3.3.2    Standards and other technical requirements  ................................ ............................... 63 
3.3.3    Sanitary a nd phytosanitary requirements  ................................ ................................ ....67 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 70 
3.3.4.1    Competition policy  ................................ ................................ ................................ 70 
3.3.4.2   Price controls ................................ ................................ ................................ ........ 71 
3.3.5    State trading, state -owned enterprises (SOEs), and privatization  ................................ ...71 
3.3.6    Government procurement  ................................ ................................ ......................... 72 
3.3.6.1    Overview  ................................ ................................ ................................ ............. 72 
3.3.6.2    Procedures  ................................ ................................ ................................ ........... 75 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 76 
3.3.7.1    Overview  ................................ ................................ ................................ ............. 76 
3.3.7.2    Industrial property  ................................ ................................ ................................ 77 
3.3.7.2.1    Patents  ................................ ................................ ................................ ............. 77 
3.3.7.2.2    Trademarks  ................................ ................................ ................................ .......79 
3.3.7.2.3    Other industrial property rights  ................................ ................................ ............ 80 
3.3.7.2.3.1    Names and emblems of establishments  ................................ .............................. 80 
3.3.7.2.3.2    Geographical indications and denominations of origin  ................................ ........... 81 
3.3.7.2.3.3    Layout designs of integrated circuits  ................................ ................................ ..81 
3.3.7.2.3.4    Trade secrets  ................................ ................................ ................................ ..81 
3.3.7.3    Copyright and related rights  ................................ ................................ ................... 81 
3.3.7.4    Enforcement  ................................ ................................ ................................ ......... 82 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  85 
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ ............... 85 
4.2   Mining and Energy  ................................ ................................ ................................ ......87 
4.2.1    Mining and querying  ................................ ................................ ................................ .87 
4.2.2    Energy  ................................ ................................ ................................ ................... 87 
4.2.2.1    Electric ity ................................ ................................ ................................ ............. 87 
4.2.2.2    Fuel ................................ ................................ ................................ .................... 88 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.3   Manufacturing  ................................ ................................ ................................ ............ 88 
4.4   Services  ................................ ................................ ................................ .................... 92 
4.4.1    Features  ................................ ................................ ................................ ................. 92 
4.4.2    Financia l services  ................................ ................................ ................................ .....92 
4.4.2.1    Banking  ................................ ................................ ................................ ............... 93 
4.4.2.2    Insurance  ................................ ................................ ................................ ............ 97 
4.4.3    Telecommunications  ................................ ................................ ................................ .99 
4.4.4    Postal and courier services  ................................ ................................ ......................  102 
4.4.5    Transport  ................................ ................................ ................................ ..............  103 
4.4.5.1    Air transport  ................................ ................................ ................................ ....... 103 
4.4.5.2    Land transport  ................................ ................................ ................................ .... 105 
4.4.5.2.1    Road transport  ................................ ................................ ................................ . 105 
4.4.5.2.2    Rail transport  ................................ ................................ ................................ ... 106 
4.4.5.3    Maritime transport  ................................ ................................ ..............................  106 
4.4.6    Tourism  ................................ ................................ ................................ ................  107 
4.4.7    Gaming  ................................ ................................ ................................ ................  113 
4.4.8    Other serv ices ................................ ................................ ................................ ....... 116 
4.4.8.1    MICE (Meetings, Incentives, Conventions and Exhibitions)  ................................ ....... 116 
4.4.8.2    Cultural and creative industries ................................ ................................ .............  119 
4.4.8.3    Traditional Chinese medicine  ................................ ................................ ................  122 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 123  
 
CHARTS  
 
Chart 1.1 Economic performance and tourism, 2012 -20 Q1  ................................ ..................... 13 
Chart 1.2 Macao, China 's merchandise exports, 2012 -19 ................................ ........................ 25 
Chart 1.3 Product composition of merchandise trade, by HS section, 2012 and 2019  .................. 26 
Chart 1.4 Direction of merch andise trade, 2012 and 2019  ................................ ....................... 28 
Chart 3.1 Binding coverage by non -agricultural product groups  ................................ ............... 49 
Chart 4.1 Tourism sector 's performance, 2012 -19 ................................ ................................  108 
Chart 4.2 Gaming sector performance, 2012 -19 ................................ ................................ .. 113 
Chart 4.3  Concessionnaires and sub -concessionaires  ................................ ............................  114 
 
TABLES  
 
Table 1.1 Main economic indicators: GDP and employment, by sector, 2012 -20 Q1  .................... 14 
Table 1.2 GDP by type of expenditure, 2012 -19 and 2020 Q1  ................................ .................. 17 
Table 1.3 Public sector accounts, 2012 -19 ................................ ................................ ...........................  19 
Table 1.4 Fiscal Reserve (basic and excess funds), 2013 -19 ................................ ................................ . 20 
Table 1.5 Main monetary, price and exchange rate indicators, 2012 -19 ................................ .............  23 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 1.6 Balance of payments, 2012 -19 ................................ ................................ ..............................  24 
Table 1.7 Main external sector indicators, 2012 -20 Q1 ................................ ............................ 24 
Table 1.8 Services trade, 2012 -19 ................................ ................................ ................................ .........  29 
Table 1.9 FDI flows, 2012 -18 ................................ ................................ ................................ .................  30 
Table 1.10 FDI stock, 2012 -18 ................................ ................................ ................................ ...............  31 
Table 2.1 Main trade -related legislation issued/amended/revised since 2013  ................................ ... 34 
Table 2.2 Selected notifications under the WTO agreements, 01/01/2014 -15/06/2020  ....................  36 
Table 2.3 CEPA subsidiary agreements signed, 2013 -19 ................................ ................................ ...... 38 
Table 2.4 DTTs and TIEAs  ................................ ................................ ................................ ......................  43 
Table 3.1 E -customs services  ................................ ................................ ................................ ................  47 
Table 3.2 Products subject to import licensing, 2020  ................................ ................................ ...........  50 
Table 3.3 Import licensing regime, 2020  ................................ ................................ ..............................  51 
Table 3.4 Export licensing regime, 2020  ................................ ................................ ...............................  54 
Table 3.5 Main types of taxation, and related exemptions  ................................ ................................ .. 56 
Table 3.6 Consumption tax and motor vehicle tax rates, 2012 and 2019  ................................ ............  58 
Table 3.7 Tax relief measures for FY 2019  ................................ ................................ ............................  58 
Table 3.8 Tax -related measures taken in response to the COVID -19 pandemic  ................................ .. 59 
Table 3.9 Estimated tax re venues forgone, 2013 -19 ................................ ................................ ............  59 
Table 3.10 Enterprise financing loan interest subsidy scheme, 2013 -19 ................................ .............  61 
Table 3.11 Support to SMEs, 2013 -19 ................................ ................................ ................................ ... 61 
Table 3.12 Young Entrepreneurs Aid Scheme, 2013 -19 ................................ ................................ .......  62 
Table 3.13 Technical regulations notified to t he WTO, September 2019  ................................ ............  64 
Table 3.14 Accredited laboratories, 2020  ................................ ................................ .............................  66 
Table 3.15 Products subject to SPS inspection, 2019  ................................ ................................ ...........  67 
Table 3.16 Food standards notified to the WTO since 2013  ................................ ................................  69 
Table 3.17 Active SPS measures in Macao, C hina, 2020  ................................ ................................ .......  69 
Table 3.18 Government procurement, 2013 -19 ................................ ................................ ......72 
Table 3.19 Government procurement thresholds under Decree -Law No. 122/84/M  .........................  73 
Table 3.20 Local and foreign participation in government procurement centrally  
purchased by the DSF, 2013 -19 ................................ ................................ ................................ ............  74 
Table 3.21 Membership of international IPR conventions, 2019  ................................ .........................  76 
Table 3.22 Patent administration in Macao, China, 2012 -19 ................................ ...............................  78 
Table 3.23 Trademark applications, 2013 -19 ................................ ................................ .......................  80 
Table 3.24 Violations of intellectual and industrial property rights, 2013 -19 ................................ ...... 84 
Table 4.1 Agriculture and fish trade, 2013 -19 ................................ ................................ ......................  85 
Table 4.2 Feed -in tariffs for different level of installed PV capacities, September 2019  .....................  88 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 4.3 Structure of the manufacturing industry in 2012, 2015 and 2018  ................................ .......  89 
Table 4.4 Trade in manufactured goods, 2013 -19 ................................ ................................ ................  90 
Table 4.5 Financial institutions, 2013 -19 ................................ ................................ ............... 94 
Table 4.6 Financial highlights of the banking sector, 2013 -19 ................................ .............................  96 
Table 4.7 Profitability of the banking sector, 2013 -19 ................................ ................................ .........  96 
Table 4.8 Composition of gross premiums, 2013 -19 ................................ ................................ ............  99 
Table 4.9 Selected telecommunications indicators, 2012–19 ................................ ..............................  99 
Table 4.10 Selected statistics of aviation transport, 2012 -19 ................................ ............................  103 
Table 4.11 Overview of tourism sector, 2012 -19 ................................ ................................ ...............  108 
Table 4.12 Fees charge for licences, 2020  ................................ ................................ ..........................  110 
Table 4.13 Tourism Industry Development Master Plan, 201 5-30 ................................ .....................  111 
Table 4.14 Tourism and travel -related services (GATS commitments)  ................................ ..............  112 
Table 4.15 Main gaming casino laws and regulations  ................................ ................................ ........  115 
Table 4.16 Fiscal and financial contributions by casino operators  ................................ .....................  116 
Table 4.17 Temporary exemptions from payment of profit tax  ................................ .........................  116 
Table 4.18 Overview of MICE activities in Macao, China, 2012 -19 ................................ ....................  117 
Table 4.19 Support programmes for MICE activities  ................................ ................................ ..........  119 
Table 4.20 Principal indicators of the creative and cultural industries, 2015 -18 ...............................  120 
Table 4.21 Creative and cultural industries: funding methods and periods, and amount of grants  .. 121 
 
BOXES  
 
Box 1.1 Macao, China 's response to COVID -19 ................................ ................................ ......21 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise imports, by HS section and major HS chapters, 2012 -19 ....................  123 
Table A1.2 Merchandise exports, by HS section and major HS chapters, including re -exports,  
2012-19 ................................ ................................ ................................ .........................  124 
Table A1.3 Merchandise imports by origin, 2012 -19 ................................ .............................  125 
Table A1.4 Merchandise exports by destination, including re -exports, 2012 -19 ........................  126 
 
  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  SUMMARY  
1. Macao, China 's economy is dominated by services, which account for over 95% of GDP  and 
some 90% of total employment . During the review period  (2013 -20), gaming  continued to be the 
main economic activity, although its share of GDP declined from 62.9% in 2012 to 50.5% in  2018. 
The authorities have b een trying to diversify the economy away from gaming, since the high level 
of reliance on it has made  the economy vulnerable to external shocks . The first 
Five-Year Development Plan (2016 -20) provides the roadmap toward economi c diversification. The 
Plan set a target for the gaming operators to diversify into other tourism -related activities, and to 
raise their non -gaming revenue . To promote intersectoral diversification, a number of service sectors 
have been encouraged, includi ng the M eetings, Incentives, Conventions, and E xhibitions (MICE) 
industry , traditional Chinese medicine, cultural and creative industries , wholesale and retail trade, 
real estate and business activities, and financial sector activities.  
2. Macao, China has on e of the highest per capita incomes in the world.  During the review period, 
GDP per capita rose from US D 75,536  in 2012 to USD 79,977 in 2019. GDP growth proceeded a t an 
uneven pace during the review period : strong growth in 2012 and 2013  was followe d by a  sharp  
GDP contract ion between 2014 and 2016 , a result of weakening demand for gaming and tourism . 
Relative strong growth resumed in 2017 and 2018, resulting from a strong rebound in external 
demand, but the economy contracted again in 2019, with real GDP falling by 4.7% , reflecting the 
decline in gaming revenue, as well as a contraction in gross fixed capital formation.  The negative 
impact of COVID -19 on Macao  China 's GDP was strong: real GDP is estimated to have declined by 
48.7% in the first quarter of 2020 with respect to the same period the previous year.  Both the 
gaming and the MICE industries were hit particularly hard by the COVID -19 pandemic.  
3. National savings represent slightly over 50% of GDP, some three times the investment/GDP 
ratio. This tra nslates into a structurally sizeable surplus in the current account of the balance -of-
payments , which reached USD 17.7 billion in 2019, equivalent to 32.9% of GDP. This situation is 
explained by the sizeable services balance surplus, which amounted to USD 38.5 billion in 2019 or 
71.4% of GDP, mainly a result of receipts from gaming and tourism services total ling 
USD 39.7 billion.  Total services exports reached USD 43.2 billion in 2019 , and accounted for 96.0% 
of total exports of goods and services. Although  Macao, China has no public external debt, its gross 
external debt reached 186% of GDP in 2018, on account of large private external debt, and reflected 
the considerable inflows of private foreign capital, particularly destined to the gaming industry. 
Macao, China does not conduct an autonomous monetary policy, as its currency, the Macao pataca 
(MOP), is pegged to the Hong  Kong dollar. Macao, China 's monetary authority seeks to uphold 
monetary stability and the free convertibility of the Macao pataca; suppo rting the exchange rate peg 
is its prime monetary policy objective.  
4. Substantial fiscal surplus es were posted throughout the period under review ; they were 
deposited in a Fiscal Reserve Fund, which provides a buffer against the high volatility of t he main 
source of revenue : direct taxes on gaming . The estimated fiscal surplus for 2019 was equivalent to 
11.5% of GDP. A public -sector deficit is expected in 2020. This is mainly due to the effects on 
receipts of the temporary shutdown of casinos and the sharp de cline in visitors caused by the 
COVID -19 pandemic , and to the cost of the fiscal packages put in place in February and April  2020 
to partly offset the negative effects of COVID -19 on economic activity , which  amount ed to an 
estimated MOP 52.6 billion or 12. 9% of (2019) GDP. The measures applied include: handouts to 
residents; additional health spending; transfers to eligible employees and to self -employed 
professionals and eligible firms under the condition of not layi ng off employees; transfers to certain 
services providers; utilities free of charge for residents for three months; interest -free loans and 
interest subsid ies for SMEs; and tax exemption/deductions for residents and local enterprises. A 
number of welfare m easures were also introduced .  
5. Macao, China is a n open economy, with the value  of trade (import s and export of goods and 
services) equivalent to 117.1% of GDP in 2019. During the 201 2-19 period, merchandise exports 
increased at an average annual rate of 6.5%, reaching USD 1.59 billion in 2019, while imports rose 
by an average of 3.2% per year and total led USD 11 .2 billion. Most merchandise exports are actually 
re-exports (88.2% in 2019). Machinery and electronic equipment are the main export item s, 
accounti ng for 23.3% of total merchandise exports in 2019, followed by precision equipment (9.4%), 
precious stones and metals (8.6%) , and textiles and clothing (7.9%). Imports of manufactures 
account for the largest share of merchandise imports, in particular mach inery and electrical machines 
(14.1% of the total in 2019), chemicals (13.7%) , prepared food, beverages and tobacco (10.5%), WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  and precious stones and metals (9.8%). Macao, China 's major trading partners as regards imports 
are Mainland China (31.3% share in 2019); the European Union (27.3%); Switzerland (7.6%); 
Japan  (6.7%); and Hong Kong, China (6.2%). The main merchandise export destinations are 
Hong Kong, China (60% of the total) ; and Mainland China  (8.4%) .  
6. Macao, China , an original Member of the WTO , grants at least MFN treatment to all its trading 
partners , and considers non -discrimination, predictability and transparency  as important elements 
for a stable multilateral trading system. In this regard, it regularly submit s up-to-date notifications 
concerni ng changes to its legislation and trade policies covered under the WTO Agreements , and has 
actively participated in negotiations, such as those on information technology . Macao, China ratified 
the Protocol concerning the Trade Facilitation Agreement (TFA) in April 2016 and, in August 2017 , 
it ratified the Protocol Amending the TRIPS Agreemen t, which it had accept ed in June 2009. In the 
Eleventh WTO Ministerial Conference in Buenos Aires, Macao, China, subscribed to the Joint 
Ministerial Statement on Investm ent Facilitation for Development, and participate s in the informal 
dialogue on this subject.  Macao, China is not a signatory nor an observer to the Plurilateral 
Government Procurement Agreement . Macao, China has not been involved in any WTO dispute 
settlement cases either as a complainant, respondent or third party . In September 2020, 
Macao,  China notified the WTO that it would join the Multi Party Interim Appeal Arbitration 
Arrangement , pursuant to Article 25 of the D ispute Settlement Understanding.  
7. Since the last Review in 2013, Macao, China has been engaged in the continuous updating 
and implementation of the Closer Economic Partnership Arrangement (CEPA) with Mainland China. 
In addition, it concluded a free trade agreement with Hong Kong, China . Five new agreements were 
signed under the CEPA, including two on services (the Guangdong Agreement  and its extension), 
and one each on i nvestment , economic and technical cooperation , and trade in goods . The 
Agreement on Trade in Goods , which  came into effec t on 1 January 2019, establish es rules of origin 
for over 8,000 tariff lines, instead of only 1,260 tariff lines  previously, and contains measures aimed 
at facilitating trade within the area . The Guangdong Agreement and its extension resulted in the 
openin g of 153 services subsectors in China to  service suppliers from Macao , China . The CEPA 
between Hong Kong, China and Macao, China , signed on 27  October 2017 , covers trade in goods, 
trade in services, investment, intellectual property, and economic and techn ical cooperation. The 
liberalization of trade in goods and services  was implemented on 1 January 2018 ; this includes 
binding the existing  zero-tariff regime s, agreeing not to apply anti -dumping or countervailing 
measures on imported goods originating in th e other party , grant ing national treatment to the 
services and services suppliers of the other party , and making specific commitments on a number 
of services subsectors .  
8. There is no specific foreign investment legislation in Macao, China, as its laws do n ot 
distinguish between domestic and foreign investment. Domestic and foreign companies are subject 
to the same commercial and bankruptcy laws  and the same registration rules.  Foreign firms and 
individuals may freely establish companies, branches, and repre sentative offices . There are no 
restrictions on capital flows or foreign exchange operations , nor on the participation of foreign capital 
in existing or newly established businesses, provided that the investor abides by the Anti -Money 
Laundering and Combat ing the Financing of Terrorism Guideline issued by the Monetary Authority 
of Macao , China . Foreign investors can freely acquire real estate property and land in Macao, China. 
Licensing requirements apply to domestic and foreign investment in finance, insur ance, and banking. 
Investment in gaming and in public services (electricity, water and gas) by both domestic and foreign 
companies requires a concession from the Government. Terrestrial television services are also 
subject to concession contracts, whereas satellite TV services require a licen ce. 
9. Since the last Review, Macao, China has adopted measures to further streamline customs 
procedures and facilitate trade, including the ratification of the WTO Trade Facilitation Agreement 
(TFA); the enhancement of an  IT-based customs clearance system;  and the simplification of customs 
procedures for goods under the CEPA agreement between Macao, China and Mainland China. Since 
the entry into force of the TFA on 22 February 2017, Macao, China  has implemented provisions 
contained in Section I of the Agreement under Category A , except paragraph 4 of Article 10 (Single 
Window) , which was designated to fall under category B with an indicative date for implementation 
of 31  December 2019 . Macao, China has no preferential or non -preferential rules of origin on 
imports , but it does have preferential rules of origin with respect to exports to China under the CEPA. 
For re-exports, the initial conferred origin of the goods is maintained.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  10. All applied tariffs are kept at a rate of 0%. The tariff schedule comprise s 6,641 tariff lines at 
the eight-digit level in 20 20. Macao, China continue s to submit its customs tariff and import data 
regularly to the WTO Integrated Database. During the review period, to reflect commitments under 
the Information Technology Agreement (ITA) Expansion, Macao, China rectified and modified its 
WTO schedule of ta riff concessions , effective from 6 November 2014 . Macao, China has bound only 
30.5% of its tariff lines, all at a zero rate. While all agricultural lines are bound, only 19.2% of 
non-agricultural tariff lines are bound , with t he binding coverage var ying by  product group . The 
absence of bindings for nearly 70% of total tariff lines is in contrast with Macao, China 's practice of 
having all applied rates at zero, and may create uncertainty for traders. The predictability of its trade 
regime would be considerab ly enhanced by increasing the number of lines bound . 
11. Excise duties are imposed on certain products: i mported and domestically produced tobacco  
products and  alcohol ic beverage s over a certain alcoholic content are subject to the consumption  
tax, while vehic les are subject to vehicle  taxes ; both  are levied based on their c.i.f. value  in the case 
of imports , regardless of their origin . Taxes on tobacco and automobiles were increased since the 
last Review. Import licensing requirements are applied to several ca tegories of goods, primarily on 
grounds of public health, safety, public security, environmental protection, intellectual property 
rights enforcement, and consumption tax collection. The products concerned include: live animals; 
plants listed under CITES; certain food s; pharmaceuticals; narcotic drugs and psychotropic 
substances; certain chemicals; goods subject to excise duty; equipment and materials for the 
production of compact discs; radiocommunication equipment; and arms and ammunition . Import 
licences are granted within three working days if the criteria stipulated in the law are met;  they are 
valid for 30 days and are not transferable . Macao, China does not have legislation on trade remedies, 
nor does it apply any such measures.  
12. Macao, China does no t grant  any export subsidies. It does not maintain any export processing 
zones, special economic zones or free trade zones. Exporters can benefit from the promotional 
activities and other services provided by the Macao Trade and Investment Promotion Instit ute, which 
include trade, economic and statistical information, help  to participate in international fairs, and 
facilitat ion of  business -matching contacts . Macao, China does not operate any concessional export 
finance scheme, or any insurance or guarantee scheme . 
13. The taxation system  relies mostly on direct taxes, in particular those imposed on gaming 
activities.  In 2020, in order to help cope with the adverse effects of the COVID -19 pandemic , 
legislation was approved to provide temporary exemptions or deduc tions from several direct and 
indirect taxes . Macao, China offers several incentive schemes across economic activities in order to 
attract businesses to establish and operate in the territory. The y take the form of tax incentives, 
financial support , and other forms of assistance. There are also incentives to promote the 
development of particular industries, such as local fisheries, tourism and the MICE industry . Tax 
incentives are granted for projects considered to promote development and are applied equall y to 
foreign and local enterprises . The most common type of incentive remain s profit tax  exemptions and 
reductions.   
14. There are also a number of non -tax incentives, mainly in the form of financial support targeted 
to investment projects, SMEs  and young entr epreneurs. Enterprises investing in Macao, China may 
benefit from the Enterprise Financing Loan Interest Subsidy Scheme , which provides an interest rate 
subsidy of 4 percentage points per annum for a maximum period of four years  to companies investing 
in Macao, China. SMEs may benefit from interest -free financial assistance  and credit guarantees for 
loans. Additionally, i n March 2020,  the SME Bank Loan Interest Subsidy Scheme was introduced , 
with an implementation period of six months, to assist SMEs facing  difficulties due the COVID -19 
pandemic . Macao, China also grants subsidies to companies to promote job creation among targeted 
social groups , such as the unemployed , young first -time job seekers , and persons with disabilities.  
15. There is no integrated regime for standardization, accreditation and certification , and there is 
no official standardization body. Macao, China does not establish its own standards but adopts 
prevailing international standar ds and technical requirements. There are no specific procedures to 
develop technical regulations. However, when a product becomes subject to a licensing requirement, 
the corresponding standard becomes mandatory ; hence, it becomes a technical regulation. Du ring 
the review period, Macao, China made 12 notifications to the WTO under the TBT Agreement . 
Macao,  China maintains a list of products subject to SPS inspection, which is reviewed periodically. 
The SPS table was most recently amended on 1 January 2017. P roducts subject to inspection include 
most plants, flower s, fruit and vegetables, animals, fish, animal products, ice cream, and sugar cane . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  The importation of the se products requires an import licen ce, as well as a valid sanitary certificate . 
Since 2013, Macao, China has published 11 food safety standards, notified to the WTO as SPS 
measures. It maintain s two active SPS measures which ha ve the effect of prohibiting imports . 
16. Macao, China does not have a comprehensive competition law, nor does it have a dedicated 
competition enforcement agency. Provisions aimed at fostering competition, discouraging unfair 
business practices , and protecting consumer interests are scattered throughout the Commercial 
Code and sector -specific regulations. Although , in ge neral, there are no price controls or 
administered prices, public utilit y tariffs,  such as electricity, water, telephone service, postal services 
and taxi fares , are regulated or monitored by the relevant regulatory agencies.  
17. The Protocol Amending the TRIPS A greement on compulsory licensing under Paragraph 6 of 
the Doha Declaration  entered into force in Macao, China on 6 September 2017.  Macao, China is not 
a contracting party to the Convention Establishing the World Intellectual Property Organization 
(WIPO). T he membership of international treaties administered by WIPO is extended to Macao, China 
through arrangements between China and WIPO. Since the last Review in 2013, China has notified 
to the WIPO that two international treaties have been extended for appli cation in Macao, China ; 
these are  the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty . 
18. Agriculture and fisheries account for less than 1% of GDP. Macao, China is a net importer of 
agriculture and fish products, and its trade deficit i n these products grew to USD 1 .82 billion in 2019 
(from USD 1 .32 billion in 2013), with imports of USD 1 .92 b illion, accounting for 15.4% of total 
imports of goods, and exports of USD 101 million, representing 6.2% of total merchandise exports. 
The major s uppliers of imports of agriculture and fish products were Mainland China and the EU -28, 
which accounted for about 29.6% and 25.1% of the total, respectively, in 2019 . All applied tariffs 
on agricultural and fishery products are maintained at a zero rate. The fisheries sector benefits from  
the Fisheries Development and Support Fund , which provides interest -free loans to fishermen for  
ship maintenance and repair , to purchase fuels , for research and training activities , and in cases of 
natural disasters or epidemics.  
19. In its energy policy , the Government prioriti zes environmental protection, energy 
conservation, and the use of clean and safe alternative energies.  All prices related to energy must 
be approved by the Government.  A "partial liberali zation " of the electricity market has been pursued 
in recent years, with a view to introducing competition and ensuring a steady supply of electricity. 
Generation and importation were liberalized, but  Macao, China continue s to rely mainly on the China 
Southern Power Grid ; local generation play s a supplemental role , with natural gas being the principal 
fuel. There is still one single operator for the downstream transmission and distribution of electricity , 
under a 15 -year concession contract from the Governm ent, valid until 31 December 2025, and 
subject to review every five years .  
20. The manufacturing sector is small , represent ing less than 1% of GDP. Food and beverages 
remain  the main subsector , accounting for almost half of all manufacturing production. Other  
subsectors include publishing  and printing , and cement and concrete  production.  Almost all 
enterprises in the manufacturing sector are SMEs. Macao, China is a net importer of manufactures; 
its trade deficit reached USD 7.1 billion in 2019 . The EU -28 and Mainland China were the ma in 
suppliers . Major imported items include d consumer goods , and machinery and transport equipment. 
Applied duties for imported goods  in the manufacturing sector are zero rated; however, only 19.2% 
of non -agricultural tariff lines are bound in the WTO.  
21. Banks and other credit institutions require a licence to operate in Macao, China; n o economic 
needs test is performed. As at December 2 019, there were 30 banks , mainly foreign -owned , a 
financial company , and a non -bank credit institution. The three largest banks hold almost two thirds 
of the total banking assets, which  were the equivalent of more than 400% of GDP in 2019. The 
banking sect or is well capitalized, with a c apital adequacy ratio well above the 8% requirement ; the 
non-performing loans ratio remained low during the review period, at 0.2% in the second quarter 
of 2019. During the period under review, n ew provisions were incorporat ed into the legislative and 
regulatory framework to fight money laundering and combat the financing of terrorism . A number 
of regulations to strengthen the supervision of the financial system , for instance on capital adequacy , 
were also introduced . Insuran ce companies may be licensed as a locally incorporated company, a 
branch with its head office overseas, or a representative office. Locally incorporated companies and 
branches of foreign insurance companies may conduct insurance business in Macao, China on  a 
national treatment basis . No individual or corporate body may acquire, directly or indirectly, a WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  qualified shareholding in an insurer with its head office in Macao, China, or increase its shareholding 
to a proportion equal to or higher than 5% of the ca pital or of the voting rights, without prior 
authori zation. 
22. Since 2012, when  fixed-line telecom munications  service s were liberalized, there have been no 
exclusive telecommunication services in Macao, China , and the market is currently fully liberalized . 
Companies may apply for licen ces to install and provide public telecommunication networks and 
services in accordance to applicable regulations and licensing regimes ; however, licences may be 
made conditional upon the needs of the economy. Obtaining a licen ce is generally subject to public 
tendering ; the licen ce is transferrable , subject to  prior approval from the regulator . A licensed 
operator must be a company registered in Macao, China . Licences are granted following a positive 
list approach , listing the services that can be provided by the licensee . During the review period, the 
penetration rate for mobile telecommunications reached 411.0% in 2019, up from 277.2% in 2012  
and, as  at end-2019, 86.5% of the population had access to Internet . There are current ly 
two operators licensed for building and operating fixed public telecommunications networks , and 
five operators, including one mobile virtual network operator , licensed to provide mobile 
telecommunications services . 
23. Macao, China pursues an "open-skies" policy in air transport services . Therefore, there are no 
restrictions on, inter alia , designation, capacity, and ownership. Macao, China currently maintains 
50 air services agreement s. As regards land transport, d eveloping a system of mass public 
transport ation is a priority , as laid out in the Macao General Policy of Land Transport (2010 -20). In 
this respect, t he Macao Light Rapid Transit (MLRT) Taipa Line became operational in December  2019, 
and the Government has initiated extension projects . 
24. Macao, Chin a is a net exporter of travel services . After a brief stagnation during 2015 and 
2016, arrivals started to rise and in 2019, Macao, China welcomed its highest ever number of total 
visitors, estimated at 39.4 million. Tourists from Mainland China; Hong Kong , China; and Chinese 
Taipei comprised over 90% of the total market . Following the worldwide outbreak of COVID -19 in 
early 2020, Macao, China 's tourism industry was severely affected,  with a sharp decline in  visitor 
arrivals and tourist  spending . In respons e to the COVID -19 pandemic , the authorities put in place a 
number of measures to assist the tourism industry , which include : an exemption for six  months , 
from 1 May 2020 , of the tourism tax for establishments providing services, such as hotels, 
nightclubs, bars, and other venues ; the waiver of fees ; and profit tax relief . 
25. The gaming sector remains the major driving force for the tourism industry and for the overall 
economy . Although below its 2013 record level (87% of GDP), g ross gaming revenue remains very 
large: it represented over 65% of GDP in 2019.  Gaming is regulated th rough the Gaming Law and 
other laws and regulations. During the review period, Macao, China change d the regulatory regime 
of gaming services , discontinu ing greyhound activities in 2018. Gaming activities that remain 
available are casino games of fortune, horse racing , and lotteries . Regarding casinos, licences were 
granted to three concessionaires and th ree sub -concessionaires, each of wh om has the right to 
operate a land -based casino gaming business as an independent legal person ; they ran a total of 
41 casinos in 2018. There is also a concession for horse racing, and two concessions for lotteries.  
The G aming Law  stipulates that the Government treat all gaming concessionaires and 
sub-concessionaires in a non -discriminatory manner and ensure that they comply with the rules of 
competition ; arranged agreements and practices are prohibited. The abuse of a dom inant position 
in the market or a substantial market share in the gaming industry that may impede, restrict or 
distort competition between the concessionaires is also prohibited.  Casino operators must pay a 
gaming tax of 35%  of their gross revenue , an addi tional annual contribution of 1.6% to the Macao 
Foundation  (which supports  cultural and philanthropic activities ), and an annual contribution of not 
more t han 3% of gross revenue for urban development, tourism promotion and social security. 
Revenue from ga ming (direct taxes and transfers) accounted for 84.4% of the Government 's total 
revenue in 2019.  
26. During the review period, the Government continued to promote the meetings, incentives, 
conventions and exhibitions (MICE) activities , which  followed an upward  trend up to early 2020. The 
number of events increased by 50% between 2012 and 2019, mainly driven by an increase in the 
number of meetings and conferences; the number of participants and revenue also rose. Despite its 
positive previous trend, MICE activities were affected by the outbreak of COVID -19 in 2020 , with a 
sharp decline in the number of events and participants . To help develop MICE activities, the 
Government launched a series of incentive  programmes,  including financial incentives , to suppo rt WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  activities and encourage local enterprises to participate in trade fairs to promote their products. The 
amount of financial support varies according to the programme . In addition , the industry may benefit 
from the general measures introduced by the Government to support economic activity during the 
COVID -19 pandemic.  
27. Creative and cultural industries are part of the Government 's strategy of promoting economic 
diversification. During the review period, activities grew  steadily , although the industry 's contribution 
to GDP remains  small . There are several support schemes to promote the cultural and creative 
industries , including the Subsidy Programme Series for Macao 's Cultural and Creative Industries , 
dedicated to cultural and artistic activities such as de sign and filming. Since 2013, the Cultural Affairs 
Bureau has been implementing subsidies p rogramme s for fashion design , feature film p roduction , 
production of original song albums , and production of original animation short films. The Cultural 
Industry Fu nd provides financial aid to projects related to cultural industries , in the form of subsidies 
and interest -free loans ; commercial enterprises legally established and registered in Macao, China 
are eligible. In view of the economic effects of COVID -19, the  Fund adopted a one -year extension of 
the repayment period from 2020 to 2021 for interest -free loans for 75 funded cultural and creative 
enterprise projects.  
28. Macao, China continues to support the traditional Chinese medicine industry (TCM), which is 
one o f the priority areas for economic diversification under the guidelines of the 
Five-Year Development Plan (2016 -20). In 2015, the Traditional Medicine Centre was established, 
aimed at fostering the development of Chinese medicine professionals, enhancing th eir qualifications 
through training, and increasing the investment of resources for the industry 's development. The 
Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between 
Guangdong and Macao (GMTCM Park) , inaugurated in 2011, seeks to promote the integrated 
development of industry -academy -research and the application of technologies and products in the 
area of TCM , and  assists enterprises with high -quality TCM products and technologies in breaking 
into the markets of Port uguese -speaking countries, the E uropean Union and other s, thus promoting 
the internationalization of TCM.  
 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Macao, China 's economy is dominated by services, which accounted for 95.8% of GDP in 2018, 
roughly the same percentage as in 2012. During the review period, gaming  continued to be the main 
economic activity, although its share of GDP declined from 62.9% in 2012 to 50.5 % in 2018. This 
excessive reliance on gaming makes the economy vulnerable to external shocks , as shown by the 
considerable fluctuation of GDP growth rates during the review period. Other services of importance 
include real estate, financial services, whole sale and retail, hotels and restaurants , and renting and 
business activities. These activities rely, to a large extent, around the gaming industry (Chart 1.1).  
Chart 1.1 Economic performance and tourism, 2012 -20 Q1 
 
Source:  WTO Secretariat 's calculations, based on  the Statistics and Census Service (DSEC ) database.  
1.2.  Most of the rest of GDP, excluding services, is accounted for by construction activities, which 
are classifi ed under the secondary sector and represented 3% of GDP in 2018, a similar share to 
2012, but below its 6.5% peak in 2015. The manufacturing sector remains small, accounting for 
0.5% of GDP in 201 8, and agriculture is negligible, with no official informati on on its share in GDP 
or employment  (Table 1.1 ).  
1.3.  The authorities are conscious of the economy 's great dependence on a single industry. In this 
respect, the first Five -Year Development Plan (2016 -20), issued in 2016, contains the main elements 
of its econ omic policy , and provides the roadmap toward economic diversification. The Plan calls for 
the achievement of the following seven major targets by 2020: ( i) stable development of the overall 
economy, resuming GDP growth while maintaining a fiscal balance, as set out in the Basic Law of 
Macao, China; ( ii) further optimization of the industrial structure, by striving to increase the 
proportion of revenue from non -gaming businesses , including wholesale and retail, hotels, food and 
beverage s, construct ion, and finance; ( iii) the gradual formation of a business environment for 
tourism and leisure industries; ( iv) a continuous improvement in people 's quality of life, by devising 
a plan for the allocation of social welfare and by developing public transpor tation and other services, 
including refining  the infrastructure for the Internet of Things (IoT) and cloud computing, with the 
aim of facilitating Macao, China 's development as a smart city; ( v) the continu ed development of 
culture and education, e.g. by optimizing the professional accreditation system; ( vi) efficient and 
effective environmental protection, controlling carbon dioxide emissions by expediting legislation on 
exhaust  emissions of in -use vehicles and the regulation of the  standards for unleaded  petrol and 
024681012
02468101214161820
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1
2012 2013 2014 2015 2016 2017 2018 2019 2020Number of visitors Gross gaming revenue
Tax revenue from gaming GDP in chained (2018) dollarsChart 1.[Macao] Economic performance and tourism
(USD billion)
WTO Secretariat's calculations, based on DSEC database.Source: (Visitors in million)WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  light diesel oil; and ( vii) further improvement in administrative efficiency and legal governance.1 The 
authorities noted that the Government of the Macao Special Administrative Region (SAR) invited a 
consulting team of the Institute for Conte mporary China Studies, Tsinghua University, to provide a 
mid-term assessment of the implementation of the Five -Year Development Plan during the 
period  2016-18. A report , which combin es the result s of the consulting team and the government 
self-assessment , was released in October 2019, indicating that the average completion rate for the 
Plan was 90.3%.2 
Table 1.1 Main economic indicators: GDP and employment , by sector, 2012 -20 Q1  
  2012  2013  2014  2015  2016  2017  2018  2019  2020  
Q1 
Nominal GDP (MOP billion)  343.8  411.9  442.1  362.2  362.9  407.3  444.7  434.7  56.6 
Nominal  GDP (USD billion)  43.0 51.6 55.3 45.4 45.4 50.7 55.1 53.9 7.1 
Real GDP (annual % change)  9.2 11.2 -1.2 -21.6 -0.7 9.9 5.4 -4.7 -48.7 
Nominal GDP per capita (USD)  75,536  86,680  89,005  70,712  70,278  78,197  83,425  79,977  40,800 
Unemployment rate (%)  2.0 1.8 1.7 1.8 1.9 2.0 1.8 1.7 2.1 
Population ( '000) 582.0  607.5  636.2  646.8  644.9  653.1  667.4  679.6  696.1  
Sectoral distribution of GDP at producers ' prices         
Secondary sector  4.1 3.7 5.1 7.8 6.7 5.1 4.2 .. .. 
   Mining and quarrying  0.0 0.0 0.0 0.0 0.0 0.0 0.0 .. .. 
   Manufacturing  0.5 0.4 0.4 0.6 0.6 0.6 0.5 .. .. 
   Electricity, gas  and water supply  0.5 0.5 0.5 0.7 0.7 0.8 0.6 .. .. 
   Construction  3.1 2.9 4.2 6.5 5.4 3.7 3.0 .. .. 
Tertiary sector  95.9 96.3 94.9 92.2 93.3 94.9 95.8 .. .. 
   Wholesale and retail 5.3 5.3 5.2 5.6 5.3 5.7 5.8 .. .. 
   Hotels and similar activities  3.1 3.1 3.5 3.8 4.1 4.3 4.6 .. .. 
   Restaurants and similar activities  1.7 1.6 1.6 1.7 1.8 1.7 1.6 .. .. 
   Transport, storage and 
communications  1.9 1.8 2.0 2.7 2.9 2.6 2.6 .. .. 
   Banking  2.9 3.3 3.9 5.3 5.6 5.4 5.3 .. .. 
   Insurance and pension funding  0.7 0.7 0.6 1.0 1.3 1.1 1.3 .. .. 
   Real estate activities  6.6 7.1 8.4 10.2 10.6 10.5 9.6 .. .. 
   Renting and business activities  3.2 3.3 3.7 3.9 4.7 4.7 4.7 .. .. 
   Public administration  3.0 2.8 3.0 4.2 4.4 4.3 4.1 .. .. 
   Education  1.3 1.2 1.3 1.8 1.9 1.9 1.8 .. .. 
   Health and social work  1.0 0.9 1.0 1.3 1.5 1.4 1.4 .. .. 
   Gaming and junket activities  62.9 63.1 58.5 48.0 46.7 49.0 50.5 .. .. 
Other community, social and 
personal services; households with 
employed persons  2.3 2.1 2.1 2.6 2.6 2.3 2.3 .. .. 
Employment share by economic activity (%)          
Manufacturing  3.0 2.5 1.9 1.7 2.0 1.7 1.7 1.6 1.5 
Electricity, gas and water supply  0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.2 0.4 
Construction  9.4 9.8 13.5 13.8 11.4 8.6 8.1 7.9 9.2 
Wholesale and retail trade  12.3 12.4 11.6 11.3 11.3 12.1 11.3 10.7 12.4 
Hotels, restaurants and similar 
activities, of which:  15.4 15.0 14.1 13.9 14.7 14.4 14.6 14.5 12.8 
   Hotels and similar activities  7.9 7.6 7.0 7.3 7.7 8.1 7.9 8.2 7.4 
   Restaurants and similar activities  7.5 7.4 7.1 6.6 6.9 6.3 6.6 6.2 5.3 
Transport, storage and 
communications  4.7 4.4 4.9 4.4 5.0 5.0 5.0 5.1 4.7 
Financial intermediation  2.4 2.6 2.8 2.7 2.7 3.0 2.8 3.1 2.8 
Real estate and business activities  7.1 7.6 7.8 7.5 7.8 8.0 8.3 9.0 9.8 
Public administration and social 
security  7.3 7.1 6.6 7.4 7.3 7.6 7.7 7.2 6.3 
Education  3.8 4.0 3.8 4.2 4.1 4.5 4.5 4.5 4.2 
Health and social welfare  2.5 2.5 2.6 2.8 3.1 3.4 3.2 3.2 3.4 
Recreational, cultural, gaming and 
other services, of which:  26.1 25.9 24.2 23.8 23.8 24.3 25.0 25.0 24.3 
   Gaming and junket activities  23.0 23.1 21.5 21.1 20.8 21.2 21.8 22.0 22.0 
Domestic work  5.2 5.6 5.6 6.0 6.5 7.1 7.4 7.8 8.0 
Others  0.3 0.2 0.2 0.1 0.1 0.2 0.2 0.2 0.2 
.. Not available.  
Source:  DSEC, Statistics Database . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx ; 
Monetary Authority of Macao, Statistics . Viewed at: https://www.amcm.gov.mo/en/research -
statistics/statistics ; IMF Country Report No.  19/123, May 2019; and World Bank , World Development 
Indicators . Viewed at: https://databank.worldbank.org/source/world -development -indicators . 
 
1 Government of Macao SAR, The Five -Year Development Plan of the Macao Special Administrative 
Region (2016 -2020).  Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf . 
2 Document viewed (in Chinese) at : https://www.cccmtl.gov.mo/files /mid_eva_cn.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  1.4.  With respect to infrastructur e, the Plan lists a number of major urban development projects, 
including, inter alia : the construction of a new urban zone (New Urban Zone Area A)3; the 
construction of a fourth raw water pipeline, to secure a safe water supply for Macao, China; the 
expansion and improvement of the reservoirs at Ka Ho and Seac Pai Van, from about 640,000 m3 
to 1.26 million m3, to be completed by end-2020; resuming and completing construction of the Light 
Rail Transit (LRT) depot, and carrying out installation, adjustments and trial s, system consolidation 
tests, and acceptance examinations for LRT trains and equipment; and the construction of new 
Guangdong -Macao border crossings.4 Work to expand the capacity of the Ka -Ho reservoir started in 
Septem ber 2019 , and is expected to be completed in 2021 ; after completion, t he capacity will 
increase from 340,000 m3 to 740,000 m3. The expansion work of the Seac Pai Van reservoir is 
expected to be completed by end -2020. The construction of the LRT depot was c ompleted in 
May 2019, and the LRT Phase 1 – Taipa Line officially opened on 10  December 2019. The pile 
foundation work for the project of the new Guangdong -Macao border crossing (Qingmao Checkpoint) 
started in May 2018. The work on the superstructure was c ompleted in December 2019 , and the 
whole project is expected to be completed in 2020. The tender for the fourth  sea-crossing bridge 
between the Macao Peninsula and Taipa Island was carried out in December 2018. Construction is 
scheduled to start in 2020 an d is expected to be completed in 2024.  
1.5.  During the review period, the authorities were promoting both intersectoral (away from 
gambling) and intra -sectoral diversification. With respect to intersectoral diversification, a number 
of service sectors , includin g conference and exhibition, recreation, leisure, and cultural and creative 
services , were promoted. As a result, hotels, restaurants, wholesale and retail trade, real estate and 
business activities, and banking reported increases in revenues from 2015 to 2017, realizing some 
progress in diversification . To promote intra -sectoral diversification in the gaming industry, the SAR 
Government is encourag ing gaming operators to actively transform the gaming industry from 
high-end VIP -oriented to less  volatile mas s-market gaming, by rolling out a series of strict measures 
on eligibility verification, auditing and compliance -monitoring , to promote the well-regulated 
development of the gaming industry, especially VIP gaming. The Plan also set a target for gaming 
operators to diversify into other activities , and to raise their non -gaming revenue to at least 9.0% 
of their total revenue by 2020. The authorities indicated that this target was achieved ahead of time , 
as the rat e rose from 6.7% in 2014 to 10.4% i n 2017.  
1.6.  In the quest to promote diversification away from gambling, the DSEC  studied economic 
activity concentration5, and developed the Entropy Index of Economic Diversity.6 According to the 
study, the sectoral concentration in Macao,  China rose constan tly between 2002 (when gaming was 
liberalized) and 2013, before beginning to fall in 2014. This trend was consolidated in 2015, when 
gross gaming revenue declined by 34.1%. The study found  that, during 2013 -17, the total receipts 
of the major non -gaming in dustries grew by 29.4%, from MOP 286.16 billion (USD 35.8 billion) to 
MOP 370.37  billion (USD  46.1 billion).  The top three non -gaming industries that posted the  largest 
growth in receipts were financial activities (+6 4.9%); construction (+37.2%); and real estate and 
business activities (+3 6.6%). As a result of the development of non -gaming industries , the Entropy 
Index, based on gross value -added of economic activities at producers ' prices, increased from 1.61 
in 2014 to 1.87 in 2015, which indicat es a slight decline  in sectoral concentration. Subsequently, the 
Index increased to 1.92 in 2016, but declined to 1.86 in 2017. The authorities indicated that this 
was mainly due to a recovery in gaming and junket activities (the ir share of value -added at current 
producers ' prices in the industrial structure increased from 46.7% in 2016 to 50.5% in 2018). 
1.7.  Macao, China has also been promotin g the development of the  Meetings, Incentives, 
Conventions, and E xhibitions (MICE) industry , traditional Chinese medici ne, cultural and creative 
industries , and modern financial businesses, with a focus on financial leasing, Renm inbi (RMB) 
clearing services for Portuguese Speaking Countries ( PSCs), and wealth management. In the past 
 
3 The reclamation of lands for the New Urban Zone Area A was completed in 2017, and the design for 
several lots in the Area designated for public housing ha d already commenced  by early 2020.  
4 Government of Macao SAR, The Five -Year Develop ment Plan of the Macao Special Administrative 
Region (2016 -2020).  Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf . 
5 DSEC, Relatório da Análise  "Sistema de Indicador es Estatísticos para o Desenvolvimento da 
Diversificação Adequada da Economia de Macau " (Analysis Report of the Statistical Indicator System for 
Moderate Economic Diversification of Macao  (in Chinese and Portuguese only)). Viewed at: https://www.dsec. 
gov.mo/getAttachment/0c45e71c -d9c5-46fe-9fe3-83664720f282/E_SIED_PUB_2017_Y.aspx . 
6 The Entropy Index of Economic Diversity compares employment or income distributions among 
industries in a r egion to an equi -proportional distribution. Higher entropy index values indicate greater relative 
diversification, while lower values indicate relatively more specialization.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  few years, concrete steps have been take n to advance the development of modern financial 
businesses as one of the Government 's strategic industries. In 2017, according to information 
provided by the authorities, the gross value -added of the emerging industries (also including 
financial activitie s, which consist of banking, insurance and pension fund s) was estima ted to have 
reached MOP 3 1.6 billion, representing 7.9% of the gross value -added of all economic activities , and 
21.9% above  2015 levels. In 2018, the gross value -added of the emerging industries was estimated 
at MOP 35.3 billion (36.5% higher than in  2015), representing 8.1% of the gross value -added of all 
economic activities.  The development of these industries and their prospects were severely affected 
by the COV ID-19 pandemic.  
1.8.  One of the goals established in the Five-Year Development Plan is to increase the value of trade 
between Macao, China and the PSCs by 10% by 2020, compared to an initial value of 
MOP 600 million (USD 75 million) in 2015. The authorities not ed that this goal was more than 
achieved ahead of time in 2018, when the value of trade between Macao, China and the PSCs 
reached MOP 814 million (USD 102 million) . In June 2013 , the China and Portuguese -speaking 
Countries Co -operation and Development Fund  was inaugurated, and its headquarters moved from 
Beijing to Macao, China in June 2017. The Fund, with capital of USD  1 billion, aims to support the 
development of projects and investments in China (including Macao, China) and the PSCs.  
1.2  Recent Economic Dev elopments  
1.2.1   Real sector  
1.9.  GDP growth was uneven during the review period: after experienc ing strong economic growth 
in 2012 and 2013, the economy contracted sharply between 2014 and 2016, with a particularly 
strong 21.6% real GDP reduction in 2015 (Table 1.2 ). Relative strong growth resumed in 2017 and 
2018, but the economy contracted again in 2019, with real GDP falling by 4.7%. The economic 
downturn in the 2014 -16 period w as a result of weakening demand for gaming and tourism. The 
econom ic recover y in 2017 and 2018 result ed from a strong rebound in external demand , while the  
2019 decline  can be explained by the negative impact of the decline of gaming revenue, as well as 
a contraction in gross fixed capital formation.  The impact of COVID -19 on Macao , China 's GDP was 
strong: real GDP is estimated to have declined by 48.7% in the first quarter of 2020 with respect to 
the same period the previous year.  
1.10.   During the review period, GD P per capita rose , but fluctuated considerably , increasing from 
USD 75,536  in 2012 to US D 83,425  in 201 8, one of the highest per capita incomes of the world , and 
decreasing to USD 79,977 in 2019. GDP per capita is expected to decline further in 2020, following 
the effects of the COVID -19 crisis. This high level of wealth was mostly linked to the fast expansion 
of the gaming industry , and the infrastructure and services built around it . 
1.11.   As pointed out above, in 2017 and 2018 , the economy of Macao, China resumed growth, 
gathering  a solid pace in  2018,  (5.4% real growth rate),  driven by the expansion of external demand . 
Nominal GDP reached  MOP 445 billion for the year  (USD 55 billion) .7 Exports of goods rose by 1 2.8% 
year-on-year to MOP  16 billion, contributing 0. 4 percentage points to real economic growth. Exports 
of services rose by 9.7% year -on-year to MOP  352 billion, contributing 7. 4 percentage points to real 
economic growth. Private consumption and government expenditure increas ed by 4.2% and 3. 5% 
year-on-year, respectively, contributing 1 .0 and 0. 3 percentage points to real ec onomic growth. 
Gross fixed capital formation , on the other hand,  dropped by 1 0.4% year -on-year to 
MOP 74.2 billion, with a negative contribution of 2.0  percentage points to real economic growth. 
Imports of goods and services expanded by 7.3% and 7.8% year -on-year, jointly subtracting 
2.5 percentage points to GDP growth.   
1.12.   In 2019, GDP contracted by 4.7% in real terms, mainly affected by a sharp decline in gross 
capital formation, particularly in construction, and by the weakness of exports of servic es. Sluggish 
growth in gross fixed capital formation and exports of services reduced real economic growth by 
3.4 percentage points and 2.7 percentage points , respectively. This resulted from g aming revenue 
shrinking despite an increase in tourism inflow s and in the number of visitors.8 Private  consumption 
 
7 AMCM (2019), Annual Report 2018 . Viewed at: 
https://www.amcm.gov.mo/files/research_and_stats/annual_reports/2018/en/annual_report_2018_en.pdf . 
8 AMCM (2019), Macao Economic Bulletin, Second Quarter 2019 . Viewed at:  https: //www.amcm.gov.mo 
/files/research_and_stats/research_and_publication/macao_economic_bulletin/en/2quarter.2019_en.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  and government expenditure jointly contributed 1.1 percentage points to GDP growth in the period 
concerned. In the first quarter of 2020, GDP plummeted, contracting by 48.7% with respect to the 
same perio d in 2019, despite a 5% increase in government spending. The strong decline in domestic 
demand, in particular private consumption ( -15.2%) and gross capital formation ( -36.7%), explains 
a substantial part of the contraction. However, the most affected acti vities were exports of services, 
which declined by 60%, in particular gaming ( -61.5%), with a subsequent strong negative impact 
on GDP.9 
Table 1.2 GDP by type of expenditure, 2012 -19 and 2020 Q1  
  2012  2013  2014  2015  2016  2017  2018  2019  2020  
Q1 
Annual % change (chained 2018 dollars)   
GDP at market prices  9.2 11.2 -1.2 -21.6 -0.7 9.9 5.4 -4.7 -48.7 
Private consumption expenditure  7.6 6.7 5.9 2.1 -0.8 2.2 4.2 2.9 -15.2 
Government final consumption 
expenditure  5.6 5.5 6.4 4.2 4.5 -0.1 3.5 3.9 5.0 
Gross capital formation  17.0 6.8 36.3 3.3 -14.0 -3.6 -6.5 -19.5 -36.7 
Gross fixed capital formation  20.2 9.3 37.1 5.4 -11.9 -2.5 -10.4 -20.1 -37.2 
By type of assets          
  
            Construction  24.8 12.8 39.6 7.8 -12.7 -3.4 -14.4 -23.7 -37.0 
            Machinery and equipment  5.3 -4.9 23.8 -10.6 -5.4 4.4 18.8 -1.1 -37.8 
Net exports  8.4 14.6 -13.0 -43.1 6.6 24.2 11.5 -4.9 -75.1 
Exports  10.5 13.2 -4.5 -26.6 -1.9 16.8 9.8 -3.6 -58.4 
Goods  30.5 7.2 20.6 10.2 -20.3 13.3 12.8 -8.3 -23.5 
Services, of which:  9.9 13.4 -5.3 -28.1 -0.8 17.0 9.7 -3.4 -60.0 
Gaming  9.4 13.6 -6.6 -34.6 -4.7 16.9 10.7 -4.0 -61.5 
Post and telecom munications  -13.5 -8.6 -2.0 -35.3 6.1 -10.2 -13.1 -20.3 -31.6 
Financial and insurance services  23.1 22.7 20.7 17.8 18.5 3.9 -8.5 21.9 -5.9 
Imports  14.3 10.7 12.5 1.1 -10.4 7.9 7.4 -1.7 -30.7 
Goods  14.7 16.2 14.3 1.0 -12.6 6.3 7.3 1.1 -30.8 
Services, of which:  13.1 -4.5 6.7 1.6 -3.2 12.7 7.8 -8.9 -30.3 
Household final consumption 
expenditure abroad  8.7 1.9 3.5 4.8 1.0 4.4 5.7 6.8 -44.7 
Government expenditure abroad  65.9 -71.8 -30.4 177.5  -58.4 14.5 -16.1 -5.2 -27.0 
Post and telecom munications  6.0 -9.2 3.3 -15.0 -0.2 12.2 1.9 21.1 -48.5 
Financial and insurance services  5.6 13.2 11.9 7.9 8.9 5.0 3.7 9.5 -12.1 
GDP by type of expenditure (% of GDP at current prices)  
Private consumption expenditure  20.4 19.2 20.0 26.1 26.4 24.3 23.8 25.4 41.1 
Government final consumption expenditure  6.9 6.5 7.0 9.6 10.4 9.7 9.5 10.4 16.9 
Gross capital formation  14.7 14.1 19.6 25.1 21.6 19.5 17.2 14.2 15.3 
Gross fixed capital formation  13.6 13.3 18.8 24.6 21.6 19.7 16.7 13.7 14.6 
By type of assets           
Construction  10.9 11.2 16.3 21.9 19.1 17.3 14.0 11.0 11.8 
Machinery and equipment  2.7 2.1 2.5 2.7 2.6 2.4 2.6 2.7 2.8 
Changes in inventories  1.1 0.7 0.8 0.5 0.0 -0.2 0.5 0.5 0.7 
Net exports  58.0 60.2 53.3 39.2 41.6 46.6 49.6 50.1 26.7 
Exports  91.1 90.6 84.9 77.9 76.1 79.9 82.8 83.6 70.3 
Goods  3.3 2.9 3.2 4.3 3.4 3.4 3.6 3.4 5.6 
Services, of which:  87.9 87.7 81.7 73.6 72.7 76.5 79.2 80.2 64.7 
Gaming  65.3 65.4 60.2 50.2 48.9 51.5 53.8 54.3 43.0 
Post and telecom munications  0.2 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 
Financial and insurance services  1.4 1.7 2.1 2.8 3.0 2.8 2.8 3.8 5.8 
Imports  33.1 30.4 31.6 38.7 34.5 33.3 33.2 33.4 43.7 
Goods  24.2 23.4 24.6 29.9 25.7 24.3 24.1 24.8 32.3 
Services, of which:  8.9 7.1 7.0 8.8 8.8 9.0 9.1 8.6 11.3 
Household final consumption 
expenditure abroad  2.4 2.1 2.0 2.5 2.5 2.4 2.4 2.6 2.8 
Government expenditure abroad  1.7 0.4 0.3 1.0 0.4 0.4 0.3 0.3 0.3 
Post and telecom munications  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Financial and insurance services  1.2 1.0 0.9 1.3 1.6 1.6 1.5 1.8 2.9 
Source:  DSEC, Statistics Database . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx . 
1.13.   Macao, China has a very large savings -to-GDP ratio. According to the IMF, national savings 
represented 51.9% of GDP in 2017 and 50.8% in 2018, while the investment/GDP ratio was only 
19.5% in 2017 and 17.2% in 2018.10 These excess savings translate into a structurally sizeable 
current account of the balance -of-payments.  
 
9 DSEC, Statistics Database . Viewed at: https://www.dsec.gov.mo/TimeSerie sDatabase.aspx . 
10 IMF (2019), People 's Republic of China  – Macao Special Administrative Region, 2019 Article IV 
Consultation Discussions; Press Release; Staff Report; and Statement by the Executive Director for Macao SAR,  
IMF Country Report No. 19/123, May 2019. Viewed at: 
https://www.imf.org/~/media/Files/Publications/CR/2019/1MACEA2019001.ashx . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  1.14.   The unem ployment rate remained low throughout most of the period under review, at 2.0% 
or less (1.7% in 2019). Total employment reached 387,000 in 2019, of which 281,000 were 
residents. In the wake of the COVID -19 crisis, the number of unemployed increased , and th e rate 
rose to 2.1% in the first quarter of 2020. The labour force participation rate was 70.3% in 2019. 
Some 90% of the population is employed in services activities; the largest employer is the gaming 
industry which , in 2019, accounted for 22.0% of total  employment, followed by hotels and 
restaurants (14.5%). Macao, China has a large number of non -resident workers.11  
1.2.2   Fiscal policy  
1.15.   The Basic Law requires the Macao SAR Government to exercise fiscal prudence, so as to  have 
the means  to ensure social wellbeing through the provision of housing, healthcare and education, 
the prevention or mitigation of disasters, and the protection of fiscal reserves from risks. Accordingly, 
the fiscal goal of the Government is to ensure a balanced budg et, and maintain a prudent 
management system for the fiscal reserves (see below).  
1.16.   The public sector posted a substantial surplus throughout the period under review; this 
hovered between 30.2% of GDP in 2013 and 7.7% in 2016 , and fed the Fiscal Reserve. In  2018, the 
public sector surplus reached 13.1% of GDP. The main source of revenue stems from gaming, in 
particular direct taxes on gaming, which , in 2018 , accounted for 75.6% of total revenue, equivalent 
to 24 .4% of GDP. Other direct taxes accounted for 6. 4% of total revenue  in the same year 
(Table  1.3). The estimated fiscal surplus for 2019 was equivalent to 1 2.9% of GDP. However, due 
to the effects on receipts caused by COVID -19, due to the temporary shutdown of casinos and the 
sharp decline in visitors, as well as to the effect of the fiscal packages put in place in February and 
April, the public sector accounts are estimated to be in deficit in 2020 (see below).  
1.17.   Macao, China maintains a Fiscal Reserve, established under the Fiscal Reserve Act (Law No.  8 
of 2011, Regime Jurídico da Reserva Financeira ) which came into effect on 1 January 2012. The 
Fiscal Reserve comprises two  parts: basic reserves and excess reserves. The basic reserve 
component encompasses financial reserves intended to act as the ultimate  guarantee for 
Macao,  China 's payment capacity. The basic reserves ' value must be equivalent to 150% of all 
expenditure appropriations for the Central Services of the Macao SAR, contained in the last budget 
examined and approved by the Legislative Assembly . Excess reserves are financial reserves destined 
to promote the implementation of Macao,  China 's public finance policy, and to offer payment 
guarantee; they can be used, inter alia , to finance an annual budget deficit and to complement 
financial resources  used to promote socio -economic development. Excess reserves are equivalent to 
the remaining balances of the financial reserves after covering the basic reserve component. The 
resources of the Fiscal Reserve stem from the following sources: (i) central bud get surpluses, after 
the appropriate legal deductions are made; and (ii) the proceeds resulting from the investment of 
the Fiscal Reserve 's resources.  
1.18.   As mentioned above, the value of the basic reserves must always be maintained at 150% of 
all expenditure appropriations for the Central Services of the Macao SAR, contained in the last budget 
examined and approved by the Legislative Assembly. If th e value falls below this threshold, the 
Government must fill in the gap with resources from excess reserves; if i t is over it, resources are 
transferred to the excess reserve component. The reserves must be invested; any use of them, 
other than for investment, must be approved by the Legislative Assembly. Basic reserve funds can 
only be used once excess reserves have  been exhausted.12 
1.19.   During the period under review, the Fiscal Reserve accumulat ed funds ; these reached 
MOP 579.4 billion at end -2019, equivalent to 13 3.3% of GDP; of these , MOP 148.9 billion were basic 
reserves and MOP 430.5 billion were excess reserves (Table 1.4).  
 
11 DSEC (2020), Employment Survey 2019 . Viewed at: 
https://www.dsec.gov.mo/getAttachment/a2e7f250 -4bc5-4df1-917c-77f2af58193c/E_IE_PUB_2019_Y.aspx . 
12 Macao SAR, Law No. 8/2011, Regime Jurídico da Reserva Financeira  (Legal Regime of the Financial 
Reserve ). Viewe d at: https://bo.io.gov.mo/bo/i/2011/35/lei08.asp . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 1.3 Public sector accounts, 2012 -19 
(MOP billion and % of GDP)   
2012  2013  2014  2015  2016  2017  2018a 2019a 
Total revenue  (MOP billion ) 145.0  175.9  161.9  116.1  110.5  126.4  141.3  140.7 
By principal components         
 
Tax revenue from gaming, of which:  113.4  134.4  136.7  89.6 84.4 99.8 113.5  112.7  
   Direct tax  107.0  126.7  128.9  84.4 79.5 94.0 106.8  106.0  
   Transfers  6.4 7.6 7.8 5.1 4.9 5.9 6.7 6.7 
Other  31.6 41.6 25.2 26.5 26.1 26.5 27.8 28.0 
By economic classification         
 
Current revenue  130.2  152.6  156.7  110.1  103.0  119.4  133.2  132.9  
Direct taxes, of which:  112.0  132.4  136.0  93.4 88.5 103.3  116.0  116.9  
   from gaming  107.0  126.7  128.9  84.4 79.5 94.0 106.8  106.0  
Indirect taxes  5.0 5.5 5.7 4.2 4.1 5.1 5.7 4.9 
Fees, fines and other penalties  1.9 2.0 2.3 2.0 2.0 1.8 2.1 1.7 
Property income  3.5 3.4 3.1 3.2 1.8 1.5 0.9 0.8 
Transfers  6.5 7.8 8.2 5.3 5.2 6.2 7.1 7.0 
   from gaming  6.4 7.6 7.8 5.1 4.9 5.9 6.7 6.7 
Sales of durable goods  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Sales of services and non -durable goods  1.0 1.2 1.2 1.4 1.2 1.2 1.2 1.2 
Other current revenue  0.4 0.4 0.3 0.5 0.2 0.3 0.2 0.3 
Capital revenue  14.8 23.4 5.1 6.0 7.5 6.9 8.1 7.9 
Sales of fixed capital  0.8 4.7 0.5 0.8 0.7 0.0 1.2 2.2 
Transfers  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Financial assets  0.3 0.4 0.4 0.6 0.6 0.5 0.8 0.9 
Other capital revenue  13.6 18.2 3.9 4.5 6.1 6.2 4.7 4.5 
Reimbursements not deducted from 
payments   0.1 0.1 0.3 0.2 0.2 0.2 1.4 0.3 
Total expenditure  54.0 51.4 67.1 80.8 82.6 81.3 83.0 84.7 
Current expenditure  36.8 42.1 57.9 68.0 70.5 60.6 63.8 67.9 
Capital expenditure  17.2 9.3 9.1 12.7 12.1 20.7 19.3 16.7 
   Investments  14.4 7.7 7.8 9.7 9.5 13.8 16.6 13.8 
Fiscal surplus(deficit)  91.0 124.6  94.8 35.4 27.9 45.1 58.3 56.0 
Total revenue (share of GDP ) 42.2 42.7 36.6 32.1 30.5 31.0 31.8 32.4 
By principal components         
 
Tax revenue from gaming, of which:  33.0 32.6 30.9 24.7 23.3 24.5 25.5 25.9 
   Direct tax  31.1 30.8 29.2 23.3 21.9 23.1 24.0 24.4 
   Transfers  1.9 1.9 1.8 1.4 1.3 1.4 1.5 1.5 
Other  9.2 10.1 5.7 7.3 7.2 6.5 6.3 6.4 
By economic classification         
 
Current revenue  37.9 37.0 35.5 30.4 28.4 29.3 30.0 30.6 
Direct taxes, of which:  32.6 32.1 30.8 25.8 24.4 25.4 26.1 26.9 
   from gaming  31.1 30.8 29.2 23.3 21.9 23.1 24.0 24.4 
Indirect taxes  1.4 1.3 1.3 1.2 1.1 1.3 1.3 1.1 
Fees, fines and other penalties  0.5 0.5 0.5 0.6 0.6 0.5 0.5 0.4 
Property income  1.0 0.8 0.7 0.9 0.5 0.4 0.2 0.2 
Transfers  1.9 1.9 1.9 1.5 1.4 1.5 1.6 1.6 
   from gaming  1.9 1.9 1.8 1.4 1.3 1.4 1.5 1.5 
Sales of durable goods  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Sales of services and non -durable goods  0.3 0.3 0.3 0.4 0.3 0.3 0.3 0.3 
Other current revenue  0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.1 
Capital revenue  4.3 5.7 1.2 1.7 2.1 1.7 1.8 1.8 
Sales of fixed capital  0.2 1.1 0.1 0.2 0.2 0.0 0.3 0.5 
Transfers  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Financial assets  0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.2 
Other capital revenue  4.0 4.4 0.9 1.2 1.7 1.5 1.1 1.0 
Reimbursements not deducted from 
payments  0.0 0.0 0.1 0.1 0.1 0.0 0.3 0.1 
Total expenditure  15.7 12.5 15.2 22.3 22.8 20.0 18.7 19.5 
Current expenditure  10.7 10.2 13.1 18.8 19.4 14.9 14.3 15.6 
Capital expenditure  5.0 2.3 2.1 3.5 3.3 5.1 4.3 3.8 
   Investments  4.2 1.9 1.8 2.7 2.6 3.4 3.7 3.2 
Fiscal surplus (deficit)  26.5 30.2 21.4 9.8 7.7 11.1 13.1 12.9 
a Provisional.  
Source:  DSEC, Statistics Database . Viewed at: https://www.dsec.gov.mo /TimeSeriesDatabase.aspx ; and 
Yearbook of Statistics, 2016, 2017, and  2018. 
1.20.   As a result of exercising fiscal prudence , as stipulated in the Basic Law, Macao, China 's public 
finances remained stable , with unbroken years of fiscal surpluses until 2019, and there is no public 
debt. This allowed the SAR Government to continue to inject money in to welfare programmes, such 
as the Wealth Partaking Scheme, the Central Provident Fund System, and the Continuing Education 
Programme, and to provide healthcare vouchers, electricity and tap water tariff bill subsidies, and 
bus fare concessions. New tax incentives were also intr oduced, including a reduction in profit tax for WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  enterprises engaging in innovation,  and research and development (R&D)13; a reduction to 8%  of 
the property tax rate for leased properties; an increase the personal income tax allowance for 
citizens over 65 years of age; and an exemption of the profit tax on investment income from bonds 
issued in Macao, China by governments and state -owned enterp rises (SOEs) of Mainland China, and 
of the stamp duty for issuing and acquiring the related bonds. Moreover, local enterprises were 
offered profit tax waivers for revenue generated from PSCs. 
Table 1.4 Fiscal Reserve (basic and excess  funds ), 2013 -19 
(MOP million)  
 2013  2014  2015  2016  2017  2018  2019  
Basic reserves  111,921  116,455  131,880  132,824  127,945  147,547  148,888  
Excess reserves  56,978  129,882  213,175  305,839  362,093  361,256  430,514  
Fiscal reserves  168,899  246,337  345,055  438,663  490,038  508,803  579,40 3 
Source:  Information provided by the authorities; and DSEC, Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TimeSeriesDatabase.aspx . 
1.21.   The budget projections for fiscal year  (FY) 2019 estimated a 13.3% rise in revenue from 2018 
and a 2.2% increase in expenditure, resulting from an increase of 9 .0% in current expenditure and 
a 14.9% reduction in capital expenditure. The estimated budget surplus for 2019 was MOP 19 billion. 
The Poli cy Address for the Fiscal Year 2019 covered a number of measures to advance development 
in the gaming industry and the tourism sector, to promote adequate economic diversification, to 
further support small and medium -sized enterprises (SMEs), to secure loc al employment, and to 
intensify regional cooperation, with an emphasis on building the Guangdong -Hong Kong -Macao 
Greater Bay Area. The actual surplus for calendar year 2019 was MOP 5 6 billion, equivalent to 1 2.9% 
of GDP.  
1.22.   In spite of the substantial fiscal surpluses and the creation of the Fiscal Reserve, the main 
source of revenue, gaming, remains volatile, and there is an absence of medium - and long -term 
fiscal planning. In the report resulting from Macao, China 's 2019 Article IV Consultations, the IMF 
noted that, although fiscal space is ample, with large fiscal reserves and no public debt, fiscal policy 
decisions are rather discretionary while following the conservative Basic Law mandate of balanced 
budgets. It also highlights Macao, China 's infrastructur e development needs and social spending 
considerations, and the long -term spending pressure stemming from an ag eing population that will 
boost pension and healthcare  costs.14 In this respect, the IMF noted that Macao, China would benefit 
from a medium -/long-term fiscal framework (MLTFF) for efficient use of gaming -dependent fiscal 
resources; given the substantial fiscal space, the MLTFF could integrate an explicit counter -cyclical 
fiscal framework within budget preparation. The IMF also recommended that aut horities ensure that 
their planned Sovereign Wealth Fund (SWF) is integrated into the MLTFF. The authorities noted that 
the SAR Government conducted a feasibility study regarding  establishing a n SWF in Macao, China 
by examining the operations of major SWFs  worldwide ; reviewing pertinent laws and regulations in 
Macao, China ; and reviewing  research papers published by relevant international organi zations. 
Based on the results of the study, the SAR Government will collect further opinions about the 
implementat ion of the SWF, as its establishment will involve allocating funds from the Fiscal Reserve.  
1.23.   In the Policy Address for the Fiscal Year 2020, the authorities highlighted that the Government 
would implement a proactive fiscal policy and implement a series of relief measures in response to 
the COVID -19 pandemic.15 The package of fiscal and other measures introduced to partly offset the 
negative effects of COVID -19 on the economic activity  amount to an estimated MOP  52.6 billion or 
12.1% of (2019) GDP.16 The measures applied include: handouts to residents; additional health 
 
13 A triple reduction for the first MOP 3 million of joint venture R&D expenditure, and a double reduction 
in profit tax for any additional expenditure, subje ct to a ceiling of MOP 15 million.  
14 IMF (2019), People 's Republic of China ––Macao Special Administrative Region, 2019 Article IV 
Consultation Discussions; Press Release; Staff Report; and Statement by the Executive Director for Macao SAR,  
IMF Country Repo rt No. 19/123, May 2019. Viewed at: 
https://www.imf.org/~/media/Files/Publications/CR/2019/1MACEA2019001.ashx . 
15 Chief Executive Office, Highlights of Policy Address for the Fiscal Year 2020 of the Macao Special 
Administrative Region (MSAR).  Viewed at: 
https://www.policyaddress.gov.mo/data/policyAddress/2020/en/2020_s ummary_e.pdf .  
16 IMF, Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-covid19/ 
Policy -Responses -to-COVID -19#A ; and Chief Exe cutive 's Office, Highlights of Policy Address for the Fiscal Year 
2020 of the Macao Special Administrative Region (MSAR).  Viewed at: 
https://www.policyaddress.go v.mo/data/policyAddress/2020/en/2020_summary_e.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  spending handouts to permanent residents; transfers to eligible employees and to self -employed 
professionals and eligible firms under the condition of not laying off employees; transfe rs to taxi 
drivers leasing a taxi, lessees of wet market stalls, holders of hawker licen ces or holders of tricycle 
rickshaw licen ces; making utilities free of charge for residents for three  months , and subsidizing 
them for firms , other than gaming operator s and high -end hotels, also for three  months; providing 
interest -free loans and interest subsid ies for SMEs; providing interest subsidies for self -employed 
individuals; providing training for unemployed workers; and granting tax exemption s/deductions for 
residents and local enterprises.17 A number of welfare measures were also introduced (Box 1 .1). 
Box 1.1 Macao, China 's response to COVID -19 
Fiscal measures  
Key fiscal measures introduced in February and April 2020 include:  
• Profit Tax Relief: reduction of the tax payable for 2019, with a ceiling of MOP  300,000.  
• Increase of the Salaries Income Tax deduction rate of taxable personal income tax for 2020 from 25% to 
30%. Grant of an extra tax rebate: increas e of the  rebate  on salaries income tax for Macao, China 
residents (permanent and non -permanent) for 2018 , from 60% to  70%, subject to a ceiling of 
MOP 20,000.  
• Waiver of the tourism tax on hotel s and similar establishments, for a period of six months.  
• Waiver of 100% of the Property Tax for 2019 in respect of residential properties held by residents, and 
waiver of 25% for commercial and industrial properties, in addition to an initial MOP 3,500 tax reduction.   
• Waiver of the annual commercial v ehicle licence tax and of inspection charges.  
• Waiver of facility inspection fees for hotels, restaurants, bars and travel agencies.  
• Waiver of fees and stamp duties for licence and administrative licence issuance and renewal.  
• Subsidy scheme for business es and self-employed professionals  who are employing staff : each business 
location/outlet is entitled to a one -off subsidy , ranging from MOP 15,000 to MOP 200,000, depending on 
the number of employees hired by the respective business location/outlet. The ma ximum subsidy eligible 
to each taxpayer is MOP 1 million , under the condition of not laying off employees  for a period of six 
months . The following industries are not entitled to the scheme: public utility companies; public bus 
operators; city light rapid transit system operator s; public telecommunications firms; financial service 
businesses; formal education institutes and higher education institute s; social service agencies; and 
gaming concessionaries and sub -concessionaries.  The transfers are estimated to amount to 
MOP 2.4 billion , or 0.6 % of GDP . 
Welfare measures  
• Employee and self -employed cash allowance scheme: disbursement of a MOP 15,000 allowance to each 
eligible local employee  and self -employed professionals , in three monthly instalments of MOP 5,000 per 
month. Local employees receiving the maximum tax rebate of MOP 20,000 from personal income tax for 
2018, and civil servants, are excluded from this scheme.  The transfers are es timated to amount to 
MOP 3.89 billion , or 0.9 % of GDP . 
• Paid training under the Skills Upgrading and Employment Training Scheme, consisting of an allowance of 
MOP 6,656 for unemployed local residents  and of MOP 5,000 for employed local residents enrolled in the 
occupation -oriented training programme.  The estimated cost is MOP 317 million , or 0.07% of GDP.  
• Consumption Subsidy Scheme: MOP 8,000 per resident, to be disbursed in two instalments in the fo rm of 
electronic vouchers of MOP 3,000 per resident from May to July 2020 and MOP 5,000 from August to 
December  2020. The e stimated cost  is MOP 5.8 billion , or 1.3% GDP.  
• Special healthcare voucher s of MOP 600 per resident , for all permanent residents. The estimated cost is 
MOP 4 21 million , or 0.1% of GDP.  
• Transfers to taxi drivers leasing a taxi, lessees of wet market  stalls, holders of hawker licen ces or holders 
of tricycle rickshaw licen ces (MOP 10,000  per person ). The transfers are estimated to amount to 
MOP 63.4 million or 0.01% of GDP . 
 
17 IMF, Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-covid19 
/Policy -Responses -to-COVID -19#A . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Other pandemic relief measures  
• Water and electricity bill subsidies to businesses for a period of three months, with a ceiling of 
MOP 3,000  per month for water bills and up to MOP 10,000 per month for electricity bills for each 
company . Not applicable to public entities or hotels with a ratin g above 3 -stars. The estimated cost is 
MOP 258 million , or 0.06% of GDP.  
• Three -month payment e xemption of water and electricity bills for residential households. The estimated 
cost is MOP 295 million , or 0.07% of GDP.  
• Waiver of  fees related to local cruises and parking fees for taxis at the Hong Kong -Zhuhai -Macao Bridge 
car park during designated periods .  
• Waiver of radio -operating expenses for traditional land mobile radio systems and trunk radio systems for 
non-public organiz ations.  
• Waiver of rents for government -owned properties, for three months.  
• Acceleration of the vetting processes of the Small and Medium -sized Enterprise (SME) Assistance 
Programme, the SME Credit Guarantee Scheme , and the SME Credit Assurance Scheme, an d adjustment 
of the repayment measures of various assistance programmes. The estimated cost is MOP 1.75 billion or 
0.4% of GDP.  
• Extension of the SME Assistance Programme to SMEs established at least a year ago.  Eligibility criteria for 
the Programme were  temporarily  relaxed. An  SME that has been registered for tax purposes at the 
Financial Services Bureau (DSF) for more than one year is eligible to apply . The application period is from 
10 March 2020 to 10 September 2020. T he total number of applications re ceived was 1,204 , of which 848 
were approved;  the amount granted is MOP267 million.  
• Launching of an interest subsidy scheme on bank loans of up to MOP 2 million for SMEs, for a maximum 
of three years, with a maximum interest rate subsidy of 4 percentage p oints. The estimated cost is 
MOP 316 million or 0.07% of GDP . The application period was from 17 March 2020 to 17 September 2020. 
The total number of applications received was 4,997 , of which 4,424  were approved.  
• Launching of an interest subsidy scheme for self -employed individuals . The estimated cost is 
MOP 110 million , or 0.03% of GDP.  
• The "Macao Ready Go " e-platform and the Local Tours programme devised were launched in June  2020 
to stimulate local consumption and help tourism -related activiti es. The budget for the Local Tours 
programme is of approximately MOP 280 million.  
• As part of the overall economic revival measures, online hotel voucher, consumption voucher and  air 
tickets promotion campaigns targeted to Mainland  China  tourists were launched on e-platforms on 
1 September  2020. The total budget for this initiative is of approximately MOP  440 million . 
Source : Information provided by the authorities; Chief Executive 's Office, Highlights of Policy Address for the 
Fiscal Ye ar 2020 of the Macao Special Administrative Region (MSAR).  Viewed at: 
https://www.policyaddress.gov.mo/data/policyAddress /2020/en/2020_summary_e.pdf ; and IMF , 
Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-covid19/Policy -
Responses -to-COVID -19#A . 
1.2.3   Monetary and exchange rate policy  
1.24.   The Monetary Authority of Macao ( Autoridade Monetária de Macau  (AMCM )), created by 
Decree -Law No. 14/96/M of 11 March 1996 , is responsible for: advising and assisting the Chief 
Executive in formulating and applying monetary, financial, exchange rate and insurance policies; 
guiding, co -ordinating and overseeing the monetary, financial, foreign excha nge and insurance 
markets, and supervising the actions of those operating within them; monitoring internal monetary 
stability and the external solvency of the local currency, ensuring its full convertibility; exercising 
the functions of a central monetary depository , and managing currency reserves and other foreign 
assets; and monitoring the stability of the financial system.18 
1.25.   Overall, the monetary policy stance of Macao, China has remained unchanged since the 
previous Review in 2013. Macao, China does not  conduct an autonomous monetary policy as it 
adopts a linked exchange rate system while its currency, the Macao pataca (MOP), is pegged to the 
Hong Kong dollar (HKD) at a rate of MOP  1.03/HKD  1.00. The orientation of the monetary policy is 
to uphold moneta ry stability and the free convertibility of the pataca . Supporting the exchange rate 
peg is the prime monetary policy objective. The main monetary policy tool is the AMCM 's base rate 
(policy interest rate); however, this is mainly a reactive tool, as it is  maintained at the level of the 
 
18 AMCM, Goals . Viewed at: https://www.amcm.gov.mo/en/about -amcm/goals . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  base rate of the Hong  Kong Monetary Authority. The linked exchange rate between the pataca  and 
the Hong Kong dollar maintained by the AMCM is considered key to Macao, China 's monetary 
stability , in the context of the pataca 's free convertibility because , through it, the pataca  is indirectly 
linked to the US dollar. In the Staff Report of the 2019 IMF Article IV Consultation, it was  emphasized 
that the currency board arrangement with the Hong Kong dollar link has served Macao,  China well , 
and should be maintained; given its small and very open economy, the system provides a crucial 
nominal anchor , and has kept the real exchange rate broadly in equilibrium. Additionally, the IMF 
Staff pointed out that sufficient exchange reserve s would continue to ensure the creditability of the 
peg system over the medium term.19 
1.26.   During the period under review, money supply growth has proceeded much faster tha n 
nominal GDP economic growth, with M2 expanding by around 80%, compared to a 29% nomina l 
GDP expansion. This can be explained by a large increase in financial intermediation during the 
period, which resulted in a higher money multiplier . In addition, under the currency board 
arrangement, changes in the money supply are largely determined by the performance of the 
external sector. In the light of the considerable current account surplus, broad money supply 
continued its expansion during the  period under review. After a period of a more accommodative 
stance, between 2012 and 2016, monetary policy was tightened between 2016 and 2018, but 
became more accommodative in 2019, with the AMCM base rate declining from 2.75% at the 
beginning of the yea r, to 2 .00% at end -2019 (Table 1.5 ). 
Table 1.5 Main monetary, price and exchange rate indicators, 2012 -19 
  2012  2013  2014  2015  2016  2017  2018  2019  
Consumer price index  (average % change)  6.1 5.5 6.0 4.6 2.4 1.2 3.0 2.8 
Money supply M1 (MOP billion)  47.6 58.9 61.9 61.7 63.7 72.4 80.8 88.2 
Money supply M2 (MOP billion)  374.9  441.4  487.5  472.8  532.5  591.5  651.5  687.5  
Prime lending rate (end of period)  5.3 5.3 5.3 5.3 5.3 5.3 5.4 5.3 
Three -month interbank rate (end of period)  0.4 0.4 0.4 0.4 1.0 1.3 2.4 2.4 
Three -month time deposits (end of period)  0.1 0.1 0.1 0.0 0.0 0.1 0.3 0.3 
AMCM base rate (end of period)  0.5 0.5 0.5 0.8 1.0 1.8 2.8 2.0 
Source:  AMCM , Statistics . Viewed at: https://www.amcm.gov.mo/en/research -statistics/statistics .  
1.27.   In the 2012 -15 period, the fast growth of the economy placed upward pressure on price levels, 
with the compos ite consumer price index (CPI) reach ing 6% or above in 2012 and 2014. After that, 
prices were in a downward trend, with CPI barely exceeding 1% in 2017, before increasing somewhat  
in 2018 . In 2019, the CPI rose by an average of 2.8% . 
1.28.   Following the apprecia tion of the U S dollar  vis-à-vis other major currencies, both the nominal 
and the real effective exchange rates generally appreciated during the period under review. The 
trade -weighted effective exchange rate index for the pataca grew 9.2 points betwee n 2012 
and 2019, to 106.9, implying that , overall, the exchange rate of the pataca advanced against the 
currencies of Macao , China 's major trading partners . 
1.29.   Subsequent to the initi ation of the COVID -19 pandemic, and due to the peg of the pataca to 
the Hong Kong dollar , the AMCM lowered the base r ate of the discount window on 4 March 2020 and 
16 March 2020 , by 50 and 64  basis points , respectively, reaching 0.86 %. Another reduction fo llowed  
and, at end -June 2020, Macao, China 's base rate stood at 0.5%.20 
1.2.4   Balance of payments  
1.30.   Macao, China posts a structural and substantial surplus in its current account of the balance 
of payments, which reached USD 1 7.7 billion in 201 9 (Table 1.6), equivalent to 3 2.9% of GDP 
(Table  1.7). Although Macao, China runs a systematic merchandise trade deficit (USD 11. 6 billion, 
or 21.5% of GDP , in 201 9), it posts a very large services balance surplus. This surplus reached 
 
19 IMF (2019), People 's Republic of China –Macao Special Administrative Region, 2019 Article IV 
Consultation Discussions; Press Release; Staff Report; and Statement by the Executive Director for Macao SAR,  
IMF Country Report No. 19/123, May 2019. Viewed at: 
https://www.imf.org/~/media/Files/Publications/CR/2019/1MACEA2019001.ashx . 
20 Under the linked exchange rate syste m, Macao, China's base rate is set at a par with 
Hong Kong,  China's, which is either 50 basis points above the lower end of the target range for the 
United  States' Federal Funds rate, or the average of the five -day moving averages of the overnight and 
one-month Hong Kong Interbank Offered Rates, whichever is higher.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  USD 38.5 billion in 2 019, equivalent to 7 1.4% of GDP. The predominant component of the current 
account is exports of travel services, principally comprising receipts from gaming and tourism 
services. The primary and secondary income balance s are traditionally in deficit, accou nting mostly 
for foreign companies ' earnings and foreign workers ' remittances abroad. The current account 
surplus is balanced by capital outflows in the financial account . In 201 9, international reserves 
covered 1 4.7 months of imports of goods and services . 
Table 1.6 Balance of payments, 2012 -19 
(USD billion)   2012  2013  2014  2015  2016  2017  2018  2019a 
Current account  16.8  20.5  18.6  11.0  12.3  15.9  18.5  17.7  
     Credit  41.6  49.7  51.4  40.0  39.2  46.1  52.8  53.7  
     Debit 24.8  29.2  32.9  29.1  26.9  30.2  34.3  36.0  
Goods  -9.0  -10.5  -11.8  -11.6  -10.1  -10.6  -11.3  -11.6  
     Exports  1.4  1.5  1.8  2.0  1.5  1.7  2.0  1.8  
     Imports  10.4  12.0  13.6  13.6  11.7  12.3  13.3  13.4  
Services  34.0  41.6  41.3  29.4  29.0  34.3  38.6  38.5  
     Exports  37.8  45.2  45.2  33.4  33.0  38.8  43.6  43.2  
     Imports  3.8  3.6  3.9  4.0  4.0  4.6  5.0  4.7  
Primary income  -6.8  -8.8  -8.8  -4.8  -4.4  -5.6  -6.1  -6.1  
     Receipts  2.3  2.9  4.4  4.6  4.6  5.3  7.0  8.6  
     Payments  9.2  11.6  13.1  9.4  9.0  10.8  13.1  14.7  
Secondary income  -1.4  -1.8  -2.2  -2.0  -2.1  -2.2  -2.7  -3.1  
     Receipts  0.1  0.1  0.1  0.1  0.1  0.2  0.2  0.2  
     Payments  1.4  1.9  2.2  2.1  2.2  2.4  2.9  3.3  
Capital account  -0.0  -0.0  -0.0  -0.0  -0.1  -0.0  -0.0  -0.0  
Financial accountb 18.7  17.7  11.7  6.0  12.4  14.5  12.1  11.9  
Financial non -reserve assets 
(net change)  15.0  18.2  11.6  3.6  11.9  14.3  12.3  10.4  
          Direct investmentc -2.5  -1.5  -1.1  -0.7  -1.9  1.2  -2.5  -4.8  
          Portfolio investment  2.9  12.4  5.7  12.2  3.0  10.5  -4.4  15.7  
          Financial derivatives  -0.1  -0.6  -0.3  -0.3  0.3  -0.3  -0.3  -0.6  
          Other investment  14.7  7.9  7.4  -7.5  10.5  2.9  19.6  0.0  
Reserve assetsd (net change)  3.8  -0.6  0.1  2.3  0.4  0.2  -0.3  1.5  
Errors and omissions  2.0  -2.8  -6.8  -5.0  0.1  -1.4  -6.4  -5.8  
Overall balance of payments  3.8  -0.6  0.1  2.3  0.4  0.2  -0.3  1.5  
a Preliminary.  
b "+" represents net increase in financial assets or net reduction in liabilities, indicating an outflow of 
funds; "-" represents net reduction in financial assets or net increase in liabilities, indicating an 
inflow of funds.  
c Since 2014, direct investment in cludes external real estate investment of individual Macao , China  
residents through bank remittances.  
d Excluding price and exchange rate changes , as well as other adjustments. Assets from the Fiscal 
Reserve, including the acquisition or disposal of external financial assets, are recorded under 
financial non -reserve assets.  
Source:  DSEC, Balance of Payments . Viewed at:  https://www.dsec.gov.mo/en -US/Statistic?id=904 ; AMCM, 
Statistics . Viewed at: https://www.amcm.gov.mo/en/research -statistics/statistics ; and informati on 
provided by the authorities . 
Table 1.7 Main external sector indicators, 2012 -20 Q1 
 2012  2013  2014  2015  2016  2017  2018  2019  2020  
Q1 
MOP per USD (period average)  8.0 8.0 8.0 8.0 8.0 8.0 8.1 8.1 8.0 
MOP per EUR (period average)  10.3 10.6 10.6 8.9 8.9 9.1 9.5 9.0 8.8 
MOP per RMB (period average)  1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.1 
Nominal trade -weighted effective 
exchange rate index, period 
average (% change, + = 
appreciation)  1.6 -0.1 0.6 7.0 1.5 -0.1 -2.5 3.0 2.4 
Current account (USD billion)a 16.8 20.5 18.6 11.0 12.3 15.9 18.5 17.7 .. 
Current account (% of GDP)  39.0 39.7 33.5 24.1 27.1 31.3 33.6 32.9 .. 
Trade in goods and services (% of 
GDP) 124.2  121.0  116.6  116.6  110.6  113.2  116.0  117.1  .. 
Foreign exchange reserve assets 
(USD billion, end of period)  16.6 16.1 16.4 18.9 19.5 20.2 20.3 22.2 22.1 
in months of imports  14.0 12.4 11.3 12.9 14.9 14.3 13.3 14.7 21.4 
Gross external debt (% of GDP)  118.6  117.7  133.1  198.9  171.8  171.8  185.7  .. .. WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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   2012  2013  2014  2015  2016  2017  2018  2019  2020  
Q1 
FDI         
  
Inward stock (USD million)  19,203  24,512  28,297  29,671  31,369  33,127  36,303  .. .. 
   (% of GDP)  44.6 47.5 51.1 65.4 69.1 65.3 65.9 .. .. 
Outward stock (USD million)  1,181  3,115  3,837  2,947  1,928  3,060  3,364  .. .. 
   (% of GDP)  2.7 6.0 6.9 6.5 4.2 6.0 6.1 .. .. 
Inward flows (USD million)  3,897  4,588  3,455  1,038  1,961  438 3,330  .. .. 
   (% of GDP)  9.1 8.9 6.2 2.3 4.3 0.9 6.0 .. .. 
Outward flows (USD million)  470 1,675  681 -876 -1,003  225 275 .. .. 
   (% of GDP)  1.1 3.2 1.2 -1.9 -2.2 0.4 0.5 .. .. 
.. Not available.   
a Preliminary.  
Source:  DSEC, Statistics Database . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx ; and 
AMCM , Statistics . Viewed at: https://www.amcm.gov.mo/en/research -statistics/statistics . 
1.31.   Although Macao, China has no public external debt, its gross external debt reached 186% of 
GDP in 2018, on account of the large private external debt (Table 1.7). This reflects the large inflows 
of private foreign capital, particularly destined to the gaming industry.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.3.1.1.1   Overview  
1.32.   Macao, China is a very open economy. In  2019, the share of trade (import and export of 
goods and services) in GDP was 117.1 %. During the period, the total amount of trade in goods 
posted an annual average growth rate of 4%, while those of total exports and imports were 6.7% 
and 3.7% , respectively. T he largest part of Macao, China 's merchandise exports are actually 
re-exports  (Chart  1.2). The share of re -exports in total exports increased during the review period. 
Re-exports accounted for 88.2% of total exports in 2019 (USD 1.3 billion), up from 72% i n 2012. 
This growth has been attributed to increased transit through Macao, China , partly explained by closer 
economic ties with Hong Kong, China and Mainland China. The authorities noted that this pattern of 
merchandise trade has been growing along with t he expanding economy of Macao, China , and that 
the growth in re -exports also owes to the free trade policy and the increasing demand for luxury 
goods in particular.  
Chart 1.2 Macao, China 's merchandise exports, 2012 -19 
(USD million)  
 
Source:  WTO Secretariat 's calculations, based on DSEC database.  
02004006008001,0001,2001,4001,6001,800
2012 2013 2014 2015 2016 2017 2018 2019Domestic exports Re-exports Total exportsChart 3.[Macao] Macao, China's merchandise exports, 2012 -19
Source: WTO Secretariat's calculations, based on DSEC database.(USD million)WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  1.3.1.1.2   Composition of trade  
1.33.   During the period under review, the merchandise trade deficit remained broadly stable. Total 
merchandise imports reached USD 1 1,167.8 million in 2019, up from USD 8,982.1 million in 2012 
(Table  A1.1 and Chart 1.3). Total merchandise exports increased, to USD 1 ,585.6 million in 201 9, 
almost 50% above the level in 2012 (Table A1. 2 and Chart 1.3).  
Chart 1.3 Product composition of merchandise trade , by HS section, 2012 and 2019  
 
Note:  Data in brackets refer to the HS section number.  
Source:  WTO calculations , based on data provided by the authorities; and UNSD Comtrade Database.  
Chart 1.[MAC]
Product composition of merchandise trade by HS section, 2012 and 2019
2012 2019
Confidential data
25.9%
Prepared food, 
beverages and 
tobacco (IV)
6.0%
Chemicals 
(VI) 5.1%
Textiles and 
textile 
articles (XI)
7.9%
Precious stones
& metals (XIV)
8.6%Machinery, electrical 
machines (XVI)
23.3%Precision 
equipment 
(XVIII) 9.4%Miscellaneous 
manufactured 
articles (XX)
3.5%Other
6.3%
Raw hides 
and skins; 
leather (VIII) 
3.9%
Total:   USD 1,020.5 million Total:  USD 1,585.6 million
Mineral fuels
and oils (V)
11.0%
Chemicals (VI) 
5.7%
Textiles and 
textile 
articles
(XI) 4.6%Precious stones
& metals 
(XIV)
13.2% Miscellaneous 
manufactured 
articles (XX)
3.8%
Raw hides and 
skins; leather 
(VIII)
6.4%Confidential 
data 
0.04%
Precision 
equipment 
(XVIII) 8.2% Live animals and 
products (I) 
3.3%Other 
13.0%Confidential 
data 
4.3%
Prepared 
food, 
beverages 
and tobacco 
(IV) 10.5%
Mineral 
fuels
and oils (V)
5.6%
Chemicals (VI) 
13.7%
Raw hides and 
skins; leather 
(VIII)
5.9%Textiles and 
textile 
articles
(XI) 6.4%Precious stones
& metals 
(XIV)
9.8% Machinery, 
electrical 
machines 
(XVI)
14.1%Precision 
equipment 
(XVIII) 8.4%Miscellaneous 
manufactured 
articles (XX)
3.9%
Live animals and 
products (I) 
4.4%
Total:   USD 8,982.1 million Total:   USD 11,167.8 million
WTO Secretariat's calculations, based on data provided by the authorities; and UNSD, Comtrade 
database. Other 
14.7%Other
5.8%
Confidential data
36.4%
Textiles and 
textile articles 
(XI)
11.4%
Machinery, electrical 
machines (XVI)
23.7%
Machinery, 
electrical 
machines (XVI)
19.4%Prepared food, 
beverages and 
tobacco (IV) 
9.6%Precious stones
& metals (XIV)
3.3%Exports including re -exports (f.o.b.) 
Imports (c.i.f.) 
Source:Chemicals (VI) 
0.5%Prepared food, 
beverages and 
tobacco (IV)
10.9%
Precision 
equipment 
(XVIII) 0.1%Miscellaneous 
manufactured 
articles (XX)
5.0%Raw hides 
and skins; 
leather (VIII) 
3.0%WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  1.34.   Machinery and electronic equipment continue to be the main export items; they  accounted 
for 23.3% of total exports in 201 9 (23.7% in 2012),  followed by precision equipment, an export 
industry that developed recently and which represented 9.4% of total exports in 2019, compared to 
just 0.1% in 2012. Other export products include precious stones and metals, that accounted for 
8.6% of total exports in 2019 (3.3% in 2012), textiles and clot hing (7.9% in 2019, 11.4% in 2012), 
and prepared food, beverages and tobacco (6.0% in 2019, 10.9 % in 2012), and by exports 
categorized as "other " (6.3% of total exports in 201 9), which comprise articles for casinos, electrical 
and electronic components an d parts for electro -technical use, glass and glassware, travel goods,  
and handbags and related products.  
1.35.   A particular feature of Macao, China 's trade accounts is the large share of exports classified 
as "confidential ", for which detailed information is no t provided, as this information is protected by 
Macao, China 's statistical secrecy laws and regulations. Non-disclosed "confidential " statistics 
accounted for about 2 5.9% of total exports in 201 9, down from 36.4% in 2012 (Chart 1.3). The 
authorities indica ted that, d ue to the relatively small size of the Macao , China  manufacturing sector, 
many of the export products, especially at the HS eight-digit level, are produced by less than 
three  manufacturers. Hence, those products must be classified as confidentia l in accordance with 
Article 8 of Governor 's Decision No. 242/GM/99.  
1.36.   Imports of manufactures accounted for the largest share of merchandise imports  during the 
review period . The composition of imports is relatively diversified: in 2019 , the largest components 
were machinery and electrical machines, with 14.1% of the total, compared with 19.4% in 2012, 
followed by chemicals (13.7%  in 2019 ); prepared food, beverages and tobacco (10.5%); and 
precious stones and metals (9.8%) ( Chart 1. 3 and Table A1. 1).  
1.3.1.1.3   Direction of merchandise trade  
1.37.   The major trading partners of Macao, China as regards imports are Mainland China ; the 
European Union ; Switzerland; Japan ; Hong Kong, China ; and the United States  (Chart 1.4, 
Table  A1.3). China remained the large st source of merchandise imports , with a 31.3% share in 2019, 
slightly down from  32.3% in 201 2 (Chart  1.4). Imports from Europe continued to expand during the 
review period ; the share of the EU-28 increased from 23.7% in 20 12 to 27.3% in 201 9, while the 
share from Switzerland declined slightly from 7.9% to 7. 6%. Growth of import  values  from the 
European Union and Switzerland continued to reflect a strong local demand for  high-end consumer 
goods , such as watch es, clock s, and  jewellery , somewhat linked  to the hospitality and gaming 
industries . Imports from Hong,  Kong,  China represented 6.2% of total imports in 2019 (11.4% in 
2012), while those from Japan represented 6.7% (5.9% in 2012) and from the United States, 4.7% 
(5.5% in  2012).  
1.38.   The main markets  for merchandise exports  continue to be Hong Kong , China;  and China 
(Chart 1 .4, Table A1. 4). The share of exports going to Hong Kong , China rose sharply during  the 
review period, consolidating its position as the top destination for Macao, China 's merchandis e 
exports ; this share reached 60.0% of the total in 2019, up from 39.7% in 20 12. 
1.39.   The share of China as an export destination for M acao, China 's merchandise goods  declined 
slightly during the review period, to 8.4% in 2019 from 11.0% in 2012, but the value exported 
increased . The authorities noted that the implementation of the Agreement on Trade in Goods of the 
Mainland and Macao Closer Economic Partnership Arrang ement (CEPA), signed in December 2018, 
was a factor supporting trade between Mainland China and Macao, China. Since the CEPA entered 
into force in January 2019, there has been a strong demand for certificates of origin to be able to 
export under the benefi ts of the Agreement (Section 2.3.3.1).  
1.3.1.2   Trade in services  
1.40.   As noted above, Macao, China runs a very large services balance surplus, which in 2019 
totalled USD 38.5 billion, and was equivalent to 71.4% of GDP. Services exports reached 
USD 43.2 billion  in 2019 , and accounted for 96.0% of Macao, China 's total exports  of goods and 
services. Travel  exports,  which includ es gaming exports  and tourism,  reached USD 39.7 billion,  and 
account ed for 92% of total exports of services (Table 1.8 ). This amount is some 10.3% higher than 
the value of exports in 2012 but is well belo w the USD 43.1 billion  peak recorded in 2013. In 2015 
and 2016, travel exports suffered a sharp decline , linked with lower gaming revenues; revenue WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  started increasing again in 2017 and, particularly, 2018, but declined somewhat in 2019. Exports of 
financia l services reached USD 1,445 million in 2019, almost triple their 2012  level. Transportation 
is the third -largest services export sector with USD 660 million in 201 9. 
1.41.   The largest services imports by Macao , China (USD 4.7 billion in 2019) are travel, other 
business services , which  contains mostly auxiliary services related to the operations of casinos,  and 
financial services.  
Chart 1.4 Direction of merchandise trade, 2012 and 2019  
 
Source:  WTO calculations , based on data provided by the authorities ; and UNSD Comtrade database.  
Chart 1.[MAC]  Direction of merchandise trade, 2012 and 2019
2012 2019
Exports including re -exports (f.o.b.) 
Confidential 
data
36.4%Confidential 
data
25.9%China 8.4%EU-28
0.5%Other
3.2%United States
1.9%
Hong Kong, China 
60.0%
Total:   USD 1,020.5 million Total: USD 1,585.6 million
EU-28
23.7%
China
32.3%United States
5.5%Other
10.9%
Hong Kong, 
China
11.4%
Switzerland
7.9%Confidential 
data
0.04%
EU-28
27.3%
China
31.3%United States
4.7%
Japan 6.7%Other
9.7%
Switzerland
7.6%Hong Kong, 
China
6.2%Korea, Rep. of
2.3%Confidential 
data
4.3%
Total:   USD 8,982.1 million Total:   USD 11,167.8 millionUnited States
4.4%
Hong Kong, China 
39.7%
Japan 
5.9%EU-28
2.6%
China 11.0%Other
5.9%
Korea, Rep. of
2.4%Imports (c.i.f.) 
Source: WTO Secretariat's calculations, based on data provided by the authorities; and UNSD, Comtrade 
database. WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 1.8 Services trade, 2012 -19 
(USD million)  
  2012  2013  2014  2015  2016  2017  2018  2019a 
Net exports  33,995  41,598  41,337  29,416  29,014  34,261  38,613  38,451  
Exports  37,805  45,233  45,224  33,384  32,989  38,826  43,645  43,160  
Manufacturing services on 
physical inputs owned by 
others  2 2 3 1 2 .. .. .. 
Maintenance and repair 
services n.i.e.  5 4 6 30 28 .. .. .. 
Transport  584 620 627 579 589 584 678 660 
Travel  36,013  43,133  42,738  30,981  30,492  35,921  40,707  39,714  
Insurance and pension 
services  51 64 92 173 435 468 378 615 
Financial services  554 803 1,086  1,093  931 956 1,171  1,445  
Telecommunication, 
computer, and information 
services  67 57 56 53 47 .. .. .. 
Other business services  528 549 617 462 462 .. .. .. 
Personal, cultural, and 
recreational services  0 0 0 11 4 .. .. .. 
Imports  3,810  3,635  3,887  3,968  3,975  4,565  5,032  4,709  
Manufacturing services on 
physical inputs owned by 
others  60 58 36 39 37 .. .. .. 
Maintenance and repair 
services n.i.e.  109 121 117 110 108 .. .. .. 
Transport  384 438 501 478 428 430 478 492 
Travel  1,083  1,132  1,213  1,227  1,223  1,288  1,386  1,471  
Construction  608 83 0 233 138 .. .. .. 
Insurance and pension 
services  136 161 170 168 161 180 203 332 
Financial services  371 350 354 441 569 638 642 688 
Charges for the use of 
intellectual property n.i.e.  221 221 204 169 174 .. .. .. 
Telecommunication, 
computer, and information 
services  88 90 101 104 114 .. .. .. 
Other business services  634 853 1,039  797 815 .. .. .. 
Personal, cultural, and 
recreational services  0 0 0 32 37 .. .. .. 
Government goods and 
services n.i.e.  116 126 151 170 174 .. .. .. 
.. Not available.  
a Preliminary.  
Source:  DSEC, Balance of Payments . Viewed at: 
https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=a927b18a -f495-45af-859a-888a00681867 ; 
AMCM, Statistics . Viewed at: https://www.amcm.gov.mo/en/research -statistics/statistics ; and 
information provided by the authorities.  
1.3.2   Trends and patterns in FDI  
1.42.   During the period under review, Macao, China continued to maintain a positive inflow of 
foreign direct investment ( FDI) (Table 1.9 ). They continued to be directed  mainly to the gaming 
sector , although , in 2015 and 2017 , there were negative inward flows of FDI in gaming. According 
to the authorities, the negative inward flows  of FDI in gaming in 2015 were due to a decline in profits 
and to the fact that dividends paid exceeded profits made in the year. As for the negative inward 
flows of FDI registered in 2017 were mainly due to a reduction in the amount of reinvestment , 
resulting from a distri bution of dividends by some gaming enterprises, as well as to the repayment 
of loans from foreign direct investors and fellow companies abroad.  
1.43.   Although FDI inflows shrank in 2017, they increased in 2018, reach ing USD 3,330  million, on 
account of the incre ase in profits retained for investment by foreign direct investors in the gaming 
sector , and by banks. In 2018, there was a strong FDI inflow into gaming activities, totall ing 
USD 2,357  million . Macao, China is also a net recipient of financial -sector FDI.  The British Virgin 
Islands ( a number of enterprises , including gaming companies , are registered there ); 
Hong Kong, China; and Mainland China  are traditionally ma in sources  of FDI into Macao , China .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 1.9 FDI flows, 2012 -18 
(USD million)  
 2012  2013  2014  2015  2016  2017  2018  
Inward flows in to Macao, China  3,897  4,588  3,455  1,038  1,961  438 3,330  
  By industry         
     Industrial production  -6 32 4 41 97 17 48 
     Construction  14 115 123 346 330 25 61 
     Wholesale and retail  473 169 489 420 225 -169 270 
     Hotels and restaurants  60 36 74 -87 66 25 23 
     Transport, storage and communications  -104 51 55 129 70 32 75 
     Gaming  2,590  3,482  1,557  -872 236 -483 2,357  
     Banks and other financial activities  501 466 621 975 618 499 748 
     Insurance  49 124 56 109 449 165 166 
Real estate development, leasing and 
sale activitiesa n.a. n.a. n.a. n.a. n.a. 392 -143 
     Other  320 112 475 -24 -132 -66 -273 
  By main partners         
     Hong Kong, China  1,086  928 751 416 1,218  607 504 
     British Virgin Islands  1,487  1,450  1,081  336 515 935 1,306  
     Mainland China  258 365 567 903 640 413 736 
     Cayman Islands  519 1,672  720 -916 -1,128  -1,194  654 
     European Union  471 101 20 86 248 -57 0 
     Portugal  230 65 40 66 36 -3 32 
     United Kingdom  197 63 -39 -56 186 -34 -29 
     Bermuda  199 222 -106 -8 31 144 50 
     Chinese Taipei  -84 5 16 129 67 -88 24 
     United States  20 -160 385 64 299 -301 26 
Outward flows from Macao, China  470 1,675  681 -876 -1,003  225 275 
  By industry         
     Industrial production  -2 2 -13 27 58 49 7 
     Construction  -5 0 -34 0 12 2 -4 
     Wholesale and retail  99 -78 37 26 44 -121 -41 
     Transport, storage and communications  -1 -3 4 1 -1 c c 
     Gaming  380 1,750  692 -930 -1,281  -365 128 
Real estate development, leasing and 
sale activitiesa n.a. n.a. n.a. n.a. n.a. -8 -91 
     Other  -2 3 -4 -2 166 669 276 
  By main partners         
     Mainland China  89 -72 5 15 191 521 203 
     Hong Kong, China  41 -2 36 21 110 210 131 
     British Virgin Islands  [..] 900 71 -860 3 -59 -124 
     Other  340 848 570 -53 -1,307  -447 65 
     Belt and Road countries/ territoriesb n.a. n.a. n.a. n.a. 0 -4 2 
n.a. Not applicable.  
a In 2017, the coverage of Direct Investment Statistics was extended to "Real Estate Development, 
Leasing & Sale Activities ", and the industrial classification of some enterprises was adjusted; 
therefore, it is not appropriate to make a direct comparison of data from 2017 onwards with those of 
previous years.  
b Including countries/territories that have signed cooperation agreements with China under the Belt 
and Road Initiative framework during the reference year.  
c Data included in "other ". 
Note:  Converted from pataca  to US  dollars  according to the period -end exchange rate.  
Source:  DSEC, Direct investment  Statistics . Viewed at:  
https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=32c3aaa0 -214e-4130-b2d8-165ca32ea0f2 . 
1.44.   The stock of total FDI into Macao, China increased from US D 19.2 billion in 20 12 to 
USD 36.3 billion in 201 8. Gaming accounted for 45.3% of the FDI stock, followed by the financial 
sector , with 25.2% , and wholesale and retail , with 11.4% (Table 1.10).  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 1.10 FDI stock, 2012 -18 
(USD million and % of total)  
 2012  2013  2014  2015  2016  2017  2018  % of 
total 
2012  % of 
total 
2018  
Inward stock in to 
Macao, China  19,203  24,512  28,297  29,671  31,369  33,127  36,303  100.0  100.0  
By industry           
   Industrial production  378 432 450 491 625 646 694 2.0 1.9 
   Construction  420 542 608 1,149  1,425  1,375  1,424  2.2 3.9 
   Wholesale and retail  1,909  2,088  2,806  3,280  3,546  3,883  4,140  9.9 11.4 
   Hotels and restaurants  114 268 334 248 311 154 181 0.6 0.5 
   Transport, storage  and 
communications  11 656 678 819 946 958 1,029  0.1 2.8 
   Gaming  10,923  14,322  15,956  15,038  15,039  13,982  16,428  56.9 45.3 
Banks and other 
financial activities  3,468  4,003  4,737  5,818  6,368  7,004  7,625  18.1 21.0 
   Insurance  383 506 557 656 1,090  1,451  1,527  2.0 4.2 
Real estate 
development, leasing 
and sale activitiesa n.a. n.a. n.a. n.a. n.a. 2,796  2,648  n.a. 7.3 
   Other  1,597  1,695  2,171  2,170  2,019  878 605 8.3 1.7 
By main partners           
   Hong Kong, China  4,868  5,890  6,770  7,444  8,592  9,763  10,418  25.4 28.7 
   British Virgin Islands  3,779  5,476  6,573  6,888  7,390  8,735  10,016  19.7 27.6 
   Mainland China  2,313  2,665  3,294  4,326  4,901  5,825  6,362  12.0 17.5 
   Cayman Islands  6,630  8,260  9,053  8,126  6,807  5,243  5,711  34.5 15.7 
   European Union, of 
which:  1,492  1,456  1,551  1,649  1,881  1,837  1,931  7.8 5.3 
      Portugal  867 922 1,026  1,087  1,133  1,105  1,134  4.5 3.1 
      United Kingdom  480 433 395 342 504 502 568 2.5 1.6 
   Bermuda  426 632 530 520 547 710 759 2.2 2.1 
   Chinese Taipei  -379 221 241 370 495 403 443 n.a. 1.2 
   United States  70 -88 291 343 676 370 395 0.4 1.1 
Outward stock from 
Macao, China  1,181  3,115  3,837  2,947  1,928  3,060  3,364  100.0  100.0   
By industry           
   Industrial production  18 25 70 105 163 212 202 1.5 6.0 
   Construction  38 38 4 5 16 19 17 3.2 0.5 
   Wholesale and retail  319 498 422 424 458 496 463 27.0 13.8 
   Transport, storage and 
communications  8 6 10 12 11 c c 0.7 c 
   Gaming  781 2,528  3,219  2,292  1,008  636 762 66.1 22.7 
   Real estate 
development, leasing 
and sale activitiesa n.a. n.a. n.a. n.a. n.a. 556 510 n.a. 15.2 
   Other  17 20 111 110 273 1,141  1,409  1.4 41.9 
By main partners           
   Mainland China  387 576 555 571 747 2,080  2,313  32.8 68.8 
   Hong Kong, China  598 595 698 703 812 1,063  1,228  50.6 36.5 
   British Virgin Islands  .. 702 772 -87 -83 -142 -257 n.a. -7.6 
   Other  196 1,242  1,812  1,759  453 60 80 16.6 2.4 
Memo: Belt and Road 
countries/territoriesb n.a. n.a. n.a. n.a. 0 15 3 n.a. 0.1 
.. Not available.  
n.a. Not applicable.  
a In 2017, the coverage of Direct Investment Statistics was extended to "Real Estate Development, 
Leasing & Sale Activities ", and the industrial classification of some enterprises was adjusted; 
therefore, it is not appropriate to make a direct comparison of data from 2017 onwards with those of 
previous years.  
b Including countries/territories that have signed cooperation agreeme nts with China under the Belt 
and Road Initiative framework during the reference year.  
c Data included in "other ". 
Source:  DSEC, Direct Investment  Statistics . Viewed at: 
https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=32c3aaa0 -214e-4130-b2d8-165ca32ea0f2 . 
 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  Macao, China is governed by the Basic Law, which serves as its constitutional document. Under 
the principle of "One Country, Two Systems ", the Basic Law provides for independent executive, 
legislative and judicial powers in Macao, China, and gives it autonomy in most areas of government. 
Accordingly, Macao,  China maintains its status as a free port and a separate customs territory, 
applies an independent taxation system, and has its own legal currency. Since the previous Review 
in 2013, there has been no significant change to the constitutional framework.  
2.2.  The executive branch of the Government comprises the Chief Executive and the Executive 
Council. The Chief Executive is the head of Government , and has the power to make and execute 
policies, and to initiate legislation. His/her term of office is five years and is limited to two consecutive 
terms. The Chief Executive appoints the Executive Co uncil, comprising of between 7 and 
11 members , to assist in policy -making.1 The Government is responsible for formulating and 
implementing policies; conducting administrative affairs and external relations, as authorized under 
the Basic Law; drawing up an d introducing budgets and final accounts; and drafting bills and 
administrative regulations.2 
2.3.  Legislative power is vested in the 33-member Legislative Assembly. Its main functions include : 
enact ing laws; examin ing and approv ing budgetary matters ; deciding on taxation issues ; monitor ing 
the Government 's performance ; and debat ing issues of public interest.3 Laws passed by the 
Assembly take effect after they have been signed and promulgated by the Chief Executive.  
2.4.  The judiciary power comprises three layers:  Courts of First Instance (the Lower Court and the 
Administrative Court), a Court of Second Instance, and a Court of Final Appeal. The Lower Court can 
form specialized tribunals, as required. The Administrative Court has jurisdiction over administrative, 
tax, customs and excise matters. Court judges are selected by an independent commission , and 
appointed by the Chief Executive.  
2.5.  The legal system is based on civil law. The Basic Law is at the top of the hierarchy, followed by 
international conventional law,  and ordinary legislation (laws and decree -laws). The Chief Executive 
may issue administrative regulations, orders , and executive orders and decisions in accordance with 
laws or decree -laws. International law and applicable international treaties to which Macao, China is 
a signatory are directly integrated into the legal system, i.e. they do not need to be incorporated 
into domestic law in order to have legal effect. The application to Macao, China of international 
agreements to which China is , or becomes , a party is decided by the Central People 's Government 
of China, in accordance with the circumstances and needs of Macao, China, after seeking the views 
of the local government.4 
2.2  Trade Policy Formulation and Objectives  
2.6.  As stipulated in its Basic Law, Macao , China has the status of a free port, pursues a policy of 
free trade, and safeguards the free movement of goods, intangible assets, and capital.5 Moreover, 
as a separate customs territory, it may maintain relations , and conclude and implement agreements , 
with foreign states and regions in fields such as economics, trade, financial and monetary matters, 
shipping, communications, tourism, culture, science and technology, and sports. It may also 
participate in relevant international organizations under the n ame "Macao, China "; hence, it has a 
separate status in 10 international organizations, including the WTO, the World Customs 
Organization, and the UN Economic and Social Commission in Asia and the Pacific.6   
2.7.  Responsibility for trade policy formulation rests with the Secretary for Economy and Finance 
(Secretário para a Economia e Finanças  (SEF)), who is nominated by the Chief Executive  and 
 
1 Articles 56 and 57 of the Basic Law.  
2 Article 64 of the Basic Law.  
3 Article 71 of the Basic Law.  
4 Article 138 of the Basic Law.  
5 Articles 110 and 111 of the Basic Law.  
6 Macao, China is n ot a member of international financial institutions such as the IMF and the Asian 
Development Bank.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  appointed by the Central People 's Government  of China . Several government  agencies assist the 
Office of the SEF in formulating and implementing trade -related policies, including, but not limited 
to:  
• the Macao Economic Bureau ( Direcção dos Serviços de Economia  (DSE)); 
• the Financial Services Bureau ( Direcção dos Serviços de Fina nças (DSF));  
• the Gaming Inspection and Coordination Bureau ( Direcção de Inspecção e Coordenação 
de Jogos  (DICJ)); 
• the Statistics and Census Bureau ( Direcção dos Serviços de Estatística e Censos  (DSEC) );  
• the Consumer Council ( Conselho  de Consumidores  (CC)); 
• the Macao Trade and Investment Promotion Institute ( Instituto de Promoção do Comércio 
e do Investimento de Macau  (IPIM)); and  
• the Monetary Authority  of Macau ( Autoridade Monetária de Macau  (AMCM )). 
2.8.  The DSE is the main body responsi ble for assisting the Government in the study, formulation 
and implementation of economic policies, including with regard to trade, intellectual property, and 
other areas of the economy. Its main duties include : formulat ing and implement ing measures 
conduc ive to the moderate diversification of the economy and the promotion of industrial and 
commercial development; administer ing foreign trade regulations and issu ing the required licences 
and certificates of origin; plan ning and coordinat ing the participation  of Macao, China in international 
economic organizations and fora; assist ing in making and implementing intellectual property 
policies; issu ing licences for industrial establishments and other businesses; enforc ing consumption 
tax regulations; and promot ing and maintain ing a fair business environment.7 In addition, as per 
Administrative Regulation No. 25/2017, the DSE has been mandated to assist in researching trends, 
strategies and factors conducive to economic de velopment and industrial activity , and to submit 
proposals thereon.  
2.9.  The private sector, through bodies such as trade and industry associations, and representatives 
of the academic community and civil society may provide comments on aspects of trade policy  to 
the Government through various channels, including the legislature, the media, editorials, meetings 
with government officials , and public consultations. The Chief Executive Decision on the Standard 
Guidelines on Public Policy Consultations, issued in 2 011, sets the procedures and time -frames for 
interested parties to provide comments on proposed new laws and policies, or their amendment s.8 
As per the Guidelines, the authority conducting public consultations identifies, based on the 
characteristics of the policy concerned , the groups to be consulted, which normally comprise the 
general public, organizations , and advisory bodies.  
2.10.   As a small,  trade -dependent economy, Macao, China remains committed to open, 
market -driven economic and trade policies. By virtue of its free -port status, it applies a zero -rated 
tariff on all imports, and only imposes import/export prohibitions or restrictions on he alth, safety, 
security or environmental protection grounds, or to comply with its international commitments.  
2.11.   The economic policy objectives of Macao, China are established in its first Five -Year 
Development Plan, currently covering the period 2016 -20. The Plan's central goal is to achieve the 
vision of Macao, China as "One Centre, One Platform ", i.e. to transform it into a world -class tourism 
and leisure city, which is safe, healthy, smart, culturally enriched , and under good governance ( "One 
Centre "), and to raise its status and influence in regional and international exchanges ( "One 
Platform ").9  
 
7 DSE, Mission and Duties . Viewed at: 
https://www.economia.gov.mo/en_US /web/public/pg_dse_md?_refresh=true . 
8 Chief Executive Decision No. 224/2011 of 15 August 2011.  
9 Government of Macao SAR, The Five -Year Development Plan of the Macao Special Administrative 
Region (2016 -2020) . Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  2.12.   One of the main economic policies enshrined in the Plan is to promote "moderate economic 
diversification ". Since the tourism and gaming industries are already th e main pillars of the economy, 
the objective is to guide their development away from an excessive reliance on high -end gaming 
and into more sustainable tourism activities. To this end, it is envisaged to regulate the scale of the 
gaming sector, to encourag e gaming companies to explore non -gaming businesses, and to introduce 
more elements of leisure tourism into the gaming business.10 At the same time, efforts are geared 
towards  assist ing the development of gaming -related industries , such as hotels, catering  and retail. 
Special emphasis is placed on fostering the development of emerging industries, including the 
meetings, incentives, convention s and exhibitions industry (MICE industry), cultural and creative 
industries, traditional Chinese medicine (Section 4 ), and specialized or feature financial services.  
2.13.   Other policies to support economic development envisaged in the Plan are: to improve the 
business environment and enhance support for SMEs; to foster economic and trade cooperation 
between Mainland China, t he Portuguese -speaking countries (PSCs)11 and Macao, China; to intensify 
participation in the Belt and Road Initiative and the Guangdong -Hong Kong -Macao Greater Bay Area 
Development Plan, and to deepen regional economic cooperation.  
2.14.   The main legislation on  external trade remains the Foreign Trade Law (Law No.  7/2003), 
which establishes the general principles of foreign trade and regulates the procedures for the 
importation, exportation and transit of goods to, from,  and through  Macao, China. The Law was 
amended in June 2016 through Law No. 3/2016. In line with efforts to promote economic 
diversification, the amendment seeks to simplify customs clearance for operations covered under 
the Temporary Admission of Goods ( ATA) Convention (using the ATA Carnet), thu s facilitating the 
temporary admission of goods and equipment used in the MICE industry, and to increase trade with 
neighbouring regions. In addition, the amendment introduced a transit licence regime , and simplified 
the appeals procedure against administr ative and customs -related acts (Section 3.1.1). Table 2.1 
shows some of the main trade - and investment -related legislation issued, amended or revised since 
the last Review.  
Table 2.1 Main trade -related legislation issued/amended/revised since 2013  
Date of 
publication  Legislation  Content  
External trade    
4 July 2016  Law No. 3/2016  
(amendment to Foreign 
Trade Law No. 7/2003)  • Incorporat es the ATA carnet as an integral part of the legal 
regime established by the Foreign Trade Law ; 
• Introduc es the transit licen ce as the legal document for 
goods subject to transit control in Macao, China ; 
• Remov es export licensing requirements for exports of textile s 
and garments destined for Canada, the European Union, 
Norway, Turkey , and the United States.  
18 July 2016  Administrative Regulation 
No. 19/2016 (amendment 
to Administrative 
Regulation on Foreign 
Trade Activities  
No. 28/2003)  • The Transport Bureau replace d the Macao Economic Bureau 
as the regulator y body issuing import licen ces for vehicles ; 
• Introduc es expeditious clearance procedures  for goods 
subject to import /export declaration s, allowing traders to 
complete clearance before submitting declaration s by 
electronic means.  
18 July 2016  Administrative Regulation 
No. 20/2016 (amendment 
to Administrative 
Regulation on Rules of 
Origin  No. 29/2003)  • Waives charges on the issue of Certificate s of Origin (CO s); 
• Allow s electronic submission of CO application s; 
• The e xport licen ce requirement is replaced by an export 
declaration in the application for CO for textile and clothing 
products.  
28 December 2016  Chief Executive Decision 
No. 487/2016 (replace d 
the Chief Executive  
Decision No.  255/2016)  Contains 3 annexes setting  the products subject to licensing:  
• Annex I – products for which the licensing requirement is 
waived only for individual daily consumption  purposes;  
• Annex II , Table A – products subject to export licen ce; 
• Annex II , Table B – products subject to import licen ce 
(petroleum products added); 
• Annex III – products subject to SPS measures.  
28 October 2016  Chief Executive Decision 
No. 67/2016  6th edition of the Nomenclature for the External Trade of 
Macao/Harmonised System . 
 
10 A specific target is for the gaming industry to increase the proportion of its revenue derived from 
non-gaming activities from  6.6% in 2014 to 9.0% in 2020.  
11 The goal is to increase by 10% total trade with PSCs between 2015 and 2020.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Date of 
publication  Legislation  Content  
Import prohibitions, restrictions, and licensing  
12 December 2016  Chief Executive Decision 
No. 410/2016  Bans all import s and transhipment o f hazardous wastes , as 
listed in Annex I of the Basel Convention on the Control of 
Transboundary Movements of Hazardous Wastes and their 
Disposal.  
22 May 2017  Law No. 2/2017, CITES 
enforcement law (replaced 
Decree -law No. 45/86/M)  • Revis es fines and penalties for violation o f the CITES law;  
• Establish es a compulsory registration system for four types of 
CITES stakeholders;  
• Designat es the Municipal Affairs Bureau as the CITES 
scientific authority in Macao, China.  
5 June 2017  Administrative Regulation 
No. 19/2017 
(supplementary  regulation 
to CITES enforcement law)  Outline s import  and export procedures, and the compulsory 
registration procedures for: (i) CITES traders ; (ii) captive 
breeders and nurserymen of CITES specimens ; (iii) 
taxidermists of CITES Annex I specimens ; and ( iv) scientific 
institutions.  
13 March 2017  Chief Executive Decision 
No. 51/2017 ( regulating 
the import, export and 
transit of hazardous 
goods)  This Decision mandat es importers to indicate the handling 
details of the hazardous goods annexed to this Decision, 
including  transportation means, routes, and storage location , 
prior to import.  
8 April 2014  
28 December 2016  
27 May 2019  Law No. 4/2014,  
Law No. 10/2016,  
Law No. 10/2019  
(all amendments  to Law 
No. 17/2009)  "The Prohibition of Illicit Production, Supply and Consumption 
of Narcotic Drugs and Psychotropic Substances " was revised, as 
a result of the revision of the table of drugs and substances 
listed in the U N Convention against Illicit Tra ffic in Narcotic 
Drug and Psychotropic Substances, 1988.  
1 April 2019  Chief Executive Decision 
No. 45/2019 ( replaced 
Government Decision 
No. 219/98/M)  Prohibits the import of used motor vehicles, and used engines 
and chassis of motor vehicles for public h ealth and 
environmental reasons , with the exception of six circumstances 
as listed in the Decision.  
8 April 2019  Chief Executive Decision 
No. 48/2019  (prohibition 
of import and transit trade 
of asbestos)  Bans the import of asbestos , for public health and 
environmental reasons , with the exception of seven  types of 
products for laboratory testing and research , and seven types 
of products  containing asbestos for which no substitutes exist .  
20 May 2019  Chief Executive Decision 
No. 81/2 019 ( revised the 
emission level as annexed 
to the existing 
Administrative Regulation 
No. 1/2012)  Prohibits the import of brand -new automobile vehicles and 
engines whose emission s do not meet the EURO VI level.  
19 August 2019  Law No. 15/2019 on 
Implementation of the 
Kimberley Process 
Certification Scheme 
(KPCS) for the 
International Trade in 
Rough Diamonds  Sets out the legal requirements and rules governing 
international trade in rough diamonds , in compliance with the 
KPCS and domestic laws.  
9 September 2019  Administrative Regulation 
No. 15/2019 
(Supplementary 
Regulation to Law No. 
15/2019  (above) ) Establishes the procedures under which licen ces and K imberley 
Process  certificates are issued, documents are submitted, and 
on the  customs inspection process.  
21 October 2019  Chief Executive Decision 
No. 164/2019  Bans the import and transshipment of chemicals listed in the 
Stockholm Convention on Persistent Organic Pollutants . 
Source:  Information provided by the authorities.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.15.   Macao, China is an original Member of the WTO.12 It is committed to the multilateral trading 
system , and upholds the basic WTO principles of non -discrimination, predictability and transparency, 
 
12 The Republic of Portugal, on behalf of Macao, China, ratified the Marrakesh Agreement Establishing 
the World Trade Organization and the Final Ac t Embodying the Results of the Uruguay Round of Multilateral 
Trade Negotiations through the Order of the President of the Republic of Portugal of 7 December 1994, and 
ratified the Fifth Protocol to the General Agreement on Trade in Services through the Ord er of the President of 
the Republic of Portugal of 8 November 1999. The People's Republic of China notified the Secretary -General of 
the United Nations, on 13 December 1999, that the above Agreements would continue to apply to the Macao 
Special Administrat ive Region from 20 December 1999.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  which it considers important elements for a stable trading system. The authorities indicate d that 
Macao, China supports the necessary reform of the WTO so as to overcome its current crisis, enhance 
its authority and efficacy, and increase its relevance in global economic governance. In their view, 
the reform should be based on three basic principles: first, it should preserve such core values of 
the multilateral trading system as non -discrimination and openness; second, it should safeguard the 
development interests of developing Members; and third, i t should follow the practice of decision -
making by consensus. As regards its transparency obligations, Macao, China has regularly submitted 
up-to-date notifications concerning changes to its legislation and trade policies covered under the 
WTO Agreements ( Table 2.2).  
Table 2.2 Selected notifications under the WTO agreements, 01/01/2014 -15/06/2020  
Agreement  Description  Frequency  WTO document (most recent , if 
submitted regularly)  
Agreement on Agriculture  
Articles 10 and 18.2 - 
ES:1 Export subsidies  Annual  G/AG/N/MAC/44, 03/05/2019  
Article 18.2 - DS:1 Domestic support  Annual  G/AG/N/MAC/45, 03/05/2019  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex  B Regulations  Ad hoc  G/SPS/N/MAC/12, 13/10/2014 to  
G/SPS/N/MAC/25, 06/05/2020  
Agreement on Import Licensing Procedures  
Article 1.4(a) and 8.2(b)  Publication and 
legislation  Once; ad 
hoc for 
changes 
made 
thereafter  G/LIC/N/1/MAC/8, 21/08/2018  
Article 7.3  Replies to the 
questionnaire  Annual  G/LIC/N/3/MAC/22, 27/05/2019;  
G/LIC/N/3/MAC/22/Corr.1, 17/10/2019  
Agreement on Rules of Origin  
Paragraph 4 of Annex  II Preferential rules of 
origin  Ad hoc  G/RO/N/170, 24/05/2018; G/RO/N/187, 
20/09/2019  
Agreement on Subsidies and Countervailing Measures  
Article 25.1, GATT 1994 
Article  XVI:1  Subsidies  Biennial 
(new and full 
notification)  G/SCM/N/343/MAC, 22/05/2019  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/MAC/ 4; G/TBT/N/MAC/5; 
G/TBT/N/MAC/7  to G/TBT/N/MAC/14,  
19/09/2019  
Articles 2.9 and 5.6  Technical regulations  
and conformity 
assessment 
procedures  Ad hoc  G/TBT/N/MAC/3; G/TBT/N/MAC/6, 
19/09/2019; G/TBT/N/MAC/6/Corr.1, 
09/12/2019  
Agreement on Trade Facilitation ( WT/L/911, replaced by  WT/L/931)  
Articles 1.4, 10.4.3, 
10.6.2, and 12.2.2  Contact and 
information points  Ad hoc  G/TFA/N/MAC/2, 04/06/2018  
Article 15  Category A 
commitments  Ad hoc  WT/PCTF/N/MAC/1, 20/11/2014  
Articles 15 and 16 Category A, B, and C 
commitments  Ad hoc  G/TFA/N/MAC/1,  20/11/2017; 
G/TFA/N/MAC/1/Add.1, 04/06/2018;  
G/TFA/N/MAC/1/Add.2, 26/05/2020  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Legislation 
(amendments)  Ad hoc  IP/N/1/MAC/2, 02/04/2014  
Article 67  Contact points for 
technical cooperation  Ad hoc  IP/N/7/MAC/2, 11/01/2018  
Decision on Notification Procedures for Qua ntitative Restrictions  
G/L/59/Rev.1  Quantitative 
restrictions currently 
in force  Biennial 
(complete 
notification)  G/MA/QR/N/MAC/4, 24/10/2018  
GATT 1994  
Article XVII:4(a)  State -trading 
activities  Annual  G/STR/N/17/MAC, 23/03/2018  
Article  XXIV:7(a)  RTA – Hong Kong, 
China and Macao, 
China CEPA  Ad hoc  WT/REG390/N/1, S/C/N/898, 
19/12/2017  
Article XXVIII:5  Modification of 
schedules  Ad hoc  G/MA/362, 06/02/2018  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Agreement  Description  Frequency  WTO document (most recent , if 
submitted regularly)  
General Agreement on Trade in Services  
Article III:3  Changes to laws and 
regulations  At least 
annually  S/C/N/946, 07/06/2019  
Article III:4 and/or IV:2  Contact and inquiry 
points  Once S/ENQ/78/Rev.20, 25/03/2020  
Article V:7(a)  Changes to the 
implementation of 
the RTA – China and 
Macao, China  Ad hoc  S/C/N/265/Add.11, 20/03/2020  
Source: WTO Secretariat.  
2.16.   Macao, China participated in the post -Uruguay Round negotiations on financial services 
(Fifth  Protocol to the GATS) and increased its specific commitments in this sector13, but did not take 
part in the extended negotiations on telecommunication services (Fourth Protocol to the GATS). It 
is not a signatory or an observer to the Plurilateral Government Procurement Agreement.  
2.17.   Under the Information Technology Agreement (ITA), Macao, China bound at zero -rate tariffs 
all IT products covered by the Agreement in 1997, and subsequently participated in the expansion 
of the product coverage of the ITA.14 In addition, it bound tariffs at zero on all products covered by 
the Pharmaceutic al Agreement, including those resulting from the expansion of the Agreement 's 
coverage in 2011.  
2.18.   Macao, China ratified the Protocol concerning the Trade Facilitation Agreement (TFA) on 
11 April 2016. It designated all the provisions of the Agreement under Category A (i.e. for immediate 
implementation upon entry into force of the TFA), except the provision on single window, which was 
designated under Category B, to be implemented  on 31 December 2019 at the latest.15 The 
authorities indicated that implementation of the single window started ahead of schedule 
(Section  3.1.1).  
2.19.   Macao, China was among the first WTO Members to accept the Protocol Amending the TRIPS 
Agreement (16 June 2009), which came into force in 2017. It ratified the Protocol in August 2017 
(Chief Executive Note No. 45/2017).  
2.20.   In the context of the Eleventh WTO Ministerial Conference (Buenos Aires, 
10-13 December  2017), Macao, China, subscribed to the Joint Ministerial Statement on Investment 
Facilitati on for Development16, and participated in the informal dialogue on this subject.  
2.21.   Macao, China grants at least MFN treatment to all its trading partners.  
2.22.   Macao, China has not been involved in any WTO dispute settlement cases , either as a 
complainant, respon dent or third party. On 18 September 2020, it notified the Dispute Settlement 
Body that  it endorsed document JOB/DSB/1/Add.12 and joined the Multi -Party Interim Appeal 
Arbitration Arrangement pursuant to Article 25 of the Dispute Settlement Understanding.17 
2.3.2   Regional preferential agreements  
2.23.   In the framework  of the Asia Pacific Economic Co -operation (APEC), Macao, China has been 
given "guest economy " status in several working groups since 2001. As such, it may be invited by 
the Chair to respond to questions a nd discussions in meetings but may not take part in the 
decision -making process. Currently Macao, China participates in the following working groups: Policy 
Partnership on Science, Technology and Innovation; Small and Medium Enterprises; Transportation , 
 
13 WTO document GATS/SC/50/Suppl.1, 26 February 1998.  
14 Macao, China's new schedule, which was approved by the Participants to the ITA Expansion, was 
circulated in WTO document G/MA/W/117/Add.25, 14 December 2016. Moreove r, Macao, China submitted its 
schedule in WTO document G/MA/TAR/RS/461, 8 June 2017.  
15 WTO documents G/TFA/N/MAC/1, 20 November 2017 ; and G/TFA/N/MAC/1 /Add.1, 4 June 2018.  
16 WTO document WT/MIN(17)/59, 13 December 2017.  
17 WTO document JOB/DSB/1/Add.12/Sup pl.6, 22 September 2020.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  and Tourism . In the first three groups, Macao, China 's guest economy status was renewed in 2018 
until 2021, and in the Tourism Working Group , it was renewed in 2019 for one  year.  
2.24.   Macao, China does not participate in any other regional trade arrangements.  
2.3.3   Bilateral agreements  
2.25.   Since the last Review, Macao, China has been engaged in the continuous updating and 
implementation of the Closer Economic Partnership Arrangement (CEPA) with Mainland China. In 
addition, it concluded a free trade agreemen t with Hong Kong, China (Section 2.3.3.2).  
2.3.3.1   Closer Economic Partnership Arrangement with Mainland China (CEPA)  
2.26.   Macao, China and Mainland China concluded the CEPA in October 2003, with the objective of 
promoting joint economic prosperity and development, and  strengthening trade and investment 
cooperation between the two sides.18 The CEPA abides by the "One Country, Two Systems " principle , 
and is to be consistent with WTO rules, among other principles stated in the Arrangement.19 The 
CEPA provides for the prog ressive liberalization of bilateral trade in goods and services, and for the 
promotion of trade and investment facilitation.  
2.27.   Since the implementation of the CEPA in 2004, ten supplements and five agreements have 
been concluded under its framework.20 Table  2.3 lists the subsidiary agreements signed during the 
period under review.  
Table 2.3 CEPA subsidiary agreements signed , 2013 -19 
Agreement  Date of signature 
/implementation  Coverage  
Agreement between the 
Mainland and Macao on 
Achieving Basic Liberalization of 
Trade in Services in Guangdong 
(Guangdong Agreement)  18 December 2014/  
1 March 2015  Consolidated service liberalization measures found in 
previous agreements, and granted Macao,  China market 
access to a majority of service sectors in the Guangdong 
Province. It served as the basis for the subsequent 
liberalization of trade in services between Mainland 
China and Macao, China.  
Agreement on Trade in Services  28 November 2015/  
1 June 2016  Expanded the scope of the Guangdong Agreement from 
the Guangdong Province to the entirety of Mainland 
China , and improved market access preferences.  
Investment Agreement  18 December 2017/  
1 January 2018  Granted market access to non -service sectors , and 
introduced investment protection and promotion 
measures . 
Agreement on Economic and 
Technical Cooperation  18 December 2017/  
18 December 2017  Consolidated and enhanced economic and technical 
cooperation meas ures (including trade facilitation) found 
in previous agreements . 
Agreement on Trade in Goods  12 December 2018/  
1 January 2019  Consolidated and improved preferences on trade in 
goods set in previous agreements.  
Source:  Information provided by the authorities.  
2.28.   Under the CEPA provisions on trade in goods, Macao, China agreed to maintain a zero tariff 
on all imported goods of Mainl and origin. For its part, China agreed to apply, from 1 January 2006, 
zero tariffs on imported goods originating in Macao, China, provided that rules of origin are 
established for those products and that they are accompanied by a CEPA certificate of origin .21 Goods 
are treated as originating in Macao, China if they are wholly produced in its territory or have 
undergone substantial transformation. The criteria for determining substantial transformation may 
include manufacturing or processing operations, a ch ange in tariff heading, value -added content, 
other criteria, or mixed criteria. Rules of origin have been progressively developed since the inception 
of the Agreement. According to the CEPA, neither party shall impose non -tariff measures inconsistent 
with WTO provisions on goods imported from, and originating in, the other party 's territory; and 
China shall not apply tariff -rate quotas on goods originating in Macao, China. The parties undertook 
not to apply anti -dumping or countervailing measures on importe d goods originating in the other 
 
18 The CEPA was notified to the WTO in document WT/REG163/N/1, 12 January 2004.  
19 Article 2 of the CEPA Arrangement, WTO document WT/REG163/1, 4 February 2004.  
20 All changes were notified to the WTO. See WTO documents WT/REG163/1/A dd.1-3, and 
WT/REG163/N/1/Add. 1 -11, several dates.  
21 At the time of inception of the CEPA in 2003, rules of origin were established for only 273 products.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  party 's territory. Bilateral safeguard measures, in the form of a temporary suspension of CEPA 
concessions, may be adopted, after giving written notice to the party affected.22  
2.29.   On 12 December 2018, Macao, China and Mainlan d China signed the Agreement on Trade in 
Goods under the CEPA framework. The Agreement,  which came into effect on 1 January 2019, 
incorporates the provisions on trade in goods in the CEPA and its 10 supplements. It effectively 
provides for the full liberal ization of Mainland China 's market for goods originating in Macao, China 
by establishing rules of origin for over 8,000 tariff lines, essentially covering all of China 's Tariff. At 
the time of the previous Review, rules of origin had been developed for onl y 1,260 tariff lines. The 
Agreement also contains provisions to facilitate customs clearance in bilateral trade. In addition, it 
has a dedicated chapter on trade in the Guangdong -Hong Kong -Macao Greater Bay Area, which 
establishes cooperation measures aime d at facilitating trade within the area, including with regard 
to customs clearance procedures, joint inspections, the development of single window connectivity, 
and exchange of electronic cargo data.23   
2.30.   From the inception of the CEPA until end-May 2020, the Macao Economic Bureau (DSE) 
received 6,475 applications for CEPA certificates of origin , and issued 6,349 such certificates, of 
which 5,627 were used to export goods to China , including: cement, textiles and clothing products, 
yarn, plastic bags, recor dable compact discs, printing ink, food and beverages, refined copper foil, 
electric conductors, chemicals, footwear, recycled plastics, cosmetic products, monocarboxylic fatty 
acids, and fib reglass cloth. In that period , merchandise exports to China total led MOP 1,076 million, 
representing a tariff saving of MOP 73 million. In 2019, 33% of the value of domestic exports to 
China received zero -tariff treatment under the CEPA.24  
2.31.   As regards trade in services, under the CEPA , both parties agreed to progressive ly reduce or 
eliminate existing restrictive and discriminatory measures on each other 's services and services 
suppliers in the sectors covered by the Agreement (Annex 4 to the CEPA).25 Also, Macao, China 
agreed not to impose new discriminatory measures on China 's services and service suppliers in the 
covered sectors, and China committed to ensur ing preferential treatment for services and services 
suppliers from Macao, China by removing or eliminating restrictions in the services sectors stipulated 
in Annex 4.  
2.32.   In order to qualify as domestic  service suppliers, natural persons must be permanent 
residents of Macao, China26, and juridical persons must be constituted or otherwise organized under 
the relevant laws of the territory . Foreign companies that are not registered and do not have a 
substantial business operation in Macao, China cannot qualify. To  qualify, foreign companies must 
have more than 50% of their capital from Macao, China, and any acquired or merged company in 
the territory  must have been engaged in a substantial business operation for at least one year 
following its merger or acquisition . Generally, Macao , China  services suppliers must have engaged 
in substantive business operations in the territory for at least three years, except for suppliers 
providing construction and engineering services, or banking, insurance and other financial ser vices, 
for which such requirement is a minimum of five years. In the case of maritime transport services 
providers, 50% or more of the ships (in tonnage terms) owned by Macao , China  service providers 
must be registered in Macao, China.  
2.33.   The coverage of ser vices sectors for which domestic  services suppliers may qualify for 
preferential treatment has been progressively expanded through supplements to the CEPA. At the 
time of the previous Review, 48 services sectors and subsectors were covered under the CEPA. In 
December 2014, the coverage was expanded with the signature of the Agreement between the 
Mainland and Macao on Achieving Basic Liberalization of Trade in Services in Guangdong . Moreover, 
on 28 November 2015, Macao, China and the Mainland signed the CEPA  Agreement on Trade in 
Services, which was officially implemented on 1 June 2016. This Agreement built upon the previous 
CEPA supplements , and extended the liberalization measures in the Guangdong Agreement to the 
 
22 Under the CEPA, both Parties agreed not to apply: Article 15 ( Price Comparability in Determining 
Subsidies and Dumping ) and Article 16 ( Transitional Product -Specific Safeguard Mechanism ) of the Protocol on 
the Accession of the People's Republic of China to the WTO, and paragraph 242 of the Report of the Working 
Party on the Accession of China (provisi ons on trade in textile and clothing products).  
23 DSE, CEPA Newsletter, Issue 67, December 2018 . Viewed at: http://www.economia.gov.mo . 
24 Information provided by the authorities.  
25 Articles 1 and 11.2 of the CEPA.  
26 The requirements for a Macao, China natural person to qualify as a service supplier of legal services 
vary in accordance with the type of legal service to be provided.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Mainland as a whole, thus opening 153 serv ices subsectors (out of the 160 under the WTO Services 
Sectoral Classification System) to Macao , China  services suppliers. In this new Agreement, 
commitments under Mode 3 are made using a negative list approach, while those under Modes 1, 2 
and 4 are estab lished through a positive list.   
2.34.   The DSE is responsible for issuing Macao , China  service supplier certificates, which have a 
validity of two years and are non -transferrable and non -renewable. From the introduction of the 
CEPA to end-May 2020, the DSE issu ed a total of 817 service suppliers ' certificates. These included 
suppliers from the following sectors: transport and logistics; convention and exhibition; management 
consulting; construction; distribution; telecommunications; legal services; advertising, sales and 
marketing; real estate; audiovisual; travel agencies; medical and dental; trademarks agencies; 
printing and publishing; R&D in natural sciences; banks and other financial services; services 
auxiliary to insurance; hotels and restaurants; passenge r transportation; and educational services. 
With the revision of the Agreement on Trade in Services, which broadens the liberalization of trade 
in services between Mainland China and Macao, China, and the development of the Guangdong -
Hong Kong -Macao Grater  Bay Area, the authorities expect that the use of service suppliers ' 
certificates will increase.  
2.35.   The CE PA contains a chapter on trade and investment facilitation , whereby both parties 
agreed to promote cooperation in the following areas: trade and investm ent promotion; customs 
clearance facilitation; commodities inspection, inspection and quarantine of animals and plants, food 
safety, certification, accreditation , and standardization management; e -business; transparency in 
laws and regulations; SMEs; indus trial cooperation; protection of intellectual property rights; brand 
promotion; and education.  
2.36.   The Investment Agreement, signed on 18 December 2017  between China and Macao, China,  
is a subsidiary agreement to the CEPA , and contains new commitments . It covers the admission, 
protection and promotion of investment between the two parties. Under this Agreement, China 
improved market access by opening up non -service sectors to Macao, China 's investors , through the 
use of a n egative list. The Agreement also introduces provisions on investment protection, such as 
compensation for expropriation, and a mechanism to settle investment disputes between investors 
and host governments, including through consultation, notification and coordination, mediation, and 
judicial means.  
2.37.   The CEPA Economic and Technical Cooperation Agreement  (CEPA Ecotech Agreement) , also 
signed on 18 December 2017  between the two parties , consolidates the economic and technical 
cooperation activities set out in the CEPA and its 10 supplements. It covers 14 areas of cooperation: 
tourism; MICE; traditional Chinese medicine; financial services; e -commerce; environmental 
protection; legal and d ispute resolution services; accounting services; cultural affairs; innovative 
technology development; education; SMEs; intellectual property; and trademark and branding 
cooperation. In addition, the Agreement has a chapter dedicated to deepening cooperatio n in 
economic and trade issues covered by the Belt and Road Initiative, and another chapter on promoting 
the development of Macao, China as "a commercial and trade cooperation services platform " 
between China and the PSCs.   
2.3.3.2   The Closer Economic Partnership  Arrangement ( CEPA ) between Hong  Kong,  China 
and Macao,  China  
2.38.   The CEPA between Hong Kong, China and Macao, China was signed on 27 October 2017.27 It 
covers trade in goods, trade in services, investment, intellectual property, and economic and 
technical  cooperation. The Arrangement  is complemented by the Economic and Technical 
Cooperation Work Programme. T he liberalization of trade in goods and services , as provided for in 
the Arrangement , was implemented on 1 January 2018.  
2.39.   With respect to trade in goods, each party committed to binding its zero -tariff regime and to 
not imposing non -tariff measures with respect to all imported goods originating in the other party.  
The Arrangement contains regulatory provisions on, inter alia , customs procedures and trade 
facilitation; technical barriers to trade; and sanitary and phytosanitary measures. On trade 
 
27 The Arr angement was notified to the WTO in documents WT/REG390/N/1 and S/C/N/898, 
19 December  2017.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  remedies, t he parties agreed not to apply anti -dumping or countervailing measures on imported 
goods originating in the other party.  
2.40.   In the area of trade in services, both economies agreed to grant national treatment to the 
services and services suppliers of the other party. Furthermore, they adopted liberalization 
commitments (specified in Annexes 1 and 2 to the Arrangement ) in the form of positive lists, which 
go beyond their GATS commitments in certain respects.28 Hong Kong, China committed to open ing 
105 services subsectors to Macao, China, while the latter undertook to open 72 services subsectors 
to Hong Kong, China. With respect to intellectual property, the pa rties reiterated their observance 
of the WTO TRIPS Agreement , and agreed to intensify cooperation in this area.  
2.41.   Under the Economic and Technical Cooperation  Work Programme , the parties also committed 
to strengthen cooperation mechanisms in the areas of cu stoms procedures and trade facilitation; 
transparency in laws and regulations; standards and technical regulations; sanitary and 
phytosanitary measures; and intellectual property.  
2.3.3.3   Cooperation arrangements in the region  
2.42.   Under the principle of "One Country, Two Systems ", Macao, China participates in various 
economic cooperation and integration schemes with the Mainland and other economies in the region, 
most notably in the Belt and Road Initiative and the Greater Bay Area Framework Agreement.  
2.43.   As stated in its  Five-Year Development Plan and the CEPA Ecotech Agreement, Macao, China 's 
participation in the Belt and Road Initiative, which was launched by Mainland China in 2013, focuses 
on developing its role as a commercial and trade cooperation service platform be tween China and 
the PSCs. Specifically, the objective is for Macao, China to act as a bridge by utilizing its close 
relationships with the PSCs, the ASEAN countries and the overseas Chinese communities, with a 
view to giving new impetus to the development of its economy.  
2.44.   The Framework Agreement on Deepening Guangdong -Hong Kong -Macao Cooperation for the 
Development of the Greater Bay Area (GBA Framework Agreement) was signed on 1 July 2017, 
between the National Development and Reform Commission, China 's Guangdong Province , and the 
Special Administrative Regions  (SARs) of Hong Kong and Macao. The Greater Bay Area comprises 
nine municipalities in the Guangdong Province29 and the SARs of Hong Kong and Macao. It builds 
upon previous cooperation mechanisms, such as the Pan -Pearl River Delta Cooperation Framework 
Agreement , signed in 2004 , and the Guangdong -Macao Cooperation Framework Agreement (2011).  
2.45.   The 2017 GBA Framework Agreement is aimed at deepening integration and cooperation in 
the development of the Grea ter Bay Area among the participating cities. The main areas of 
cooperation include : increasing mobility and accessibility of resources across the region; building 
transport infrastructure, such as the recently completed Hong Kong -Zhuhai -Macao Bridge; furth er 
promoting market integration; establishing an international technology and innovation centre; and 
creating high -quality standards for living, working and travelling in, and across, the cities in the 
Greater Bay Area. The development of this regional pol e (Guangdong -Hong Kong -Macao) also 
constitutes part of the broader strategy of the Belt and Road Initiative.  
2.46.   The ultimate goal is to transform the GBA into a dynamic economic hub and a world -class 
megapolis by 2035, building upon the respective comparativ e advantages of the parties involved. 
The GBA Development Plan, published in February 2019, sets out the development focus of each 
participating city, identifies clusters of industries with growth potential, and establishes 
complementary cooperation measur es. In this context, the specific goals of Macao, China are : to 
consolidate its development as "One Centre, One Platform " (i.e. a global tourism and leisure centre , 
and a commercial and trade cooperation service platform between China and the PSCs); to est ablish 
an exchange and cooperation base where Chinese culture is mainstream , and other cultures coexist; 
and to foster economic diversification. Specifically, Macao, China will concentrate on building a 
tourism education base, fostering the development of traditional Chinese medicines; and 
constructing a platform for financial services, including a Renminbi clearing centre for PSCs.  
 
28 See the Factual Presentation prepared by the Secretariat, in WTO document WT/REG390/1/Rev.1, 
2 April 2019.  
29 Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongg uan, Zhongshan, Jiangmen and Zhaoqing.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  2.47.   Macao, China benefited from the GSP schemes of the E uropean Union and Switzerland until 
end-2013. That year, its combined expo rts to both markets amounted to MOP 6 million. Since then, 
no GSP exports to any destination have been recorded.  
2.4  Investment Regime  
2.48.   Macao, China seeks to foster economic diversification and sustainable development by 
attracting both domestic and foreign/ov erseas investment. To this end, the Government is 
committed to maintaining a transparent, non -discriminatory and investment -friendly environment, 
which includes, inter alia , a low -tax regime and the possibility of obtaining investment incentives.  
2.49.   There is no specific foreign investment legislation in Macao, China, as its laws do not 
distinguish between domestic and foreign investment. The main legislation governing investment 
includes the Commercial Code, the Commercial Registration Code , and the F oreign Trade Law.  
2.50.   There are no restrictions on capital flows or foreign exchange operations. In March 2012, the 
requirement that exporters exchange 40% of their foreign currency earnings into local currency was 
removed.30 Foreign investors may freely remi t abroad profits and dividends resulting from their 
investments , and are not required to report on such remittances.  
2.51.   There are no restrictions on the participation of foreign capital in existing or newly established 
businesses, provided that the investor abides by the Anti -Money Laundering and Combating the 
Financing of Terrorism Guideline issued by the Monetary Authority of Macao. Foreign investors can 
freely acquire real estate property and land in Macao, China. Licensing requirements apply to 
domestic a nd foreign investment in finance, insurance, and banking. Investment in gaming and 
public services (electricity, water and gas) by domestic and foreign companies requires a concession 
from the Government. Terrestrial television services are also subject to  concession contracts, 
whereas satellite TV services require a licence.  
2.52.   Domestic and foreign companies register under the same rules , and are subject to the same 
commercial and bankruptcy laws. Foreign firms and individuals may freely establish companies, 
branches, and representative offices without discrimination or unduly heavy regulation. No 
restrictions apply to the ownership of such establishments, and there are no citizenship requirements 
regarding company directors. However , in the case of locally in corporated banks, the board of 
directors should have a minimum of three members, at least two of which must reside in 
Macao,  China.  
2.53.   Macao, China maintains a simple tax regime, with low corporate tax rates. In addition, fiscal 
and financial incentives, inc luding exemptions from taxation on real estate for industrial purposes 
and on corporate earnings, are available to both domestic and foreign investors that meet 
established criteria (Section 3.3.1.2).  
2.54.   Investors also benefit from the services and structure s provided by the Macao Trade and 
Investment Promotion Institute (IPIM), namely the Investor 's One -Stop Service. This provides a 
complete set of services to facilitate investment processes. Specifically, it assists potential foreign 
investors by providing information on investment opportunities, evaluating project proposals, and 
coordinating all administrative procedures required for the completion of investment projects in 
Macao, China. In addition, the IPIM provides various logistic facilities to reduce t he start -up costs of 
companies.  
2.55.   Macao, China has 26 double taxation treaties (DTT s) and tax information exchange 
agreements (TIEA s) with several economies around the world; nine of th ese treaties/agreements 
were signed during the review period (Table 2.4) . In addition, Macao, China has two b ilateral 
investment treaties in force , one with Portugal ( signed on 17 May 2000) , and the other  with the 
Netherlands (22  May 2008) . 
 
30 Executive Order No. 9/2012, 28 March 2012.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 2.4 DTTs and TIEAs  
Country/Region  Type  Date signed  
Australia  TIEA  12/07/2011  
Denmark  TIEA  29/04/2011  
Faroe Islands  TIEA  29/04/2011  
Finland  TIEA  29/04/2011  
Greenland  TIEA  29/04/2011  
Iceland  TIEA  29/04/2011  
Norway  TIEA  29/04/2011  
Sweden  TIEA  29/04/2011  
India  TIEA  03/01/2012  
Jamaica  TIEA  05/10/2012  
Malta  TIEA  30/05/2013  
Japan  TIEA  13/03/2014  
Guernsey Island  TIEA  03/09/2014  
United Kingdom  TIEA 03/09/2014  
Ireland  TIEA  12/09/2016  
Argentina  TIEA  05/09/2014  
Portugal  DTT  28/09/1999  
China  DTT  27/12/2003  
China (1st Protocol)  DTT  15/07/2009  
China (2nd Protocol)  DTT  26/04/2011  
China (3rd Protocol)  DTT  19/07/2016  
Belgium  DTT  19/06/2006  
Mozambique  DTT  15/06/2007  
Cabo Verde  DTT  15/11/2010  
Chinese Taipeia DTT 10/12/2015  
Vietnam  DTT  16/04/2018  
a The DTT between Chinese Taipei and Macao, China is applicable to aviation enterprises only.  
Source:  Information provided by the authorities.  
2.56.   With respect to dispute resolution with foreign states, both the Convention on the Settlement 
of Investment Disputes between States and Nationals of Other States (ICSID Convention) and the 
Convention on the Recognition and Enforcement of Foreign Arbitral A wards (New York Convention), 
to which China is a signatory, are applicable to Macao, China by extension. As for private investment 
disputes, they are usually settled through domestic courts or through private negotiation. Otherwise, 
they may be referred to  arbitration. A new Arbitration Law (Law No. 19/2019) came into effect 
in May 2020.  
 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  As specified in its Basic Law , Macao, China  is a free port and a separate customs territory that 
implements its own customs procedures.1 The Macao Foreign Trade Law (Law No. 7/2003 as 
amended by Law No. 3/2016) and the Regulations on Foreign Trade Activit ies (Administration 
Regulation No. 28/2003 as amended by Administration Regulation No. 19/2016) provide the main 
regulatory framework for customs procedures in Macao,  China . Foreign trade operations may be 
carried out by natural or legal person s who compl y with their tax obligations.2 Since the last Review  
in 20133, there have been no significant amendments to the Foreign Trade Law . However,  there 
have been several changes with respect to , inter alia , temporary admission procedures and trade 
facilitation (e.g. f urther enhancement of the Electronic Data Interchange (EDI) system ).  
3.2.  The Macao Customs Service (Serviços de Alfândega ) is responsible for implementing customs 
procedures  at the border, including with respect to the enforcement of intellectual property rights 
(IPRs), the prevention and suppression of customs fraud  and illicit trafficking , and the 
implementation of international obligations within its jurisdiction.4 Other agencies engaged in foreign 
trade activities include the Municipal  Affairs Bureau ( Instituto para os Assuntos Municipais  (IAM)), 
the Health Bureau ( Serviços de Saúde , (SSM)), the Macao Economic Bureau ( Direcção dos Serviços 
de Economia  (DSE)), the Macao Post and Telecommunications Bureau ( Correios, Telégrafos 
e Telefones  (CTT)), the Public Security Police Force ( Corpo de Polícia de Segurança Pública , (PSP)), 
and the Transport Bureau ( Direcção dos Serviços para os Assuntos de Tráfego  (DSAT )) with respect 
to import licence issuance .5 The IAM engages in border cont rol for goods which require SPS control.  
3.3.  Imports in to Macao, China are subject to import declarations (General Import Declarations) 
and/or import licen sing requirements , depending  on the nature of the products concerned. Import 
declarations are required fo r goods valued at more than MOP 5,000, and for goods with a value 
below MOP 5,000 but that are part of a complete item with a value exceed ing MOP 5,000. The import 
declaration form must be accompanied by all supporting documents  and presented to the Macao 
Customs Services for customs clearance. No customs clearance charge is imposed. G oods below the 
threshold , and goods for personal consumption within a limited  quantity , do not require an import 
declaration.6 All goods that are subject to the licensing regime (including goods listed in  Tables A 
and B of Chief Executive Decision No. 487/2016) require an import or export licence , regardless of 
their value.  
3.4.  All imported products entering into Macao, China are subject to a  document check for the 
verification of permits and declarations ; physical check s (e.g. any samples for analysis) are carried 
out randomly by Customs officers at the checkpoints.7  
3.5.  Some goods in the import list (Table B)  specified in Chief Executive Decision No.  487/20168 
are subject to licensing  requirements from the competent authorities (Section 3.1.5.1) . Certain 
products (e.g. livestock, animals, pharmaceutical products, and chemical products) , which require 
an import licence , are also subject to SPS -related requirements. The goods listed in Annex III of 
Chief Executive  Decision  No. 487/2016  are subject to sanitary or phytosanitary inspection and 
control by the IAM, whether they are in transit or finally imported into Macao,  China. Animals, meat 
and food of animal origin are examples of these types of goods  (Section  3.1.5.1) . Import licences 
for live a nimals  must be issued in advance by the IAM; these imports must be inspected , and are 
subject to health control s by the IAM , and m ay be placed in sanitary quarantine  at designated 
 
1 Basic Law of the Special Administrative Region of Macau of the People 's Republic of China . Viewed at: 
https://bo.io.gov.mo/bo/i/1999/leibasica/index.asp . 
2 Foreign Trade Law, No. 7/2003, as amended by Law No. 3/2016, Article 11, 4 July 2016.  
3 WTO document WT/TPR/S/281/Rev.1, 27 June 2013.  
4 Customs of Macao Special Administrative Region (SA) , Atribuiçõe s. Viewed (in Portuguese) at: 
https://www.customs.gov.mo/pt/mission.html#mission . 
5 Administration Regulation No.  19/2016, Article 3A, 18 July 2016.  
6 Chief Executive Decision No. 487/2016 , Annex I, 28 December 2016.  
7 Administrative Regulation  No. 19/2016 , Articles 14B, 14C and 14D, 18 July 2016.  
8 Chief Executive Decision No. 487/2016 , Annex II, Table B, 28 December 2016. Viewed at: 
https://images.io.gov.mo/bo/i/2016/52/despce -487-2016-an3-pt.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  locations upon entry into Macao, China.9 Imports of meat (whether fresh, cold , or in brine), 
sausages, fish and shellfish, milk and dairy products, egg s, and ice cream must be accompanied by 
an import lice nce issued by the IAM, are subject to a health check  at the border, and may be subject 
to a sanitary quarantine . Imports of live plants (including their roots), bulbs, tubers, seeds, fruits 
and spores do not require an import licence, but are subject to ph ytosanitary control. Imports of 
edible vegetables, fruits, mushrooms, and sugarcane are subject to phytosanitary control s by the 
IAM, to prove that they are suitable for human consumption.  
3.6.  The temporary admission procedure  is regulated by the Foreign Trade Law . Goods imported 
under the temporary admission regime are eligible for tax -free treatment . During the period under 
review, the ATA carnet ( in use since 2010) was incorporated as the official instrument for the 
temporar y admission of goods into Macao, China and their subsequent re -export .10 ATA carnets are 
issued by the World Trade Centre Macao under the guarantee of the Macao Chamber of Commerce ; 
goods covered by ATA carnets include exhibitions, commercial samples, and professional 
equipment .11 A security , equivalent to 100% of the value of the goods plus a further 10% of that 
amount , is required; it can take the form of cash (maximum MOP 10,000), bank cheque , or bank 
guarantee. Securities must be valid for a minimum of 33 months from the date of issue of the ATA 
carnet.  Temporary admission is limited to a period of six months and can only be extended once for 
exceptional cases.12  
3.7.  Goods declared as in transit require transit declarations and/or transit licences if they a re listed 
in Tables A (goods requiring an export licence) or B (goods requiring an import licence) of Chief 
Executive Decision No. 487/201613 in order to be allowed to be presented to Customs for clearance.14 
Only licensed freight -forwarders are allowed to carry out transit activities, regardless of whether the 
imports are processed through transit declarations and/or transit licen ces.15 Goods processed by 
using a transit declaration form can remain in transit for a period of six mo nths, which may 
exceptionally extended once by another six months. Goods processed by using a transit licence may 
remain in transit for 10 days  only; this period is not extendable.  Goods in transit subject to 
SPS-related control or quarantine  must be contr olled/quarantined by the IAM , and the relevant 
documents of quarantine must be presented before transhipment. G oods in transit must not  be 
opened or  repackaged without authorization from the Macao Customs Service.16  
3.8.  Macao, China amended its clearance proc edures with respect to CITES and pharmaceutical  
products during the review period. A compulsory registration system for CITES stakeholders was 
established pursuant to the CITES enforcement law (Enforcement Law of the Convention on 
International Trade in En dangered Species of Wild Fauna and Flora, Law No. 2/2017) and its 
regulations ( Enforcement Law of the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora - Complementary Regulations to Law No. 2/2017 , and  Administrative 
Regulati on No. 19/2017 ).17 Traders (i.e. exporters and importers) and other stakeholders (i.e. 
breeders and nurserymen, taxidermists , and scientific institutions) of species listed in the Appendices 
to CITES are required to register at the DSE. Species listed in Appendix I to the CITES18 are 
prohibited from trade , and those listed in Appendices II and III are allowed to be imported into  or 
exported from Macao,  China only if accompanied by  certificates and licences (Section 3.1.5. 1).  
3.9.  Since the last Review19, Macao, China has adopted measures to further streamline customs 
procedures and facilitate trade, including: the ratification of the  WTO Trade Facilitation Agreement 
(TFA); the enhancement of an IT -based customs clearance system; the simplification of customs 
procedures for goods under the agreement between Macao, China and Mainland China; and t he 
 
9 Chief Executive Decision No. 487/2016 , Annex III, 28 Dece mber 2016.  
10 Foreign Trade Law, No. 7/2003, as amended by Law No. 3/2016, Article 2.13, 4 July 2016.  
11 World Trade Centre Macao, ATA Carnet . Viewed at: http://www.wtc -macau.com/ata/en/ . 
12 Foreign Trade Law, No. 7/2013, as amended by Law No. 3/2016, Article 13, 4 July 2016.  
13 Chief Executive Decision No. 487/2016 , Annex II, Tables A and B, 28 December 2016.  
14 Foreign Trade Law, No. 7/2003, as amended by Law No. 3/2016,  Article 16, 4 July 2016.  
15 Foreign Trade Law, No. 7/2003, as amended by Law No. 3/2016, Article 16, 4 July 2016.  
16 Foreign Trade Law, No. 7/2013, as amended by Law No. 3/2016, Article 16, 4 July 2016.  
17 Law No. 2/2017, 22 May 2017. Viewed at: https://bo.io.gov.mo/bo/i/2017/21/lei02.asp ; and 
Administrative Regulation No. 19/2017 . Viewed at: https://www.economia.gov.mo/public/data/laws/ 
regulations/attach/5fbc391f25d16646eb4234247c48e4b017baca7b/en/re ga-19-2017-en.pdf . 
18 Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), The CITES 
Appendices . Viewed at: https://www.cites.org/eng/app/index.php .  
19 WTO document WT/TPR/S/281/Rev.1, 27 June 2019.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  reporting requirement on cash and bear er instruments moved across the border . Macao, China 
presented to the WTO its instrument of ratification of the TFA  on 11 April 2016.20 Since the entry 
into force of the TFA on  22 February  2017, it has implemented provisions contained in Section I of 
the A greement under Category A . Macao, China designated  all of the provisions contained in 
Section  I of the Agreement under category A, except paragraph 4 of Article 10 (Single Window), 
which was designated to fall under category B , with an indicative date for implementation of 
31 December  2019.21 The authorities noted that the implementation of Article 10.4 (Single Window)  
took place ahead of the definitive date. According to the authorities, the e -Customs Services Web 
System and mobile application  were introduced in 2013 and 2016, respectively, provid ing online 
application for declarations and licen ces, and enabling users to complete customs procedure s faster 
and more easily . 
3.10.   In addition to trade facilitation in the framework of the WTO, Macao, Chi na introduced further 
measures to facilitate trade with third parties through the Cooperation Memorandum between the 
(China) General Administration of Customs and the Macao SAR Government on Origin of 
Transhipment Cargo in Macao SAR under Free Trade Agreem ents, signed by the Macao Customs 
Service and China 's General Administration of Customs (GAC) in 2016. As per this memorandum, 
an application for transhipment confirmation , signed and issued by the Macao  Customs Service , is 
extended to all preferential tra de agreements entered into by Mainland China. Also, pursuant to the 
Free Trade Agreement Transhipment Facilitation Scheme , the transhipment confirmation issued by 
the Macao Customs Service may be accepted in electronic form at for customs clearance by China 's 
GAC, so importers are not required to submit a paper form when making an import declaration.  
Additionally, t he Agreement on Trade in Goods of the Closer Economic Partnership Arrangement 
(CEPA) between China and Macao, China contains a special chapter (C hapter 9) on trade facilitation 
measures for customs clearance of goods within the Bay Area (i.e. the Guangdong -Hong Kong -
Macao  area).22 According to the authorities, Macao China is advancing the trade facilitation measures 
under Chapter 9 (Guangdong -Hong Kong -Macao Bay Area Trade Facilitation Measures) of the 
Agreement on Trade in Good s of the CEPA in a proactive and systematic manner.  Macao, China also 
simplified transit procedures for goods covered by  the Economic Cooperation Framework Agreement 
(ECFA) be tween Mainland China and Chinese Taipei.23 As a result, since 2016 , goods that transit 
through Macao, China 's Cotai Border are only requ ired to be accompanied by a transit declaration 
form, instead of a Macao Customs Confirmation.  
3.11.   During the review period, t he Macao Customs Service continued to improve  its Electronic Data 
Interchange (EDI) system for the electronic transmission of both th e application for, and the 
approval of , licences, a s well as  for lodging declarations. All electronic submission services  are 
provided by Transferência Electrónica de Dados  - Macau EDI VAN, S.A.  (TEDMEV) , which is a 
company fully  owned by Macao , China,  that aims to provide a safe and efficient e -commerce 
platform .24 TEDMEV launched the e -Customs Service System (EDI) in 2000, and a mobile application 
in 2013. TEDMEV is seeking to promote the use of the EDI by SMEs , to enhance competitiveness 
and work efficiency.  
3.12.   E-customs services may be used for formalities undertaken with respect to the Macao 
Customs Service, the IAM, the DSE, the Transport Bureau, the Post and Telecommunications Bureau , 
and the Health Bureau.  The latter  adopted a paperless clearance system during the review period , 
to further facilitate the  procedures for the importation of pharmaceutical products.  The e -Customs 
Service System enables users to declare goods in advance  through the different online services 
offered (Table 3. 1). To carry out customs procedures online, an e-Signature Certificate , which is  
valid for three  years , is required for identi ty authentication of an EDI document . The e-Signature 
Certificate holder can sign the EDI document for c learance. Paperless clearance is now available in  
every cargo terminal in Macao,  China for general import/export declarations, import licences, 
quarantine import declarations, goods under the processing abroad ( Processo Produtivo no Exterior, 
PPE) scheme , and certificate s of origin for export declaration s, among others. Importers and 
exporters provide their clearance code to the port authority to complet e clearance procedure s and 
 
20 WTO document WT/Let/1148, 14 April 2016.  
21 WTO document s WT/PCTF/N/MAC/1, 25 November 2014; G/TFA/N/MAC/1, 20 November 2017 ; 
G/TFA/N/MAC/2, 4 June 2018; and G/TFA/N/MAC/1/Add.1, 4 June 2018 . 
22 Mainland and Macao Closer Economic Partnership Arrangement, Agreement on Trade in Goods. 
Viewed at: https://www.economia.gov.mo/public/docs/CEPA_CEPA_ACM/content/en/cepa_acm_en.pdf . 
23 The ECFA is a cooperation mechanism signed between China and Chinese Taipei in 2010.  
24 TEDMEV, Transferência Electrónica de Dados , MAC AU EDI VAN S.A. Viewed at: 
https://www.tedmev.com/en/index.php . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  take or ship the cleared goods directly. While applying for paperless clearance, users can make 
changes to the declared good 's quantity  information. Once the clearance approval is granted, it is 
possible to make changes to the information by applying for an after -clearance amendment  
(re-declaration). The  user may apply for paperless clearance unlimited times during the Certificate 
validity period before the clearance is completed .25 
Table 3.1 E-customs services  
Type  of service  Coverage  
e-General Declaration  (GD) For the de claration of imported and exported goods above the MOP 5,000 
threshold for personal us e and not includ ed in the Export List (Table A) or the  
Import List (Table B) to complete clearance procedure s.  
e-Import Licence (IL)  For goods in the Import List (Table B)  which require an  import licence . Users 
can submit the import licence application via TEDMEV 's e-Customs Services 
System to the related government departments , such as the DSE, the IAM , 
the Transport Bureau  (DSAT) , or and the Post and Telecommunications Bureau 
(CTT).  The service also covers licences for general pharmaceutical products, 
modified milk products, diagnostic and laboratory reagents, and Chinese 
medicine (IL -SSM) , which are transmitted to the Health Bureau (SSM).  The 
import licence is valid for  30 days.  
e-Quarantine Import 
Declaration  (QID)  For goods requiring SPS-related quarantine, in addition to an import licence 
and declaration. The System allows users to apply for an import 
licence/declaration and to make an appointment for quarantine with the IAM.  
Certificate of Origin for 
Export Declaration  (COD)  For certificate of  origin and customs clearance. Types of COD include domestic 
products, foreign products, and products covered by the GSP and the CEPA. 
e-PPE Declaration  (PPE)  For offshor e activities in the manufacturing industry . These activities include: 
the import ation of processed raw materials, the temporary export ation of 
semi-elaborated products , and the re-import ation of processed products .  
e-Transit Declaration  (DT) For import and export for transit activities ( one-in and one -out transit , or the 
one-in and multi-out cargo model).  
e-Formulario  Service  (EF) Specific form for the manufacturing sector to be submitted to the DSE before 
application for a certificate of origin. 
e-Manifest Service (EM)  Submission of a manifest by the marine or air transportation industry to the 
Macao Customs Office.  
Source:  WTO Secretariat, based on TEDMEV. Viewed at: https://www.tedmev.com/en/index.php .  
3.13.   Since 2015,  users of the EDI system only need to pay the e -Signature Certificate every three 
years . They do not need to pay any  additional fees. In contrast, w hen declaring goods imported into  
or exported from  Macao, China, exporters/ importers who use paper declaration form s must pay 
MOP 3 per copy , and  importers must pay MOP 4 per copy for paper  application form s for import 
licence s. There is no fee for processing these applications through the EDI system.26  
3.14.   In November 2017, Macao, China introduced a repor ting requirement on cash and bearer 
instruments across the border.27 Law No. 6/2017 (Control of cross -border transportation of cash and 
bearer negotiable instruments) established a Dual -Channel Simplifying System (red and green 
channels) that requires trav ellers arriving in Macao, China carry ing MOP 120,000 or more in cash or 
bearer  instruments  (or its equivalent in another currency) to use the red channel and to make a 
declaration to the Customs officer. According to the Macao Customs Service, this require ment is for 
the purpose of preventing and combatting money laundering and terrorist financing , and of ensuring 
the security and stability of Macao, China 's economic system.28 Passengers departing Macao, China 
must disclose the amount of cash or bearer instruments if asked by a Customs officer; otherwise 
they are liable for a fine ( ranging from MOP 1,000 to MOP 500,000). The Customs Service is 
responsible for the implementation of controls, supervision and sanctions under Law No. 6/2017 .29  
 
25 TEDM EV, Paperless Clearance . Viewed at: https://www.tedmev.com/en/paperless_declaration.php . 
26 The Municipal Affairs Bureau  (IAM) , Procedures for Processing Import License/Declaration and 
Advance Booking for Sanitary Inspection . Viewed at: https://www.iam.gov.mo/e/food/adminDefault/22,1#3 . 
27 Macao Customs Service, Law No. 6/2017, Control of cross -border transportation of cash and bearer 
negotiable inst ruments . Viewed at: https://www.customs.gov.mo/doc/en_law6_2017.pdf ; and Order of the 
Chief Executive , No. 229/2017 . Viewed at:  https://www.customs.gov.mo/doc/en_law229_2017.pdf .  
28 Macao Customs Service , Declaration for the Transportation of Currency and Bearer Negotiable 
Instruments . Viewed at: https://www.customs.gov.mo/form/en_SA213_sample2.pdf . 
29 Macao Customs Service, Control of the Cross -border Transportation of Cash and Bearer Negotiable 
Instruments . Viewed at: https://www.customs.gov.mo/cn/customs6.html .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.1.2   Customs valuation  
3.15.   There were no significant changes with respect to  customs valuation  since the previous  
Review .30 Given that Macao , China is a free port, customs valuation is used mainly to facilitate 
consumption tax collection at the border. The Consumption Tax Regulation stipulates that import 
valuation is based on the c.i.f. value of goods.31 Under Article 24 of the Regulation, in case of doubt 
regarding the accuracy of the declared value, the DSE notifies  the importer, who must make the 
necessary amendments within 10 days. If, after giving the opportunity to make amendments, the 
DSE remains d oubtful regarding the re -declared value, the rules of the WTO Customs Valuation 
Agreement are applied.  
3.16.   DSE valuation decisions may be appealed at the administrative level , in the case of 
disagreement regarding customs valuation. If the first appeal is rej ected, the party concerned may 
make a second appeal to the Administrative Court.32  
3.1.3   Rules of origin  
3.17.   Subsection III of the Foreign Trade Law, No. 7/20 03, as amended by Law No. 3/2016 , contains 
provisions with respect to rules of origin. The Regulations are contained in Administrative Regulation 
No. 29/2003 , as amended by Administrative Regulation No. 20/2016 .33  
3.18.   In practice, Macao, China has neither preferential nor non -preferential rules of origin for 
imports. In general, no certificate of origin is require d for imports of goods into Macao, China. In the 
case of re -exports, the initial conferred origin of the goods is maintained. However, rules of origin 
apply for exports under the CEPA.  In order to be eligible for duty -free treatment under the CEPA, 
product s from Macao, China must abide by the agreed rules of origin requirements (Section 3.2.1).34 
The certificates of origin required to export under preferential conditions to China are issued by 
the DSE.  
3.19.   According to the authorities, the amendments introduce d to the Foreign Trade Law, 
No. 7/2003, by Law No. 3/2016 of 4  July 2016, had the purpose of facilitating trade and reducing 
operating costs incurred by businesses. Some of the changes include: the removal of charges for 
the issuance of a certificate of origin; allowing for the electronic submission of certificate of origin 
applications; and only requiring  an export declaration for the exportation of textile and clothing 
products , instead of obtaining  an export licence (Section  3.2.1).  
3.1.4   Tariffs  
3.20.   Macao, China maintains all applied tariffs at a rate of zero. Although Macao, China is not a 
contracting party to the International Convention on the Harmonized Commodity Description and 
Coding System (HS Convention), it applies Version 6 of the Nomenclatu re for Macao , China  external 
trade, which is equivalent to the 2017 version of the Harmonized Commodity Description and Coding 
System (HS).35 The tariff schedule comprised 6,641 tariff lines at the eight-digit level in 20 20.36 
Macao,  China continues to regularly submit its customs tariff and import data to the WTO Integrated 
Database.  
3.21.   Macao, China 's latest certified WTO -bound schedule of tariff concessions is in the HS 2012 
nomenclature.37 It has bound only 30.5% of its tariff lines in the WTO, all at a ze ro rate. While all 
agricultural lines are bound, only 19.2% of non -agricultural tariff lines are bound. Within the 
non-agricultural product group, the binding coverage varies , according to the product group: 
 
30 WTO document WT/TPR/S/281/Rev.1, 27 June 2019.  
31 Consumption  Tax Regulation , Law No. 4/99/M , 13 December  1999 (as amended by Law No. 8/2008 
of 25 August, Law No. 7/2009 of 25 May, Law No. 11/2011 of 19 Dece mber and Law No. 9/2015 of 13 July) , 
Article 21 . Viewed at:  https://bo.io.gov.mo/bo/i/99/50/lei04.asp . 
32 WTO document WT/TPR/S/281/Rev.1, 27 June 2013.  
33 Administrative Regulation No. 20/2016 (the amendment to No. 29/2003), 18 July 2016. Viewed at: 
https://bo.io.gov.mo/bo/i/2016/29/regadm20.a sp. 
34 WTO document G/RO/N/187, 20 September 2019.  
35 The HS 2017 version is consistent with Version 6 of the nomenclature for external trade, pursuant to 
Chief Executive Decision No. 67/2016, 28 October 2016.  
36 Information provided by the authorities to the WTO IDB.  
37 WTO document WT/Let/1441, 28 June 2019.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  example , 55.5% of tariff lines corresponding to leather, rubber, and footwear are bound, while all 
lines relative to petroleum products remain unbound38 (Chart 3. 1). The absence of bindings for 
nearly 70 % of total tariff lines is in contrast with Macao, China 's practice of having all applied rates 
at zero, and create s uncertainty for traders . The predictability of  Macao,  China 's trade regime would 
be considerably enhanced by increasing the number of lines bound. During the review period, as a 
participant in the Information Technology Agreement (ITA) Expa nsion, Macao, China rectified and 
modified its WTO schedule of tariff concessions to reflect the ITA Expansion, effective since 
6 November 2014.39 
Chart 3.1 Binding coverage by non -agricultural product groups  
(% of tariff lines for each product group)  
 
Source:  WTO Secretariat calculations, based on Macao, China 's schedule (HS 2012) , from CTS database.  
3.1.5   Other charges affecting imports  
3.22.   Certain imported and domestically produced goods, namely tobacco, alcoholic beverages with 
a measured alcoholic strength of more than 30% by volume, and vehicles, are subject to 
consumption/vehicle taxes , based on their c.i.f. value, regardless of their or igin. Taxes  on tobacco 
and automobiles underwent  some changes since the last  Review. In particular, imports of these  
goods are subject to a higher tax rate; e.g. in 2019, consumption taxes on cigars and cigarettes 
were levied at a rate of MOP 4,326 per kg and MOP  1.5 per unit, up from MOP 1,442 per kg and 
MOP 0.5 per unit in 2011 . According to the authorities, the rationale for this increase is to control 
the local tobacco consumption volume, by various segments of the population, in particular young 
person s. They also noted that t he increases in  tobacco taxes are  in conformity with Art icle 6 of the 
WHO Framework Convention on Tobacco Control . These taxes are not applicable to goods in transit. 
The DSE is responsible for assessing and collecting the taxes on tobacco and alcohol, while the 
Financ ial Services Bureau  (DSF)  is responsible for the tax on vehicles.   
3.1.5.1   Import licensing  
3.23.   Import licensing requirements are applied to several categories of goods when  imported into 
Macao, China, primarily on grounds of public health, safety, public security, environmental 
protection, IPR enforcement, and consumption tax collection. The products concerned include: live 
animals; plants listed under CITES; certain food; p harmaceuticals; narcotic drugs and psychotropic 
 
38 The definition of product groups is based on World Tariff Profiles published by WTO Secretariat.  
39 WTO document WT/Let/1022, 2 December 2014.  
0.0%10.0%20.0%30.0%40.0%50.0%60.0%
2 3 4 5 6 7 8 9 10 11 12 13Chart 3.[Macao] Binding coverage by non -agricultural prodcut groups
(% of tariff lines for each prodcut group)
Source: WTO Secretariat calculations, based on CTS database.Leather, rubber, 
footwear and
travel goodsElectric 
machineryNon-agricultural 
products, n.e.s.Chemicals and 
photographic 
suppliesWood, pulp, 
paper and 
furnitureNon-electric 
machineryMinerals and
metalsTextilesTransport 
equipmentFish and 
fishery 
productsClothingPetroleumNon-agricultural product group (19.2%)WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  substances; chemicals; goods subject to excise duty; equipment and materials for the production of 
compact discs; radiocommunication equipment; and arms and ammunition (Table 3.2).  
Table 3.2 Products subject to import licensing, 2020  
Products  HS headings  
Live animals  Chapter 1  
Meat and meat products  0201, 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209.10.10, 
0209.90.10, ex -0210 (0210.11.00 -0210.20.00)  
Live fish  ex301 (0301.91.00 -0301.99.90)  
Fish and fish products  0302, 0303, 0304, 0305.42.00 , 0305.51.00 , 
Seafood  ex-306 (0306.11.00-0306.17.90, 0306.31.00-0306.99.00) 
ex-307 ( 0307.11.00 -0307.43.00, 0307. 51.00, 0307. 52.00, 
0307. 60.10, 0307. 60.20, 0307. 71.00, 0307. 72.00, 0307. 81.00-
0307. 84.00, 0307.91.00, 0307.92.00) 
ex-308 ( 0308.11.00, 0308.1 2.00, 0308. 21.00, 0308. 22.00, 
0308. 30.10, 0308. 30.20, 0308. 90.10, 0308. 90.20) 
Milk and milk products (butter, cheese)  0401, 0403, 0405, ex -406 ( 0406.10.00, 0406.30.00-
0406.90 .00) 
Eggs 0407  
Meat preparations  1601, 1602.41.00, 1602.42.00  
Ice cream (sorbets)  2105.00.00  
Itinerant animals  9508.10.20  
Powder milk and formula  0402.21.20, 1901.10.31, 1901.10.32  
Inorganic c hemicals  2806.20.00, 2810.00.00, 2828.10.00, 2837.11.12, 2837.11.20, 
2837.19.11, 2837.19.12, 2837.19.90, 2840.11.00, 28 43.21.00, 
2844, 2845, 2847.00.00, 2853.90.20, 2806.10.00, 2807.00.10, 
2807.00.20, 2841.61.00  
Organic chemicals  2903.81.1 0-2903.92.20, 2905.51.00, 2907.19.10, 2907.21.00, 
2907.22.00, 2912.11.00, 2914.29.10, 2914. 39.10, 2914. 39.90, 
2916.31.00, 2918.21.00, 2918.22.00, 2918.23.00, 2921.46.00, 
2922.44.00, 2922.31.00, 2922.44.00, 2922.49.00, 2924.24.00, 
2925.12.00, 2926.30.00, 2932.20.10, 2932 .95.00, 2933.11.00, 
2933.21.00, 2933.33.00, 2933.41.00, 2902.30.00, 2909.11.00, 
2914.11.00, 29 14.12.00, 2914.31.00, 29 15.24.00, 291 6.34.20, 
2922.43.10, 29 22.43.20, 2924.23.10, 2924.23.20, 2932.91.00, 
2932.92.00, 29 32.93.00, 29 32.94.00, 29 33.32.10, 2933.32.20, 
2939.41.11 -2939.41.80 , 2939.4 2.11-2939.4 2.80, 29 39.44.00, 
2939.61.10, 2939.61.80, 293 9.62.10, 293 9.62.80, 293 9.63.10, 
2939.63.80  
Laboratory material and medical 
equipment  3822, 9018.39.11, 9021.9011, 9022  
Beverages with alcohol content  ex-2205, ex -2206, ex -2208 
Tobacco products  Chapter 24  
Petroleum products ( oil and gas )  2710.12.51, 2710.19.11, 2710.19.51, 2710.19.52, 2710.19.57,  
2710.19.5 8, 2710.19. 60, 2711.19.00 
Plastics and articles thereof  3903.30. 10, 3907.40.10  
Machinery and mechanical appliances; 
parts thereof  ex-8419.39.00, 8424.89.10, 8424.89. 20, 8443.19.10, 
8465.94.10, 8465.99.10, 8477.10.10, 8479.89.20, 8479.89.30, 
8479.89.40, 8480.89.10  
Electrical machinery and equipment and 
parts thereof  8543.30.10, 8543.70.10 
Optical p hotographic, cinematographic  
instruments  9031.80.10, 9031.80.20  
Radiocommunication apparatus  ex-8517.61.00, ex -8217.62.66, ex -8517.62.99, ex -8517.69.90, 
8565.69.10, 8525.50.00, ex -8525.60.90, ex -8526, ex -
8517.70.2 0, ex-8517.70.60, ex -8517.70.90, ex -8529.10.10, ex -
8529.10.90, ex -8529.90.10, ex -8529.90.20  
Explosive powder  36010010  
Specimens of endangered species of 
animals and plants  DSE, with prior opinion from the Municipal Affairs Bureau for 
species of animals and plants listed in CITES; with prior opinion 
from the Health Bureau for medicines comprising ingredients of 
species listed in CITES  
Arms and ammunitions; accessories and 
parts thereof; explosives and 
pyrotechnic products  3601-3604, ex -39, ex -71, ex -73 to ex-81, ex-40, ex -61, ex -62, 
ex-63, 6211.43.40, 6307.90.30, 6506.10.20, 8301.50.10, 
8479.89.50, 8479.90.40, ex -8704, ex -8710, 8710, 9020.00.10, 
Chapter 93  
Motor vehicles  ex-8701 (8701.20.00, 8701.30.00, 8701.91.00 -8701.95.00), 
8702, 8703, ex -8704, 8705, 8706, ex -8711, ex -8716 
(8716.10.00 -8716.40.00, 8716.80.90, 8716.60.90)  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Products  HS headings  
Ozone -depleting substances  DSE, with prior opinion from the Environmental Protection Bureau 
for ozone -deplet ing substances listed in the Montreal Protocol  
Rough diamonds  7102.10, 7102.21, 7102.31  
Source:  Chief Executive Decision No. 487/2016, Annex II, Table B, 28 December 2016. Viewed at: 
https://images.io.gov.mo/bo/i/2016/52/despce -487-2016-an3-pt.pdf ; Law No. 2/2017, 
22 May 2017. Viewed at: https://images.io.gov.mo/bo/i/2017/21/lei -2-2017.pdf ; Decree -Law 
No. 62/95/M, 4 December 1995. Viewed at : https://images.io.gov.mo/bo/i/95/49/dl -62-95.pdf ; and 
Law No. 15/2019, 19 August 2019. Viewed at:  https://images.io.gov.mo/bo/i/2019/33/lei -15-2019-
pdf. 
3.24.   In addition to import licences, imports of live animals, meat, animal products, fish, 
crustaceans and molluscs, live plants, mushrooms , and edible plants must also be accompanied by 
international animal health certificates, sanitary and/or phytosanitary certi ficates (Section 3.3.3).  
3.25.   The import licensing regime 's legal basis includes the Foreign Trade Law (Law No.  7/2003, as 
amended by Law No.  3/2016), the Regulation on Foreign Trade Operations (Administrative 
Regulation No.  28/2003, as amended by Administrativ e Regulation No.  19/2016), and other sectoral 
laws and decree -laws. In 2015, petroleum products were added to the import licensing regime (Chief 
Executive Decision No. 27/2015), but they were subsequently removed. Chief Executive Decision 
No. 487/2016, pub lished on 28 December 2016, sets out the most recent list of products that are 
subject to import licences  (Table B, Annex II to the Decision). In addition, other goods are subject 
to import licences under specific laws applied to implement relevant international agreements.40  
3.26.   Several government departments are responsible for issuing import licences , depending on 
the nature of the product and the purpose of the licence (Table 3.3). Import licences for live animals, 
meat, animal products, fish, crustaceans and molluscs, live plants (listed in CITES), mushrooms , 
and edible plants are administered by the  Municipal Affairs Bureau ( IAM). However, import licences 
related to animals and plants listed in CITES are issued by the Macao Economic Bureau ( DSE), with 
a prior opinion from the IAM. The DSE also administers import licences for products subject to 
consu mption tax (alcoholic beverages  and tobacco products); optical disc -manufacturing equipment; 
certain narcotic drugs; and ozone -depleting substances . For the latter, a prior opinion from the 
Environmental Protection Bureau is required .  
Table 3.3 Import licensing regime, 2020  
Products  Licensing authority  Rationale  
Live animals; meat; animal 
products; fish, crustaceans and 
molluscs; vegetables; live 
plants  (listed in CITES) ; 
mushroom spawn ; and dairy 
products  Municipal Affairs  Bureau (IAM)a To protect public health, animal 
health, and animal welfare, and to 
prevent the introduction into , and 
spread within , Macao, China of 
destructive plant diseases and 
pests  
Pharmaceutical products and 
medicines; modified milk; 
essential oils; and dyes and 
chemicals  Health Bureau  To safeguard public health, and to 
prevent diversion of narcotic drugs 
and psychotropic substances into 
illicit markets  
Beverages with alcohol content 
≥ 30%; and tobacco products  Macao Economic Bureau (DSE)  To facilitate collection of the 
consumption tax  
Petroleum products ( oil and 
gas) DSE To enforce control of public safety , 
and for data collection reasons  
Optical disc -manufacturing  
equipment and raw materials  DSE To enforce control over the flow of 
optical disc -manufacturing 
equipment and raw materials , in 
order to prevent 
copyright -infringing activities  
Narcotic drugs and psychotropic 
substances  DSE To control the illicit traffi c of 
narcotic drugs and psychotropic 
substances , as stipulated in the UN 
Convention against Illicit Traffic in 
Narcotic Drugs and Psychotropic 
Substances  
 
40 Examples of goods subject to specific laws are: ozone -depleting substances (Decree -Law 
No. 62/95/M); rough diamonds  (Law No. 15/2019); and specimens of endangered species of animals and 
plants (CITES) (Law No. 2/2017).  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Products  Licensing authority  Rationale  
Radiocommunication apparatus  Macao Post and 
Telecommunications Bureau  To ensure imported products meet 
certain standards  
Ozone -depleting substances 
originating in contracting 
parties to the Montreal Protocol  DSE, with advance comments from 
the Environmental Protection 
Bureau  To com ply with the obligations set 
out in the Montreal Protocol  
Specimens of endangered 
species of animals and plants  DSE, with prior opinion from the 
IAM for species of animals and 
plants listed in CITES; with a prior 
opinion from the SSM for 
medicines compr ising ingredients 
from species listed in CITES  To ensure survival of endangered 
species of wild animals and plants  
Arms and ammunition; 
accessories and parts thereof ; 
explosives and pyrotechnic 
products  Public  Security Police  Force  To control ammunition arms ; and 
public security  
Motor vehicles  Transport Bureau   To facilitate collection of the motor 
vehicle tax  
Rough diamonds  DSE To eradicate the illegal trade of 
conflict diamonds , and preserve 
order in rough diamond trade  
a The IAM started operations on 1 January 2019, replacing the Civic and Municipal Affairs Bureau.  
Source:  Information provided by the authorities. See also WTO document G/LIC/N/3/MAC/22, 27 May 2019.  
3.27.   Import licences for vehicles are issued by the Transport Bureau; l icences to import 
radiocommunication equipment are the responsibility of the Post and Telecommunications Bureau; 
import licences for pharmaceutical and chemical products are the remit of the Health Bureau; and 
the Public Security Police Force is responsibl e for issuing import licences for arms, ammunition and 
explosives.  
3.28.   Generally, import licences are granted within three working days if the "ordinary " criteria 
stipulated in the Foreign Trade Law are met; if refused, the reasons for refusal must be given t o the 
applicant, who has the right to appeal. Import licences are valid for 30 days from the date of 
issuance. They may not be extended and are not transferable. Macao, China has regularly submitted 
its replies to the questionnaire on import licensing proc edures to the WTO Committee on Import 
Licensing.41  
3.29.   The application for an import licence does not require payment of any fee . However , each 
CITES certificate and Kimberly Process certificate issued by the DSE is subject to a charge of MOP  70, 
since 1 September 2017.42  
3.1.5.2   Other restrictions  
3.30.   Imports of hydrochlorofluorocarbons have been subject to an import quota since 1995. The 
quota is progressively reduced every five years , and the importation of this product is to be banned 
for environmental reasons  from 1 January 2030.  
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.31.   Macao, China has no authority responsible for initiating and conducting investigations related 
to anti -dumping or countervailing actions, nor legislation governing such matters.43 Therefore, to 
date, Macao, China has taken no anti -dumping or countervailing measures.  
3.32.   Likewise, Macao, China has no legislation or institutional setting relating to safeguard 
measures, nor has it ever imposed such measures.  
 
41 WTO documents G/LIC/N/3/MAC/16 -22, the latest dated 27 May 2019.  
42 Chief Executive Decisions No. 212/2017 of 3 July 2017, and No. 142/2019 of 1 Octobe r 2019.  
43 WTO document s G/ADP/N/193/MAC an d G/SCM/N/202/MAC, 9 February 2010.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.33.   The Macao Customs Services is responsible for export inspection and clearance. The DSE and 
the Public Security Police Force are involved in the control of  export licences ; however, the 
authorities noted  that they are not stationed at the border .44 The IAM is involved in quality 
supervision and quarantine inspection.  
3.34.   Exports from Macao, China above a certain threshold require an export declaration, and 
certain exports require an export licence. All export s above  MOP 5,000 require an export declaration; 
goods with a total value of less than MOP 5,000 may be exempted from submitting a declaration 
form. Export declarations are submitted to the Macao Customs Services for statistical purposes . All 
goods subject  to licensing (including goods under Table A under Chief Executive Decision 
No. 487/2016) require an export licence , regardless of the ir value. Export licences are required for 
goods in t he export list (Table A) of Chief Executive Decision No. 487/2016 (su ch as arms and 
ammunition, and chemicals), and for goods whose trade is covered by international agreements and 
obligations (such as CITES) (Section 3.2.3).  
3.35.   Goods of Macao, China origin exported  to Mainland China continue to benefit from certain 
facilitat ion measures established under the CEPA (e.g.  they benefit  from customs cooperation for 
customs clearance and  inspection by China 's General Administration of Customs (GACC), and 
regarding  obtaining licences, permits or certificates) .45 Moreover, China  provide s duty-free 
treatment to all goods from Macao, China since 1 January 2006, except for prohibited goods.  Goods 
from Macao, China must satisfy the rules of origin established under the C EPA in order to enjoy 
duty-free treatment.  
3.36.   The Agreement on Trade in Goods under the CEPA (Section 2.3.3.1) amended rules of origin 
criteria by establishing the criterion of origin, as well as more flexible methods for the determination 
of origin for all products classified under Chinese tariff codes.46 The new rules of origin are valid since 
1 January 2019. According to the CEPA, a good qualif ies as originating from Macao , China  if it meets 
one of the following provisions:  (i) the good is wholly obtained or produced in Macao , China ; (ii) the 
good is produced in Macao , China  exclusively from materials originating  therefrom ; (iii) the good is 
produced using non -originating materials in Macao, China ; (iv) the good falls within the scope of the 
Annex of the Ag reement  (Product Specific Rules of Origin47) and complies with the corresponding 
change in tariff classification, regional value content (RVC), manufacturing or processing operations 
or other requirements;  and (v) the good does not fall within the scope of the Annex of the 
Agreement, but complies wi th the requirement that the RVC is greater than or equal to 30% when 
calculated by the build -up method, or the RVC is greater than or equal to 40% when calculated by 
the build -down method.48 To be granted preferential access to China under the CEPA, an  application 
form for  the issuance of a certificate of origin must be submitt ed to the DSE at least two days prior 
to the expected date of the operation. The form may be submitted electronic ally through the EDI 
(Section 3.1.1).  Also, u nder the CEPA, a mechanis m for consultations to appeal rules of origin 
determination was established in 2019. Through the mechanism, Macao , China  manufacturers can 
submit their requests for revisions of specific rules of origin to the DSE, which enters into 
consultations with the Chinese authorities. Resulting from these consultations, revised rules of origin 
may be issued. Since 2020, the consultation process is conducted twice a year, following a specified 
 
44 Administration Regulation No. 19/2016, Chapter 1, Article 3 -a. 
45 WTO document WT/TPR/S/201/Rev.1, para. 3.62, 27  June 2013. When local products are exported to 
China by contain er or truck, Macao, China customs officers carry out clearance procedures (i.e. document 
verification and inspection) and seal the truck or container with an electronic pass lock. The inspection result is 
transmitted to China's GACC. These goods are then e xempted from clearance and inspection by the GACC.  
46 DSE, Mainland and Macao Closer Economic Partnership Arrangement (CEPA) . Viewed at: 
https://www.economia.gov.mo/en _US/web/public/pg_eetr_cepa_s?_refresh=true .  
47 DSE. Viewed at: https://www.economia.gov.mo/public/data/cepa/tig/attach/005 
b2d0f887107a3f3e22af58f0651c903da30fa/en/Rules_en.pdf . 
48 Under the build -down method, the RVC is calculated using the formula RVC = ((AV−VNM)/AV) × 100, 
where the RVC is expressed as a percentage; AV is the adjusted value of the good; and VNM is the value of the 
non-originating materials acquired and used by the producer in the production of the good . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  chronogram.49 As noted earlier (Section 3.1.2), the DSE does not charge a fee for issuing a certificate 
of origin.  
3.2.2   Taxes, charges, and levies  
3.37.   Macao, China does not levy any export -related duties, taxes or charges.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.38.   Macao, China does not apply any export prohibitions other than th ose required to fulfil 
international obligations.  
3.39.   Export licensing requirements apply to certain categories of products for reasons of public 
health, environmental protection, IPR enforcement,  public security , and compliance with 
international conventions. Some of the products concerned mirror those that are subject to import 
licences (Table  3.4). Chief Executive Decision No.  487/2016, published on 28 December 2016, 
contains the most recently updated list of pr oducts for which an export licence is required (Table A 
in Annex  II to the Decision); other goods are subject to export licensing under specific laws , applied 
to implement relevant international agreements (e.g. CITES, the Montreal Protocol, etc.). Since t he 
last Review , textiles and garment products exported to the United States, the European Union, 
Canada, Norway and Turkey have been removed from the list of goods that are subject to export 
licensing.  
Table 3.4 Export licensing regime, 2020  
Goods  Licensing authority  Rationale  
Toxic chemicals, precursor 
substances, and psychotropic 
substances  Health Bureau or DSE To control illicit production, supply 
and consumption of narcotic drugs 
and psychotropic substances 
(Health Bureau); and to control 
chemicals under the  1988 UN 
Convention ( DSE) 
Optical disc -manufacturing 
equipment and raw materials  DSE To prevent piracy o f copyrighted 
materials  
Specimen s of endangered 
species of animals and plants  DSE; with prior opinions from the 
IAM for species of animals and 
plants listed in CITES , and from the 
Health Bureau for medicines 
comprising ingredients of species 
listed in CIT ES  To ensure the survival of 
endangered species of wild 
animals and plants  
Ozone -depleting substances 
originating in contracting 
parties to the Montreal Protocol  DSE, with advance comments from 
the Environmental Protection 
Bureau  To comply with the ob ligations set 
out in the Montreal Protocol  
Arms and ammunition; parts 
and accessories thereof  Public Security Police  Force   To control arms and ammunitions  
Rough diamonds  DSE  To eradicate the illegal trade of 
conflict diamonds  
Source:  Information provided by the authorities.  
3.40.   The DSE, the Health Bureau and the Public Security Police Force are in charge of issuing 
export licences within their respective remits. For products subject to export li censing by the DSE, 
exporters must obtain the licence before applying for a certificate of origin. As indicated previously , 
exports of textiles and clothing no longer require an export licence to obtain a certificate of origin; 
obtaining an export declarat ion is sufficient. Generally, export licences are issued within three 
working days of application.  
 
49 DSE, Rules of Origin . Viewed at: https://www.economia.gov.mo/public/data/cepa/tig/attach/a7a6f 
244cc6d7cd2cab4b3a30429e5ab0b740653/en/app_ceparule_en.pdf ; and Product Specific Rules of Origin . 
Viewed at:  https://www.economia.gov.mo/public/data/cepa/tig/attach/005b2d0f88 7107a3f3e22af58f0651c 
903da30fa/en/Rules_en.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.2.4   Export support and promotion  
3.41.   The authorities indicate d that Macao, China does not apply any export subsidies.  
3.42.   Being a free  port, Macao, China does not maint ain any export processing zones, special 
economic zones or free trade zones. Companies established in the Macao side of the Zhuhai -Macao 
Cross -border Industrial Park are treated in the same way as those in the territory of Macao, China.  
3.43.   Exporters can bene fit from the promotional activities and other services provided by the 
Macao Trade and Investment Promotion Institute ( IPIM), the government agency responsible for 
promoting trade opportunities and attracting investment. To support the Government 's objecti ve of 
economic diversification, the IPIM provides domestic  companies with trade, economic and statistical 
information on various markets, helps exporters participate in international fairs, facilitates 
business -matching contacts, and fosters the role of Ma cao, China as an economic and trade platform 
between China and foreign countries, in particular Portuguese -speaking countries.  
3.44.   Specifically, the IPIM organizes exhibitions and other activities, locally and overseas, to 
promote Macao products, and provides  financial incentives to encourage local companies to 
participate in such events in order to display their products and establish direct contacts with 
customers. The costs of participation may be fully or partially covered (50% or 60% ), with maximum 
annual  caps per applicant, depending on whether the exhibitions are held locally or overseas, and 
whether they are organized by the IPIM or not. These costs include: rental of exhibition space; 
construction, setting -up and dismantling of exhibition booths; decor ation costs of exhibition booths; 
transportation fees for products/samples; air tickets; and costs of printed and audiovisual 
promotional materials.50 Companies registered in Macao, China, in which at least 50% of the 
shareholders are residents, and wholly  owned Macao , China  enterprises are eligible to apply for the 
financial incentives. Companies that do not fulfil these conditions must submit a certif icate of origin 
or the respective trademark registration issued by the DSE as a proof of "Made in Macao " or "Macao 
Brand " products, when applying for the financial incentives offered by the IPIM. In 2017, the IPIM 
provided 725 Macao , China  enterprises and associations with financial incentives for participating in 
58 local and overseas exhibition events  and, in 2018, 806 enterprises and non -profit organizations 
benefitted from financial incentives to participate in 62 local and overseas exhibition events.  
3.45.   In addition, since November 2019, the IPIM administers the E -Commerce Promotion Incentive 
Measures Scheme , to encourage Macao enterprises to make full use of online business platforms to 
explore markets and business opportunities around the world. Applican ts must be registered in the 
IPIM's Eligible E -Commerce Operators list. Costs covered under the scheme include: membership 
fees; fees on value -added services; and fees for setting  up standard websites. The financial incentive 
is equivalent to a maximum of 70% of all expenses for each application, with an annual cap of 
MOP 30,000 per enterprise.  
3.2.5   Export finance, insurance, and guarantees  
3.46.   Macao, China does not operate any export finance schemes (including concessional export 
credits), or any insurance or guara ntee schemes.  
3.3  Measures Affecting Production and Trade  
3.3.1   Taxation and incentives  
3.3.1.1   Taxation  
3.47.   Macao, China maintains an independent taxation system, characterized by a simple structure 
and low tax rates, which is meant to make the it an attractive location for d omestic and overseas 
investors. The system relies mostly on direct taxes, in particular those imposed on gaming activities, 
which accounted, on average, for 80.5% of total annual revenues during the period under review. 
The Financial Services Bureau is res ponsible for monitoring the taxation system and implementing 
 
50 IPIM, "Regulations on Participation in IPIM's Promotional Activities" Abstract and Application.  Viewed 
at: https://www.ipim.gov.mo/en/macao -exhibition -and-conference/the -incentive -measures/regulations -on-
participation -in-ipims -promotional -activities -abstract -and-application/ . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  the relevant legislation. There were no fundamental changes to the taxation structure since the last 
Review, although the rates of the consumption tax, the motor vehicle tax and other taxes were 
modified. In addition, in 2020 , the authorities introduced temporary tax concessions concerning 
several direct and indirect taxes , in response to the COVID -19 pandemic (see below). Table 3.5 
describes the main types of direct and indirect taxes and related  exemptions/reductions applied.  
Table 3.5 Main types of taxation , and related exemptions  
Type of tax  Main features of the tax  Examples of 
exemptions/reductions 
Direct taxes   
Profits tax Levied on the total revenue generated by industrial 
and commercial business es. It is applied at 
progressive rates , ranging from 3% to 9% for 
taxable profits below or equal to MOP 300,000 , and 
12% for taxable profits over MOP 300 ,000. Taxable 
profits below MOP 32,000 are exempt from tax.  May be reduced by 50%  or 
exempted.  
Gaming operators are exempted 
from profits tax.  
Salary tax Levied at rates between 7% and 12% on work 
income . Daily-wage temporary workers, full -time 
employees and freelance workers (self-employed 
professionals) with an annual income of up to MOP 
144,000 are exempt from income tax.  Annual 
income between MOP 144,001 and MOP 424,000 is 
taxed at rates ranging from 7% to 11%; and annual 
income over MOP 424,000 is levied at a flat rate of 
12%.  For part -time employees , 
employees aged 65 or over, and 
employees with permanent 
disability, the tax -free threshold is 
MOP 198,000.  
Business  
registration tax  Levied on all individually and collectively operated 
industrial and commercial businesses , in the form of 
a business registration charge, involving a fixed 
annual tax that varies according to the nature of the 
business.  For most activities , the charge is MOP 
300; for import and export activities , it is MOP 
1,500. 50% reduc tion for businesses 
located on the islands of Coloane 
and Taipa (except offshore 
banking operations) . 
Property tax  Levied at a rate of 6% of the rental value assessed 
by the Finance Services Bureau or at 10% of the 
actual rental income generated, whichever is higher.  Property purchased and used for 
manufacturing  is exempt ed from 
the property tax . The exemption is 
for: (i) 5 years , if the new 
industrial unit is  on the Macao 
peninsula ;   
(ii) 10 years , if the new industrial 
unit is on Taip a Island or Coloane 
Island.   
For new residential units, 4 years if 
the unit is on the Macao peninsula, 
and 6 years if it is on Taipa Island 
or Coloane Island.   
Gaming tax  Applies to casino concessionaires and is levied on 
their gross gaming revenue at a  rate of 35%.   None.  
Indirect taxes   
Consumption 
tax Levied on alcoholic beverages (≥30% alcohol 
content), and tobacco.  Alcoholic beverages (≥30% 
alcohol content) provided by an 
airport catering company on 
aircrafts , and alcoholic beverages 
(≥30% alcohol content) and 
tobacco sold on aircrafts are 
exempted from the tax. 
Motor vehicle 
tax  Levied on the "tax price " (determined for tax 
purposes) of new vehicles, cover ing automobiles, 
motorcycles and scooters , and import ed vehicles 
for the private use of the importer or marketing 
agent.  The rates vary between 24% and 50% for 
motorcycles and scooters , and between 40% and 
72% for automobiles.  Vehicles intended for use in 
Macao , China 's public services, 
public transport, car go, etc. are 
exempt ed from the tax . 
Tourism tax  Levied at 5% on all services provided by hotels and 
similar establishments, health clubs, saunas, 
massage parlours, karaoke bars and holiday 
resorts . Businesses such as guesthouses, 
restaurants , beverage shops , and 
food shops are exempt ed.  
Stamp duty Applies to the transfer of property and other 
assets. The rate for transactions involving building Reduced by 50% for all property 
transfers involving industrial use.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Type of tax  Main features of the tax  Examples of 
exemptions/reductions 
units on the Macao peninsula and the two islands is  
between 1% and 3%, depending on the transaction 
price.  Stamp duty of 5% is levied on gifts . Charitable donations related to 
property transfers valued at less 
than MOP 50,000 enjoy a 
reduction.  
Special stamp 
duty Any transfers of immovable property ownership 
within two years of the stamp duty liquidation date 
of the property are su bject to special stamp duty. Special stamp duty is exempted 
for the spouse, parent or straight -
line relative or parent or 2nd 
collateral degree relative.  
Extra stamp 
duty  The acquisition of residential property by a legal 
entity, an individual entrepreneur, or a 
non-resident is subject to extra stamp duty of 
10%.  Extra stamp duty is exempted for 
the spouse, or lineal relative by 
blood or by marriage.  
Additional 
stamp duty 5% additional stamp duty is applied on the 
acquisition of a second residential property.  
10% additional stamp duty is applied on the 
acquisition of a third or more residential property if 
the acquirer owns other residential property at the 
time of the acquisition.  Additional stamp duty on the 
acquisition of the second and 
subsequent residential property is 
exempted for the spouse, lineal 
relative by blood or  marriage, and 
2nd degree collateral relative by 
blood or by marriage.  
Source:  Information provided by the authorities.  
3.3.1.1.1   Direct taxes  
3.48.   Direct  taxes include profits tax (or complementary tax); salary tax; business registration tax; 
property tax; and gaming tax. The latter is applied at a rate of 35% on the gross revenue generated 
by casino gaming. Most other direct taxes, in particular the profi ts tax and the salary tax, are levied 
at relatively low rates. The highest profits tax rate remains at 12%, and a flat 12% salary tax rate 
was applied to personal income above MOP 424,000 in 2019. Several tax rebates and exemptions 
apply (Table 3.5).  
3.3.1.1.2   Indir ect taxes  
3.49.   The main indirect taxes are the consumption tax (on tobacco products , and beverages with 
an alcohol content of 30% or more), the motor vehicle tax, the tourism tax , and stamp duty. The 
consumption tax and the motor vehicle tax are levied on domes tic and imported products alike. 
However, as few of such products are produced in Macao, China, imported products are the major 
source of these taxes. Importers of goods subject to consumption tax and motor vehicle tax must 
obtain an import licence from th e DSE or the Transport Bureau, respectively, and the corresponding 
taxes must be paid before the goods are cleared at Customs. There is no value  added tax in 
Macao,  China.  
3.50.   During the period under review, the consumption tax on tobacco products was increase d 
through Law No. 9/2015 (the latest amendment to Law No. 4/99/M), as part of measures to 
discourage public smoking. Likewise, the tax rate on motor vehicles and motorcycles was raised 
through Law No. 14/2015, which amended Law No. 5/2002 (Table 3.6). The motor vehicle tax is 
progressive, based on the taxable value of new motor vehicles. Transactions of second -hand motor 
vehicles are not subject to this tax. There is also a tax exemption for environmentally friendly motor 
vehicles.51  
3.51.   Stamp duty is levied , at varying rates,  on most business transactions (such as the lease, sale 
or transfer of immovable property, the sale of shares , and the transfer of other assets). With the 
aim of discouraging speculation in the real estate market, a special stamp duty is i mposed on 
transfers of residential and commercial immovable property, and office or parking space, that is sold 
within two years of its purchase.  The rate is 20% if the sale takes place within the first year of 
acquisition , and 10% within the second year. Acquisition of immovable property for residential use 
by a legal person or a non -resident is subject to an extra stamp duty of 10%. Moreover, an additional 
stamp duty , at a rate of 5% , is applied on the acquisition of a sec ond residential property, and at a 
rate of 10% on the acquisition of a third or more residential property if the buyer owns other 
residential property at the time of acquisition. Tourism tax is l evied on all services provided by hotels 
 
51 Revised Regulation on Motor Vehicle Tax (Law No.  1/2012).  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  and similar establis hments, health clubs, saunas, massage parlours, karaoke bars , and holiday 
resorts , at a rate of 5%.  
Table 3.6 Consumption tax and motor vehicle tax rates, 2012 and 2019  
Products  Tax rate 2012  Tax rate 2019  
Consumption tax on alcoholic beverages  
Alcoholic beverages with alcohol content of 30% or 
more (rice wine excepted)  10% on c.i.f. value plus 
MOP 20.00/litre  10% on c.i.f. value plus 
MOP 20.00/litre  
Consumption tax on tobacco products  
Cigars  MOP 1,442. 00/kg  MOP 4,326.00/kg  
Cigarettes  MOP 0.50/unit  MOP 1.50/unit  
Other products containing tobacco or tobacco 
substitutes, or other compounds added to tobacco  MOP 200.00/kg  MOP 600.00/kg  
Motor vehicle tax  
Newly imported automobiles  30% to 55%  40% to 72%  
Newly imported motorcycles  10% to 30%  24% to 50%  
Source:  Information provided by the authorities.  
3.52.   Temporary  tax relief measures are approved in the government budget every financial year 
(FY); some of them have remained in place for several years. Table 3.7 summarizes the tax relief 
measures granted for FY 2019 under Law No.  19/2018.52 For example, the tax -exempt threshold for 
the profits tax was increased from MOP 32,000 to MOP 600,000 for income deriv ed in the tax year 
2018. Also, in order to encourage innovation and to support the development of the Guangdong -
Hong Kong -Macao Greater Bay Area, companies were allowed to deduct from their taxable revenues 
for FY 2019 300% of the first MOP 3 million spent  on R&D activities, and 200% of any additional 
R&D expenditure, subject to a maximum limit of MOP 15 million. Moreover, with the aim of promoting 
featured financial services, Macao , China companies were exempt from tax on profits deriving from 
their invest ments in bonds issued by the Mainland authorities or state -owned enterprises made 
available for acquisition in Macao, China; and the issue and acquisition of such bonds was exempt 
from the applicable stamp duty for FY 2019. Likewise, with the objective of increasing supply and 
helping reduce prices in the real estate leasing market, the urban property tax rate for leased 
premises was reduced from 10% to 8% for FY 2019.  
Table 3.7 Tax relief measures for FY 2019  
Tax Incentives  
Profits tax  - The tax -free income threshold for the profit tax was increased from MOP 32,000 to 
MOP 600,000 for income derived in FY 2018. Income over MOP 600,000 is taxed 
at 12%. 
- Companies may deduct from their taxable revenues 300% of the first MOP 3 million 
spent on qualifying R&D activities, and 200% of any additional R&D expenditure, 
subject to a limit of MOP 15 million.  
- Income received from , or derived in , Portuguese speakin g countries is exempt from 
profits tax, provided such income is subject to tax in its place of origin.  
- Interest and capital gain s derived from bonds  issued in Macao, China  by the Central 
Government, regional  government s and central enterprises of China are exempt ed 
from profits tax. 
Salary tax  The tax -free threshold for the salary tax was increased to MOP 144,000 , and there is a 
tax payment deduction of 30%.  
Business 
registration tax  
(or industrial tax ) Commercial and industrial operations continue to b e exempt from the annual industrial 
tax. 
Property tax  The standard MOP 3,500 reduction in property tax liabilities continue s to be available 
for both self -use and rental properties. This incentive does not apply to corporate 
property or property of non-residents.  
The property tax rate for rental properties was reduced to 8%.  
Tourism tax  Restaurants continue to be exempt from t ourism tax.  
Stamp duty  - Exemption for insurance contracts and banking services charges.  
- Exemption on all a dmission tickets for performances, exhibitions, and entertainment.  
- Exemption for d ebt instruments issued, sold, or transferred in Macao, China  by the 
Central Government, local government s, or SOEs of China.  
- Exemption for auctions of products and of movable and immovable property.   
Source:  WTO Secretariat , based on Law No.  19/2018, and the b udget for FY 2019.  
 
52 Financial Services Bureau. Viewed at: http://www.dsf.gov.mo/tax/tax_benefit.aspx ?lang=en . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.53.   In 2020, in order to help cope with the adverse effects of the COVID -19 pandemic , Law 
No. 3/2020 (which amended the 2020 Budget, Law No. 22/2019) was approved to provide 
temporary exemptions or deductions from several direct and indirect taxes (Table 3.8). This Law 
became effective on 18 April 2020.  
Table 3.8 Tax-related measures taken in response to the COVID -19 pandemic  
Type  of tax Measure  
Tourism tax Exemption for six months (from 1 May 2020) for  establishments providing services , such as 
hotels, nightclubs, bars, gym s, saunas, massage parlours , and karaoke venues . 
Profit s tax - Deduction for the year 2019, subject to a ceiling of MOP  300,000.  
- For the calculation of tax for profit tax taxpayers and the second group of salary tax 
taxpayers (self -employed professionals), donation s (cash and goods in relation to the 
support of the COVID -19 pandemic) to : public organizations and charitable organizations 
established in Macao , China  or Mainland  China ; and to  governments  at the county level or 
above and their departments in Mainland  China  are considered as expenses or losses.  
Salary tax - Increase of the salary tax deduction rate of taxable personal income tax for 2020 from 25% 
to 30%.  
- The percentage of the salary tax rebate for residents for 2018  was increased  from 60% to 
70%. The ceiling of such rebate was increased from MOP  14,000 to MOP  20,000.  
Prope rty tax - Exempted on all residential properties held by residents for 2019.  
- In addition to an initial property tax reduction of MOP  3,500, a waiver of 25% of the property 
tax charged on commercial establishments.  
Stamp duty Exempted on the issuance and renewal of 2020 licen ces and administrative licen ces. 
Vehicle 
licence fee Exempted for 2020 for buses, taxi s, vans, truck s, school bus es, Macao -Hong Kong cross -
boundary  hire car s, and vehicle s registered by hotel s, travel agenc ies and hire ca r operator s. 
Source:  Information provided by the authorities.  
3.3.1.2   Incentives  
3.54.   The Government offers several incentive schemes across economic activities in order to 
attract businesses to establish and operate in the territory. The support measures may take the  form 
of tax incentives, financial support , or other forms of assistance. There are also incentives to promote 
the development of particular industries, such as local fisheries, tourism , and the MICE  industry  
(Section 4).  
3.3.1.2.1   Tax incentives  
3.55.   Tax incentives are granted for projects that benefit Macao, China 's development. These  
measures remained largely unchanged during the period under review. The most common type of 
incentive remains the reduction of profits tax. Tax incentives are applied equall y to foreign and local 
enterprises. In 2019, revenue forgone as result of profits tax exemptions and reductions amounted 
to MOP 7.6 billion , of which 92.7% was in the gaming industry (Table  3.9). 
Table 3.9 Estimated tax revenues forgone, 2013 -19 
(MOP million)  
Tax 2013  2014  2015  2016  2017  2018  2019  
Profits tax  6,307.5  7,180.2  8,425.7  6,171.8  5,175.7  6,342.0  7,616.0  
   on gaming  6,081.4  6,698.3  7,893.7  5,720.3  4,750.4  5,850.7  7,066.9  
   other 226.1  481.9  532.0  451.5  425.3  491.3  549.1  
Source:  Information provided by the authorities.  
3.56.   Under Law No. 1/86/M on Tax Incentives within the Scope of Industrial Policy (unchanged 
since 1993), Macao, China offers full or partial tax exemptions to enterprises that undertake 
activities related to the manufacturing sector, particularly those that promote the growth and 
development of the local industry by increasing productive efficiency and the technological level, 
expanding the product  mix, or improving other production activities.53 The main tax incentives 
granted to companies in the manufacturing sector include: a 50% reduction on profits tax; a 50% 
reduction on stamp duty on property transfers; exemption from property tax; and exempt ion from 
industrial tax (i.e. business registration tax) . To be eligible for these incentives, enterprises must 
 
53 Law No. 1/86/M, amended by Decree -Law No. 35/93/M.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  engage in qualifying industrial processing activities , and undertake investment projects , such as 
construction, expansion, reorganization or rec onversion of industrial establishments.54  
3.57.   Similar incentives are granted to investments in qualifying tourism facilities , with the aim of 
promoting the tourism industry. They include an extended property tax exemption period, exemption 
from industrial tax , a reduction in stamp duty, and the acceleration of depreciation for profits tax 
purposes.55  
3.58.   Approved offshore institutions have been exempt from profits tax, industrial tax and stamp 
duties for many years. Moreover, their managers and high -level special ists holding resident permits 
are exempt from professional (salary) tax for the first three years of employment.56 The offshore 
regime  will, however, be abolished on 1 January 2021. The existing approved offshore institutions 
will continue to operate until  the end of 2020 under transitional arrangements but , on 
1 January  2021, their operating licences will become invalid , and these institutions will transit to the 
onshore regime.  
3.3.1.2.2   Financial incentives and other forms of assistance  
3.59.   Macao, China offers a numbe r of non -tax incentives, mainly in the form of financial support 
targeted to wards  investment projects, SMEs , and young entrepreneurs.  
3.60.   The Enterprise Financing Loan Interest Subsidy Scheme (Administrative Regulation 
No. 16/2009, amended by Administrative R egulation No.  10/2011) provides financial incentives to 
enterprises investing in Macao, China , through a loan interest -rate subsidy. The aim is to encourage 
enterprises to undertake investment that is beneficial to domestic economic development, by 
facilit ating economic diversification, strengthening environmental protection, promoting 
technological innovation and transformation, and enhancing enterprises ' competitiveness and 
modernization. All locally registered enterprises are eligible for the interest -rate subsidy, except 
financial institutions/financial services providers and enterprises operating under public concessions 
or sub -concessions.  
3.61.   Beneficiary enterprises are entitled to an interest -rate subsidy of 4 percentage points per 
annum for a maximum of four years, starting from the date of repayment.57 The amount of subsidy 
for each period is calculated based on the outstanding principal. The maximum amount of loan 
eligible for subsidy is MOP 10 million per beneficiary per year. Loans eligible  for the interest -rate 
subsidy must be used for the following investment projects: purchase of facilities located in industrial 
and commercial premises; construction and expansion of facilities; refurbishment or renovation of 
facilities; purchase of equipm ent, machinery or new dedicated load -vehicles; purchase of computer 
software for production processes or business operation; acquisition of IPRs; signing of commercial 
licensing and franchising contracts; purchase of energy -efficient equipment or materials , or purchase 
of energy -management systems and related monitoring and analysis equipment; or purchase and 
installation of heating/cooling systems operating on renewable energy. Between 2013 and 2019, a 
total of MOP 2.4 billion  of subsidized loans were gran ted (averaging MOP  341.9 million a year) to 
575 investment projects (Table 3.10).  
3.62.   Given the significant contribution of SMEs to the domestic economy and employment, 
promoting the ir development and competitiveness constitutes a long -term government policy. 
Support to SMEs is provided through three instruments: the SME Aid Scheme, the SME Credit 
Guarantee Scheme , and the SME Credit Guarantee Scheme Designated for Special Projects. All 
three  Schemes were modified during the period under review to expand their scope. To be eligible 
under any of these Schemes, an individual entrepreneur or an enterprise must meet the following 
requirements: be registered at the Financial Services Bureau as a tax contributor with no outstanding 
 
54 IPIM, "Why invest in Macao". Viewed at https://ipim.b -cdn.net/wp -content/uploads/2018/06/ 
INVESTING_eng_201 8_11.pdf . 
55 Decree -Law N o. 81/89/M . 
56 Decree -Law No. 58/99/M and its supplementary regulations.  
57 For example, if the loan interest rate is 6%, the borrowing enterprise will only pay the difference, i.e. 
2%. The subsidy amount is subject to the actual loan  interest rate if the rate is less than 4%.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  liabilities; have less than 100 empl oyees working in Macao, China; and more than 50% of the 
business 's capital must be held by residents of Macao, China.58   
Table 3.10 Enterprise financing loan interest subsidy scheme, 2013 -19 
Year  No. of 
appro vals Usage of approved interest -subsidized loan (number of projects)  Granted 
subsidized -
loan amount 
(MOP)  Purchase 
of 
premises  Construction/  
expansion/  renovation/  
refurbishment of facilities  Purchase of 
equipment, machinery, 
or dedicated 
load- vehicles  Others  
2013 102 44 4 55 1 358,731,363  
2014 98 44 16 47 0 437,638,289  
2015 80 21 13 50 4 292,774,003  
2016 98 23 18 65 1 397,427,356  
2017 93 33 15 47 1 385,486,113  
2018 65 26 11 26 3 310,609,635  
2019 39 19 7 18 1 211,650,052  
Source:  Information provided by the authorities.  
3.63.   The SME Aid Scheme (Administrative Regulation No. 9/2003 and amendments59) provides 
interest -free financial assistance to help SMEs improve their business operations and adapt to rapidly 
changing economic conditions. Financial support can be used for: purchasing equipment for 
operation, renovation, refurbishment and expansion of projects; signing commercial concession or 
franchising contracts; acquiring excl usive rights to use technology and intellectual property; 
advertising and promotional activities; enhancing capabilities to improve operation s and 
competitiveness; as working capital; and for coping with financial difficulties directly caused by 
extraordin ary, unpredictable or force majeure  events (e.g. natural disasters and epidemic diseases). 
The maximum amount of financial aid is MOP 600,000 per SME (unchanged since 2012), and the 
maximum loan repayment period is eight years. Under Administrative Regulat ion No. 15/2017 
(effective on 23  May 2017), eligible SMEs that have fully repaid their previous loans may apply for 
aid under the Scheme for a second time (prior to this amendment, SMEs could only apply for 
assistance once). Between 2013 and 2019, the tota l amount of aid granted under this Scheme was 
MOP 1.6 billion , averaging MOP 234.7 million a year (Table 3.11). In order to help SMEs cope with 
the effects of the recent COVID -19 pandemic , the Scheme was revised through Administrative 
Regulation No. 4/2020 . Accordingly, the minimum operating time required for SME s to be eligible 
under the Scheme was reduced from two years to one. As per Chief Executive Order No. 57/2020, 
the implementing period of this measure is from  10 March  to 10 September  2020.  
Table 3.11 Support to SMEs, 2013 -19 
(Number and MOP million)  
 2013  2014  2015  2016  2017  2018  2019         
SME Aid Scheme         
No. of approvals  722 623 522 515 629 696 500.0  
Total amount of aid granted  265.0  247.9  198.2  197.6  244.9  288.7  201.2  
SME Credit Guarantee Scheme         
No. of approvals  81 53 61 62 55 78 46 
Total amount of credit guarantee d  157.3  105.0  100.4  125.3  93.0 166.7  88.8 
SME Credit Guarantee Scheme Designated for Special Projects  
No. of approvals  4 0 1 3 2 0 0 
Total amount of credit guarantee d  3.9 0 1.0 3.0 2.0 0 0 
Source:  Information provided by the authorities.  
3.64.   Under the SME Credit Guarantee Scheme ( Administrative Regulation No. 19/2003 and 
amendments60), the Government provides each SME with a credit guarantee equivalent to 70% of 
the loan approved by a participating bank or financial institution (currently 17  banks/financial 
institutions participate  in this Scheme). The maximum amount of guarantee provided was increased 
from MOP 3.5 million (unchanged since 2009) to MOP 4.9 million in May  2017 by Administrative 
Regulation No. 16/2017. The amount of the guarantee excludes interest and any other expens es 
 
58 IPIM, "Why invest in Macao". Viewed at: https://ipim.b -cdn.net/wp -content/uploads/2018/06/ 
INVESTING_eng_2018_11.pd f. 
59 Administrative Regulation No.  9/2003 was amended by Administrative Regulations No. 14/2006, 
No. 2/2009, No.  11/2012, No.  15/2017, and No. 4/2020.  
60 Administrative Regulation No.  19/2003 was amended by Administrative Regulations No.  19/2009 and 
No. 16/2017.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  related to amortization. The maximum loan repayment period is five years, counting from the 
drawdown date. Applicants must be proper SMEs that have been registered in Macao, China for at 
least one year. From 2013 to 2019, credit guarantees approved unde r this Scheme amounted to 
MOP 793.7 million (Table 3.11) . 
3.65.   The SME Credit Guarantee Scheme Designated for Special Projects (Administrative Regulation 
No. 19/2003 and amendments)61 offers credit guarantees of up to 100% of loans approved by 
participating ban ks or financial institutions, with a ceiling of MOP 1 million (excluding interest and 
other expenses related to amortization). The purpose is to help SMEs finance special projects, such 
as business model innovation and transformation; promotion and adverti sing of their brands; 
improvement of product quality; and to resolve short -term financial difficulties arising from 
extraordinary or unpredictable events beyond human control, such as natural disasters and 
epidemics. Since 23 May 2017, credit guarantees ma y also be provided to assist SMEs develop new 
businesses. The credit guarantee period is limited to a maximum of five years, counting from the 
drawdown date. Applicants must be proper SMEs that have been registered in Macao, China for at 
least three years.  During the period under review, the Government provided MOP  9.9 million in credit 
guarantees under this Scheme; however, the credit guarantees were not used in 2018 and 2019 . 
3.66.   In March 2020, a  new measure, the SME Bank Loan Interest Subsidy Scheme, was int roduced , 
through Administrative Regulation No. 5/2020 , in order to provide an interest subsidy for SMEs 
facing difficulties due to the COVID -19 pandemic . Beneficiary enterprises are entitled to loans at an 
interest rate with a subsidy of a maximum of 4 percentage points per year for a maximum bank loan 
of MOP 2 million, for a period of up to three years. As per Chief Executive Order No. 66/2020, the 
implementation period of this measure is six months, from 17 March t o 17 September 2020.   
3.67.   The Young Entrepreneurs Aid Scheme (Administrative Regulation No.  12/2013) was 
established in 2013 in order to assist young local entrepreneurs to start up a business and to ease 
their financial burden during the early stages of the b usiness operation. The Scheme provides 
interest -free loans with a ceiling of MOP 300,000 per enterprise and a maximum repayment period 
of eight years. Young local entrepreneurs, and companies in which over 50% of the capital is held 
by young entrepreneurs,  are eligible for funds. The loans can be used for: the purchase of equipment 
for business operation s; the renovation and refurbishment of facilities; signing commercial or 
franchising contracts; the acquisition of exclusive rights to use technology or IPRs; advertising and 
promotional activities; and as working capital. Administrative Regulation No.  22/2017 (effective 
since 15 August 2017) amended the Scheme in order to expand its scope. Some of the conditions 
for application were relaxed, paperwork was mi nimized, and eligibility was extended to experienced 
entrepreneurs (i.e. not start -ups). From 2013 to 2019, the loans granted under this Scheme totalled 
MOP 353.5 million (Table 3.12).  
Table 3.12 Young Entrep reneurs Aid Scheme, 2013 -19 
(Number and MOP million ) 
 2013  2014  2015  2016  2017  2018  2019  
No. of approvals  77 288 287 270 234 208 177 
Total amount of aid granted  18.5 69.0 68.4 63.0 53.8 44.9 35.9 
Source:  Information provided by the authorities.  
3.68.   The Government grants subsidies to companies in order to promote job creation in favour of 
targeted social groups. Three types of subsidies are granted through the Social Security Fund to 
encourage enterprises to hire: (i) unemployed people; ( ii) young first -time job seekers; and 
(iii) persons with disabilities. In the first case, subsidies may be granted to companies hiring persons 
who have been unemployed, provided they have registered with the Employment Promotion Division 
of the Labour Affa irs Department  (Direcção dos Serviços para os Assuntos Laborais  (DSAL )) and 
have been confirmed as individuals having difficulties find ing a job in the labour market. The 
maximum amount of the subsidy is MOP 13,800 (granted in six monthly instalments) per person 
employed. In the second case, subsidies may be granted to companies employing young people 
(aged under 26) with no work experience,  who are registered with the Employment Promotion 
Division of the DSAL. The amount of the subsidy, which is paid in six monthly instalments, is 
MOP 12,000 per person with secondary education, and MOP  15,000 per person with tertiary 
 
61 Administrative Regulations No. 19/2009 and No. 16/2017.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  education. In both cases , the employer undertake s to provide all necessary support to help 
employees adapt to their positions.   
3.69.   Subsidies may also be granted to enterprises or non -governmental organizations 
implementing projects for people with physical or mental disabilities, s uch as community -based 
vocational training and sheltered workshops, with work opportunities. The total amount of subsidy 
for any approved project is MOP 500,000, and subsidies are paid out by the Administrative Council 
of the Social Security Fund, with the  favourable opinion of the DSAL and the approval of the 
Secretary for Economy and Finance. Employers are also eligible for reductions in their profits tax or 
salary tax for each disabled person hired.62 
3.3.2   Standards and other technical requirements  
3.70.   As mention ed in the last Review, Macao, China does not have an integrated regime for 
standardization, accreditation and certification in different sectors of activities. Consequently, there 
is no official standardization body.  Macao, China does not establish its own  standards but adopts 
prevailing international standards and technical requirements.  The Macao Economic Bureau 
(Direcção dos Serviços de Economia , DSE) is Macao, China 's Nation al Enquiry Point for the 
TBT Agreement.  
3.71.   There are no specific procedures to deve lop technical regulations. However, when a product 
becomes subject to a licensing requirement, the corresponding standard becomes mandatory and, 
therefore , it becomes a technical regulation. According to the authorities, these technical regulations 
are alw ays based on international standards, as Macao, China does not develop its own standards, 
but resort s to adopting international or overseas standards, where appropriate. In addition, 
Macao,  China recognized a series of product safety standards from China a nd overseas under 
Administrative Regulation No. 17/2008. During the review period, Macao, China made 
12 notifications to the WTO under the TBT Agreement, all in September 2019 (Table 3.13).63 They 
refer to vehicle emissions, used motor vehicles, pollutants  in gasoline, pharmaceuticals, tobacco 
products, heaters, packaging, lights, and domestic appliances. All these technical regulations were 
in place at the date they were notified; some of them had been in force for several years. In this 
respect, the autho rities mentioned that this was due to human resource constraints , and that they 
would make an effort to fulfil their notification obligations in a timely manner. They also noted that , 
during the review period, a number of international standards were imple mented with a view to 
supplement ing the relevant laws and enhanc ing regulatory efforts. The recognized safety standards 
apply to all related products , both imported and locally produced.  
3.72.   During the period under review, two technical regulations were issued or revised in order to 
better regulate the import registration of pharmaceutical products. In 2013, Health Bureau Decision 
No. 10/SS/2013 on maximum limits of heavy metals and toxic elem ents in traditional medicinal 
products was enacted.64 This Decision is a revision of a technical regulation previously imposed in 
2003. The second, Health Bureau Decision No. 04/SS/2016 , was adopted in 2016 to stipulate an 
additional documentation and asse ssment requirement for the import registration of pharmaceutical 
products containing new chemical entities.65 The Health Bureau also issued a technical regulation 
with respect to the labelling of medicines.66 
3.73.   Apart from those notified, technical regulations also apply to i mport s of goods, such as 
radiocommunication  equipment , products used in civil engineering, and pressure -reduction stations. 
Overseas testing results are accepted as a useful reference for licensing purposes . Technical 
regulations  (compulsory  standards) for radio -telecommunication equipment are based on ITU 
standards, and imports are  subject to licensing, to ensure that technical regulations are met.  Test 
 
62 Law No. 8/2018, Tax Incentive Programme for Hiring Disabled Persons.  
63 Macao, China made 18 notifications to the TBT Committee between 1 January 1995 and end -
September 2019. WTO, TBT IM.  Viewed at: http://tbtims.wto.org/en/Notifications/Search?ProductsCovered 
HSCodes=&ProductsCoveredICSCodes=&DoSearch=True&ExpandSearchMoreFiel ds=False&NotifyingMember=M
acao%2C+China&DocumentSymbol=&DistributionDateFrom=01%2F01%2F1995&DistributionDateTo=24%2F0
9%2F2019&SearchTerm=&ProductsCovered=&DescriptionOfContent=&CommentPeriod=&FinalDateForComme
ntsFrom=&FinalDateForCommentsTo=&ProposedDateOf AdoptionFrom=&ProposedDateOfAdoptionTo=&Propose
dDateOfEntryIntoForceFrom=&ProposedDateOfEntryIntoForceTo= . 
64 WTO document G/TBT/N/MAC/ 8, 19 September 2019.  
65 WTO document G/TBT/N/MAC/ 11, 19 September 2019.  
66 WTO document G/TBT/N/MAC/ 7, 19 September 2019.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  results and certificates issued by the manufacturers or other authorities are  accepted as a reference 
for licensing purposes.  Radiocommunication equipment, such as conventional radio telephones and 
pagers, must pass type -approval tests.67 Type-approval certificates are issued by the Macao Post 
and Telecommunications Bureau.  There a re two technical standards for type -approval tests, which 
are mainly derived from European Telecommunications Standards Institute  (ETSI) standards.   
Table 3.13 Technical regulations notified to the WTO, Septem ber 2019  
Agency 
responsible  Products covered  Title Date of entry into 
force  
Transport Bureau  Newly imported motorcycles 
(including mopeds); diesel 
vehicles; heavy -duty 
compressed natural gas 
vehicles; heavy -duty 
gasoline vehicles ; and newly 
imported vehicles  1. Approving the Gas Pollutant 
Emission Parameter Table (vehicles 
equipped with four -stroke engine s)  
2. Setting the requirements on 
tailpipe emission limits for imported 
new vehicles  
3. Approving the Tailpipe Emission 
Standar ds and On -board 
Diagnostics System Specifications  1. 20 November 2018 
(for newly imported 
motorcycles)  
2. 21 May 2019 (for 
diesel vehicles, heavy -
duty compressed 
natural gas vehicles 
and heavy -duty 
gasoline vehicles)  
3. 20 November 2018 
(for newly imported  
vehicles)  
Transport Bureau  Protective moped and 
motorcycle  helmets  Approving the Models of Protective 
Helmets for Drivers and Passengers 
of Mopeds and Motorcycles  13 June 2017  
Transport Bureau  Used motor vehicles; heavy 
passenger vehicles  Regulating Import of Motor Vehicles 
and Heavy Passenger Vehicles  2 April 2019  
Transport Bureau; 
Environmental 
Protection Bureau  Unleaded gasoline and light 
diesel oil for vehicles  Standards for Unleaded Gasoline 
and Light Diesel Oil for Vehicles  14 July 2 016 
Health Bureau  Radioactive pharmaceuticals; 
medicines; proprietary 
Chinese medicines and 
traditional medicines  1. Regulation on Labelling of 
Radioactive Pharmaceuticals  
2. Regulation on Labelling of 
(Western) Medicine Packages  
3. Regulation on Labelling of 
Proprietary Chinese Medicines and 
Traditional Medicine Packages  1 June 2005 (for 
radioactive 
pharmaceuticals)  
10 August 2005 (for 
medicines and 
proprietary Chinese 
medicines and 
traditional medicines  
Health Bureau  Proprietary Chinese 
medicine s; traditional 
medicines  1. Micro -organism Limits for 
Proprietary Chinese Medicines and 
Traditional Medicines  
2. Technical Instruction on the 
Upper Limits of Heavy Metals and 
Toxic Elements in Traditional 
Medicines  1. 1 June 2004  
2. 18 July 2013  
Health Bu reau Tobacco products  Smoking Prevention and Control 
Regime. Republication of Law 
No. 5/2011 (Smoking Prevention 
and Control Regime), as amended 
by Law No. 9/2017  26 February 2018  
Health Bureau  Pharmaceuticals of bovine 
origin  Regulation on Import of 
Pharmaceuticals of Bovine Origin  2 July 2001  
Health Bureau  Imported new 
pharmaceuticals containing 
new active pharmaceutical 
ingredients  Technical Instruction on Documents 
Required for Importing New 
Pharmaceuticals  24 March 2016  
Macao Economic 
Bureau  (DSE) Flueless gas water heater s Prohibiting Import of Flueless Gas 
Water Heaters  12 January 2011  
DSE Locally originated or 
imported pre -packaged or 
non-pre-packaged food 
products, excluding non -pre-
packaged fresh food products 
and beverages of an 
alcoholic strength by volume 
exceeding 5%  Amending Decree -Law No. 50/92/M 
of 17 August  1992 28 February 2005  
 
67 Provisions in Decree -Law No. 48/86/M.  Viewed at: http://images.io.gov.mo/bo/i/86/44/dl -48-86-
cn.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Agency 
responsible  Products covered  Title Date of entry into 
force  
DSE Lights ; domestic appliances; 
sound equipment and 
audiovisual  equipment; 
information technology 
equipment; hand -held power 
tools; toys  Recognizing the Safety Standards 
for Products under the Categories of 
Lights, Domestic Appliances, Sound 
Equipment and Audio -Visual 
Equipment, Information Technology 
Equipment, Hand -held Tools, as well 
as Toys  29 June 2014  
Source:  WTO documents G/TBT/N/MAC/ 3; G/TBT/N/MAC/4 ; G/TBT/N/MAC/ 5; G/TBT/N/MAC/ 6; 
G/TBT/N/MAC/ 7; G/TBT/N/MAC/ 8; G/TBT/N/MAC/ 9; G/TBT/N/MAC/1 0; G/TBT/N/MAC/1 1; 
G/TBT/N/MAC/1 2; G/TBT/N/MAC/1 3; and G/TBT/N/MAC/14 , all of 19 September 2019.  
3.74.   Macao, China also applies technical regulations (compulsory  standards) for gas emissions of 
newly imported automotive vehicles (including motorcycles), in accordance with Administrative 
Regulations No.  1/2012 and No. 1/2008. Accordin g to Annex es I and II of Administrative Regulations 
No. 1/2012 and No. 1/2008, the compulsory standards applied for the importation of automotive 
vehicles are based on standards implemented in the United States, the E uropean Union, Japan, and 
China.68  
3.75.   Compulsory standards are also applied to imports of engineering equipment, which 
additionally require an import licence to ensure compliance with the technical standards applicable , 
namely the Macao Codes for Civil Engineering Activities . The Codes were pr epared by  the Civil 
Engineering Laboratory of Macau , following , according to the authorities, an in-depth analysis of the 
corresponding codes and standards used in China,  the E uropean Union, the United  States , and  
Hong Kong,  China . These codes and standard s are now part of the legal framework governing civil 
engineering activities in Macao, China.  
3.76.   Technical regulations also exist for pressure -reduction stations , as per Administrative 
Regulation No. 21/2016 on Technical Regulation of the Pressure Reduction S tations to be Installed 
in Combustible Gas Transportation and Distribution Pipelines , which  governs the design, installation, 
operation and inspection of pressure -regulating system s (PRSs) fitted in gas transmission and 
distribution systems. The authoritie s noted that this Regulation includes aspects such as the 
definition of the type of PRS, the safety distance to the PRS, and the protection of PRS s, among 
other issues. Chief Executive Decision No. 61/2014 , of 20 March 2014, which superseded Chief 
Executiv e Decisions No . 191/2008 and No . 439/2009, updated the list of safety requirements for 
luminaries,  and electrical appliances.69 
3.77.   Since 2013, Macao, China has adopted 11 food safety standards (Section 3.3.3).  
3.78.   Macao , China  does not have an overall conformity assessment structure  for standardization, 
accreditation or certification . It does not participate in international agreements or bilateral 
arrangements (including mutual recognition agreements  (MRAs) ) in the area of standards, testing, 
and certi fication.  The authorities noted that, despite this and notwithstanding the small number of 
technical regulations in place, there has been an increasing interest from producers and service 
providers to meet international standards. In this respect , the tren d of seeking voluntary 
management system certification , such as ISO 9001 and ISO 14001 , by local enterprises or 
organizations continue d to increase during the review period . The Macao Productivity and Technology 
Transfer Centre (CPTTM), a non -profit associ ation jointly established by the Government and the 
private sector, is the ISO correspondent member. According to available data, by the end of 2018, 
the number of ISO 9001 and ISO 14001 certificates amounted to  215 ( compared with  7 in 1996) 
and 73 ( up from 3 in 1999) , respectively.  There were certifications in other areas, too. For example, 
at least 21 local enterprises or organizations were certified under the ISO  22000 Food Safety 
Management System, as at December 2018; at least 6 were certified under IS O/IEC 20000 IT 
Service Management ; at least 12 under ISO/IEC 27001 Information Security Management ; and at 
least 2 under ISO 50001 Energy Management System. The services sector, the 
 
68 WTO document G/TBT/N/MAC/3, 19 September 2019.  
69 Chief Executive Dec ision No. 61/2014 applies to lights, domestic appliances, audio and video 
electronic apparatus, information technology equipment, handheld motor -operated electric tools, toys, and 
children's products. The revised Decision added extension sockets and adapto rs listed under the category of 
electrical appliances to its regulatory scope. The Decision may be view ed (in Portuguese) at: 
https://bo.io.gov.mo/bo/i/2014/13/despce.asp#61 .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  engineering/construction sector, and the manufacturing sector are the top three sectors using ISO 
management system certifications.  
3.79.   In 2018, the Industrial Association of Macau and the CPTTM co -launched the Macao Product 
Quality Certification Scheme, a voluntary scheme aiming to encourage local enterprises to adopt 
product quali ty certification as a means to enhance customer confidence and market 
competitiveness, thereby supporting the development of the industrial sector.  
3.80.   In the absence of a n official  standards or accreditation body, Macao, China does not have a 
laboratory accreditation scheme.  Macao , China  laboratories must seek accreditation  from bodies in 
Mainland China, Hong Kong, China, and abroad.  The authorities noted that, a s in the case of ISO 
management system certification, a number of local laboratories took the initiative to seek 
recognized accreditation from the China National Accreditation Service for Conformity Assessment 
(CNAS), the Hong Kong Accreditation Service, or other overseas accreditation bodies, such as the 
Portuguese Institute of Accreditation, or the National Association of  Testing Authorities of Australia 
(NATA).  In 2020 , there were nine accredited laboratories in Macao,  China, from bodies in Australia; 
China; Hong  Kong,  China; and Portugal (Table  3.14).  
Table 3.14 Accredited laboratories , 2020  
Name  Nature  Accredited by  Scope  
Macau Cement 
Manufacturing Co. Ltd.  Company -owned  Hong Kong 
Accreditation Service  
(HKAS) Construction materials – cement 
(chemical analysis)  
Civil Engineering Laboratory 
of Macau  Government -
related  Portuguese Institute of 
Accreditation  (IPAC)  
 
China National 
Accreditation Service 
for Conformity 
Assessment  (CNAS ) Calibration of instruments for the 
measurement of mass, force, or 
length  
Concrete testing, aggregates, soil 
testing and rock test ing, pile 
testing, foundation -monitoring, flat 
glass, steel bars, metallic materials, 
cement  testing  
Macao Water Supply Co. Lt d. 
- Analysis Division, 
Laboratory and Research  Company -owned  CNAS  Drinking water and source water  
Civic and Municipal Affairs 
Bureau – Laboratory  Government 
laboratory  CNAS  Food and water (microbiological 
and chemical test ing) 
Health Bureau – Public 
Health Laboratory  Government 
laboratory  CNAS  Clinical specimen s, food, 
vegetables, cosmetics, drugs, water 
and waste water, sediment  
Macau Institute for Applied 
Research in Medicine and 
Health – Chinese Medicines 
and Food Safety Laboratory  Univers ity-related  National Association of 
Testing Authorities of 
Australia ( NATA ) Biological and chemical testing  
University Hospital – Clinical 
Laboratory  University -related  NATA  Chemical pathology  
China Certification and 
Inspection Group Macau 
Company Li mited  Private lab oratory  CNAS  Health – medical examination, 
vaccine, medical treatment  
Safety – testing services for import 
and export goods in China  
Alliance Testing Company 
Limited  Private lab oratory  CNAS  Construction activities and 
materials  
Source : Information provided by the authorities . 
3.81.   Food labelling is regulated under Decree -Law No. 50/92/M, as amended, Decree -Law 
No. 56/94/M, and Administrative Regulation No. 7/2004.  Chief Executive Decision No.  556/2009, of 
11 January 2010 contains a list of generic food additive names that are used for labelling. The 
packaging and labelling of medicines and traditional Chinese medicines is regulated by Technical 
Instructions No. 3/2005 and No. 4/2005 of the Mac ao Health Bureau, which were notified to the 
WTO in September 2019.70 Pharmaceutical products and traditional Chinese medicines that enter 
Macao, China must have received prior approval from the Health Bureau. There are currently  no 
eco-labelling  initiativ es, or labelling requirements on genetically modified organisms . The authorities 
noted that they have no plans in this respect . There is no automatic mechanism of revision of TBT 
measures . Macao, China noted that the authorities responsible for technical r egulations review the 
 
70 WTO docum ent G/TBT/N/MAC/ 7, 19 September 2019.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  TBT measures in place to assess whether they are in line with international standards and practice, 
and in response to specific needs.  
3.3.3   Sanitary and phytosanitary requirements  
3.82.   The main legislative measures with respect to s anitary and phytosanitary  (SPS)  requirements  
are contained in Administrative  Regulation No. 40/2004.  The Municipal Affairs Bureau of Macao 
(Instituto para os Assuntos Municipais , IAM ) is responsible for formulating and implementing SPS 
regulations and measures and is the SPS enquiry point for the WTO.71  
3.83.   Macao, China maintains a list of products by HS heading subject to SPS inspection  (SPS 
Table) , which is reviewed periodically, and at least when there is a change in HS nomenclature.  The 
list was most recently amended on 1 January 201772, mainly to reflect the adoption of the 
2017 HS nomenclature. Products subject to inspection include most plants, flowers, fruit and 
vegetables, animals, fish, animal products, ice cream,  and sugar cane (Table 3.15). These products 
are listed in Annex III to Chief Executive Decision No. 487/2016 , of 28  December  2016.  
Table 3.15 Products subject to SPS inspection, 2019  
Product  HS code 
Live animals  Chapter 1  
Meat and meat products  Chapter 2  
Fish and crustaceans, molluscs, etc., except those classified under HS headings 
0301.11.00 and 0301.19.00  Chapter 3  
Milk and milk products, except those under HS heading 0402.21.20; honey; other 
product s of animal origin  Chapter 4  
Animal products; guts, bladders and stomachs of animals (other than fish), whole and 
pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked  0504.00.00  
Animal products, not classified elsewhere  0511.10.00, 
0511.99.90  
Bulbs, tubers, tube rous roots, corms, crowns and rhizomes; dormant, in growth or in 
flower; chicory plants and roots , other than roots of HS 1212  0601 
Plants, live , not included in HS 0601, (including their roots) cuttings and slips; mushroom 
spawn  0602 
Flowers; cut flower s and flower buds of a kind suitable for bouquets or for ornamental 
purposes, fresh, dried, dyed, bleached, impregnated , or otherwise prepared  0603 
Foliage, branches  and other parts of plants, without flowers or flower buds, and grasses, 
mosses and lichens; suitable for bouquets or for ornamental purposes, fresh  Ex-0604.20  
Vegetables and certain roots and tubers; edible  Chapter 07  
Fruit and nuts, edible; peel of cit rus fruit or melons  Chapter 08  
Seeds, fruit and spores; of a kind used for sowing  1209 
Sugar cane; fit for human consumption, fresh, chilled, frozen or dried, whether or not 
ground  Ex-1212.93.00  
Pig fat (including lard) and poultry fat, other than that of heading s 0209 or 1503  1501 
Sausages and similar products of meat, meat offal or blood; food preparations based on 
these products  1601 
Prepared or preserved meat, meat offal or blood  1602 
Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs  1604 
Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved  1605 
Milk powder  1901.10.41, 
1901.90.40  
Ice cream and other edible ice , whether or not containing cocoa  2105 
Cat- and dog -food 2309.10.10, 
2309.10.90  
Fertilizers, animal or vegetable , whether or not mixed together or chemically treated; 
fertilizers, produced by the mixing or chemical treatment of animal or vegetable products  3101.00  
Animals from travelling circuses and travellin g menageries  9508.10.20  
Source:  IAM, Procedures for Processing Import License/Declaration and Advance Booking for Sanitary 
Inspection (Annex 1). Viewed  at: 
https://www.iam.gov. mo/publicFile/cdap/22/en/22Anexo_I_e_v2.pdf . 
3.84.   The importation of the products listed above requires an import licence, an import declaration, 
and a valid sanitary certificate(s) issued by the competent authorities of the exporting 
 
71 IAM information. Viewed at: https://www.iam.gov.mo/e/animal/scope . 
72 Annex I of the Macao, China Chief Executive Decision No. 486/2016, 3 January 2017.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  country/region. The import er must also be registered in the IAM 's Import Registry. Importers of 
these products must apply electronically or in person to the IAM for SPS inspection at least one 
working day prior to the arrival of the goods at the border.  The IAM checks the SPS docum entation, 
and its laboratory or a subcontracted laboratory may conduct random laboratory samplings of the 
goods to be imported, at the border.  In some cases, there are additional requirements , for instance, 
as stated before, i mport ers of species of animals  and plants listed in the  CITES must obtain import 
licences from  the DSE before requesting an IAM SPS inspection. Inspections are subject to the 
payment of a fee,  as stipulated in Chief Executive Decision No. 268/2003 of 1  December 2003,  which 
varies accor ding to the product (e.g. MOP 10.0 for certain ornamental plants with roots, MOP 3.0 for 
certain bulbs and tubers, and MOP 0.3 for eggs); fees did not change during the review period.73 
The authorities noted that the inspection fees are adjusted based on t he needs and situation of 
Macao, China.  
3.85.   Control measures for pests and diseases follow China 's AQSIQ Catalogue of Quarantine of 
Imported Organism s Contaminated with Pest and Disease . Under the CEPA, Macao, China signed 
two cooperation agreements with China  concerning SPS issues: the Cooperation Arrangement on 
Inspection, Quarantines, and Food Safety , in 2004; and the Cooperation Arrangement on Inspections 
and Quarantines , in 2010. Moreover, under the CEPA Agreement on Trade in Goods , signed by China 
and Macao, China on 12 December 2018, Chapter 6 outline s the cooperation on SPS measures 
between the two sides. Both authorities agreed to strengthen cooperation on SPS , and to ensure 
transparency with respect to SPS measures and legislation.  
3.86.   During the revi ew period, Macao, China made 14 notifications to the SPS Committee, including 
one correction.74 Most of them related to food standards  (see below). Of particular significance, is 
the notification of the Food Safety Law .75 The notifications that followed co rrespond , to a large 
extent , to requirements under the Law, e.g. related to  the content of pathogenic microorganisms . 
3.87.   Law No. 5/2013 , the Food Safety Law,  is to protect public health and safety by regulating 
food safety supervision  and management, risk pre vention, control and countermeasure s, and 
incident management. The Law is applicable to food production , and the use of food additives and 
food-related products in commercial foodstuffs . According to the Law, food safety means having 
access to foodstuffs t hat are neither toxic nor harmful, have nutritive value, and do no t cause "acute, 
sub-acute or chronic damage to human health ".76 The Law gives the IAM authority with respect to 
food safety, and establishes the obligation of public or private entities to provide assistance. In 
accordance with the Law, the IAM is responsible for: ( i) coordinat ing food safety supervision and 
management; (ii) submit ting proposals for the formulation of food safety policies; (iii) inspect ing the 
premises or establishments where the production and marketing of foodstuffs is carried out; 
(iv) collect ing samples , and examin ing and analy sing the safety of foodstuffs; (v) monitoring and 
assessing food safety risks; (vi) preparing emerg ency plans for food security incidents; 
(vii) investigat ing and treat ing food security incidents; and (viii) implement ing preventive and 
control measures , among others.  
3.88.   The Food Safety Law  elaborates the establishment of food safety standards, risk monitor ing, 
risk assessment , and prevention and control measures. I t also contains  a penalty system, including 
criminal liability and administrative penalties.  The supervisory staff of the IAM enjoys public authority 
powers in the performance of its duties  and may request the police authorities to provide the 
necessary support, in particular for search purposes or when it finds situations of opposition or 
resistance to the exercise of its duties . 
3.89.   The Law mandates that the production and marketing of foodstuf fs, and the use of food 
additives and food -related products  must satisfy food safety criteria , cover ing the following aspects: 
 
73 Chief Ex ecutive  Decision  No. 319/2016, Chapter VII (Veterinary and Phyto -sanitary Inspection), 
5 September 2016. Viewed at: https://bo.io.gov.mo/bo/i/2016/36/despce.asp#319 . 
74 WTO document s G/SPS/N/MAC/11, 3 June 2013  (Food Safety Law); G/SPS/N/MAC/1 2, 13 October  
2014; G/SPS/N/MAC/1 3, 9 December  2014; G/SPS/N/MAC/1 4, 9 December  2014; G/SPS/N/MAC/1 4/Corr.1 , 
22 December  2014; G/SPS/N/MAC/1 5, 9 December  2014; G/SPS/N/MAC/1 6, 10 Novembe r 2015; 
G/SPS/N/MAC/1 7, 25 February  2016; G/SPS/N/MAC/1 8, 25 February  2016; G/SPS/N/MAC/ 19, 9 June 201 6; 
G/SPS/N/MAC/ 20, 9 January  2017; G/SPS/N/MAC/ 21, 27 November 2017; G/SPS/N/MAC/ 22, 14 June 201 8; 
G/SPS/N/MAC/ 23, 14 November  2018; and G/SPS/N/MAC/ 24, 20 March  2019. 
75 WTO document G/SPS/N/MAC/11, 3 June 2013.  
76 Law No. 5/2013, 22 April 2013, Article 3.5. Viewed at: https://images.io.gov.mo/bo/i/2013/17/lei -5-
2013.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  (i) standards for maximum levels of pathogenic microorganisms, pesticide residues, residues of 
veterinary medicinal products, hea vy metals, radioactive substances , and substances harmful to 
human health contained in foodstuffs; (ii) types of food additives, their scope , and the limits of their 
use; (iii) requirements relating to the nutritional ingredients of foodstuffs intended exc lusively for 
infants and children or other specific groups of persons; (iv) hygiene requirements in the production 
and marketing of foodstuffs; and ( v) quality requirements related to food safety.  
3.90.   Chief Executive Writ of Instruction No. 245/2014 prohibit s the import ation, export ation or 
re-export ation of plant products that contain phytosanitary harmful organisms , as included in its 
appended list .77  
3.91.   Since 2013, Macao, China has published 11 food safety standards, notified to the WTO as SPS 
measures. Among these, Administrative Regulation No. 6/2014 (List of prohibited substances for 
use in food) prohibits the use of certain substances during animal husbandry or food production , 
and in the circulation of foodstuffs. The Regulation is applicable to the entire  food supply chain .78 
Administrative Regulation No. 16/2014 (Maximum limits of radionuclides in foodstuffs) establishes 
the maximum permitted levels of radionuclides in food after a nuclear or radiological emergency. 
Maximum limits are defined for two separate categories "infant food " and "other foods ". The 
Regulation applies to all stages of the food business  (Table 3.16).  
Table 3.16 Food standards notified to the WTO sinc e 2013  
Regulation  Content  
1. Administrative Regulation No. 13/2013  Maximum Residue Limits of Veterinary Drugs in Foodstuffs  
2. Administrative Regulation No. 6/2014 (Amended 
by Administrative Regulation No. 3/2016)  List of Prohibited Substances for Use in Food  
3. Administrative Regulation No. 16/2014  Maximum Limits of Radionuclides in Foodstuffs  
4. Administrative Regulation No. 16/2015  Limits of Pathogenic Microorganisms in Powdered Infant 
Formula  
5. Administrative Regulation No. 2/2016  Limits of Pathogenic Microorganisms in Milk Products  
6. Administrative Regulation No. 13/2016  Maximum Limits of Mycotoxins in Food  
7. Administrative Regulation No. 28/2016  Nutritional Requirements for Infant Formula  
8. Administrative Regulatio n No. 30/2017  Standard for Uses of Food Colouring in Foodstuffs  
9. Administrative Regulation No. 12/2018  Standard for Uses of Sweeteners in Foodstuffs  
10. Administrative Regulation No. 23/2018  Maximum Limits of Heavy Metal Contaminants in Food  
11. Administrative Regulation No. 7/2019  Standard for Uses of Preservatives and Antioxidants in 
Foodstuffs  
Source:  Information provided by the authorities.  
3.92.   As at June 2020, Macao China, maintained two active SPS measures which had the effect of 
prohibiti ng imports (Table 3.17). These measures are deemed to be temporary, although they have 
been in place for several years. These measures were notified to the WTO.  Macao, China does not 
have an automatic mechanism of revision of SPS measures. The authorities noted that these 
measures are reviewed as needed and to ensure compliance with international standards. In the 
case of the measure applied on BSE -related products,  in February 2014,  Chief Executive Decision 
No. 27/2014 removed the prohibition of importing meat and meat products from the 
United  Kingdom, which was applied under Chief Executive Decision No. 341/2007 .79 Chief Executive 
Decision No.  27/2014 also repealed Decision No. 25/GM/96.80 
Table 3.17 Active SPS measures in Macao, China, 20 20 
Products  Effective date  Reference  
BSE-related products  31 December 2007  Chief Executive Decision No.  341/2007  
Masked palm civet and related products  2 February 2004  Chief Executive Decision No. 8/2004  
Source : Information provided by the authorities . 
 
77 WTO document  G/SPS/N/MAC/12, 13 October 2014 . 
78 WTO document G/SPS/N/MAC/1 3, 9 Decemb er 2014 . 
79 Chief Executive Decision No. 27/2014 . Viewed (in Portuguese) at: 
https://bo.io.gov.mo/bo/ii/2014/08/despc e.asp#27 .  
80 Chief Executive Decision No. 341/2007 is the umbrella legislation under which a prohibitio n of imports 
of meat for BSE purposes may take place. However, the Decision does not identify any spec ific country as 
subject to the measure. Chief Execu tive Decision No. 25/GM/96, which predates Chief Executive Decision 
No. 341/2007, prohibited, temporarily , the importation  of meat products from the United Kingdom.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.93.   In February 2019, the prohibition to import p oultry products from avian -flu-affected Asian 
countries , contained in  Chief Executive Decision No. 7/2004 , was removed by Chief Executive 
Decision No. 16/2019.81 
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.94.   Macao, China has not yet adopted a comprehensive competition law, nor does it have a 
dedicated competition enforcement agency. Provisions aimed at fostering competition, discouraging 
unfair business practices , and protecting consumer interests are scattered throughout the 
Commercial Code and sector -specific regulations. The authorities consider that these provisions are 
currently adequate and appropriate, given the small scale of the local economy and the prevalence 
of SMEs. Nevertheless, in order to further strengthen consumer 's rights and protect fair competition, 
the existing Consumer Protection Law was revised; the revision is currently under consideration by 
the Legislative Assembly.  
3.95.   The Commercial Code82 contains rules of general application regarding the protection of fair 
competition. Article 153 provides that competition between entrepreneurs shall take place in a 
manner t hat does not harm the interest of the economy of Macao, China, and prohibits all 
agreements or practices that have the object or effect of preventing, falsifying or restricting 
competition. Article 158 defines unfair competition as "any act of competition that objectively reveals 
itself to be in breach of the norms and honest usage of economic activity ", and sets out a non -
exhaustive list of acts which are deemed unfair competition and are prohibited.83 Parties affected by 
such acts have the right to initia te judicial action before a local court within a period of one year. If 
a court finds that a practice constitutes unfair competition, it must order the removal of such 
practice, indicate appropriate ways to eliminate its harmful effects , and order compensa tion of 
damages for the affected party. Certain acts of unfair competition under the Commercial Code may 
constitute criminal offen ces under other laws, including the Criminal Code, Law No. 6/96/M 
(merchant fraud) and Decree -Law No.  97/99/M (industrial prop erty infringements). A survey of 
judicial practice of Macao China's courts in enforcing competition provisions under the Commercial 
Code found that this practice is scarce , and is mostly limited to acts of unfair competition , such as 
imitation of trademark s.84  
3.96.   Several laws and regulations on specific sectors or economic activities contain provisions for 
the protection of fair competition. Said provisions differ in scope and depth, but generally prohibit 
anti-competitive behaviour, including horizontal and vertical restrictive practices. The enforcement 
of these provisions is in the hands of the relevant sectoral regulators. The economic activities subject 
to specific regulation include: gaming, banking and finance, insurance intermediation, 
telecommunicatio ns (fixed -line and mobile telephony, and Internet services), electricity, land 
lease85, and government procurement.86 
3.97.   Consumer protection is regulated by Law No.  12/88/M. The Consumer Council, a government 
agency under the supervision of the Secretariat fo r Economy and Finance, is entrusted with the 
protection and promotion of consumers ' rights. It is responsible for receiving and handling 
 
81 Chief Executive Decision No. 16/2019 . Viewed (in Portuguese) at: 
https://bo.io.gov.mo/bo/i/2019/07/despce.asp . 
82 Decree -Law No. 40/99/M amended by Laws No.  6/2000 and No.  16/2009.  
83 These acts include: confusing and misleading acts (i.e. false representation); making negative 
stateme nts about competitors (slander); (improper) comparison; imitation (of patented goods and services); 
exploitation of other businesses' reputation; breach (disclosure or use) of secrets; instigation and exploitation 
of contractual breaches (inducing others t o breach their contract obligations with competitors); exploitation of 
dependence (abusing the reliance of other businesses); and sales at a loss.  
84 Korea Legislation Research Institute, (2016), Choi J., and Svetlicinii, A., A Comparative Study on 
Competit ion Law Enforcement in South Korea and China 's Special Administrative Regions of Hong Kong and 
Macao . Viewed at: http://klri.re.kr:9090/handle/2017.oak/4669 .  
85 Article 37 of Administrative Regulation No. 6/2019 on Tendering Procedures for Land Lease stipulates 
that no contract will be awarded when there is collusion among bidders or any act or agreement that affects  
normal competition conditions.   
86 For a detailed analysis of the sectoral regulations, see: Tang, T. W., The Conceptualisation of the 
Competition Legal System of Macao under the Perspective of EU Competition Law , Centre for Continuing 
Education, Universi ty of Macau, 2017.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  consumers ' complaints, answering enquiries, and undertaking consumer advocacy activities. It is 
also entrusted to provi de conciliation, mediation and arbitration services in respect to minor 
consumer claims. In addition, the Consumer Arbitration Centre (CAC), established in 1998, is 
responsible for handling consumer disputes not exceeding MOP 100,000. Arbitration services are 
offered free of charge , and arbitral awards can be enforced as court judgments. However, neither 
the Consumer Council nor the CAC have the power to protect market competition among businesses.  
3.98.   In the context of the recent revision of the Consumer Protection Law, several proposals to 
improve competition -related rules were included. For example, the revised Law mandates the 
Consumer Council to monitor unfair business practices, such as misleading and aggressive 
commercial practices. The Law also strengthens consumers ' rights with respect to product 
information and compensation. However, p roposals to prohibit the abuse of dominant market 
position and price -fixing practices were not included in the revised Law; the Government is to 
conduct furt her study on these issues.  The revised Law  was approved in general terms , and was 
being reviewed by the Legislative Assembly at the time of writing.  
3.99.   In addition, as part of the drafting of a new framework for telecommunications convergence, 
the Macao Post and Telecommunications Bureau (CTT) is reviewing the competition -related 
provisions for the sector,  after having completed consultations with stakeholders.  
3.3.4.2   Price controls  
3.100.   Generally, Macao, China does not apply price controls or administered prices. Nevertheless, 
for public interest reasons, the prices of most public utilities , such as electricity, water, telephone 
service s, postal services and taxi fares , are regulated or monitored by the relevant regulatory 
agencies by means of administrative approv al of charges and their adjustment.87 No differences are 
made among user groups or industries. Tariffs on maritime passenger transport are also regulated.  
3.101.   In the area of telecommunication s, the CTT is responsible for approving the tariffs of fixed 
and mobi le telephone services. It also forbids Internet service providers from modifying tariffs but 
only when the modification is found to be anti -competitive or contrary to the public interest. 
Interconnection charges are determined via commercial agreement. If operators fail to reach an 
agreement, the Government may intervene and order interconnection terms and conditions, 
including charges (Section 4.4.3).  
3.102.   As regards maritime passenger transport, operators are required to submit their tariff tables 
for approval  to the Marine and Water Bureau ( Direcção dos Serviços de Assuntos Marítimos e de 
Água, or DSAMA ), at least 30 days before implementation.88 Tariff tables are adjusted, based on 
changes in fuel prices and in the consumer price index; adjustments must be ap proved by the 
DSAMA (Section 4.4.5).  
3.3.5   State trading, state -owned enterprises  (SOEs ), and privatization  
3.103.   Macao, China notified the WTO that it does not maintain any state -trading enterprises within 
the meaning of paragraph 1 of the Understanding on the Interp retation of Article XVII of the 
GATT  1994.89 The Macao Special Administrative Region has financial participation in 13  companies 
or associations, mainly pertaining to public utilities, transport, infrastructure , and media.90  
 
87 Charges on electricity, water, telephone and postal services are regulated by the Secretary for 
Transportation and Public Works; and taxi fares are regulated by the Transport Bureau.  
88 Administrative Regulation No.  34/2009.  
89 WTO docum ents G/STR/N/15/MAC, 14 March 2014; G/STR/N/16/MAC, 8 June 2016; and 
G/STR/N/15/MAC, 23 March 2018.  
90 These are: Macau Electricity Company (CEM); World Trade Center Macau (CAM); Macau International 
Airport Co., Ltd., Teledifusâo de Macau , S.A., (TDM); Macauport – Sociedade de Administração , S.A.; Macao 
Industrial Parks Development Co., Ltd.; Air Macau Com pany Limited; Macau Productivity and Technology 
Transfer Centre (CPTTM); Transferência Electrónica de Dados  -MACAU EDI VAN S.A. (TEDMEV); Macau New 
Technologies Incubator Centre; Macau Investment and Development Limited; Waterleau Macau Limitada ; and 
Macau  Basic Television Channels, Limited.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.3.6   Government procurement  
3.3.6.1   Overview  
3.104.   During the period under review, total expe nditure on government procurement represented 
on average 5.2% of GDP. In 2019, it amounted to MOP  26.8 billion (Table  3.18).  
Table 3.18 Government procurement, 2013 -19 
(MOP million)  
  2013  2014  2015  2016  2017  2018  2019  
GDP at current 
prices  411,865.0  442,070.0  362,213.0  362,876.0  407,328.0  444,666.0  434,670.0  
Total expenditure on 
government 
procurement  16,185.4  17,445.4  19,710.7  19,357.7  23,399.0  26,847.3  26,802.6  
Investment  7,711.5  7,815.5  9,726.2  9,506.5  13,823.7  16,570.8  13,821.3  
 Investment and 
Development Plan 
(PIDDA)  7,033.1  7,255.4  8,948.8  8,519.4  12,916.8   15,408.6  12,333.0  
 Other  678.3  560.1  777.4  987.1  906.8  1,162.2  1,488.2  
Total goods and 
services  8,473.9  9,629.9  9,984.5  9,851.2  9,575.3  10,276.4  12,981.3  
% of total 
government 
procurement to GDP  3.9 3.9 5.4 5.3 5.7 6.0 6.2 
Source:  Financial Services Bureau.  
3.105.   Macao, China is not a signatory to the WTO Government Procurement Agreement (GPA), nor 
an observer to the relevant committee. Nevertheless, the authorities indicated that their 
procurement procedures and disciplines are consistent with international standa rds.  
3.106.   Government procurement is governed by different statutes that regulate different types of 
government contracts and their corresponding procedures. The main legal instruments are the 
following:  
• Decree -Law No.  122/84/M (15 December 1984), amended by D ecree -Law 
No. 30/89/M  (1989), establishes the regime for expenditure on government procurement 
related to goods, services, and public works ;  
• Decree -Law No.  63/85/M (6 July 1985) provides the procedures applicable to public 
tenders for the procurement of g oods and services ; 
• Decree -Law No.  74/99/M (8 November 1999) establishes procedures for the procurement 
of public works ; 
• Dispatch No.  52/GM/88 (23 May 1988) regulates the procedures for the purchase of real 
estate assets by the public administration services ; 
• Administrative Regulation No.  6/2006 (1 November 2006), amended by Administrative 
Regulation No.  28/2009, establishes  the Public Finance Management System for the public 
administration services ; and  
• Law No.  15/2017 (9 August 2017) and Administrative Regulation No.  2/2018 regulate the 
budgetary activities of Macao , China . 
3.107.   The above legal framework did not change fundament ally since the last Review , and has 
been in place for many years. However, the Government is working on a new bill , with the aim of 
simplifying, updating and enhancing the government procurement regime. A task force, set up to 
prepare the draft of the new law, formulated a number of suggestions for legislative review, on the 
basis of which a public consultation was held (November 2018 through January 2019). As at 
mid-2020, the Public Procurement  Law was being redrafted , in light of the comments received fro m 
the public consultation, before submission to the legislative procedure.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.108.   Decree -Law N o. 122/84/M is the core legal provision on government procurement. It is 
applicable to expenditure related to the procurement of goods, services and public works by publ ic 
organizations of the Government. This refers to all government departments, including departments 
with administrative autonomy, and autonomous services and funds.  
3.109.   Pursuant to Decree -Law No.  122/84/M, public procurement must be carried out through 
tende r (open or limited tender with pre -qualification) or direct negotiation ( "written consultation ", 
"verbal consultation " or "exemption from quotation ").91 In general, minimum threshold values are 
used to determine the applicable procurement procedure. Public  tenders are usually compulsory for 
the purchase of goods and services with an estimated value exceeding MOP  750,000, and for public 
works contracts with an estimated value above MOP 2.5 million (Table 3.19).92 For procurements 
with a value below these thr esholds, or for procurements falling under the exemptions prescribed 
by Decree -Law No.  122/84/M, contracts may be awarded through direct negotiation.93 The 
procedure of direct negotiation requires the prior consultation of at least three potential supplier s. 
Prior consultation must be made in writing when the estimated value of the procurement is above 
MOP 15,000 for the acquisition of goods and services, and above MOP  150,000 in the case of public 
works. The requirement of prior consultation may be waived altogether in the circumstances 
specified by the Law, for example, in cases involving internal or external public security.94  
Table 3.19 Government procurement thresholds under Decree -Law No. 122/84/M  
Type of  procurement procedure  Acquisition of goods  
and services  Public works  
Tender  Limited tender with pre -qualification  >MOP  7,500,000  >MOP  15,000,000  
 Open tender  >MOP  750,000  >MOP  2,500,000  
Direct negotiation  Written consultation  >MOP  15,000  >MOP  150,000  
 Verbal consultation  ≤MOP 15,000  ≤MOP 150,000  
 Exemption from quotation  Specified circumstancesa 
a Circumstances provided for in Article 8 (paragraph 4) of Decree -Law No. 122/84/M.  
Source:  WTO Secretariat , based on Tang, T.W., Collection of Articles on the Legal System of Government 
Procurement in Macao Special Administrative Region , Macao, China, 2015.  
3.110.   The use of limited tender with pre -qualification may be determined by the Chief Executive 
when: (i) in the case of goods and services, the estimated value of the contract exceeds 
MOP 7.5 million or the contract involves special technology; and (ii) in the case of  public works, the 
estimated value of the contract exceeds MOP  15 million or the works are complex or exceptional in 
nature (i.e. they must be carried out in very special circumstances, in a particularly short 
time-period, or involve new designs or special ized construction methods). Data on the share of open 
tender and limited tender in total public procurement are not available.  
3.111.   External procurement can only be carried out in either of the following situations: (i)  in the 
absence of the required goods on the local market or of adequate suppliers to provide the required 
services; (ii) if the foreign price is lower than the price on the local market; or (iii) if there are 
benefits in terms of quality, technical support or speed of delivery if the goods or ser vices are 
procured externally.95 If the estimated value of the procurement exceeds MOP 500,000, the 
authorization of the Chief Executive is required.  
3.112.   Under the procedures for the procurement of public works  (Decree -Law No.  74/99/M), only 
contractors registered in the Official List of Public Works Contractors of the Land, Public Works and 
Transport Bureau ( Direcção dos Serviços de Solos, Obras Públicas e Transportes  (DSSOPT )) are 
admitted as tenderers. Regarding contractors  not established in Macao, China, and not registered in 
the Official List of Public Works Contractors, in accordance with Article 63 of Decree -Law 
 
91 Decree -Law No.  74/99/M on procurement of public works provides that the Government can solicit 
proposals by public tender, limited tender with pre -qualification, limited tender without pre -qualification, and 
direct ne gotiation.   
92 Article 7 (paragraph 1) of Decree -Law No.  122/84/M.  
93 Article 7 (paragraph 2) of Decree -Law No.  122/84/M provides that exemptions apply when: (i) a 
company has the exclusive supply rights; (ii) it is in the interest of Macao, China, given th e nature of the goods, 
services or public works required, to award directly to a particular entity; (iii) the contract involves project 
studies, technical consultancy or supervision of public works; (iv) there are security reasons; or (v) in urgent 
and ext raordinary situations caused by force majeure . 
94 Article 8 (paragraph 4) of Decree -Law No.  122/84/M.  
95 Article 22 of Decree -Law No. 122/84/M.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  No. 74/99/M , only contractors from countries that are a party to international agreements 
subscribed by Macao,  China are admitted to participat e in open tenders. Such foreign contractors 
must present proof of their registration as public works contractors in their own country. If they are 
unable to meet this requirement, foreign contractors must apply for an equivalent registration in 
Macao, Chin a, and submit the documents specified in the said Decree -Law.96 
3.113.   The Financial Services Bureau (DSF ) carries out centralized procurement. It purchases 
eight categories of "common consumable goods " through open tenders, for all non -autonomous 
government agen cies and some financially autonomous entities.97 For goods not belonging to those 
eight categories, and for services and public works, individual procuring entities must follow the 
corresponding procurement procedure , based on the estimated value and the s pecific characteristics 
of the procurement project.  
3.114.   In 2019, only 3% of the  DSF procurement contracts were awarded to foreign suppliers. This 
represented 13.1% of the value of goods and services centrally procured by the DSF, a decline from 
19.4% in 2013 ( Table 3.20). According to the authorities, these figures may under -represent the 
share of foreign suppliers in government procurement, as foreign companies registered with the DSF 
are considered as local companies (regardless of whether they are locally in corporated), and the 
country of origin is not recorded.  
Table 3.20 Local and foreign participation in government procurement centrally 
purchased by  the DSF, 2013 -19 
(Number of contracts and percent age)  
2013  2014  2015  2016  2017  2018  2019   
No. % No. % No. % No. % No. % No. % No. % 
Foreign  45  4 6  1 4 0 42  3 52  4 49  3 41 3 
Services  44  98 5  83 3 75 42  100 52  100 47  96 40 98 
Public works  0  0 1  17 1 25 0  0 0  0 2  4 1 2 
Buy and sella 0  0 0  0 0 0 0  0 0  0 0  0 0 0 
Public tenderb 0  0 0  0 0 0 0  0 0  0 0  0 0 0 
Acquisition of goods  1  2 0  0 0 0 0  0 0  0 0  0 0 0 
Local  989  96 997  99 853 100 1,162  97 1,169  96 1,473  97 1,347  97 
Services  860  87 916  92 793 93 1,059  91 1,023  88 1,271  86 1,240  92 
Public works  19  2 5  1 1 0 20  2 26  2 76  5 29 2 
Buy and sella 1  0 0  0 0 0 10  1 33  3 33  2 0 0 
Public tenderb 79  8 76  8 59 7 73  6 87  7 93  6 78 6 
Acquisition of goods  30  3 0  0 0 0 0  0 0  0 0  0 0 0 
     Total  1,034  100 1,003  100 857 100 1,204  100 1,221  100 1,522  100 1,388  100  
                            
Value  distribution (%)                             
Foreign    19.4    10.1    0.0    9.7    2.9    7.5    13.1 
Local   80.6    89.9    100.0    90.3    97.1    92.5    86.8 
a The number of contracts shown in this item refers only to the acquisition of properties . 
b "Public tender " indicates only the eight categories of common consumable goods centrally purchased 
by the DSF. 
Source:  Information provided by the authorities.  
3.115.   The Plan of Investment and Development Expenditure of the Administration (PIDDA) is 
mainly devoted to the development of infrastructure, including construction works. In 2019, almost 
half of government procurement was carried out under the PIDDA. The Land,  Public Works and 
Transport Bureau (DSSOPT) and the Office for the Development of Infrastructure (GDI) are 
responsible for the procurement of construction works.  
 
96 These documents are: (i) description of the available equipment and specialized manpower that will 
be used; (ii)  record of experience in the same type of works as those put to tender, including public and 
private projects, accompanied by performance certificates; (iii) documents proving their economic and financial 
capacity; and (iv)  document accepting the legislati on and jurisdiction of Macao, China only.  
97 Administrative Regulation No.  6/2006 classifies government agencies into three types: 
(i) non-autonomous agencies; (ii) agencies with administrative autonomy; and (iii) agencies with 
administrative and financial autonomy. The DSF procures consumable goods for the first two types. Agencies 
with administrative and financial autonomy may carry out their procurement independently or join the central 
procurement system of consumable goods.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.3.6.2   Procedures  
3.116.   The open tender procedure for the acquisition of goods and services is governed by  
Decree -Law N o. 63/85/M. It consists of the following steps: preparation of the tender programme 
and specifications by the procuring entity; publication of the tender notice; opportunity for potential 
bidders to seek clarification on the content of the ten der programme and specifications; submission 
of offers and of provisional guarantees by the bidders; opening of offers , and acceptance of those 
that fulfil the tender conditions; preparation of a short -list of bidders; evaluation of offers by a 
selection c ommittee; contract award; provision of final guarantee by the supplier/contractor to 
whom the contract was awarded; signing of the contract; and notice of contract award.  
3.117.   The procedure to contract through limited tender with pre -qualification follows the same 
rules as open tender, except that only bidders who are pre -selected, based on their fulfilment of the 
qualification requirements, can submit a tender offer. The procuring entity must select at least 
three  pre-qualified bidders and invite them to submi t their offers. For public works contracts, in 
addition to open tender and limited tender with pre -qualification, Decree -Law No.  74/99/M allows 
the use of limited tender without prior qualification. In this case, only the bidders invited by the 
procuring e ntity can submit tender offers. The tender notice is replaced by an invitation containing 
all tender documentation, which is sent to a minimum of three bidders.  
3.118.   Tender notices are published in the Official Gazette, in two local newspapers, one in Chinese 
and the other in Portuguese, and on relevant government websites (e.g. the government portal 
(www.gov.mo ), the Printing Bureau, and the procuring entit y's website). Tender documents must 
be published on the website of the procuring entity in Chinese, Portuguese and/or English, and they 
must contain, inter alia , the technical specifications, the relevant deadlines, the award criteri a, the 
evaluation methodology , and other pertinent elements.  
3.119.   In open tenders, the deadline for the submission of offers, after publication of the tender 
notice, may vary from 15 to 180 days for goods and services, and from 20 to 90 days for public 
works. When the procedure is carried out through limited tender with pre -qualification, the suppliers 
must be given at least 25 days to submit their application to qualify, and the pre -selected bidders 
must be given no fewer than 40 days to submit their offers. I f the procedure is organized as limited 
tender without pre -qualification, the bidders invited to participate must be given no fewer than 
five days to submit their offers.  
3.120.   The contract for the procurement of goods and services must be awarded to the best of fer 
in terms of price and/or of the time for the provision of such goods and services. The contract for 
the execution of public works must be awarded to the offer that best guarantees the appropriate 
technical execution of the project, factoring in the pri ce, the time for the execution of the works , 
and the profitability. However, no general provision expressly prevent s the procuring entity from 
indicating in the tender documents that bidders may be called for negotiation before the award of 
the contract.  
3.121.   Once the award decision is made, the procuring entity notifies the selected bidder, who must 
provide a final guarantee for the execution of the contract; only then does the procuring entity notif y 
the non -selected bidders of the award decision and publish t he contract award notice.  
3.122.   A decision by a procuring entity may be challenged through an administrative claim directly 
submitted to such entity; a hierarchical appeal (before a superior administrative body); or a judicial 
appeal before a court. It is also possible to undertake an "action on administrative contracts ", as 
provided for in the Code on the Procedure for Administrative Litigation (CPAC). Under the CPAC, the 
affected party may start an "action on administrative contracts " to request the annulment of a 
decision taken by the procuring entity during the procurement procedure (pre -award decision) and 
the revocation of the contract or compensation of damages. This action may only be taken by 
affected parties if they have already successfully challenged the same decision by judicial appeal.  
3.123.   The time -limits for submitting a challenge against a procuring entity 's decision, counted from 
the date of publication of the challenged decision , are: 15 days for an administrative claim; 30 days 
for a hierarchical a ppeal; 30 to 365 days for a judicial appeal; and 180 days for an "action on WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  administrative contracts ".98 No time -limit applies regarding challeng ing a decision on the grounds of 
nullity. According to information published by the Commission Against Corruption, in 2017 , 
15 complaints were filed regarding government procurement procedures for goods and services.99 
3.3.7   Intellectual  property rights  
3.3.7.1   Overview  
3.124.   The formulation and implementation of intellectual property right (IPR) legislation is the 
responsibility of the Intellectual Property Department of the Macao Economic Bureau ( Direcção dos 
Serviços de Economia , DSE ). The Macao Customs Service is in charge of  enforcing legislation, 
combating counterfeiting, and promoting compliance with IPRs. Enforcement measures may include 
sanctions for IPR violations.   
3.125.   There were no significant changes to the industrial property legislative framework since the 
last Review. Industrial property , including invention patents, utility patents, trademarks, industrial 
designs, geographical indications and topographies of integrated circuits , is regulated by the 
Industrial Property Code, which entered into force in 2000. Other legis lation protecting IPRs includes 
the Copyright and Related Rights Code.  An amendment to th is Code, to strengthen copyright 
protection in the digital environment , entered into force on 1 June 2012.100 The amendment was 
notified to the WTO in 2014.101 
3.126.   In 2009, Macao, China notified the WTO that it had accepted the Protocol Amending the 
TRIPS Agreement on compulsory licensing  under Paragraph 6 of the Doha Declaration.102 After the 
Protocol took effect on 23 January 2017 upon the acceptance by two thirds of WTO Mem bers, it was 
published locally and entered into force in Macao, China on 6 September 2017.  
3.127.   Macao, China  is not a contracting party to the Convention Establishing the World Intellectual 
Property Organization (WIPO).  The membership of international treaties administered by WIPO is 
extended to Macao, China through arrangements between China and WIPO (Table  3.21).  Since the 
last Review, China has notified to the WIPO that two international treaties have been extended for 
application in Macao, China, including t he WIPO Copyright Treaty103 and the WIPO Performances and 
Phonograms Treaty.104 
Table 3.21 Membership of international IPR conventions, 2019  
Convention  Status  Date of effect 
Berne Convention for the Protection of Literary and Artistic Works  In force  12 August 1999  
Universal Copyright Convention  In force  23 October 1999  
Paris Convention for the Protection of Industrial Property  In force  12 August 1999  
Nice Agreement Concerning the International Classification of 
Products and Services for the Purpose of the Registration of Marks  In force  23 September 1999  
WIPO Copyright Treaty  In force  6 November 2013  
WIPO Performances and Phonograms Treaty  In force  6 November 2013  
Source : Information provided by the authorities.  
3.128.   Administrative fees for industrial property rights , including registration, issuance of 
certificates, transfer of rights, and annual fees, remain unchanged since 2005.105 These fees are 
 
98 There are some other situa tions where the special statutes provide for different time -limits.  
99 Chambers and Partners, Public Procurement and Government Contracts 20 20. Viewed at: 
https://practiceguides.chambers.com/practice -guides/public -procurement -and-government -contracts -
2020/macau .  
100 Law No. 5/2012 modified Decree -Law No. 43/99/M regulating the protection of copyright and related 
rights.  
101 WTO documents IP/N/1/MAC/2, 2 April 2014; and IP/N/1/MAC/C/1/Rev.1/Add.1, 22 April 2014.  
102 WTO document WT/LET/645, 19 June 2009.  
103 WIPO online information. Viewed at: https://www.wipo.int/treaties/en/notifications/wct/treaty_ 
wct_79.html . 
104 WIPO online information. Viewed at: https://www.wipo.int/treaties/en/notifications/wppt/treaty_ 
wppt_84.html . 
105 Chief Executive Decision No. 57/2005.   WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  relatively low. For example, it costs MOP 1,000 to register a trademark and MOP 2,000 for its renewal 
every seven years.  
3.129.   In accordance with the Industrial Property Code, right holders of patent s (including 
registered industrial design s) have the exclusiv e right to import products covered by the patent or 
registered industrial design, i.e. parallel imports are prohibited with respect to patented products.106 
However, parallel imports of trademarked goods and copyrighted works are not prohibited.  
3.3.7.2   Industrial p roperty  
3.130.   The main legislation with respect to industrial property is contained in the Industrial Property 
Code, enacted by Decree -Law No. 97/99/M, which entered into force on 6  June 2000.  The Code 
covers all IPRs dependent upon registration, i.e. trademarks ; patents (including invention patents 
and utility patents);  topography maps of semiconductor products;  industrial designs and models;  
and names and logos (emblems) of business establishments.  The authorities indicated that the 
Industrial Property Code is currently being reviewed with a view to introduc ing amendments.  
3.3.7.2.1   Patent s 
3.131.   In accordance with Macao, China 's legislation, invention patents  are granted for 20  years, 
and utility model patents confer protection for a maximum of 10 years.107 Industrial designs are 
protected for a maximum of 25 years .108  
3.132.   An invention patent may be granted through either  of two types of  procedures : through the 
extension of a Chinese patent granted by China 's State Intellectual Property  Office (SIPO), now 
known as the China National Intellectual Property Administration (CNIPA)109; or by the issu ance of 
a new invention patent by the Macao , China  authorities. In the first case, in accordance with the 
Industrial Property Code and Chief Executive Notice No. 7/2004, applicants who submit a n invention 
patent application in the CNIPA or the right owners of an invention patent granted in Macao, China, 
may submit a request to extend the application or the patent right to the Macao , China authorities. 
If an application is in order, notice of it is published in the Official Gazette, 18  months from the date 
of filing in the CNIPA or, if a priority right was claimed, from the claimed date. Within three months 
following the publication of the notice of the grant of the patent in the CNIPA 's Patent Gazette, the 
applicant must complete the Application of Other Actions form  and submit the Copy of Extracts from 
the Patent Register and the Patent Specification , issued by the CNIPA , to the DSE. The application 
for extension of an invention patent is generally approved within three to four  months after the 
submission of these documents. Once approved by the DSE,  extend ed patents have the same legal 
rights as those granted by the DSE authorities.  The extended rights are counted from the date the 
DSE granted the patent.  
3.133.   In the case of submitting a new application for a n invention patent directly to the DSE in 
Macao, China , the applicant must submit the application with an abstract , and any other relevant 
document ation, including documents proving the priority right claim, drawings, translated copies in 
Chinese of certificates or other documents not written in any official languages of Macao, China. Like 
in the previous case, if the application is in order, a notice will be published in the Official Gazette, 
once 18 months have elapsed from the date of filing the application or, i f a priority right was claimed, 
from the clai med date. From the publication of the application notice, and up to the date the patent 
is granted, any person may file an opposition to a specific application for invention patent 
registration. Also, in the case of direct registration with the DSE, within  seven years from the date 
 
106 Article 104(1) and 177(2), the Industrial Property Code.  
107 Utility models are protected initially for six year s, and patent protection may be subsequently renewed 
twice, for two years  in each case (Article 121, the Industrial Property Code).  
108 Industrial designs a re protected initially for five years, renewable for further five -year periods, to a 
maximum of 25 years (Article 176, the Industrial Property Code).  
109 In August 2018, the former State Intellectual Property Office of China (SIPO) was renamed the China 
National Intellectual Property Administration (CNIPA). The CNIPA is supervised by the newly established State 
Administration of Market Supervision and Administration. In addition to patents, utility models and designs, the 
CNIPA now also handles trademarks (f ormerly administered by the State Administration of Industry and 
Commerce, SAIC) and geographical indications (formerly handled by the Administration of Quality Supervision, 
Inspection and Quarantine, AQSIQ). European Patent Office online information, China: SIPO has been renamed 
to CNIPA . Viewed at: https://www.epo.org/searching -for-patents/helpful -resources/asian/asia -updates/2018/ 
20180905 .html. WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  of filing of the application, the applicant must file with the DSE a request of substantial examination 
by the CNIPA, paying a fee of MOP 2,500, otherwise the application for the invention patent 
registration will be refused. The  granting of the patent by the DSE is contingent upon the result of 
a substantive examination report by the CNIPA, which  is the only substantive examiner for invention 
patent applications in  Macao, China in accordance with the Cooperation Agreement signed between 
Macao, China 's and China 's intellectual property offices.110 Under normal circumstances, it takes a 
maximum of two months to complete formal ity examinations for patent applications, and to process 
extension requests.111 
3.134.   Utility model patent applications must be filed directly with the DSE. Utility model patents 
granted by/applied to SIPO/CNIPA and protected in China may not be extended to Macao,  China. If 
an application is in order, notice  of the application is published in the Official Gazette once 18  months 
have elapsed from the date of filing or, if priority is claimed, from the claimed date. Any person may 
challenge the registration from the pu blication of the application notice up to the date the patent is 
granted. Within four years of the date of filing of the application, the applicant must request DSE 
substantial examination for the preparation of an examination report by the CNIPA. The time -period 
of approval of the registration of a patent depends upon the time of completion of the examination 
report by the CNIPA.112 
3.135.   During the review period, the number of patent applications in Macao, China , through both 
ways of filing, reached a peak in 20 14 and stabilized after that. In 2018, there were 83  applications 
(49 in the period January -August 2019), of which 55 (24) for invention patents and the rest for 
utility model patents. In most cases, they were foreign inventions. The number of requests for  
extension of patent rights from China, on the other hand, has been rising , reaching 611 in 2018 
(Table  3.22).  Foreign IPRs topped the list of extension requests.   
Table 3.22 Patent administration in Macao, Ch ina, 2012 -19 
 2012  2013  2014  2015  2016  2017  2018  2019a 
Patent applications  82 81 134 85 66 86 83 49 
Domestic  .. 7 7 7 1 3 8 9 
Foreign  .. 74 127 78 65 83 75 40 
  Invention  56 60 106 65 51 68 55 24 
  Domestic  .. 6 2 3 0 1 1 0 
  Foreign  .. 54 104 62 51 67 54 24 
  Utility model  26 21 28 20 15 18 28 25 
  Domestic  .. 1 5 4 1 2 7 9 
  Foreign  .. 20 23 16 14 16 21 16 
Design s 167 141 132 249 218 193 208 168 
Domestic  .. 7 12 20 46 17 67 17 
Foreign  .. 134 120 229 172 176 141 151 
         
Patent granted  .. 28 18 51 68 30 29 15 
Domestic  .. 1 0 2 2 3 1 1 
Foreign  .. 27 18 49 66 27 28 14 
  Invention  .. 22 16 36 57 23 27 13 
  Domestic  .. 0 0 1 1 1 1 0 
  Foreign  .. 22 16 35 56 22 26 13 
  Utility model s .. 6 2 15 11 7 2 2 
  Domestic  .. 1 0 1 1 2 0 1 
  Foreign  .. 5 2 14 10 5 2 1 
Design s .. 101 174 120 79 289 207 78 
Domestic  .. 3 27 12 6 31 13 26 
Foreign  .. 98 147 108 73 258 194 52 
         
 
110 On 24 January 2003 , the Cooperation Agreement , between Macao, China's Economic Service Bureau 
and China 's State Intellectual Property Of fice (SIPO), appointed the SIPO (now the CNIPA) as the substantive 
examination entity  for patent s submitted to the Macao, China intellectual property office . This Agreement was 
initially valid for five years and has been renewed  three time since then; the most recent renewal was  in 2018 
for another five years.  
111 DSE, Approval Flow . Viewed at : https://www.economia.gov.mo/en_US/web/public/pg_ip_af?_refresh 
=true#4 . 
112 DSE, A Concise Booklet on the Intellectual Property Rights of Guangdong, Hong Kong and Macao . 
Viewed at:  https://www.economia.gov.mo/public/data/ip/pub/attach/e691376e0ecb3de9b0cafcc4982465a9/ 
en/IP_en.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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   2012  2013  2014  2015  2016  2017  2018  2019a 
Patent extensions (invention)  239 348 310 382 452 441 611 310 
Domestic  .. 2 2 0 2 3 3 1 
Foreign  .. 346 308 382 450 438 608 309 
.. Not available.  
a January –August . 
Source:  Data provided by the authorities ; and DSE, Statistics . Viewed at: 
https://www.economia.gov.mo/en_US/web/public/pg_ip_sd?_refresh=true . 
3.136.   The Protocol  Amending the TRIPS Agreement on compulsory licensing under Paragraph 6 of 
the Doha Declarati on entered into force in Macao, China on 6 September 2017 . However, no 
compulsory licences were granted.  
3.137.   With respect to transparency, Macao, China has on Online Invention Patent Search System, 
which includes information on granted and published invention patents in Macao, China. The 
information provided by the System on this website is for general reference only , and cannot be 
used as a legal instrument in the application  for an invention patent.113 Macao, China also has an 
Online Complementary Certificate for the Protection of Medicines and Phyto -pharmaceutical Products 
Search System, which provides an online search for records of complementary certificates for the 
protection of medicines and phyto -pharmaceutical product granted and published in Macao, China.114 
The records of patents extended by the CNIPA can be checked in the online Extension of Invention 
Patent from the China National Intellectual Property Administration Search System.  
3.3.7.2.2   Trademarks  
3.138.   In accordance with the Industrial Property Code, a trademark may consist of words, letters, 
colours, numerals, sounds, the shape of goods or their packaging, designs or patterns, or any 
combination of the above . The basic requirement for being considered a t rademark is that it must 
possess features that facilitate consumers to distinguish the source of the goods  or services. 
Common names or straightforward descriptions of goods or services cannot be registered as 
trademark s.115 An applicant for trademark regis tration must determine the proposed classes of 
goods and services to be registered for the trademark concerned. The goods and services must be 
classified according to the International  Classification of Good and Services (Nice Classification). 
Application forms for a trademark should be completed in Chinese or Portuguese. Application s from 
non-resident individuals or corporations not registered in Macao,  China  must be made through an 
appointed agent, generally a lawyer registered with the Macao Lawyers ' Association.  
3.139.   Before applying for trademark  registration, the applicant can use the DSE website to search 
for identical or similar trademarks. S/he may also request the DSE to provide a search report , 
showing a list of trademarks  that are identical or similar to the proposed trademark. Applications for 
trademark registration must be accompanied by documents proving the priority claim, translated 
into Chinese or Portuguese.  The application fee is MOP 1,000 . No more than one registration may 
be filed in the same application; each trademark to be used on the same product or service can be 
registered only once.  
3.140.   If an application and its supporting documents are in order, notice of the application is 
published in the Official Gazette. The DSE must make a decision on the registration of the trademark 
within six months after the publication of the notice of application, on the conditions that no 
opposition is filed within the two -month opposition period beginning on the date of publication, and 
that requirements for reg istration are met. Once the period for the presentation of oppositions has 
expired, the DSE will proceed to the examination of the application and will conduct a search of the 
 
113 DSE, Invention Patent . Viewed at:  
https://www.economia.gov.mo/en_US/web/public/Pg_ES_AE_QE_PATENT?_refresh=true . 
114 DSE information. Viewed at: 
https://www.economia.gov.mo/en_US/web/public/Pg_ES_AE_ QE_MEDICINE?_refresh=true .  
115 A Concise Booklet on the Intellectual Property Rights of Guangdong, Hong Kong and Macao , jointly 
published by the Guangdong Intellectual Property Office, the Intellectual Property Department of the 
Government of the Hong Kong Special Administrative Region and the Economic Services of the Government of 
the Macao Special Administrative Region,  2010. Viewed at: https://www.economia.gov.mo/public/data/ip/pub 
/attach/e691376e0ecb3de9b0cafcc4982465a9/en/IP_en.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  trademark records to see if any identical or similar trademark has already been registered or been 
applied for by other persons in respect of the identical or similar goods or services. If an application 
satisfies the registration requirements and there is no opposition within the specified time limit or 
the opposition is unsuccessful , the DSE will publish the notice of registration in the Official Gazette.  
Appeals to the Court of First Instance against a DSE decision, may be lodged within one month from 
the date of publication of the notice of registration.   
3.141.   Trademark applications may  be denied if the use of the mark may cause ambiguity with 
respect to a well -known mark.  A trademark registration  may be annulled if it was granted in breach 
of the provision related to well -known trademark protection, provided that the application of such 
well-known trademark had already been filed in Macao, China prior to , or simultaneously with , the 
annulment.  
3.142.   Trademarks must be in Chinese, Portuguese, or English, or a combination of these 
languages, except for export goods or trademarks of applicants not domiciled, headquartered or 
established in Macao, China.  Trademarks are protected for seven years, and may be r enewed 
indefinitely, for seven -year periods each time.  Registered  trademarks may be revoked if the mark 
is not used continuously for three years  by the right holder, his/her registered licensees, or a 
third party under the supervision of the right holder a nd for the purpose of maintaining the 
registration. Similarly, trademark right holders may lose their rights to request the annulment of the 
registration of the subsequently registered trademarks if they acknowledged and tolerated the use 
of these similar marks by a third party  for three consecutive years.  Bad-faith registrations are not 
subject to the three -year exhaustion period.  
3.143.   Trademark infringement in Macao, China may be subject to criminal, administrative and 
jurisdictional penalties. The right owner  must raise a complaint with the Customs Service , requesting 
it to act  and stop the infringement. The principal remedy for infringement is judicial protection. 
Counterfeiting, imitation, and illegal use of a trademark may be punished with a maximum prison 
sentence of three years or a financial penalty ranging from 90 to 180 days of fine.116 
3.144.   During the initial part of the review period, the number of trademark applications and of 
trademarks granted increased steadily, before declining in 2016.  The number grew again  in 2017, 
registering a record high in 2018. Foreign applications accounted for the majority of applications 
during the review period. Trademarks granted to foreigners accounted for 85.4% of all trademarks 
granted in 2018 (Table 3.23 ). The registrati on of trademarks usually takes about six to eight months .  
Table 3.23 Trademark applications, 2013 -19 
 2013  2014  2015  2016  2017  2018  2019a 
New trademark applications  10,084  12,287  13,140  11,507  13,135  16,474  10,278  
Domestic  1,193  1,405  1,825  1,683  2,030  2,439  1,525  
Foreign  8,891  10,082  11,315  9,824  11,105  14,035  8,753  
Trademarks granted  9,869  12,587  12,126  11,016  11,481  14,449  10,450  
Domestic  827 1,188  1,487  1,341  1,643  2,105  1,215  
Foreign  9,042  11,399  10,639  9,675  9,838  12,344  9,235  
a January -August.  
Source : Data provided by the authorities . 
3.3.7.2.3   Other industrial property  rights  
3.3.7.2.3.1   Names and emblems of establishments  
3.145.   Names and logos (emblems) of establishments are protected for 10 years, renewable 
indefinitely.  Multiple registrations of names  and logos are not allowed for the same establishment 
(i.e. one establishment may have only one name and logo). The Legal Affairs  Bureau at the DSE is 
responsible for business registrations of names and emblems of establishments. A business 
registration does not give the right to use the business name as a registered name and emblem of 
the establishment or a trademark in promoting o r dealing in goods or services.  
 
116 A day of  fine is  a unit whose value, between MOP 50 and MOP 10,000 , is determined on a case -by-
case basis at the discretion of the court.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.3.7.2.3.2   Geographical indications and denominations of origin  
3.146.   Under the Industrial Property Code, a  geographical indication (GI) is used to designate a 
product (production, transformation and creation) originating from that region, s pecific locality or 
country or territory, and the reputation, specific quality, or other characteristics of the product can 
be attributed completely or mainly to the geographical environment of that region, specific locality 
or country or territory, includ ing natural and human factors. The production and/or transformation 
and/or creation of the product must be conducted in the demarcated geographical area.  
3.147.   An application for registration of a GI must be accompanied by the name of the product that 
will use the GI, the regulated conditions for its use, and the limit of the respective region. The 
provisions relevant to the registration process of names and logo s apply  to GIs.  The protection period 
for re gistered GIs is unlimited , and renewal is not required. GIs are also protected by legislation 
governing false indications of origin, e.g. under the provisions relevant to unfair competition in the 
Commercial Code , regardless of registration or whether the GI is part of a registered trademark.  As 
at end -2019, there were two applications for GIs in Macao, China.   
3.148.   Under the law, only the following can be protected by a designation of origin  (DO):  
• the name of a region, a specific locality or a country or terri tory that is used to designate 
or identify a product originating from that region, specific locality or country or territory, 
whose quality or characteristics are essentially or exclusively due to the geographical 
environment, including natural and human f actors, and whose production, transformation 
and creation are conducted in the demarcated geographical area; and  
• certain traditional designations, whether geographical or not, which designate a product 
originating from a region or specific locality and tha t satisfy the conditions foreseen above.  
3.149.   When registered, DOs and GIs become the common property of the residents or persons 
established in the region in question, and may be used indiscriminately by them, independent of the 
nature or exploitation of the p roduct. The violation  and illegal use of DO s or GIs can be subject to 
criminal penalties, with a maximum prison sentence of up to two years or a financial penalty ranging 
from 60 to 120 days of fine .  
3.3.7.2.3.3   Layout designs of integrated circuits  
3.150.   Layout designs of  integrated circuits are protected for 10 years after registration or the 
first day of commercial utilization if the registration da te is later than the commercial utilization da te. 
Registration is not renewable.  The layout design is not registrable if two  years have elapsed since 
the first commercial exploitation  of the topography anywhere; or , if it was never exploited, if 
15 years have elapsed since the topography was fixed or codified for the first time.  As at end -2019, 
there were no applications for protection of layout designs of integrated circuits. The rights conferred 
by the registration of the layout do not include its private reproduction for non -commercial purposes, 
or for the purpose of analysis, evaluation or teaching.  
3.3.7.2.3.4   Trade secrets  
3.151.   Trade secrets and know -how are protected under the provisions on unfair competition of the 
Commercial Code (Decree -Law No. 40/99/M).  
3.3.7.3   Copyright and related rights  
3.152.   Copyright in Macao, China is regulated by the Copyright and Related Rights Code , approved 
by Decree -Law No. 43/99/M of 16 August 1999, as amended in 2012. The amendment entered into 
force on 1 June 2012, to enhance copyright and related rights protection , in particular in the digital 
environment, and to increase criminal penalties on v iolations.  For example, additional rights were 
introduced , including the right of public transmission by wireless communication or 
wire-telecommunication.  Criminal sanctions against the unauthorized communication  to the public  
of copyrighted works through public computer networks for business profit were also introduced.   WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  3.153.   The scope of protection includes intellectual creations in the literary, scientific and artistic 
fields, whatever their type, form of expression, merit, form of communication , or purpose . The 
prerequisite for copyright protection is the outward manifestation of the work, independent of its 
disclosure, publication, use , or economic exploitation. Ideas, processes, systems, operational 
methods, concepts, principles and discoveries are not prot ected by copyright.  
3.154.   Protection under the Copyright and Related Rights Code covers any originally creative works, 
inter alia , literary, graphics, computer programs, databases , music, performance, audiovisual 
creations, radio -transmitted programmes, and arch itect designs.  Copyright protection includes 
personal (moral) and economic rights. Economic  rights include the exclusive right: ( i) to use and 
economically exploit the work; and ( ii) to receive remuneration for the use that a third party makes 
of the work,  where the author 's permission for that use is dispensed  with. Moral rights include the 
power: ( i) to keep the work unpublished; ( ii) to claim authorship of the work and to be identified as 
the author on the original, on each copy and in any publicity; ( iii) to withdraw the work from 
circulation; and ( iv) to ensure the authenticity and integrity of the work, as well as the right to object 
to any mutilation or distortion.  
3.155.   The ownership of economic rights in a work made on behalf of another person, either in 
fulfilment of official duties or under an employment contract, is determined in accordance with what 
has been agreed. However, in the absence of an agreement, it is presumed that the owner of the 
economic rights in the work is the intellectual creator. If the name of the intellectual creator is not 
mentioned in the work or shown in its customary place, it is presumed that the economic rights were 
assigned to the enti ty for which the work was made.  
3.156.   Copyright is protected independently from registration, deposit or any other formality.  
Protection of copyright and related rights  in Macao, China is granted to works first published in 
Macao, China, or  by Macao, China resid ents, or by residents of Members of the WTO or of the 
Universal Copyright Convention.  
3.157.   The period of copyright protection is the life of the author plus 50 years;  collaborated works 
are protected until 50 years after the death of the last author. Works who se authors are entities , or 
are anonymous , are protected for 50 years after publication.  In the case of works also protected by 
other jurisdictions, copyright protection in Macao, China is only extended for the period covered by 
its original protection jur isdiction. If works are published in different jurisdictions, the protection 
period granted is that afforded by the jurisdiction providing the shortest protection period, which is 
considered as the original protection jurisdiction.  For protection of unpubl ished works, the regime 
applied in the place where the author regularly resides is considered as the original protection 
jurisdiction.  Computer programs are protected as copyrighted works and , as such , are granted a 
period of protection of life plus 50 yea rs. 
3.158.   Audiovisual creations and show performances are protected for 50 years from 
publication/performance.  Radio -transmitted  programmes are protected for 20 years after the end of 
the calendar year in which the programme was first broadcast.  Art works are pr otected for 25  years 
from their completion.  
3.3.7.4   Enforcement  
3.159.   Enforcement of intellectual property rights in Macao, China is done through administrative 
and judicial measures.  The main provisions with respect to copyright infringement and penalties are 
imposed a ccording to IPR legislation, including Decree -Law No. 43/99/M ; the Copyright  and Related 
Rights Code ; Decree -Law No. 51/99/M (Commercial and Industrial Activities Related to Computer 
Programs, Videos and Phonograms) ; and Decree -Law No. 97/99/M (Industrial Property Code). The 
amendment introduced in 2012 to Decree -Law No. 51/99/M by Law No. 5/2012 of 10  April 2012  
extended criminal penalties to copyrighted works violations through the Internet.  
3.160.   Misappropriation of a copyrighted work is punishable by imprison ment of up to two  years or 
a fine of up to 240 days (of personal income) if the work is published, or of up to three  years or a 
fine of up to 360 days if it is unpublished. The publication o r divulgation  without authorization from 
the right holder of an unpublished work, is punishable by imprisonment of up to two  years or a fine 
of up to 240  days. The penalty is imprisonment of up to three years or a fine of up to 360 days if WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  the divulgation is done throu gh the Internet. Counterfeit is punishable by imprisonment of up to 
four years.   
3.161.   Additionally, the following penalties may be applied: ( i) pledge of good conduct , and 
payment of a security deposit117; (ii) temporary prohibition on the exercise of certain activities or 
professions: t he duration of the ban has a minimum period of two months and a maximum of 
two years ; (iii) temporary closure of the establishment: for a minimum period of one month and a 
maximum of one year, if the agent is sentenced t o a prison term of more than six months for the 
crime ; (iv) final closure of the establishment; and (v) publication of the condemnatory decision.   
3.162.   The Law also foresees the application of administrative penalties. For instance, the exercise 
of collective m anagement of copyright or related rights by a natural person, or by a legal person 
that does not have its headquarters in Macao , China , is subject to a fine of between MOP 50,000 
and MOP 500,000. The exercise of the activity of collective management of cop yright or related 
rights by a body based in Macao China  but not registered with the DES is subject to a fine of between 
MOP 40,000 and MOP  400,000.  
3.163.   The Macao Customs Service enforces IPR protection measures at the border and 
domestically . is also responsib le for monitoring the manufacturing process for goods produced in 
Macao,  China, as well as other industrial activities, and activities in Macao, China 's industrial and 
commercial sites.  It may act on complaints, or on its own initiative.  Judicial action is  the main 
remedy , and it is triggered by a request by the right owner.  In the case of a criminal infringement 
of intellectual property, the Macao Customs Service is the investigating entity, and the Public 
Prosecutions Office is responsible for bringing the case to court. In the case of civil infringement, 
the right holder may sue for civil compensation.  
3.164.   The authorities noted that the Macao Customs Service investigates reported cases through 
the collection of intelligence and information , includi ng from established liaison mechanisms with 
neighbourhood regions. Raid operations are deployed and implemented by the Customs Service, and 
joint operations with neighbouring regions are carried out. The authorities also noted that online 
infringement acti vities are reported at an increasing rate, and fraud practices have become more 
covert. In order to combat ever -changing online infringement activities, the Customs Service uses 
various channels , including network investigation system s, search engines , and Big Data processing 
technology. With the goal of enhancing criminal investigation skills, the Customs Service also 
organizes professional and technical training courses in order to strengthen the comprehensive law 
enforcement capacity of customs officers.  Most enforcement operations are linked to trademark 
violations. The types of consumer products involved in trademark infringement are mainly clothing, 
sports products, jewellery , and telephone accessories (Table 3.24).  
3.165.   The authorities noted that they are strengthening cooperation, exchange of intelligence, and 
the deployment of joint operations to prevent  and combat crimes of intellectual property 
infringement at a regional level , with the Guangdong province of China and with Hong  Kong,  China.  
 
117 The security deposit is of  between MOP 10,000 and MOP 3 million , at the order of the court, for the 
term established in the condemnatory decision, which is fixed between six months and two years. The deposit 
must, as a rule, be applied whenever t he court condemns a penalty whose execution is suspended. The 
security deposit is forfeited in favo ur of Macao , China  if the agent commits , and is convicted  of, one of the 
crimes provided for in  Law No. 5/2012 , during the period established . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 3.24 Violations of intellectual and industrial property rights, 2013 -19 
 2013  2014  2015  2016  2017  2018  2019a 
Prosecution cases  34  26  27  34  26  33 22 
Confiscation of infringing products  5,814  6,565  5,411  56,014  6,025  22,755  4,464  
Compact discs (pieces)  687  111  94  989  0  0  0  
Textiles (pieces)  1,122  263  601  3,431  1,171  4,728  3,254  
Leather products (pieces)  52  52  501  283  19  167  7  
Watches (pieces)  310  2,560  37  80  5  3  54  
Otherb 3,643  3,579  4,178  51,231  4,830  17,857  1,149  
a Until October 2019.  
b "Other " includes a wide range of confiscated products that var ied during the review period, including 
sports products, jewellery , and telephone accessories .  
Source : Data provided by the authorities . 
 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.  Agriculture and fisheries play a very small role in Macao, China 's economy, accounting for less 
than 1% of GDP . According to the authorities, there is no development strategy for the agriculture 
sector.  
4.2.  Macao, China is a net importer of agriculture and fish products, and its trade deficit in these 
products grew to USD 1,818  millio n in 201 9 (from USD 1,318 million  in 2013 ), with imports of 
USD 1,919  million, accounting for 17.2% of total imports of goods, and exports of USD 101 million, 
representing 6.4% of total merchandise exports.  The major suppliers of imports of agriculture and 
fish products were Mainland China and the EU -28, which accounted for about 29.6% and 25.1% of 
the total, respectively, in 2019.1 The main impo rted products include beverages (e.g. wine and 
spirits), preparations of cereals and flour, meat , and dairy products (Table  4.1). With regard to 
exports (including re -exports), Hong Kong, China remained the biggest market for Macao , China  
exports , accounting for 70.4% of total agricultural and fish exports in 201 9, followed by Mainland 
China ( 9.3%). According to the authorities, the principal agricultural exports (HS 19 and HS 22) are 
mainly re -exports.   
Table 4.1 Agriculture and fish trade, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019  
Agriculture and fish (USD million)         
Trade balance  -1,318  -1,607  -1,633  -1,488  -1,499  -1,673  -1,818  
Imports   1,429  1,710  1,729  1,620  1,683  1,835  1,919  
Exportsa 111 103 96 132 183 162 101 
Agricultural imports (USD million)  1,308  1,571  1,587  1,469  1,525  1,650  1,724  
(% of total imports)  12.9 13.9 15.0 16.5 16.1 14.8 15.4 
 (% of total agricultural imports)  
HS 22 Beverages, spirits and vinegar  31.8 28.1 24.2 25.4 24.9 24.2 25.4 
Alcohol  (e.g. wine, spir its) 23.6 20.2 15.8 16.8 16.2 15.7 17.2 
Non-alcohol (e.g. water)  6.9 6.7 7.0 7.1 7.2 6.9 6.8 
HS 19 Preparations of cereals, flour, 
starch or milk  18.2 23.2 28.0 23.6 24.3 23.2 19.4 
Preparations suitable for infants or young 
children  10.4 16.1 20.1 15.8 16.7 14.7 10.6 
Bread, pastr ies, cakes, biscuits, etc.  2.1 2.0 2.3 2.5 2.5 2.5 2.8 
HS 02 Meat and edible meat offal  7.3 8.0 7.6 9.0 9.6 10.2 11.5 
HS 21 Miscellaneous edible preparations  5.0 5.4 5.5 6.6 7.1 7.8 8.0 
Other food preparations  2.5 3.1 3.0 3.2 3.9 4.7 4.8 
Sauces, mixed  condiments and mixed 
seasonings  1.5 1.4 1.4 1.7 1.9 1.9 1.8 
HS 04 Dairy produce  4.7 4.5 3.9 3.5 3.9 4.0 5.1 
Fish imports (USD million)  121 139 142 151 157 185 195 
(% of total imports ) 1.2 1.2 1.3 1.7 1.7 1.7 1.7 
Agricultural exports (USD million)a 109 100 94 128 180 159 98 
(% of total exports ) 9.5 8.1 7.0 10.2 12.8 10.5 6.2 
 (% of total agricultural exports)  
HS 19 Preparations of cereals, flour, 
starch or milk  10.6 11.8 10.9 16.2 42.2 50.9 18.7 
Preparations suitable for infants or young 
children  0.1 1.1 1.4 9.3 36.8 43.7 10.0 
Bread, pastries, cakes, biscuits, etc.  8.5 8.3 6.2 4.6 6.2 8.5 7.2 
HS 24 Tobacco  61.9 62.3 62.9 50.0 26.4 26.8 45.4 
HS 22 Beverages, spirits and vinegar  22.5 19.8 18.9 29.1 26.9 17.2 28.9 
Alcohol (e.g. wine, spirts)  20.8 19.1 18.3 24.8 22.4 13.0 21.5 
Fish exports (USD million)a 2 3 2 3 3 3 3 
(% of total exports)  0.2 0.3 0.2 0.3 0.2 0.2 0.2 
a Including re -exports.  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 03, 
0508, 0511.91, 1504.10, 1504.20, 1603 -1605 and 2301.20), plus some selected products 
(HS 2905.43 -2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 
5105-5103, 5201 -5203, and 5301 -5302).  
WTO definition of fish: HS Chapter 03, 0508, 0511.91, 1504.10, 1504.20, 1603 -1605 and 2301.20.  
Source:  WTO Secretariat 's calculations, based on data provided by the authorities.  
 
1 WTO Secretariat calculations based on data provided by the authorities . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.3.  Macao, China maintains all applied and bound tariffs on agricultural and fishery products at 
zero (Section 3.1. 4). While all tariff lines corresponding to agricultural products are bound, only 
1.3% of fishery tariff lines are bound. As noted in Section 3, imports and exports to/from 
Macao, China are subject to customs declarations and/or licences, depending on the nature of 
product concerned. SPS -related requirements are also applied to certain products.  Goods from 
Macao, China may enjoy duty -free treatment  under the C EPA with Mainland China if they comply 
with the rules of origin established under the C EPA (Section 3.2.1).  
4.4.  During the period under review, Macao, China notified to the WTO Committee on Agriculture 
that it did not maintain any export subsidy an d domestic support.2 
4.5.  The Marine and Water Bureau ( Direcção dos Serviços de Assuntos Marítimos e de Água , 
DSAMA)  is responsible for registering and licensing fishing vessels  for entry into , or exit from , 
Macao,  China.3 The fees for vessel registration and other licences are charged in accordance with 
the General Fee Schedule of the Marine and Water Bureau. According to information provided by the 
authorities, 127 fishing boats were registered in 2019.  
4.6.  The DSAMA is resp onsible for promoting the development of maritime activities and 
coordinating and administering marine affairs and water resources. With the decline in economic 
contribution in the past decades due to social development and structural changes of the local 
economy, the fisheries sector no longer accounts for a significant portion of Macao, China 's economy. 
According to the authorities, there is no development strategy for the fisheries sector. However, the 
Government supports the sector through the Fisheries  Development and Support Fund4, established 
in 2007. The Fund is managed by the Administrative Council , with technical and administrative 
support provided by the DSAMA .5 Members of the Fund include the Director of the DSAMA and a 
representative of the Financial Services Bureau. The Fund provides interest -free loans to fishermen 
for the following purposes6: 
• to carry out ship maintenance and repair, or to repair worn -out fishing facilities, i ncluding 
fishing gear, freezers , and navigation equipment;  
• to purchase fuel;  
• to participate in , and initiate , research and training activities; and  
• to overcome the difficulties encountered by fishermen in the ir fishery activities due to 
natural disaster s or epidemics.  
4.7.  In order to be eligible for assistance, applicants must be Macao, China residents who are either 
fishermen working on a Macao, China registered fishing vessel; or owners of a Macao, China 
registered fishing vessel.7 In addition, applicants  must submit all supporting documents , such as 
receipts for ship maintenance and repair , or invoices issued by an equipment supplier . Loans are 
only approved after the verification of relevant documents.8 According to the authorities, 
 
2 WTO documents G/AG/N/NAC/32, 22 March 2013; G/AG/N/MAC/33, 22 March 2013; G/AG/N/MAC/34, 
14 March 2014; G/AG/N/MAC/35, 14 March 2014; G/AG/N/MAC/36, 16 March 2015; G/AG/N/MAC/37, 
16 March 2015; G/AG/N/MAC/38, 15 June 2016; G/AG/N/MAC/39, 16 June 2016; G/AG/N/MAC/40, 24 May, 
2017; G/AG/N/MAC/41, 24 May 2017; G/AG/N/MAC/42, 29 May 2018; G/AG/N/MAC/43, 29 May 2018; 
G/AG/N/MAC/44, 3 May 2019; and G/AG/N/MAC/45, 3 May 2019.  
3 Customs Services,  General Information . Viewed at: 
https://www.customs.gov.mo/pt/customs4.html#customs4_1 .  
4 Administrative Regulation No. 3/2007 ( Regulamento de Desenvolvimento e Apoio à Pesca ). Viewed at: 
https://images.io.gov.mo/bo/i/2007/09/rega -3-2007.pdf ; and Chief Executive No. 93/2007 ( Aprova o 
Regulamento do Plano de Desenvolvimento e Apoio à Pesca ). Viewed at: 
https://images.io.gov.mo/bo/i/2007/14/despce -93-2007.pdf .  
5 WTO document G/SCM/N/343/MAC, 22 May 2019.  
6 WTO document G/SCM/N/343/MAC, 22 May 2019.  
7 Article 2 of Chief Executive No. 93/2007 ( Aprova o Regulamento do Plano de Desenvolvimento e Apoio 
à Pesca ). Viewed at: https://images.io.gov.mo/bo/i/2007/14/despce -93-2007.pdf . 
8 WTO document G/SCM/Q2/MAC/9, 25 September 2013.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  94 applications for assistance were approved between 2013 and 30 November 2019. Assistance 
remains moderate; l oans for an amount of MOP 4.1 million were approved in 2018.9  
4.2  Mining and Energy  
4.2.1   Mining and querying  
4.8.  Macao, China does not engage in any economic activities related to mining and quarrying.  
4.2.2   Energy  
4.2.2.1   Electricity  
4.9.  The legal and institutional framework for the energy sector, including for electricity, remained 
largely unchanged during the period under review. The Office for the Development of the Energy 
Sector (GDSE), reporting to the Secretary for Transport and Publ ic Works , remains the sectoral 
regulator. The GDSE is responsible for:  assist ing the Government with formulating energy policy, 
and mid- and long -term planning regarding energy resources  for the territory;  and supervis ing all 
activities related to the energy sector, among others. All prices related to energy must be approved 
by the Government.  
4.10.   With the increasing demand for electricity, the Government pursues a "partial liberalization " 
of the electricity market , with a vie w to introducing competition and ensuring a steady supply of 
electricity. The authorities noted that the Government is keen to develop a n electricity  sector that 
provides high -quality, secure, reliable and environmentally friendly energy at affordable pric es. 
These goals are to be met by, among other measures and policy initiatives, introducing adequate 
reform, establishing a modern legislative and regulatory framework, investing in education and 
human capital, and strengthening regional cooperation. In pa rticular, the authorities noted that 
importation and green energy remain the primary drivers of the electricity supply strategy. They 
noted that, on the one hand, Macao, China continue s to rely on the China Southern Power Grid 
(CSG) for electric power that is produced increasingly by green sources. Local generation play s a 
supplemental role , with natural gas the principal fuel under normal circumstance s. On the other 
hand, measures and incentives remain in force to acquire power from renewable sources , including 
refuse incineration and photovoltaic  generation . Over the long -term, diversification remains a key 
consideration in Macao , China 's electricity supply strategy, pursuant to the development of Mainland 
China 's energy market.  
4.11.   The Macao Electricity Compan y (Companhia de Electricidade de Macau , SA (CEM) )10 is the 
only vertically integrated operator in the territory. It was granted a sole concession from the 
Government for the downstream transmission and distribution of electricity . In 2010, to aid further 
reform of the industry, the Government entered into a new contract with the CEM and extended the 
CEM's concession on downstream transmission and distribution of electricity. The upstream 
generation and importation segments were li beralized, but the CEM was allowed to continue to 
operate its generation facilities.  The contract, which became effective on 1  December 2010, is valid 
until 31 December 2025, subject to a review every five years.  
4.12.   The Macao , China  grid is connected to the C SG through  two 110 kV cables and 
two 220 kV cables. The CEM, on behalf of Macao, China, imports electricity from Mainland China. In 
2018, it imported 4.9 billion kWh, accounting for 8% of the electricity consumed. As laid out in the 
Supplementary Agreement  of the 2010 -20 Framework Agreement of Electricity Cooperation between 
GDSE and CSG, CEM is required to import  70% or more of Macao , China 's electricity demand across 
the border , on average , during the period 2017 -26.  
4.13.   The Macao SAR Government prioritizes environmental protection, energy conservation, and a 
due use of clean and safe alternative energies  in its energy policy. Regarding renewable energy, the 
GDSE has a stated goal that at least 40% of the imported electricity from China must stem from 
 
9 WTO document G/AG/N/MAC/45, 3 May 2019.  
10 Companhia de Electricidade de Macau , SA (CEM) is a joint-venture . As at end -October 2019, Nam 
Kwong Development (H.K.) Limited, a Chinese SOE, was the biggest CEM sha reholder, owning 42% of the 
share, while the Government owned 8%.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  clean s ources.11 Also, with a view to foster ing the local generation and use of clean energy, s olar 
photovoltaic  panels have been allowed to be connected to the grid since 2015.  In this respect, 
Administrative Regulation No. 20/2014 (Regulation for Safety and Installation of Grid Connection 
Solar Photovoltaics ), in effect since 26 January 2015 , aims to provid e standards for the installation 
of solar photovoltaic systems in public and private build ings, and set out  the technical standards for 
safe connection between photovoltaic systems and the grid .  
4.14.   In order to further promote the application of solar photovoltaic  (PV) panel s, the Macao, China 
Government set four levels of feed -in electricity tari ffs, according to installed PV capacities  
(Table  4.2). The feed -in tariffs are reviewed and revised periodically; the latest tariffs entered into 
force on 1 July 2018. The authorities noted that the Government does not currently provide other 
incentives fo r solar PVs or other power generation from renewable energy.  
Table 4.2 Feed -in tariffs for different level of installed PV capacities, September 2019  
Level  Installed PV capacities (kW)  Feed -in electricity tari ffs (MOP/kWh)  
I <10 3.7 
II 10-100 3.4 
III 100-500 3.0 
IV >500 2.8 
Source:  Information provided by the authorities.  
4.2.2.2   Fuel 
4.15.   During the review period, the GDSE promulgated a number of  new or revised technical 
regulations concerning the natural gas pipeline network, and filling stations.12  
4.16.   Two concessionary companies currently participate in the  natural gas  market:  Sinosky Energy 
(Holdings) Co. Ltd. is responsible for the importation a nd transmission of natural gas ; and Nam 
Kwong Natural Gas Company is responsible for the distribution and s elling of natural gas. 
Nam Kwong Petro -chemical Company is the largest supplier of petro -refined products in 
Macao,  China . 
4.17.   The authorities stated tha t the Macao , China  liquid fuel sector is a mainly unregulated market ; 
the Government maintains minimal regulation , and  only over issues such as safety and consumer 
protection . No concessionary companies enjoy exclusive rights of importing and distributing oil and 
gas. 
4.3  Manufacturing  
4.18.   The manufacturing sector remains small in Macao, China 's economy. During the period under 
review, it represented less than 1% of total gross value added (GVA) (Section 1.1); similarly, 
manufacturing employed only 1.6 % of the total labour force in 2019 (down from 3.0% in 2012).13 
In 2018, nearly all enterprises (98.9%) in the manufacturing sector were SMEs, employing less than 
100 persons each.14 The average number of persons employed per establishment in the 
manufacturing sector was 12.3 , in the same year.15  
4.19.   Food and beverages remained the principal manufacturing subsector throughout the review 
period; the industry accounted for 48.9% of total m anufacturing GVA in 2018 , and demonstrated 
steady growth (up from 30.8% in 2012) as a result of stable internal consumption and the continuous 
arrival of tourists (Table 4. 3). Publishing and printing grew steadily in the last few years, to become  
 
11 Xinhua News Agency, Macau and  the Mainland sign  a supplementary agreement on power  
cooperation , clean power accounts for more than 40% . Viewed at: http://www.xinhuanet.com//gangao/2017 -
06/28/c_1121229367.htm . 
12 Examples of these regulations include: Technical Regulations on the Natural Gas Transmission 
Pipelines; Technical Regu lations on the Natural Gas Transmission Pipelines and the Distribution of Pressure 
Reduction Stations; and Technical Regulations for the Natural Gas Distribution Network.  
13 DSEC, Statistics database . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx .  
14 DSEC, Industr ial Survey  2018. Viewed at: 
https://www.dsec.gov.mo/Statistic.aspx?Node Guid=a520644a -b71a-41c8-9689-88a647063fa6 .  
15 DSEC, Industr ial Survey  2018. Viewed at: 
https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=a520644a -b71a-41c8-9689-88a647063fa6 .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  the secon d largest manufacturing subsector  in terms of GVA in 2018 , followed by the cement and 
concrete  subsector , owing to the constant high demand from the construction sector (e.g. for 
infrastructure, residential and commercial constructions). However , the weari ng apparel and textile s 
subsector s shrank during the review period, mainly due to sluggish external demand and intense 
competition from other countries.16 
Table 4.3 Structure of the manufacturing industry in 2012, 2015 and 2018  
Sector  Year Establish
-ments 
(no.) Persons 
employed 
(no.) (MOP million)  
Value of 
production 
and other 
receipts  Gross value 
added  Gross fixed 
capital 
formation  
Manufacturing  2012 912 11,964  6,660  1,682  120 
2015 893 10,821  7,142  2,164  146 
2018 907 11,201  7,100  2,545  273 
Textiles  2012 17 470 528 70 6 
2015 18 406 381 63 23 
2018 9 128 234 10 10 
Wearing 
apparel  2012 175 3,213  1,260  223 18 
2015 135 1,356  525 131 5 
2018 103 1,155  419 199 3 
Food products 
and beverages  2012 267 3,934  1,320  518 32 
2015 317 4,655  1,741  690 40 
2018 414 5,527  2,633  1,246  131 
Publishing and 
printing  2012 166 1,704  609 250 8 
2015 177 1,857  762 308 45 
2018 186 1,891  721 321 49 
Cement and 
concrete  2012 9 380 1,536  466 3 
2015 10 457 2,034  506 49 
2018 10 399 1,206  258 -10 
Chinese 
medicine  2012 .. .. .. .. .. 
2015 6 71 29 8 1 
2018 6 107 41 3 11 
.. Not a vailable. 
Source:  DSEC, Industry Survey . Viewed at: https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=a520644a -
b71a-41c8-9689-88a647063fa6 ; and information provided by the authorities . 
4.20.   Macao, China remained a ne t importer of manufactures throughout the review period; its 
trade deficit increased from USD 6.8 billion in 2013 to USD 7.1 billion in 201 9, due to higher imports 
of machinery and transport equipment, chemicals , and consumer goods (e.g. jewellery of gold,  silver 
or platinum group metals).17  
4.21.   The E uropean Union and Mainland China were the major suppliers for Macao, China 's imports, 
accounting for more than 60% of total manufacturing imports (31.5% for the E uropean Union, and 
29.1% for Mainland China) in 2019 .18 Major imported items include d consumer goods (e.g. jewellery, 
watches, and handbags) and  machinery and transport equipment, accounting for 42.3% and 23.5% 
of total manufacturing imports, respectively (Table 4. 4).  
4.22.   Macao, China 's exports (including re -exports) increased to USD 1,059  million in 201 9, up from 
USD 658 million in 2013. Hong Kong, China was the largest market , accounting for 8 1.9% of total 
manufacturing exports  in 201 9, followed by  Mainland China ( 11.7%). Macao, China has a small 
domestic export base  (6.6% of total manufacturing exports in 2019),  and its export  structure mainly 
compris es re-exports , which accounted for 93.4% of total manufacturing exports in 2019 . The main 
re-exported products were  telepho ne sets , jewellery with diamonds  mounted or set, watches, beauty 
or make -up preparations for the care of the skin, optical fibre  connectors , optical fibre bundles or 
cables , and toys. In 2019, the principal manufacturing re -exports were destined to Hong Kong, China 
and Mainland China.19 
 
16 Information provided by the authorities.  
17 WTO Secretariat calculations  based on data provided by the authorities . A product group of 
manufactures is based on the classification of SITC Rev.3. Export figures include re-exports.  
18 WTO Secretariat calculations  based on data provided by the authorities . 
19 DSEC, External merchandise trade . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx ; 
and the in formation provided by the authorities.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 4.4 Trade in manufactured goods, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019  
Imports (USD million)   7,477  8,246  7,769  6,293  6,725  8,039  8,145  
% of total imports  73.7 73.2 73.3 70.5 71.2 72.0 72.9 
 (% of total manufacturing imports)  
Chemicals  9.0 9.5 10.5 13.1 13.1 14.7 19.0 
Beauty or make -up preparations for the 
care of the skin  4.5 4.6 4.8 5.7 6.0 7.5 10.7 
Other semi -manufactures  3.9 4.5 6.6 6.0 5.3 4.6 4.0 
Machinery and transport equipment  29.5 31.3 31.8 27.6 26.6 27.8 23.5 
Non-electrical machinery  3.0 4.0 3.7 3.8 3.4 2.6 2.3 
Electrical machines  19.4 20.7 22.3 19.4 18.8 20.2 16.8 
Transport equipment  7.1 6.6 5.8 4.4 4.4 5.0 4.4 
Clothing  5.9 6.2 6.6 8.3 8.2 8.5 9.3 
Other consumer goods  47.7 44.2 40.7 42.2 44.6 42.5 42.3 
Handbags  4.7 4.2 3.7 4.2 5.1 4.9 5.5 
Wrist-watches, pocket watches, etc.  9.1 9.9 7.8 7.2 6.8 7.1 6.9 
Jewellery  of gold, silver or platinum group 
metals  20.8 16.7 13.7 13.8 14.8 14.1 12.9 
Other  3.9 4.2 3.8 2.8 2.1 1.9 1.9 
Exports (USD million)a     658     753     848     743     833     914  1,059  
% of total exports  57.8 60.7 63.4 59.2 59.3 60.5 66.8 
 (% of total manufacturing exports)  
Chemicals  3.5 3.8 6.6 3.9 4.2 6.7 7.7 
Beauty  or make -up preparations for the 
care of the skin  1.6 1.4 1.4 1.8 1.8 5.1 6.1 
Machinery and transport equipment  42.9 39.5 29.2 26.5 27.0 35.2 31.4 
Electrical  machines  35.8 29.7 21.5 20.0 22.9 31.9 28.9 
Clothing  13.5 11.4 10.9 10.6 11.8 8.2 12.5 
Other consumer goods  36.5 41.3 49.5 55.9 54.1 47.8 46.5 
Wrist-watches, pocket watches, etc.  6.8 12.8 16.8 13.8 13.1 13.6 10.5 
Articles  for funfair, table or parlour games  5.5 4.4 5.4 9.6 6.9 7.4 4.4 
Jewellery  of gold, silver or platinum group 
metals  9.3 9.1 10.3 9.0 13.1 9.6 12.4 
Other  3.6 4.0 3.8 3.1 2.9 2.2 2.0 
Memo: trade balance (USD million)  -6,818  -7,492  -6,921  -5,549  -5,891  -7,124  -7,086  
a Including re -exports.  
Note:   Definition of manufacture according to SITC Rev.3 (SITC codes: 5+6+7+8 -68-891).  
Source:  WTO Secretariat 's calculations, based on data provided by the authorities.  
4.23.   The Macao SAR Government continues to support brand -building for domestic industries , by 
developing "Made in Macao " products , and through industrial upgrading and transformation.20 
According to the authorities, since the last Review, the Government has encouraged large companies 
(mainly gaming operators) to consider procuring products and services from SMEs, which is likely to 
benefit local manufacturers, especially those producing food and beverages, and apparel.21 The 
authorities noted that encouraging business cooperation betwee n large enterprises and SMEs has 
contributed to the shaping of a model of mutual benefit, under which the growth of SMEs is 
stimulated by the procurement made by the large enterprises , while the large enterprises benefit  
from the flexibility and highly -customized goods and services provided by SMEs. In recent years, 
large corporations have also organized various SMEs support program mes, including training 
workshops, and business -matching sessions . 
4.24.   The Macao SAR Government supports SMEs  as part of its effort s to diversify the economy; 
this goal was emphasized in the Five -Year Development Plan (2016 -20).22 The Government provides 
financial support to SMEs in order to underscore their efforts to enhance their capabilities and 
improve their operating conditions (Section 3.3.1.2. 2). Financial support includes interest -free 
financial assistance, credit guarantees for loans, and financial assistance for young entrepreneurs 
(e.g. through offering interest -free loans). The Government  also offers and organizes training  and 
 
20 Macao SAR Government, The Five -Year Development Plan of the Macao Special Administrative Region 
(2016 -2020) , September 2016. Viewed at: https: //www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf .  
21 Information provided by the authorities.  
22 Macao SAR Government, The Five -Year Development Plan of the Macao Special Administrative Region 
(2016 -2020) , September 2016. Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  certification programmes for product development, and quality standards, and for R&D progress 
geared to wards  developing marketable products, among others.  
4.25.   In addition to continuous support to SMEs, the Macao SAR Government has been promoting 
the development of  high value -added manufacturing products and processes, including diamond 
processing, diamond analysis and grading, and jewellery design. Legislation on the implementation 
of the Kimberley Process Certificati on Scheme (KPCS) for international trade in rough diamonds 
came into force on 1 October 2019 (through Mainland China 's participation).23 This allows 
Macao,  China to formally engage in the international trade in rough diamonds24 in line with the 
KPCS .25 In the authorities ' view, Macao, China could become a rough diamond trading hub , and 
investments in processing and manufacturing establishm ents could be drawn to Macao, China.26 
Operators who engage in rough diamond economic activities (including import, export, transit, 
purchase, sale , and transport) are required to apply for an operating licence from the DSE. The 
operating licence is valid for two years.  For rough diamond import/export or transit activities, 
operators are required to apply for an import/export/transit license from the DSE , thorough  the EDI 
system  (Section 3.1.1).27 The electronic application for an export license automatical ly comprises 
that for the Kimberley Process Certificate.  The licen ces issued by the DSE are free of charge, while 
the fee for each Kimberley Certificate issued is MOP  70.28  
4.26.   Among the economic stimulus package and financial measures in order to reduce fina ncial 
constraints faced by SMEs due to COVID -19 (Section 1), Macao, China implemented a series of 
support measures  since early 2020 , including tax -relief, tax-exemption , and financial measures (i.e. 
subsidies). For example, it launched SME interest -subsidy scheme; it provides an interest subsidy 
up to 4% per year on a bank loan of maximum MOP 2 million for up to three  years to eligible SMEs 
(subject to government assessment).29 The scheme is governed by Administrative Regulation 
No. 5/2020 and , in accordance with Chief Executive  Decision No. 66/2020, the implementation 
period is from 17 March to 17 September 2020. As at 24 July 2020, there had been 
4,407  applications, of which 3,917 had been  approved, involving total subsidized bank loan s of 
MOP 5.05 billion . Eligible companies are also entitled to a grant , ranging from MOP  15,000 to 
MOP 200,000, depending on the number of employees. Public utilities companies and certain entities 
such as public telecommunications firms, public bus operators, light rap id transit system operator s, 
financial service businesses, formal education institutes and higher education institute s, social 
service agencies , and gaming operators are excluded from the support measures.30  
4.27.   Applied duties for imported goods in the manufa cturing sector are zero -rated; however, only 
19.2% of non -agricultural tariff lines are bound  in the WTO. Certain goods (e.g. pharmaceutical 
products , and chemical products) are subject to licences (Section 3.1.3). At the bilateral level, the 
CEPA support ed the manufacturing sector, as duty -free treatment applies to goods made in 
Macao,  China for which rules of origin were established when entering Mainland China. Upon the 
signature of the Agreement on Trade in Goods under the CEPA in 2018 (Section 2.3.3.1) , rules of 
origin for nearly all goods were established, providing a stimulus to the manufacturing sector in the 
long term. Moreover, the CEPA promoted trade facilitation and improved customs cooperation 
between Macao,  China and Mainland China (Section 3.1 ).  
 
23 Administrative Regulation No. 15/2019. Viewed at: https://bo.io.gov.mo/bo/i/201 9/33/lei15.asp#15 .  
24 Rough diamonds refer to HS codes 7102.10, 7102.21 and 7102.31 . DSE, FAQ. Viewed at: 
https://www.economia.gov.mo/en_US/web/public/pg_et_kpl_faq?_refresh=true .  
25 The KPCS  regulates trade in rough diamonds, aiming to prevent the flow of conflict diamonds and to 
help protect legitimate trade in rough diamonds.  Pursuant to  requirements under the KPCS, all international 
trade in rough diamonds must be accompanied by a KPCS Certificate issued by the government of the 
exporting country or territory . Import ing rough diamonds without  a Certificate issued by a KP member  is 
prohibited , as is export ing rough diamonds to non -KP members.  
26 Information provided by the authorities.  
27 DSE, Kimberley Process Certificate and Import/Export/Transit License Applications.  Viewe d at: 
https://www.economia.gov.mo/en_US/web/public/pg_et_kpl_ac?_refresh=true .  
28 DSE, Export License – Kimberley Process Certification Scheme . Viewed at: 
https://www.economia.gov.mo/en_US/web/public/pg_apg?slug=ps -1319h . 
29 Macao SAR Government Portal, Government announces five -pronged approach to help residents, 
business ride out current adversity . Viewed at: https://www.gov.mo/en/news/122812/ .  
30 Information provided by the authorities, and Macao SAR Government Portal, 10-billion -pataca fund 
aiming to bolster support for employees and businesses . Viewed at: https://www.gov.mo/en/news/124630/ . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.4  Services  
4.4.1   Features  
4.28.   Macao , China has a services -dominated economy; services are becoming increasingly more 
important and diversified, although  gaming and tourism earnings  continue to be the main foreign 
exchange earners . Services account for 90% of GDP and a similar percentage of total employment . 
Among services, g aming is the biggest subsector, accounting for almost 50.5 % of GDP  in 2018 . 
Other services activities of impor tance include financial services, tourism, the organization of 
convention s and exhibitions, retail services, cultural and creative industries, traditional Chinese 
medicines, and professional services.  Exports of services accounted for 80.1% of GDP in 2019.  
4.29.   Macao, China 's GATS Schedule does not contain any  horizontal commitments.  However, it 
does contain specific commitments , including in: business services (rental leasing services , without 
operators , related to other transport equipment) ; financial services  (all insurance and 
insurance -related services, reinsurance and retrocession, services auxiliary to insurance, and 
banking and other financial services) ; tourism and travel -related services (hotels and restaurants, 
excluding catering, and travel agencies a nd tour operator services).31 
4.4.2   Financial services  
4.30.   Financial services accounted for 6.6% of GDP in 2018. The industry comprises banks, other 
financial institutions, and insurance companies. Macao,  China does not yet have well -established 
capital markets, but  is fostering the development of the bond market.  
4.31.   The Monetary Authority of Macao  (Autoridade Monetária de Macao , AMCM) , an autonomous 
institution created in July 1989,  supervises the financial services sector, and is responsible for 
exercising central ban k functions.32 The AMCM supervises monetary and financial operations 
according to the terms established in the regulatory statutes governing each respective area (see 
below), and advises the Macao SAR Government on policies which facilitate the long -term g rowth 
sustainability of the financial sector. The AMCM is also in charge of streamlining the legal and 
regulatory framework, as required,  of adopting international best practices for the development of 
Macao, China as a financial services centre,  particularly as a financial service platform between China 
and Portuguese -speaking countries  (PSCs) . The functions of the AMCM, in accordance with its 
Statute as approved by Decree -Law No. 14/96/M, include: ( i) advising and assisting the Chief 
Executive i n formulating and applying monetary, financial, exchange rate and insurance policies; 
(ii) guiding, co -ordinating and overseeing the monetary, financial, foreign exchange and insurance 
markets, ensuring their smooth operation , and supervising the actions o f those operating within 
them according to the terms established in the regulatory statutes governing each respective area ; 
(iii) monitoring internal monetary stability and the external solvency of the local currency, ensuring 
its full convertibility; ( iv) exercising the functions of a central monetary depository , and managing 
foreign exchange reserves and other foreign assets; and ( v) monitoring the stability of the financial 
system.33 
4.32.   The main legislation governing financial services in Macao, China inclu des the Financial 
System Act of Macao, promulgated on 5 July 1993. Other laws and regulations governing the 
financial sector include the Merger and Division of Financial and Insurance Institutions (Law 
No. 3/95/M of 13 March 1995); Decree -Law No. 16/95/M o f 3 April 1995 ( Use of Local Currency); 
Decree -Law No. 39/97/M, 18 September 1997 ( Foreign Exchange Regime); Decree -Law 
No. 15/83/M of 26 February 1983 ( Finance Companies); Administrative Regulation No. 7/2003 
(Conservation of Documents of Financial Entiti es Excluding those pertaining to Insurance Sector); 
Law No. 9/2012 of 9  July 2012 (Deposit Protection Regime); and Administrative Regulations 
No. 23/2012, and No.  24/2012, both of 8 October 2012 (Deposit Protection - Compensation Limit of 
Deposit Protectio n Regime and Deposit Protection Fund). During the period under review, 
 
31 WTO document GATS/SC/50, 15 April 1994.  
32 Although the current name of the institution is Autoridade Monetária de Macao , its acron ym AMCM 
corresponds to the previous name in Portuguese, Autoridade Monetária e Cambial de Macau . When the 
Macao , China  Special Administrative Region was established on 20 December 1999, the name of the institution 
became the  Monetary Authority of Macao , but the acronym AMCM was maintained.  AMCM, History.  Viewed at: 
https://www.amcm.gov.mo/en/about -amcm/history . 
33 AMCM, Goals . Viewed at: https://www.amcm.gov.mo/en/about -amcm/goals . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Macao, China  passed Law No. 15/2018, of 27 December 2018, revoking its offshore regime , to better 
align with international practices on this subject. The Law repealed the offshore regim e and all 
related tax benefits , with a  transition period up to 31 December 2020, during which offshore 
companies may still benefit from some tax exemptions.  
4.33.   Under the Financial System Act, the following credit institutions require a licence , granted on 
a case by case basis by the Chief Executive, on advice from the AMCM: banks incorporated in 
Macao,  China; Macao , China , China branches of banks incorporated overseas; the Postal Savings 
Office; and other credit institutions.34 No economic needs test is perfor med. In addition, under 
Decree -Law No. 15/83/M of 26 February 1983 and Decree -Law No. 51/93/M of 20  September  1993, 
a licence is required to operate finance companies and financial leasing companies.  
4.34.   As at December 2019, there were 30 banks in Macao, China, a financial company and a 
non-bank credit institution dedicate d to the issuance and management of electronic -money stored -
value card services.  Other institutions under the supervision of the AMCM includ e 2 financial leasing 
companies, 11  money chang ers, 6 exchange counters, 2 cash remittance companies, 2 financial 
intermediaries, 2 payment service institutions, and 2 other financial institutions (one is a 
representative office). These institutions were authorized to operate under their respective 
legislation, namely, Law No. 6/2019  and Law No. 7/2019, both of 8  April 2019, for financial leasing 
companies35, Decree -Law No. 38/97/M  of 15 September 1997 for money changers, Decree -Law 
No. 15/97/M  of 5 May  1997 for cash remittance companies, and Articles 1 16 to 120 of Part III of 
the Financial System Act for financial intermediaries and other financial institutions.  
4.35.   Mergers of financial sector companies are ruled by the same regulations that govern any 
commercial merger. The merger requires the approval of the Chief Executive of the Macao SAR, on 
advice from the AMCM . Mergers can take place among financial institutions  of different types; the 
exception is the insurance business, where merging companies must be insurance companies and 
the result of the merger  must also be an insurance business.  
4.4.2.1   Banking  
4.36.   The banking sector is regulated by the AMCM under the Macao Financial System Act (FSA) 
(Decree -Law No. 32/ 93/M of 5 July 1993). Decree -Law No.  58/99/M of 18 October 1999 , which 
regulate d offshore activities including the establishment of offshore financial institutions , was 
revoked in 2018 by Law No. 15/2018.   
4.37.   The banking sector is large , and is mainly foreign -owned.  Banking assets are large compared 
to the size of the economy; they accou nted for more than 400% of GDP  in early 2019 .36 As the IMF 
noted, although the balance sheets of the banking system appear to be sound, its large scale calls 
 
34 Under Article 22 of the FSA (Procedures for Application for Authorization), entities wishing to 
incorporate a credit institution in Macao, China shall submit their application through  the AMCM, accompanied 
by: (i) a memorandum demonstrating the economic and financial reasons for wishing to incorporate the 
institution, indicating its feasibility and the manner in which the same shall fit into the economic and financial 
policies pursued by the competent authoriti es of Macao, China; (ii) a description of the institution, giving its 
location and details of the technical and human resources at its disposal; (iii) a draft of the memorandum and 
articles of association; and (iv) personal and professional identification of the founding shareholders, indicating 
the percentage of their respective holdings in the share capital and a statement confirming the adequacy of the 
shareholding structure with regard to the stability of the institution. There are additional requiremen ts for 
shareholders who are corporate bodies with a holding equal to or greater than 5% of the share capital of the 
institution to be incorporated.  
35 Law No. 6/2019 updated the legal framework of financial leasing companies. The legal definition of 
financi al leasing companies and subsidiaries was modified to limit their scope of action to financial leasing 
activities exclusively, and to activities authorized by the AMCM. Financial leasing companies must incorporate 
as either a public limited company or a pr ivate limited company, with prior authorization of the Chief Executive 
following the opinion of the AMCM. The minimum capital requirement is MOP 10 million (MOP 30 million in the 
previous Law), fully subscribed and paid up on incorporation. Law No. 6/2019.  Viewed (in Portuguese)  at: 
https://bo.io.gov.mo/bo/i/2019/14/lei06.asp . Law No. 7/2019 updates the legal regime of tax benefits for 
financial leasing  and sets an income tax rate of 5% for financi al leasing income. The law also establishes 
exemptions regarding the payment of stamp duty. Law No. 7/2019. Viewed at: 
https://bo.io.gov.mo/bo/i/2019/14/lei0 7.asp. 
36 AMCM, Financial Soundness Indicators . Viewed at: https://www.amcm.gov.mo/en/research -statistics/ 
statistics/financial -soundness -indicators . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  for continued supervisory caution. Attention to large short -term foreign liabilities and to the qu ality 
and liquidity of foreign assets is especially needed.37  
4.38.   As noted above, i n 201 9, there were 30 banks  in Macao, China, 2 more than in the previous 
Review in 2013: 29 commercial banks and 1  Postal Savings Bank . Of these, 12 were locally 
incorporated ( including the Postal Savings Bank, which is owned by the Macao SAR Government), 
and 1 8 were branches of banks incorporated outside Macao , China  (Table 4. 5). In addition to the 
local capital, the banking sector comprises banks from : Mainland China ; Chinese Taipei ; 
Hong Kong, China;  Portugal ; Singapore ; the United  Kingdom ; and the United States.38 As at 
September 2019, the top three banks accounted for 65% of total banking sector assets. The 
two offshore banks in existence at the time of the previous Review were closed in 2018 , due to a 
change in their group strategies and the passing of new legislation terminating the regime (see 
above).  
Table 4.5 Financial institutions, 2013 -19 
 2013  2014  2015  2016  2017  2018  2019  
Banks         
Totala 28 28 28 28 29 29 30 
Local 10 9 9 9 9 11 11 
With head -office abroad  18 19 19 19 20 18 19 
Number of banking outletsb 186 194 199 200 210 213 221 
Number of ATMs  1,081  1,134  1,299  1,507  1,691  1,764  1,777  
Number of staff  5,553  5,726  6,042  6,096  6,210  6,456  6,835  
a Excluding the Postal Savings Bank.  
b Including main offices, branches, and sub -branch offices in Macao , China . 
Source : Information provided by the AMCM.  
4.39.   In accordance with the FSA, credit institutions incorporated in Macao, China must maintain a 
minimum capital of MOP 100 million. Branches of credit institutions incorporated overseas which are 
authorized to operate  in Macao, China are required to maintain at all times in Macao, China, in 
certain categories of assets defined by an AMCM notice, an amount equal to at least 50% of the 
minimum capital required for constituting institutions of the same type.  
4.40.   Circular No. 003/B/2011 -DSB/AMCM, of 13 January 2011, provides the Guideline on 
Management of Liquidity Risk for Banks. Among other things, it states that banks should maintain 
an adequate stock of high -quality liquid  assets to cater for any expected liquidity pressure s or 
fluctuations , under both normal and adverse operating conditions. In this respect, the average 
weekly amount of cash in the hands of a bank shall not be less than the sum of 3% of call liabilities, 
2% of liabilities up to three months excluding call l iabilities, and 1% of liabilities beyond 
three  months; and the amount of specified liquid assets of a bank at the end of each month shall 
not be less than 30% of its total basic liabilities.39 
4.41.   New provisions were incorporated into the legislative and regul atory framework on 
anti-money -laundering (AML) and combatting the financing of terrorism (CFT) during the period 
under Review. Th e Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) 
Guideline , contained in Circular s No. 021/B/2016 -DSB/AMCM of 15 June 2016, 
No. 030/B/2016 -DSB/AMCM of 2 December 2016, and No. 006/B/2019 -DSB/AMCM of 
30 January  2019, supersede d the two previous guidelines promulgated by the AMCM under Notice 
No. 010/2009 -AMCM of 24 July  2009.40 The Guideline incorporated  the recommendations of the 
 
37 IMF (2019), People 's Republic of China  — Macao Special Administrative Region: 2019 Article IV 
Consultation Discussions  - Press Release; Staff Report; and Statement by the Executive Director for Macao 
SAR. IMF Country Report No. 19/123, May 2019 . Viewed at: https://www.imf.org/en/Publications/CR/Issues/ 
2019/05/06/Peoples -Republic -of-China -Macao -Special -Administrative -Region -2019-Article -IV-Consultation -
46867 . 
38 AMCM, Branches of banks incorporated overseas . Viewed at: https://www.amcm.gov.mo/en/banking -
sector/institutions -list/branches -of-banks -incorporated -overseas . 
39 Circular No. 003/B/2011 -DSB/AMCM (Date:  13/01/2011), Guideline on Management of Liquidity Risk . 
Viewed at: https://www.amcm.gov.mo/files/banking_sector/rules_and_guideline/notices_and_guidelines/ 
launch_version_liquidity_management_eng.pdf .  
40 Circular No. 021/B/2016 -DSB/AMCM of 15 June 2016, C ircular No. 030/B/2016 -DSB/AMCM of 
2 December 2016, Circular No. 006/B/2019 -DSB/AMCM of 30 January 2019, Anti -Money Laundering (AML) and WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Financial Action Task Force (FATF), and the relevant best practices released by it. The Guideline also 
took into consideration opinions from the relevant sector on the implementation of AML/CFT 
measures, and the findings of the AMCM 's ongoing supervision related to AML/CFT compliance. The 
Guideline sets out the key requirements for credit institutions and other financial institutions to fulfil 
the relevant AML/CFT statutory and regulatory obligations, including on customer accept ance 
policies, risk assessment, and customer due diligence. In August 2019, these Guidelines were also 
extended to gaming -related customers (see below).  
4.42.   During the review period, a number of regulations to strengthen the supervision of the 
financial system  were introduced. These include those on capital adequacy, such as Notice 
No. 011/2015 -AMCM , which  mandates that all credit institutions incorporated in Macao, China 
observe a capital adequacy ratio of not less than 8%.  Circular No. 016/B/2015 -DSB/AMCM  contains 
the Guideline on the Appointment of External Auditors of Credit Institutions, Duties and 
Responsibilities of External Auditors and their Relationship with the AMCM.41 Circular 
No. 011/B/2019 -DSB/AMCM, effective 23 August 2019, on Industry Guidance on  AML/CFT Controls 
– "Gaming -related " Customers ( supplementary to the AMCM AML/CFT Guideline) introduces further 
regulations to deal with the potential risks associated with gaming activit ies. The Guideline calls for 
a stricter customer acceptance policy, i ncluding obtaining approval from the Gaming Inspection and 
Coordination Bureau of Macao, China  before opening bank accounts with the purpose of moving 
funds related to gaming activities carried out in Macao, China. Moreover, the Guideline prohibit s 
banks from establish ing business relationships with overseas gaming operators and their related 
companies and junket promoters with the purpose of organizing the movement of funds from gaming 
activities outside Macao, China. The Guideline also calls for conductin g enhanced due diligence 
procedures when banks maintain business relationships with gaming -related customers . This may 
include: obtaining further information on their operations, especially the types of activities conducted 
in Macao, China; obtaining furth er information on the purpose of the account held by the 
gaming -related customer , and on the reasons for the intended and/or performed transactions; and 
conducting enhanced monitoring of business relationships by obtaining additional documentary 
evidence f or each transaction performed.42 
4.43.   Credit continued to be directed mostly to traditional banking activities during the period under 
review.  Real estate -related credit continued to account for a significant share in banks ' assets, 
representing 36.5% of total credit in the second quarter of 2019.43 
4.44.   Reflecting the rapid pace of economic growth, total gross assets of the banking sector reached 
about MOP  2.02 trillion at end -2019, up by 12.9% from the previous year and more than double 
that of late-2013 (Table  4.6). Credit to customers accounted for 53.3% of total banking assets, and 
interbank assets represented 26.4% of the total.  The percentage of credit granted to non -residents 
was 52.7% of all credit granted to customers . Customer deposits represented 62.3% of total fund 
sources in 2018.  
4.45.   Banks ' operating profits attained a historical high in 201 9, when they increased by 6.2 % with 
respect to 2018, to MOP 17.1 billion (Table 4. 7). Net interest income is the main source of banks ' 
gross income ; interest income increased by 23.4% between 2018 and 2019 . The interest margin , 
or net interest income , registered a year -on-year growth of 2% in 2019, reaching MOP 20.6 billion, 
whereas non -interest income increased by 11.8 % in 201 9 as banks recovered from  the losses on 
financial investments and declines in fees and commissions  experienced in 2018 .44 Meanwhile, the 
ratio of interest margin to gross income rose from 73.7% in 2018 to 78.3% in 2019 (Table 4 .7). 
Return on equity (ROE) was 19.8% in 2019 (down from 21.2% in 2018) but fell to a preliminary 
 
Combating the Financing of Terrorism (CFT) Guideline. Viewed at: https://www.amcm.gov.mo/files/banking_ 
sector/rules_an d_guideline/notices_and_guidelines/aml_cft_gudileine_eng_2019_final.pdf . 
41 Circular No.016/B/2015 -DSB/AMCM. Viewed at: https://www.amcm.gov.mo/files/banking_sector/ 
rules_and_guideline/notices_and_guidelines/circular_016_b_2015_eng.pdf . 
42 AMCM, Circular No . 011/B/2019 -DSB/AMCM (Effective Date: 23 August 2019), Industry Guidance on 
AML/CFT Controls – "Gaming -related " Customers (Supplementary to the AMCM AML/CFT Guideline) . Viewed at: 
https://www.amcm.gov.mo/files/banking_sector/rules_and_guideline/notices_and_guidelines/industry_guidanc
e_to_banks_overseas_gaming_activities_english.pdf . 
43 AMCM , Financial Soundness Indicators . Viewed at: https://www.amcm.gov.mo/en/research -statistics/ 
statistics/financial -soundness -indicators . 
44 AMCM, Research and Statistics Department (2019), Monetary and Financial Stability Review , July 
2019. Viewed at: https://www.amcm.gov.mo/files/research_and_stats/research_and_publication/quarterly 
report/ issue_no_52/05_mfsr_201907_en.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  18.3% in the second quarter of 2020, reflecting the effects of the COVID -19 pandemic . The return 
on assets (ROA), measuring banks ' efficiency in using their asset s, held steady from a year earlier 
at 1.0% in 2018, but fell to 0.9% in 2019 (Table 4 .7), and further in 2020, to a preliminary 0. 9% in 
the second quarter .  
Table 4.6 Financial highlights of the banking sector, 2013 -19 
(MOP billion)  
 Total assets  Credit to 
customers  Deposits from 
customers  Interbank 
assets  Interbank 
liabilities  
2013 990.3  534.7  680.5  326.8  221.7  
2014 1,174.4  689.7  791.0  347.3  267.6  
2015 1,340.8  760.9  860.0  388.9  339.6  
2016 1,390.4  784.3  941.8  379.6  283.9  
2017 1,523.7  896.0  1,022.5  358.7  317.8  
2018 1,784.9 1,007.2 1,114. 2 463.0 432.6  
2019 2,015.2  1,072.9 1,163.6 539.4  592.6  
Source : AMCM, Annual Report , different issues . Viewed at:  https://www.amcm.gov.mo/en/research -statistics 
/annual -reports ; and AMCM, Statistics . Viewed at:  https://www.amcm.gov.mo/en/research -statistics 
/statistics/monetary -and-financial -statistics -time-series . 
Table 4.7 Profitability of the banking sector, 2013 -19 
(MOP million)  
 2013  2014  2015  2016  2017  2018  2019  
Interest income  22,141  29,933  32,581  30,072  34,465  47,658  58,817  
Interest costs  10,659  15,538  16,760  14,419  17,342  27,467  38,232  
Net interest income  11,482  14,395  15,822  15,653  17,124  20,191  20,586  
Other income  3,829  4,961  6,290  7,211  7,864  6,761  7,562  
Operating costs  6,843  8,352  9,305  8,585  10,091  10,880  11,074  
Operating profits  8,468  11,004  12,807  14,279  14,897  16,073  17,073  
Cash flow  10,272  13,190  14,858  15,668  16,989  18,307  18,801  
Earnings and profitabilitya        
Return on assets (ROA), %  1.0 1.0 1.0 1.1 1.0 1.0 0.9 
Return on equity (ROE), %  25.1 28.1 25.8 23.7 21.9 21.2 19.8 
Interest margin to gross income  78.2 77.7 68.4 66.1 72.5 73.7 78.3 
Non-interest expenses to gross income  37.4 43.1 42.6 36.8 39.0 37.1 40.2 
Asset qualitya        
Non-performing loans to total gross loans  0.1 0.1 0.1 0.2 0.2 0.2 0.2 
Capital adequacya        
Regulatory capital to risk-weighted assets  14.8 14.2 15.1 16.1 15.7 14.8 14.2 
Regulatory Tier 1 capital to risk -weighted 
assets  11.2 9.9 11.6 11.7 11.4 10.5 10.4 
Non-performing loans , net of provisions to 
capital  -0.3 0.6 0.2 0.8 1.2 1.1 1.7 
Liquiditya        
Liquid assets to total assets  38.2 35.8 34.8 36.0 30.8 32.5 33.2 
Liquid assets to short -term liabilities  65.3 60.1 60.5 60.6 53.0 62.1 57.6 
a Data for fourth quarter of each year.  
Note:  Including the Postal Savings Bank, but excluding non -bank credit institutions.  Figures for 201 9 are 
preliminary.  
Source : AMCM, Financial Soundness Indicators . Viewed at: https://www.amcm.gov.mo/en/research - 
statistics/statistics/financial -soundness -indicators ; and Annual Report , different issues . Viewed at : 
https://www.amcm.gov.mo/en/research -statistics/annual -reports . 
4.46.   The n on-performing loans  ratio remained low during the review period, at 0.2% in 2019, 
slightly up from 0.1% at end -2013; in the second quarter of 20 20, the ratio rose to 0.3%.  Capital 
adequacy levels remain high: the consolidated capital adequacy ratio for the banking system was 
14.2% in 2019, the same as at end -2013; the ratio rose to 14.6% in the second quarter of 202 0. 
This is well above the 8% minimum capital adequacy requirement set by the Basel Committee on 
Banking Supervision of the Bank for International Settlements, and by Notice No.  011/2015 -AMCM , 
which mandates that a ll credit institutions incorporated in Maca o, China  must observe a capital 
adequacy ratio of not less than 8%.45 
 
45 Notice No. 011/2015 -AMCM . Viewed at: https://www.amcm.gov.mo/files/banking_sector/rules_and_ 
guideline/notices_and_guidelines/no tice_no.011_2015_amcm_eng.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.47.   In the IMF 's view, in spite of the large scale of the banking sector, several factors moderate 
risks on both the domestic and external side s of the balance sheet. On the domestic side, l iquidity 
and asset quality  remain strong, mainly due to moderate private -sector leverage and, although 
exposure to gaming remains large, the balance sheets of gaming operators remain strong. On the 
external side, although some 65% of the banking sector 's foreign liabilities are short -term, its foreign 
assets largely exceed liabilities. Recognizing recent efforts by the AMCM to strengthen financial 
supervision, the IMF noted that it could further strengthen the framework for sound fintech 
adoption.46 
4.48.   Macao, China has a deposit insurance scheme, which was put in place in its current form in 
2012. The Deposit Protection Scheme Law No. 9/2012 , which  entered into force  on 7 October 2012 , 
changed the temporary protection scheme  to a permanent arrangement . Under  this Law, the 
Government established a Deposit Protection Fund, through which compensation  of up to 
MOP 500,000 is to be provided per depositor , per bank , in the case of bank failure . The Government 
injected MOP 150 million as start -up capital and , since January 2014, banks are required to make 
an annual contribution equivalent to 0.05% of their total protected deposits.  
4.49.   Offshore financial businesses, including credit institutions, insurers and offshore trust 
management companies, used to be regula ted and supervised by the AMCM.  By law, they could only 
transact with non -residents in currencies other than the local currency , and were exempt from profit 
tax and business registration tax.  Until 2018, there were two offshore banks, both from Portugal.  
However, these two banks were closed in 2018 , and there is no longer an offshore banking industry , 
as the decree -law which regulated the offshore regime was revoked in 2018.  
4.4.2.2   Insurance  
4.50.   In Macao, China , the authority for the supervision, coordination and inspection of the 
insurance activity and of pension funds rests with the Chief Executive, while the actual execution of 
these functions is carried out by the AMCM , through its Insurance Supervision Department. The main 
legislation with res pect to insurance includes the Macao Insurance Ordinance (Decree -Law 
No. 27/97/M of 30 June 1997), the Macao Insurance Agents and Brokers Ordinance (Decree -Law 
No. 38/89/M as amended by Administrative Regulation No. 27/2001), the amendments to the legal 
framework for the carrying on of insurance intermediary business (Administrative Regulation 
No. 14/2003), the Legal Framework for Private Pension Funds (Decre e-Law No. 6/99/M of 
8 February  1999), and the Amendments to the Legal Framework of Private Pension Funds (Law 
No. 10/2001).   
4.51.   As at end -2019, the insurance industry comprised  25 insurance companies, 12 of which were 
life companies and 13 were involved in no n-life business. With respect to the origin of their capital, 
10 were local companies and the remaining 15 were branches of overseas companies ; 7 are from 
Hong Kong , China , 4 from Bermuda, and 1 each from Canada , Portugal , and the  United  States.47 
4.52.   As at en d-2019, the intermediary sector comprised  6,726 insurance intermediaries, including 
5,072 individual agents, 82 corporate agents, 1,560 salesmen , and 12  brokers.48  
4.53.   As at end-2019, there were two private pension fund management companies, both 
incorporated  in Macao, China. The list of private pension fund managers also included a life insurance 
company incorporated in Macao, China, and six insurance companies incorporated overseas.49 
4.54.   Five associations represent the insurance industry in Macao, China. The Ma cau Insurers ' 
Association represents authorized insurance companies, both life and non -life, while the Macau 
 
46 IMF (2019), People 's Republic of China  — Macao Special Administrative Region: 2019 Article IV 
Consultation Discussions  - Press Release; Staff Report; and Statement by the Executive Director for Macao 
SAR. IMF Country Report  No. 19/123, May 2019 . Viewed at: https://www.imf.org/en/Publications/CR/Issues/ 
2019/05/06/Peoples -Republic -of-China -Macao -Special -Administrative -Region -2019-Article -IV-Consultation -
46867 . 
47 AMCM, Insurance authority and market players . Viewed at: https://www.a mcm.gov.mo/en/insurance -
sector/insurance -sector . 
48 AMCM, Insurance authority and market players . Viewed at: https://www.amcm.gov.mo/en/insurance -
sector/insurance -sector . 
49 AMCM, List of Private Pension Fund Managers . Viewed at: https://www.amcm.gov.mo/en/insurance -
sector/authorised -insurers/entities -authorised -to-manage -private -pension -funds . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Insurance Agents and Brokers Association, the Federation of Macau Professional Insurance 
intermediaries, the Macau Insurance Intermediaries Associa tion, and the Association of Macau 
Financial Employees represent the intermediary sector.50 
4.55.   The insurance sector continues to show a high degree of concentration: as at the end of the 
third quarter of 2019, the assets of the largest two life insurers accounted for 79.7% of the whole 
insurance market, while the three biggest non-life insurers accounted for 63.1% of the market. 
There is significant foreign participation. Overseas insurers accounted for 96.2% of the life insuranc e 
market, while local insurers had 73.3% of the non -life insurance market.  
4.56.   The Insurance Ordinance mandates that insurance companies be licensed as either a locally 
incorporated company, a branch with its head office overseas, or a representative office.  Locally 
incorporated companies and branches of foreign insurance companies may conduct insurance 
business in Macao, China on a national treatment basis; representative offices of an overseas 
insurance company may not, since they are merely mandataries of th e insurers they represent and 
are prohibited from transacting insurance business.  For an insurer incorporated in Macao, China, the 
required capital is MOP 30 million to conduct life insurance and MOP 15 million for non -life insurance.  
The required funds fo r a foreign insurer to establish a branch in Macao, China are MOP 7.5 million 
to conduct life insurance and MOP 5 .0 million to conduct non -life insurance.  This capital constitutes 
an establishment fund and must, at all times, be held in the territory of Ma cao, China in the form of 
certain types of assets as defined by Notice of the AMCM. In addition, the capital of the head office 
of such an insurer should not be less than the minimum capital required for a domestic life or non -
life insurer.  Insurers are no t allowed to conduct both life and non -life business.  
4.57.   No person, individual or corporate body, may acquire, directly or indirectly, a qualified 
shareholding in an insurer with a head office in Macao, China, or increase its shareholding in a 
proportion equa l to or higher than 5% of the capital or of the voting rights, without obtaining prior 
authorization from the AMCM, except if, by nature, this is not possible, in which case the acquisition 
must be communicated within a maximum period of 30 days from the d ate of such acquisition or 
increase. The authorities indicated that this may happen in  cases  where  the parent/holding company 
is not an insurance company  or is an insurance company located in another jurisdiction . In these 
situations,  the indirect acquisit ion of shares and voting rights of 5% or higher is not subject to the 
local regulatory authorization.  
4.58.   The AMCM regulates the conditions and premium rates of compulsory classes of insurance, 
i.e. motor vehicle (third -party risk), employees ' compensation, p rofessional liability for travel agents, 
professional liability for lawyers, public liability related to the fixing of billboards, public liability for 
pleasure vessels , and professional liability for healthcare providers. Regarding non -compulsory 
insuranc e, insurers are free to design their own insurance cover and set their own premium rates. 
In 2018, new regulations on the Calculation of Unearned Premium Reserves on an Overall Basis 
(Notice No. 013/2018 -AMCM) and the Registration Fees for Insurance Interm ediaries in 2019 (Notice 
No. 014/2018 -AMCM) were issued. In 2019, Requirements for Assets guaranteeing the Technical 
Reserves (Notice No. 002/2019 -AMCM) and Regulations for the Calculation of the Amount of Margin 
of Solvency (Notice No. 003/2019 -AMCM) were  issued .51 
4.59.   In accordance with the Insurance Ordinance, the required margin of solvency for non -life 
business is determined in terms of annual gross premium income recorded during the preceding 
year, net of returns and cancellations: for gross premium income of less t han MOP 10 million, the 
margin of solvency is MOP 5 million. For income between MOP 10 million and MOP 20 million, the 
margin of solvency should be 50% of said income in that year; and for income above MOP 20 million, 
the margin of solvency must be MOP  10 million plus 25% of the amount by which the said income 
in that year exceeds MOP  20 million. If an insurer registers an abnormal loss ratio during the 
preceding three consecutive years or during any three years of the preceding five years, the margin 
of solvency required is doubled. The required margin of solvency in respect of life insurance is 
determined on the basis of the amount of the mathematical reserves or the amount of the capital at 
risk. The required margin of solvency for life and annuity insura nce must be equal to the aggregate 
of the sum of: ( i) 4% of the amount of gross mathematical reserves set up during the year multiplied 
 
50 AMCM, Insurance authority and market players . Viewed at: https://www.amcm.gov.mo/en/insurance -
sector/insurance -sector . 
51 AMCM, Main Regulations on Insurance Activity and Private Pension Funds . Viewed at: 
https://www.amcm.gov.mo/en/insurance -sector/rules -and-guidelines/notices -in-force-from-amcm . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  by the ratio resulting from dividing the amount of the mathematical reserves (net of reinsurance 
cessions) of the curren t year by the amount of gross mathematical reserves at the end of the 
preceding year, with a minimum of 85% if such ratio is lower; and ( ii) 0.3% of the capital at risk52 
times the ratio between the amount of capital at risk net of reinsurance cessions and  the gross 
amount of capital at risk at the end of the last preceding year, with a minimum of 50% if such ratio 
is lower.53 The formulas to be applied to calculate reserves for long -term linked insurance and health 
insurance are also spelt out in the Insurance Ordinance . 
4.60.   The insurance sector continued to develop very rapidly during the period under review. Gross 
premiums for both life and non -life insurance increased exponentially, and total gross premium 
income reached MOP 21.2 billion (about USD 2.65 bill ion) in 2018, down from 2017, but up 50% 
from 2015 and 210% from 2013 (Table 4.8). The insurance penetration rate increased from 1.7% 
in 2013 to 4.8% in 2018. In 2019, the total gross premium income was  an estimated  
MOP 28.5 billion (about USD 3.56 billion ), up 34.5% compared with 2018 . There was a 
2.1 percentage  point increase in the insurance penetration rate.  
Table 4.8 Composition of gross premiums, 2013 -19 
(MOP million)  
  2013  2014  2015  2016  2017 2018  2019a  
Life 4,964  6,933  12,038  18,367  19,636  18,665  25,577  
Non-life 1,861  1,953  2,078  2,156  2,286  2,499  2,887  
Total  6,824  8,886  14,116  20,523  21,922  21,164  28,465  
a Preliminary data.  
Source:  AMCM, Annual Report, different issues. Viewed at: https://www.amcm.gov.mo/en/research -statistics 
/annual -reports ; and AMCM, Insurance Activity - Annual Reports . Viewed at: https://www.amcm. 
gov.mo/en/insurance -sector/statistics/insurance -activity -annual -reports . 
4.4.3   Telecommunicat ions 
4.61.   Macao, China did not schedule any commitments pertaining to telecommunications services 
under the GATS. However, according to the authorities, the telecommunications sector is fully 
liberalized since 2012 . Mobile communication and Internet -related ser vices were liberalized in 2001 , 
and the fixed -line telecom service was liberalized in 2012. Following full liberalization, t here are no 
longer any exclusive telecommunication services in Macao, China. Companies may apply for licen ces 
to install and provide public telecommunication networks and services in accordance to the 
applicable regulations and licensing regimes . However, since , in accordance with Macao, China 's 
initial GATS  offers, the liberalization of the telecommunication s sector is subject to an economic 
needs test , the granting of an additional licence may be made conditional upon the needs of the 
economy.   
4.62.   As in other economies , the telecommunications sector in Macao, China bec ame more and 
more mobile - and Internet -orient ed during the review period. The penetration rate for mobile 
telecommunications reached 411.0 % in 201 9, up from 2 77.2% in 2012. However , the penetration 
rate for fixed telephony dropped to 1 7.1% in 201 9, although the fixed broadband penetration 
increased t o 29.3%. As at end-2019, 86.5% of the population (aged three and above) had access 
to Internet, spending almost 1. 6 billion hours on it (Table 4. 9). Between 2012 and 2019, one fixed 
network and four long -term evolution (LTE) networks were deployed.  
Table 4.9 Selected telecommunications indicators, 2012 –19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Fixed telephone subscriptions 
('000) (including payphones)  162.5  158.4  153.7  147.1  139.2  131.1  124.1  116.4  
Fixed telephone subscriptions per 
100 inhabitants  27.9 26.1 24.2 22.7 21.6 20.1 18.6 17.1 
Mobile -cellular telephone 
subscriptions ( '000) 1,613.5  1,722.2  1,856.5  1,896.1  1,970.0  2,249.1  2,181.2  2,793.5  
Mobile -cellular telephone 
subscriptions per 100 inhabitants  277.2  283.5  291.8  293.2  305.5  344.4  326.8  411.0  
 
52 Understood to be the amount payable on death less the mathematical reserves in respect of the 
principal coverage.  
53 Macao Insurance Ordinance . Decree -Law No. 27/97/M of 30 June 1997 . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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2012  2013  2014  2015  2016  2017  2018  2019  
Internet users (%)  61.3 65.8 69.8 77.6 81.6 83.2 83.8 86.5 
Fixed broadband subscriptions 
('000) 144.3  151.7  161.4  169.8  178.0  186.6  192.9  199.1  
Fixed broadband subscriptions per 
100 inhabitants  24.8 25.0 25.4 26.3 27.6 28.6 28.9 29.3 
Annual international outgoing 
telephone traffic (million 
minutes)a 388.2  397.0  388.6  315.9  260.1  211.7  174.7  140.1  
Annual Internet usage (million 
hours)  678.4  814.0  952.5  1,063.7  1,166.9  1,241.9  1,268.8  1,585.4  
a Includes traffic generated by fixed and mobile (local and inbound roaming) subscribers.  
Source:  ITU, Statistics . Viewed at: www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx ; and DSEC.  
4.63.   The Macao Post and Telecommunications Bureau (CTT)  is responsible for regulating, 
monitoring, promoting and coordinating activities related to the telecommunications sector.54 The 
main legi slation governing the sector is Law No. 14/2001 (the Basic Telecommunications Law)55, 
which establishes the general regulatory framework and the basis of the telecommunications policy. 
Administrative Regulation No. 41/2004 regulates the telecommunications public network 
interconnection regime.  Licensing arrangements, and other regulatory requirements, are set forth 
in a number of administrative regulations: Administrative Regulation s No. 7/2002 for Mobile 
Telecommunications Services, No. 24/2002 for Interne t Services, and No. 41/2011 , which  repealed 
and replaced No. 16/2002 , for the Fixed Public Telecommunications Network. Internet service 
providers ( ISPs) provid ing broadband Internet access service are subject to Administrative 
Regulation No. 24/2002 ; they are not considered fixed public telecommunications network 
operators , so they are not subject to  Administrative Regulation N o. 41/2004 . 
4.64.   As set forth in the Basic Telecommunications Law, the construction, management, and 
operation of telecommunicatio ns networks56 and the provision of telecommunications services are 
considered public -interest activities , and can only be undertaken by public entities or by private 
entities with sufficient credentials to engage in such businesses in accordance with appli cable 
regulations. Administrative Regulation No. 41/2011  introduced modifications to the way private 
entities may engage in telecommunications activities , by replacing the concessions system for a 
licensing mechanism. The position of the then -existing conc essionaire  was clarified  by Articles 27 
and 28  of the Regulation , by exchanging the existing concession for a licence .57  
4.65.   The provision of any telecommunications services by private entities must be licensed by the 
Government through the CTT. The number of, and the conditions imposed on, licen ces for the fixed 
public telecommunications network are subject to the terms and con ditions in the relevant public 
tendering document, the requirements for issuing licen ces set forth in Article 5 of the Regulation, 
and a series of other considerations, including the discretion of the Chief Executive, while considering 
the market 's develop ment.58 
4.66.   In 2012, to prop up the development of the liberalized telecommunications market, the 
Government initiated a public tendering process to issue licences for the installation and operation 
of fixed public telecommunication networks. In 2013, two lice nces were granted, one to the existing 
concessionaire who used to provide the fixed public telecommunication network and other services 
under a concession contract, and another to a new operator named MTEL Telecommunication 
Company Limited (MTEL). Licences  are granted following a positive list rather than a negative list 
 
54 Effective 1 January 2017, the Bureau of Telecommunications Regulation  merged with Macao Post,  and 
was renamed the Macao Post and Telecommunications Bureau . See Administrative Regulation No.  29/2016, 
2 December 2016.  
55 The scope of the Basic Telecommunications Law does not include territorial or satellite broadcasting 
services, especially the radio and television broadcasting services. See Article 1 of the Law.  
56 Telecommunications networks include the telecommunications infrastructure connected via physical 
means, such as optical and/or electromagnetic cables, and via radioelectric means, such as radio towers.  
57 Article 28 of Administrative Regulation No. 41/2011 provided for liberalized services, local leased line 
services, international leased line services and transit services under concession contract, subject to 
Administrative Regulation No. 41/2011, instead  of to Administration Regulation No. 16/2002 . This implied 
changing from a concession -based regime to a system based on licences.  
58 Article 5, Administrative Regulation No. 16/2002.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  approach; that is, they list the services for which the licence is granted  and can be provided by the 
licensee, rather than the services for which provision is precluded.  
4.67.   All telecommunications operators must obtain a licen ce in accordance with the conditions 
stipulated in the applicable laws or regulations. O btaining a telecommunications service provider 
(TSP) licence is subject to public tendering , while obtaining an Internet  Service Provider (ISP) licence 
and a mobile virtual network operator ( MVNO ) authorization are subject to an application regime . 
In the case of open public tenders, bidders ' requirements are defined in the tendering documents. 
The licen ce is transferrable , upon prior CTT approval , in accordance with the applicable regulations. 
A licensed operator must be a company registered in Macao, China, and the objective of the company 
must be engaging in business, including the provision of relevant telecommunication services. Upon 
approval of a licen ce, the licensee is subject to the payment of a bond , as defined in the tendering 
documents; the bond serves as a guarantee for the licensee to fulfil the obligations set forth in the 
licence and is refundable. A licensed operator for the fixed public telecommunications network must 
have registered capital of not less than MOP  50 million; for mobile telecommunications services, 
registered capital must be at least MOP  10 million.  
4.68.   As at end-2019,  two operators were licensed for building and operating fixed public 
telecommunications networks: Companhia de Telecommunicações de Macau  (CTM), and 
Telecommunication Company limited (MTEL )).59 Five operators, including one MVNO, are licensed to 
provide mo bile telecommunications services.60  
4.69.   As set forth in the Basic Telecommunication s Law, the telecommunication policy is to gradually 
open the provision of construction of public telecommunications networks and of public 
telecommunications services, so that the public can benefit and make investment opportunities, 
thereby enhancing competitiveness and promoting sustainable economic and social development in 
Macao, China.  
4.70.   Although , currently , each licensed operator, except the MVNO , has its own 
telecom municat ions network in addition to the "last mile " connection to end -users61, the authorities 
noted that , to cope with the development of 5G and the next generation network, the Government 
plans to formulate a new convergence regime, to promote technology neutral ity and 
telecommunications infrastructure -sharing . The goal is to achieve the Government 's policy of 
transforming Macao, China into a smart city . To this end, the CTT has prepared a report, and 
consultations with respect to it have been completed; as at early 2020, the revision process was still 
a work in progress.  Based on the convergence regime, licensees will face less restrictions, and will 
be allowed to deploy the telecommunication s network  on services they can provide, such as voice, 
data, video transmission and Internet access services base d on business.  
4.71.   In general, network operators have a duty to interconnect with each other, either direc tly or 
through other operators ' facilities. Interconnection agreements are negotiated between parties on a 
commercial basis; interconnection charges are determined based on commercial consideration s.62 
Interconnection agreements must be submitted to the Macao SAR Government for homologation .63 
In the event that a mutual agreement cannot be reached, the Government may step in and mandate 
interconnection terms and conditions that both parties must adhere to, in order to ensure that the 
service is maintained.   
4.72.   Telephone numbers are public -owned assets.64 The management and allocation of the 
numbering resources must be neutral and may not hamper consumers ' freedom of choice of 
 
59 MTEL has been providing leased lines and Internet services since Decembe r 2014.  
60 In 2015, the Government issued 4G mobile licence s to the CTM, Hutchison Telephone (Macau), China 
Telecom, and SmarTone Mobile Communications (Macau) . These companies  are allowed to provide public 
networks for terrestrial 4G mobile telecommunicati ons and roaming 4G mobile telecommunication services.  
61 The portion of the telecommunications network chain that physically reaches the end -user's premises . 
62 The authorities carry out periodic reviews on interconnection charges, in accordance with Article  12 of 
Administrative Regulation No. 41/2004. The authorities noted that the obligation to enforce the non -
discrimination principle for interconnection, as set forth in Article 4 of Regulation , refers to telecom munications  
traffic handling. Interconnection  performance for telecom munications  traffic must be the same for all 
interconnecting operators. However, interconnection fees/charges may differ between different operators.  
63 Article 9, Administrative Regulation No. 41/2004.  
64 Article 2, Administrative R egulation No. 15/2002.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  operators or service providers. Consumers may therefore port their numbers across netw orks, 
without restrictions.  
4.73.   An administrative assignment approach was adopted for mobile spectrum management. The 
available spectrum is assigned upon request , provided that the request is considered appropriate . 
4.74.   To provide Internet services, a licen ce from  the Secretary for Transport and Public Works 
must be obtained. As at mid-2020, 19 companies had a licence to operate some kind of Internet 
service. Of these , 10 were access ISPs, with licences for the provision of public Internet access 
services , and 9 had Internet content provider licen ces, and were not licensed to provide public 
Internet access .65 ISPs are subject to Administrative Regulation No.  24/2002.  
4.75.   Pursuant to the universal service requirement of the Basic Telecommunications Law, all 
telecommunications service operators are mandated to provide full coverage for their licensed 
services within a certain time  frame from the commencement of operations. All operators basically 
cover the whole area of Macao, China.  
4.76.   The CTT is responsible for mai ntaining competition in the sector. Competition -related 
provisions are scattered throughout different regulations and laws; Article 8 of the Basic 
Telecommunications Law stipulates that all forms of cross -subsidization or other practices that 
subvert compe tition or the user 's freedom of choice are prohibited. Prices of fixed 
telecommunications service products are subject to approval by the CTT prior to rolling out in the 
market . Prices of mobile telecommunications service products only require notification  if they are 
based upon a pre -approved framework, and prices of Internet services only require notification . The 
Herfindahl -Hirschman Index (HHI)66 for Macao, China 's mobile telecommunications market was 
0.281 as at October 2019.  
4.77.   Licensed network operators  currently pay a royalty of 5% of all revenue from licensed services 
and are subject to a radio spectrum fee for spectrum usage. The mobile spectrum fee is calculated 
according to a radio licen ce fee table  approved by Administrative Regulation No. 16/2010 (with 
respective amendments in 2011, 2012, 2015 and 2018) . No specific tax incentives are provided to 
telecommunications operators.  
4.78.   Public telecommunications network operator s do not have any tax liability when importing 
telecommunications equipment and ma terials, as no import tax is applied to these products . 
4.4.4   Postal and courier services  
4.79.   Pursuant to Decree -Law No. 88/99/M, Macao Post (CM) is the statutory universal service 
provider for postal services in the territory. Effective 1 January 2017, the CM merged with the Bureau 
of Telecommunications Regulation (DSRT) , and was renamed the CTT67; the CTT  took over  previous 
CM functions. Currently , the CTT has the exclusive right of accepting, transporting, and handling 
any mail/parcel of a weight less than 2 kg (exclusive services). Postal services other than the 
exclusive services68 may be provided by private serv ice providers under a licen ce issued by the 
CTT.69 The authorities indicated to no request for a licence to provide postal services had been put 
forward as at early 2020.  
4.80.   Decree  Ordinance No. 448/99/M sets forth the regulatory requirements for courier ser vices 
provided by the CM (currently the CTT). In addition, Decree Ordinance No. 88/99/M specifies the 
regulations for private courier service providers . 
 
65 Of the 10 companies licensed to provide public Internet access services, 8 were also licensed to 
provide some kind of content service. CTT, Internet Services . Viewed at: 
https://telecommunications.ctt.gov.mo/web/en/fieldinfo/isp . 
66 The HHI indicates the degree of market concentration: a HHI close to 1 indicates monopoly, and a 
HHI close to 0 means ful l competition.  
67 Administrative Regulation No. 29/2016, 2 December 2016.  
68 Article 3 of Decree -Law No. 88/99/M defines exclusive services.  
69 Article 5, Decree -Law No. 88/99/M.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.4.5   Transport  
4.4.5.1   Air transport  
4.81.   During most of the period under review, the aviation industry experienced buoyant growth, 
attributed to the booming tourism sector that has attracted an increasing number of visitors to 
Macao, China (Table 4. 10). In 2020, however, the aviation industry was severely affected by the 
restrictive travelling measures appl ied worldwide as a result of the COVD -19 pandemic.  
Table 4.10 Selected statistics of aviation transport, 2012 -19 
  
2012  2013  2014  2015  2016  2017  2018  2019  
Passenger 
('000) PAX in 2,021.2  2,252.7  2,438.6  2,551.9  2,884.2  3,266.7  3,886.4  4,497.0  
PAX out 2,182.6  2,395.6  2,547.4  2,630.3  2,905.7  3,280.8  3,805.5  4,441.0  
Pax 
transfer  287.2  378.9  495.3  649.2  838.6  618.3  569.5  673.2  
Total  4,491.1  5,027.2  5,481.5  5,831.4  6,628.6  7,165.8  8,261.4  9,611.3  
Cargo  
('000 tonnes)  Exports  16.3 15.0 16.3 16.3 19.6 23.4 27.5 29.5 
Imports  6.4 6.4 6.7 7.4 6.4 6.6 7.1 7.2 
Transit  5.1 5.0 5.8 6.4 6.8 7.5 6.9 5.4 
Total  27.8 26.5 28.8 30.1 32.9 37.5 41.5 42.2 
Aircraft movement  41,997  48,950  52,559  55,720  56,932  58,520  65,779  77,581  
Business/ private flight 
movements  1,210  1,598  2,206  1,851  2,024  2,184  2,190  2,694  
Source:  Information provided by the authorities.  
4.82.   The legal and institutional framework for air transport remained unchanged during the period 
under review. The main legislation on civil aviation includes Administrative Regulation No. 18/2008, 
which amended Administrative Regulation No. 10/2004 on the bas ic principles of civil aviation 
activities, and Executive Order No. 8/2011, which approved and issued the Air Navigation Regulation. 
The Civil Aviation Authority of Macau (AACM) is the sectoral regulator, and is responsible for 
implementing air transport p olicies, regulating all the relevant players in the sector, negotiating air 
services agreements (ASAs), issuing licenses, ensuring the technical safety of the civil aviation 
infrastructure, and carrying out inspections of all civil aviation activities in the region 's airspace. The 
Macau International Airport Company Limited (CAM) provides air navigation services in 
Macao,  China 's airspace . 
4.83.   Macao, China pursues an "open-skies" policy. According to the authorities, it has opened up 
to the fifth  freedom of aviation rights without reservations.70 Therefore, there are no restrictions on, 
inter alia , designation, capacity, and ownership.71 Macao, China currently maintains 50 ASAs. The 
authorities further noted that all 50 ASAs contain the provisions  of liberal incorporation and principal 
place of business, rather than adopting the ownership and control clause which the authorities 
believe is more stringent. During 201 9, there were a total of 42  airlines serving 71 passenger 
destinations ( 35 in Mainla nd China, 1 in Hong Kong , China, 3 in Chinese Taipei , and 32 international), 
and 2 airline s serving  13 cargo international destinations . 
4.84.   In accordance with  Article 3 of Administrative Regulation No. 10/2004, the activity of 
commercial air transport in Maca o, China is provided under a concession contract. In 1995, the then 
Macao Government and Air Macau signed a concession contract entitled Concession Contract for 
Airline in Macau (Official Gazette No. 19, published on 10  May 1995) . Clause 5 of the Concession 
Contract stipulates that its term is 25 years (1995 -2020) . The  Government , as the concession 
grantor, exercised its power to make the decision to not extend the exclusive right beyond its 
25-year term. However, due to the COVID -19 impact on the aviation industry, in June  2020 the 
Government decided to extend the current concession contract of Air Macau for three  years to 
maintain its normal operation s. As a result, Air Macau is still the only home -based carrier . Air Macau, 
the on ly home -based carrier72, is a joint  venture between the Government (owning 21 .5% of the 
shares) and other investors including the Air China  (66.9%) , Sociedade de Turismo e Diversões de 
 
70 With regard to cargo transportation, the 7th freedom was exchanged in the agre ements with Iceland, 
Singapore , and the United State s. See WTO document WT/TPR/M/181/Add.1, 19 June 2007 . 
71 Civil Aviation Authority of Macau (AACM) , Aviation Policy . Viewed at:  
https://www.aacm.gov.mo/about.php?cid=49&id=55&pageid=49&lg=eng . 
72 Air Macau was granted, through a concession for public air transport, the exclusive right to operate 
both passenger and cargo flights from and to Macao for 25 years  from 1995 . The concess ion is to expire 
in 2020.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Macau, SA  (11.6%), and Eva Air (0.02%).  There is no legal obligation th at government -funded 
transportation of passengers or cargoes be carried by Air Macau. In 2018, the Government decided 
that Air Macau 's exclusive right of being the sole home -based carrier will be discontinued when the 
current concession expires in 2020.  However, due to the COVID -19 impact on the aviation industry, 
in June 2020 , the Government decided to extend the current concession contract of Air Macau for 
three  years to maintain its normal operation . 
4.85.   The authorities noted that the concession to Air Macau  does not prevent non -local carriers 
flying from, to, and through Macao, China under the rights negotiated in relevant ASAs. Scheduled 
flight services are approved based on the provisions set out in the prevailing bilateral ASAs. For 
non-scheduled services  (e.g. charter flights), the authorities follow the practice that the request is 
approved only when existing scheduled services serving the same route do not meet market 
demand. There is no legal obligation that government -funded transportation of passenge rs or 
cargoes be carried by Air Macau.  
4.86.   The Macau International Airport is the only airport in Macao, China . It is jointly owned by the 
Government (55%), Sociedade de Turismo e Diversões de Macau , SA (33%), and others (12%) . 
Under a concession agreement, the Macau International Airport Company Limited (CAM ))73 has the 
exclusive right to build and operate the airport from 19 89 through 2039. The authorities noted that 
there is no subsidy from the Government to the airport. The CAM may subcontract airport services 
to other companies through public tenders. As the last exclusive -right subcontract expire d in 2013, 
a new bidding process began to introduce more competition to the sector ; the new 
sub-concessionaires do not have any exclusive rights. C urrently, the major sub -concessions at the 
airport include seven  for airport shopping , including duty free ; seven  for airport restaurant services ; 
two for VIP lounge s; and six for services of ground handling, catering, security,  fixed-based 
operator74, and fu el.  
4.87.   Once an airport access application is approved by the AACM, airport slots are allocated on a 
first-come -first-served basis, with priority given to scheduled flights. Currently, slot management is 
administered by the CAM. The CAM also provides other se rvices, including air traffic control, 
aeronautical information and communication services, airport and air navigation system 
maintenance, security and safety control, and the commercial and financial management of the 
airport.75 
4.88.   Regarding aircraft repair and maintenance, the current sub -concessionary company is only 
certified to service one type of aircraft ; hence , aircraft may be maintained and repaired by the 
airlines themselves or by extra -territorial stations certified by the AACM. All services,  equipment, 
and facilities must be provided, maintained, and operated in full compliance with procedures and 
standards approved or specified by the AACM , in accordance with the Annexes to the Convention on 
International Civil Aviation.  
4.89.   Challenges for the aviation sector remain the same as specified in the previous report: 
capacity constraint s, close proximity to its bigger rivals in the region, and increasingly tighter air 
space due to significant growth in air traffic over the Pearl River Delta area. Macao, China has a very 
small domestic market, is a relatively new player in this industry, and does not have an obvious 
competitive edge over its main competitors already well -established in the region. The airport 
passenger throughput reached 8.26 million in  2018, exceeding its design capacity, even though it 
was expanded once before.76 The Government considers that further development of the aviation 
industry may only be achieved by making all efforts to complete the necessary airport expansion 
plan as soon as possible (see below) to resolve the urgent capacity constraint issue, and also by 
 
73 The Macau International Airport Company Limited is a company of which 55.4% is held by the SAR's 
Government , 33.03% by  the STDM ( Sociedade do Turismo e Diversões de Macau ), and the remain der by a 
number of  Mainland Chinese and local business es and institutions.  
74 A fixed-based operator is a  company granted the right by an airport to operate at the airport and 
provide aeronautical services , such as fuel ling, hangaring, tie -down and parking, aircraft rental, aircraft 
maintenance, flight instruction, and similar services.  
75 Slot management was previously administered by the Administration of Airport (ADA) , a sub-
concession contractor . In 2018, the  ADA was merged into the Macau International Airport Company Limi ted 
(CAM) . 
76 The Macau International Airport was original ly designed to handle  6 million passengers per year. After 
the passenger terminal expansion project was completed in 2018, the  capacity was extended to 7.8 million . 
The capacity is expected to reach 15 million passengers per year after further expansion.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  making its market environment more accommodative to all the aviation industry participants 
operating in Macao, China . This may include attracting more non -local airlines t o operate from, to, 
and through Macao, China, making Maca o International Airport an aviation gateway in the region 
while retaining sufficient flexibility for the future development of the locally incorporated Air Macau . 
4.90.   To deal with capacity constraint iss ues, the authorities developed the Macao International 
Airport Master Plan. The Plan has two phases of development; after completion of the first phase , it 
will be able to cater for 11 million airport passengers. After the full implementation of the Plan, the 
airport will reach an area of 323 ha, 49 commercial parking stands, two passenger terminal buildings , 
and a dedicated general aviation area , and will then be able to handle 15 million passengers.  
4.4.5.2   Land transport  
4.4.5.2.1   Road transport  
4.91.   The main legislation regarding road transport includes Decree -Law No. 50/88/M (Basic 
Transport Law), Law No. 3/2019 (Taxi Law) and Administrative Regulation No. 4/2004 (Cross -border 
Road Passenger Transport Regulation, amended by Administrative Regulation No.  32/20 17). In 
accordance with  Administrative Regulation No. 32/2017, cross -border passenger transport is divided 
into two categories: "scheduled service " and "non-scheduled service ". Considering that using 
large-capacity means of transportation is more conducive  to improving transportation efficiency and 
alleviating traffic pressure, the Regulation defines "scheduled service " as that provided by heavy 
passenger vehicles. To promote business activities and cater to the high -end market demand for 
light-vehicle point -to-point cross -border services, the Regulation defines "non-scheduled service " as 
that provided by light vehicles on a reservation basis . 
4.92.  The Transport Bureau (DSAT) remains the sectoral regulator, and is responsible for: studying, 
planning, promoting and implementing road transport policies; pursuing road improvements; 
regulating vehicles; and installing, maintaining and improving transportation and pedestrian 
infrastructure. The Consultation Council for Transport, created under  Administrativ e Regulation 
No. 12/2011 and chaired by the D SAT, is responsible for land transport policy formulation.  
4.93.  The Macao General Policy of Land Transport 2010 -20, prepared by an inter-departmental 
working group of the Government  and launched in 2011 , aims to develop a commuter - and 
traveler -friendly  city, with green transport ation. The four main aspects of the Policy include : 
optimizing public transport ; sound private vehicle administration ; creating a pedestrian -friendly 
environment ; and strengthening infrastruc ture and safety education. The authorities indicated that  
progress has been made through integrated measures , and that  the share of public transport in 
traffic flow increased from 33.6% in 2010 to 42 .0% in 2019, while the annual growth rate of vehicles 
dropped from an average of 4.9% between 2011 and 2015 to -0.6% in 2018 . 
4.94.  As set forth in the Basic Transport Law, the auth orities must keep the road transport market 
freely competitive and maintain consumer freedom of choice as regards service suppliers. In 
accordance with the Law, the authorities must not provide operators with any fiscal assistance, 
including grants or reim bursement for investments on equipment or rolling stock.77 Public transport 
operators for passengers or freight must be Maca o, China  persons (including legal persons) who 
have a local business address. For mass passenger transport, the operators must be a locally 
incorporated company, regardless of ownership. Regarding cross -border passenger transport, the 
operator must be a locally  incorporated company, and apply to the DSAT for a licen ce before starting 
to operate . The operator must have registered capita l of not less than MOP 5 million and provide the 
Government with a guarantee equivalent to 10% of its capital, to be released upon the 
commencement of business.78 The licen ce is valid for three years ; it is renewable, but not 
transferable. There is no spec ific regulation regarding  ride-hailing services , but such services must 
be provided with properly licensed vehicles and in conformity with other legislation in force. 
Non-scheduled cross -border passenger transport service provided with light vehicles with 
 
77 The only exception to this prohibition is the grant of a compensatory allowance to the licensed 
operator for the commercial operation of non -profitable services. See Article 3, Decree -Law No.  50/88 /M.  
78 Alternatively, it may be in the form of a bank guarantee or an insurance guarantee issued by a bank 
or insurance company that operates in Macao, China.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Macao , China  being the starting or terminal point must be provided on a reservation basis ; the 
picking-up or drop ping-off of passengers halfway  is not permitted . 
4.95.  Since August 2011, bus services are provided by t wo operators under concession: Transmac  
and TCM. Taxi services are provided by small private operators holding taxi licen ces, and by the 
Macao Radio Taxi Services Limited . As at December 2019, there were  1,900 valid taxi licen ces, 
including 300 (special taxi) owned by Macao Radio Taxi Services Limited. Passengers may hire 
special taxi services, which include accessible taxis for disabled passengers, by booking in advance . 
4.96.  The Hong Kong -Zhuhai -Macau Bridge was inaugurated in October 2018 . As at 
November  2019, about 750 daily passenger se rvices connect ed Hong Kong, China and Macao, China, 
carrying approximately 26,700 passengers per day on averag e. 
4.97.  Currently , the land freight transport market is relatively competitive. In 201 8, 227 land 
transport operators were registered as establishments , and 6 89 operators under sole proprietorship 
(i.e. truck owners engaging in freight transport).79 
4.98.   As a consequence of  the COVID -19 pandemic, the land transport sector had a significant 
setback . Cross-border passenger and freight traffic  was stopped  for six months. In response to the 
crisis, the Government offered a one-year circulation tax exemption to motor vehicles that are 
licensed/registered for transport services  (Table 3.8) .  
4.4.5.2.2   Rail transport  
4.99.   Developing a system of mass public transportation, including  a metro, is a priority , as laid 
out in the Macao General Policy of Land Transport (2010 -20). The Macao Light Rapid Transit (MLRT) 
Taipa Line bec ame operational in December 2019.80 The Government also initiated construction 
projects to extend the Taipa Lin e to Barra on the Macao Peninsula, and to build the Seac Pai Van 
Line.  
4.100.   Administrative Regulation No. 8/2019 established the Macao Light Rapid Transit Corporation 
Limited (MLM) as the entity in charge of the construction and maintenance of the infrastructu re and 
equipment of the MLRT, and of its operation. In September 2019, the Government signed a 
10-year concession contract with the MLM for the operation, development  and maintenance of the 
MLRT. The Government owns the infrastructure. Restrictions on the management of the MLRT are 
provided in Law No. 18/2019 and relative supplementary regulations.  
4.4.5.3   Maritime transport  
4.101.   The legal framework for maritime transport includes : Decree -Law No. 109/99/M (Regulation 
on Maritime Trade), Decree -Law No. 90/99/M (Law on Maritime Activities), Decree -Law No.  14/99/M 
(Regulation on Maritime Pilotage) and Administrative Regulation  No. 34/2009 (Maritime Passenger 
Transport). The Marine and  Water Bureau (DSSMA) remains the sectoral regulator, with 
responsibility for harbour management, ship registration, crew management, state control of the 
port, approval of maritime engineering projects, and wharf operations. Macao, China is an associate 
member of the International Maritime Organization (IMO); international treaties on maritime safety 
and the prevention of pollution are enforced in Macao, China.  
4.102.   All vessels engaged in economic activities must be registered with the DSSMA ( to monitor 
ship sa fety), and with the Commercial and Movable Goods Registry ( to regist er the legal status of 
ships). Through registration, the Macao SAR Government verifies the vessels ' conformity with official 
requirements concerning technology, safety , and environmental p rotection. Where applicable, locally  
registered ships must comply with the regulations of international conventions. At end -2019, 
 
79 Land transport operators include both passenger and freight transport operators. DSEC (2018 ), 
Transport, Storage and Communications Survey 2017 . Viewed at : 
https://www.dsec.gov.mo/Statistic.aspx?NodeGuid=b16dc237 -dff1-40e7-9572-826c28298660 , and 
http://www.dsec.gov.mo/Statistic.aspx?lang=en -US&NodeGu id=b16dc237 -dff1-40e7-9572-826c28298660 . 
80 The Taipa Line  is the first line of the MLRT . Its construction commenced  in 2011 and was officially 
inaugurated in 2019. The total length is 9.3 km , with 11 stations covering central Taipa, encompassing the 
main r esidential areas, Taipa village, key tourist attractions, and the three important points of entry to 
Macao,  China by sea, land and air.   WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  324 vessels were registered. Most of the vessels that call on local ports are river trade vessels flying 
either the national f lag of Mainland China or the regional flag of Hong Kong, China. For vessels to 
fly the flag of Macao, China, the owner must be a local resident or legal person; the shipmaster and 
senior officer must be local residents , and one business address must be set  up in Macao, China.  
4.103.   The Outer Harbour Ferry Terminal, the Taipa Ferry Terminal, and the Inner Harbour Ferry 
Terminal provide cross -border transportation services for passengers between the city and other 
destinations in the region. Currently, scheduled pa ssenger ferries are operated by six carriers, four 
of which operate for the city pair of Macao, China  and Hong Kong, China81; the other two provide 
services destined for cities in the Pearl River Delta (e.g. Zhuhai and Shenzhen) in the Guangdong 
Province of China. The authorities noted that a ll passenger ferry operator s are commercial 
enterprise s, with no public sector assi stance . Competition among passenger ferry operators is 
regulated under Articles 156 -172 of the Commercial Code.   
4.104.   The authorities noted that shipping tariffs for the transportation of goods are set by carriers , 
and are not subject to government regulation. Shippin g tariffs for passenger transportation, 
however, must obtain approval from the regulator: carriers must submit their tariff tables at least 
30 days (or 15 days for special fares or other special offers) prior to the implementation dates to 
the DSSMA for ap proval.82 Tariff tables may be adjusted annually , regarding  change s in fuel price 
and inflation.  
4.105.   The DSSMA provides pilotage services for vessels entering and leaving Macao, China via the 
inner and outer channels, within berthing areas, and in all waters u nder the Government 's 
jurisdiction. Pilotage services operate on a 24 -hour basis; the p ilot must be a local resident.  
4.4.6   Tourism  
4.106.   The tourism industry (excluding the gaming business) accounted for about 5% of total GVA 
and 37% of total labour force  in 2018 . Macao, China is a net exporter of travel services, and its 
trade surplus increased from MOP  279 billion in 2012 to MOP 309 billion in 2019, with exports of 
MOP 321 billion and imports of MOP 11 billion.83 Travel exports accounted for about 92% of total 
expor ts of services in 2019 .  
4.107.   After a brief stagnation during 2015 and 2016, arrivals started to rise and , in 201 9, 
Macao,  China welcomed its highest ever number of total visitors, estimated at 39.4 million (up from 
28.1 million in 2012) (Chart  4.1). Tourists from Mainland China; Hong Kong, China; and Chinese 
Taipei comprised over 90% of the total market, with those  from other areas accounting for less than 
10% of the total , during the review period.  Mainland China continued to be the major source of 
visitors to Macao,  China, accounting for about 70% of the total, followed by Hong Kong, China 
(18.7%) and Chinese Taipei (3%) in 2019.  As noted in the previous Review, nearly half of visitors 
from Mainlan d China benefited from the Individual Visit Scheme (IVS).84 After a decline in total 
visitor expenditure in 2015, an increase was observed as from 2016; this increase was of 6.8% p er 
year in the 2016-19 period , mainly driven by more spending of overnight v isitors.  
4.108.   Due the outbreak of COVID -19, the tourism industry was severely affected. According to 
DSEC statistics, visitor arrivals declined by 68.9% year -on-year to 3.2 million in the first quarter of 
2020, while the total consumption of tourists (excludin g the gaming industry) in the first quarter of 
2020 was MOP 5 billion, with a 70.4% drop year -on-year.85 The trend for the second quarter is 
similar, and no major recovery is expected for the rest of 2020. In response to the COVID -19 crisis, 
the authoritie s put in place a number of measures to assist the tourism industry. These include an 
exemption for six months , from 1  May 2020, of the tourism tax (see below ) for establishments 
 
81 These four carriers are: FEH Company Limited, Hong Kong  Macao Hydrofoil Company Limited, STCT 
Ferry Services (Macau) Limited, and Cotai Ferry Company Limited . 
82 Article 13 , Administrative Regulation No.  34/2009 . 
83 Data are based on Balance of Payments (BPM6). No breakdown of travel is available; the figures 
include services related to gaming activities.  
84 WTO document WT /TPR/S/281/Rev.1, 27 June 2013, pg. 70. The IVS, started in July 2003, allows 
travellers from Mainland China to visit Macao, China on an individual basis, instead of on business visas or in 
group tours.  
85 WTO Secretariat calculations, based on DSEC, Statistics Database . Viewed at: 
https://www.dsec.gov.mo/en -US/Statistic/Database . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  providing services, such as hotels, nightclubs, bars, gyms, saunas, massage pa rlours , and karaoke 
venues  (Table 3.8), the waiver of fees, and profit tax relief ( Box 1.1 ). 
Chart 4.1 Tourism sector 's performance, 2012 -19 
 
Source:  WTO Secretariat calculations, based on DSEC , Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TimeSeriesDatabase.aspx .  
4.109.   The number of hotels , guestrooms , and travel agencies increased s teadily between 2013 
and 2019 (Table 4. 11). There were 123 operating establishments (8 4 star-rated hotels and 39 guest 
houses) in 20 19, up from 100 establishments in 2012, providing a total of 38, 282 rooms in 201 9, 
up from 26,069 in 2012. A total of 221 tr avel agencies with valid licences in Macao, China operated 
in 2018, up from 197 in 2012 , and 1,913 persons86 held tourist guide licences issued by the Macao 
Government Tourism Office  (MGTO) , up from 1,643 in 2012.87  
Table 4.11 Overview of tourism sector, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Tourism GVA (MOP billion 
at current prices)a 198.1  240.6  238.9  166.3  163.0  192.9  221.2  198.1  
(% of total GVA)          
Tourism  57.6 58.6 55.0 46.7 45.8 48.5 50.6 .. 
   Gaming  52.9 53.9 50.7 42.2 41.4 43.8 45.5 .. 
   Non-gaming  4.7 4.7 4.3 4.5 4.5 4.6 5.0 .. 
Retail trade  2.2 2.2 1.8 1.8 1.6 1.8 2.1 .. 
Hotels and similar 
establishments  1.0 1.0 1.1 1.1 1.1 1.2 1.4 .. 
Restaurants and similar 
establishments  0.9 0.9 0.8 0.9 0.9 0.9 0.9 .. 
Passenger transport 
activities  0.4 0.4 0.4 0.5 0.6 0.5 0.5 .. 
Travel agencies  0.2 0.2 0.2 0.2 0.2 0.2 0.2 .. 
Trade in services: Travel (MOP billion)b 
Net exports  279.1  335.6  331.7  237.6  234.0  278.0  317.4  308.6  
    Exports  287.7  344.6  341.4  247.4  243.8  288.3  328.6  320.5  
    Imports  8.7 9.0 9.7 9.8 9.8 10.3 11.2 11.9 
 
86 Macao SAR Government, Macao Yearbook 2019 , Tourism. pp. 281. Vi ewed at: 
http://yearbook.gcs.gov.mo/uploads/yearbook_pdf/2019/myb2019ePA01CH12.pdf .  
87 Information provided by the authorities.  
7.18.19.6 9.5 9.610.612.313.19.810.611.710.9 10.911.613.014.9 7.16.86.46.5 6.46.26.37.4
1.11.01.01.0 1.11.11.11.1
3.02.92.92.8 3.03.23.23.1
051015202530354045
2012 2013 2014 2015 2016 2017 2018 2019Chinese visitors with IVS
Chinese visitors
Hong Kong, China
Chinese Taipei
OtherChart 3.[Macao] Tourism sector's performance, 2012 -19
(No. of tourists in million )
WTO Secretariat calculations, based on DESA , Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TimeSeriesDatabase.aspx; and https://www.dsec.gov.mo/en -
US/Statistic?id=4.Source:43.849.6 50.9
40.242.149.856.2
50.08.510.010.9
11.010.611.613.5
14.1
01020304050607080
2012 2013 2014 2015 2016 2017 2018 2019Overnight visitors Same-day visitors(MOP billion)
Visitor expenditure excluding gaming Tourists by source of originWT/TPR/S/ 402/Rev.1  • Macao, China  
 
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2012  2013  2014  2015  2016  2017  2018  2019  
Hotels and guest houses  
Operating establishments  100 98 98 106 107 111 116 123 
Hotels  67 65 66 74 75 78 82 84 
    5-star  28 27 27 32 32 33 35 36 
    4-star  14 14 14 17 17 17 17 17 
    3-star  12 12 13 13 15 16 16 16 
    2-star  13 12 12 12 11 12 14 15 
Guest houses  33 33 32 32 32 33 34 39 
Guest rooms (no.)  26,069  27,764  27,904  32,300  36,278  36,682  38,809  38,282  
    Hotel rooms 25,436  27,128  27,286  31,669  35,649  36,037  38,078  38,282  
    Guest house  rooms 633 636 618 631 629 645 731 989 
Travel agencies          
Establishments  197 211 237 250 209 210 221 .. 
Persons employed  3,670  3,896  4,202  4,485  4,250  4,497  4,530  .. 
.. Not available. For tourism 's GVA, the latest tourism satellite account is available up to 2018.  
a Based on tourism satellite account.  
b Based on balance of payments.  
Source:  Information compiled by the WTO Secretariat from DSEC , Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TimeSeriesDatabase.aspx ; and Tourism Statistics . Viewed at : 
https://www.dsec.gov.mo/en -US/Statistic?id=401 .  
4.110.   The MGTO , under the Secretary for Social Affairs and Culture , is responsible for assisting in 
formulating tourism policies, and for implementing a nd analy zing them.88 The MGTO plays an 
important role in carrying out, inter alia , the formulation and implementation of local tourism 
planning, tourism promotion, product and event  development , tourism industry management, and 
training and quality control .  
4.111.   Several laws and regulations contain the administrative rules with respect to, inter alia , 
licensing and inspection in the tourism industry , covering hotels and restaurants, travel  agenc ies, 
and tour guide s. The licensing and inspection of hotel s and similar  establishments in Macao, China 
are regulated by Decree -Law No. 16/96/M  of 1 April 1996 , and by Order  No. 83/96/M  of 
1 April 1996.89 Similar provisions with respect to travel agenc y and tour guide operations are 
contained in Decree -Law No. 48/98/M90 of 3 November 1998, as amended by Administrative 
Regulation No. 42/2004.  The MGTO ensures that the industry 's operations comply with the legal and 
regulatory framework , by licensing and inspecting the establishments and their related activities. 
Fees for licences vary from one category to another (Table 4. 12). In 201 9, the MGTO conducted  
1,967 inspections of tourist establishments and 1,550 inspections of ports of entry and tourist 
attractions. Meanwhile, in order to combat the provision of illegal accommo dation, the MGTO 
conducted 616 joint inspections with an inter -departmental task force, performed 1,984 apartment 
inspections  and, as a result , sealed 382 apartments.91  
4.112.   The authorities  noted that  the legislation govern ing the tourism sector is currently under 
revision.92 They consider that, as the  tourism and hotel and catering industries have developed 
rapidly over the past decade, the existing legislation is no longer comprehensive enough to deal with 
the increasing pres ent-day changes. Th ey thus consider  it essential to revise current regulation s to 
meet the industry 's diversification and sustainable development needs. As at mid -2020, t he law 
regulating the hotel industry was being reviewed by the Legislative Assembly , and amendments 
were being made. A new  law regulating travel agencies and tour guides was submitted to the 
Executive Council.  
 
88 MGTO, Main Responsibilities of Macao  Government Tourism Office.  Viewed at: 
https://www.macaotourism.gov.mo/en/about -us.  
89 MGTO, Macao Tourism Industry Net,  Hotels, Restaurants, Nightclubs & Bars . Viewed at: 
https://industry.macaotourism.gov.mo/en/license/content.php?page_id=24&id=79 ; Decree -Law No. 16/96/M. 
Viewed at: https://bo.io .gov.mo/bo/i/96/14/declei16.asp ; and Regulation No. 83/96/M. Viewed at: 
https://bo.io.gov.mo/bo/i/96/14/port83.asp .  
90 MGTO, Macao Tourism Industry Net, Travel Agency . Viewed at: 
https://industry.macaotourism.gov.mo/en/license/content.php?page_id=22 ; and Decree -Law No. 48/98/M. 
Viewed at: https://images.io.gov.mo/bo/i/2004/52/rega -42-2004.pdf .  
91 Annual Press Conference of Macao Governm ent Tourism  Office . Viewed at : 
https://industr y.macaotourism.gov.mo/file/pdf/AnnualPressCon_PPT_for_Press_2020.pdf . 
92 MGTO information provided by the authorities.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 4.12 Fees charge for licences , 2020  
Category  Annual fees (MOP)  
Five-star deluxe hotels  25,000  
Five-star hotels and tourism complexes  22,500  
Four-star hotels, tourism complexes and apartment hotels  20,000  
Three -star hotels and apartment hotels  17,500  
Two-star hotels  15,000  
Three -star guest houses  12,500  
Two-star guest houses  10,000  
Deluxe  and similar establishmentsa 12,500  
First- and second -class and similar establishmentsa 7,500  
Sauna and massage parlour s One year: 12,000; half-year: 7,500  
Sauna s for steam bath only  One year: 5,000; half-year: 3,000  
Massage parlours for massage service only  One year: 9,000; half-year: 5,000  
Health club s One year: 5,000; half-year: 3,000  
Karaoke lounge s (each hall or each room)  One year: 1,000; half-year: 750  
Travel agenc ies 25,000  
Tour guides/transfer  services  /tour guide trainee s Three years: 100  
a Similar establishments includ e restaurants, nightclubs and bars.  
Source:  Information provided by the authorities.  
4.113.   Tourism tax , at the rate of 5% , is levied on all services rendered within the scope of hotels 
and similar establishments , such as health clubs.93 In 201 9, the revenue from this tax amounted to 
MOP 988.4 million (up from MOP 802.0 million in 2014), which accounted for 0.7% of total fiscal 
revenue (0.5% in 2014).94 Exemptions from the  payment of the touris m tax are allowed in certain 
cases, such as for luxury, class 1 and class 2 restaurants.95 As mentioned above, as part of the 
economic stimulus package with respect to COVID -19, Macao, China introduced a waiver of the 
tourism tax for a period of six months , starting 1 May 2020 , on establishments providing services 
such as hotels96 (Section 3.3. 1.1). Apart from the measures to waive the tourism tax, the 
Government introduced exemption benefits to the tourism industry 's establishment s and activities 
licensed by the MGTO, including t he waiver of licence fees and facility inspection fees, and the waiver 
or refund of the stamp duty on licen ces in 2020.97 
4.114.   The Macao SAR's Government continues to implement a strategy vying to turn Macao,  China 
into the "World Centre of Tourism and Leisure "; this is currently the industry 's main overall goal.98 
Macao,  China manages its tourism industry in accordance with the Macao Tourism Industry 
Development Master Plan, which was announced in Septe mber 2017 after two years of studies and 
formulation work carried out by the MGTO following the guidelines of t he Five -Year Development 
Plan (2016 -20).99 The Master Plan aims to build and manage a tourism -based economy , and provides 
an outline and relevant  guidelines for future actions for the 15 -year period from 2015 to 2030 . The 
 
93 Law No. 19/96/M, Approval of Tourism Tax Regulation, 19 August 1996. Viewed at: 
http://www.dsf.gov.mo/download/legislation/e/e_TurismTax_Final.pdf .  
94 Information provided by the authorities; and WTO Secretariat's calculations, based on data from the 
DSF, Central Account (evolution for the last five years) . Viewed at: 
http://ww w.dsf.gov.mo/financialReport/?FormType=1&lang=en -US.  
95 DSF, 2020 Tax Relief Measures . Viewed at: 
http://www.dsf.gov.mo/tax/tax_benefit.aspx?lang=pt&y= . 
96 Macao SAR Government Portal, Government announces five -pronged approach to help residents, 
business ride out current adversity . Viewed at: https://www.gov.mo/en/news/122812/ .  
97 Law No. 3/2020, amendment of the Budget for the 2020 Fiscal Year. Viewed at: 
https://bo.io.gov.mo/bo/i/2020/15/lei03_cn.asp ; and Administrative Regulation No. 15/2020 Temporary 
Preferential Mea sures to Reduce the Negative Impact of the New Coronavirus Pneumonia on Various Industries. 
Viewed at: https://bo.io.gov.mo/bo/i/2020/19/regadm15_cn.asp . A graphic and text explanation of th e 
temporary economic measures in response to COVID -19 may be viewed at: https://www.gov.mo/zh -hant/ 
news/318141/  and https://www.gov.mo/pt/not icias/221889/ . 
98 The goal of the "World Centre of Tourism and Leisure " is to facilitate economic diversification and 
improve the wellbeing of Macao , China's  people. This goal was incorporated into the 12th and the 13th National 
Five-Year Plans. Macao, Chin a set up a Committee for  the Development of the World Centre for Tourism and 
Leisure , which is  chaired by the Chief Executive. The Committee is responsible for designing and conducting 
policies to develop Macao, China into a World Centre of Tourism and Lei sure. 
99 MGTO, Final version of the Macao Tourism Industry Development Master Plan, Summary Report, 
September 2017 . Viewed at: https://masterplan.macaotourism.gov.mo/home -en/index.htm l; and the 
Five-Year Development Plan of the Macao Special Administrative Region (2016 -2020), September 2016 . 
Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Master Plan comprises 8 key objectives, 33  strategies , and 91 action plans (Table 4. 13). The 
91 action plans consist of 69 short -term action plans ( up to 5 years), 19 medium -term action plans 
(6-10 years), and 3 long -term action plans ( over 10 years). As part of the evaluation mechanism of 
the Master Plan, an annual and mid -term review are to be conducted , to ensure its implementation 
and execution progress.100  
Table 4.13 Tourism Industry Development Master Plan, 2015 -30 
Key objectives  Strategies  
1. Diversify tourism products and 
experiences  1. Introduce new tourism elements  
2. Develop iconic tourism products  
3. Enrich visitors ' experience  
4. Expand tourism -related offerings  
2. Improve service quality and skills  1. Enhance the development of skills in the tourism industry  
2. Establish an integrated tourism quality assurance system  
3. Enhance the service standards of the tourism industry  
3. Rebrand Macao, China as a multi -
day destination , and expand high -
value markets  1. Attract high -value market segments  
2. Enhance the Macao, China 's multi -day destination brand image  
3. Support and promote MICE (meetings , incentives, conventions 
 and events) development  
4. Conduct online tourism marketing  
4. Optimize the urban development 
model  1. Introduce new tourism areas  
2. Upgrad e ground transport  
3. Monitor and manage the quality of the environment  
4. Improve access to Macao, China  
5. Manage the tourism carrying 
capacity  1. Monitor the tourism carrying capacity  
2. Redistribute peak travel demand  
3. Relieve the problem of tourist attraction crowd ing 
4. Address the issues of transportation carrying capac ity 
5. Enhance and expand human resources  
6. Reduce the environmental impact caused by tourism  
6. Utili ze innovative technology  1. Use technology to drive a destination -marketing approach  
2. Consolidate tourism information to expand tourism capability  
3. Facilitate smart technology applications  
4. Use technology to increase the safety and security level s of the 
city 
7. Enhance tourism industry 
cooperation  1. Formulate viable and up -to-date tourism laws and regulations  
2. Review the licensing  mechanisms  
3. Effective cross -department, coordination and management  
4. Strengthen collaboration between the public and private sectors  
8. Enhance Macao  China 's position as 
a Core Tourism City in the r egional 
and international tourism community  1. Achie ve active government cooperation  
2. Provide better transport connectivity for visitors  
3. Provide cross -boundary tourism products and events  
4. Enhance and strengthen Macao, China 's image as a t ourist  
destination  
Source:  MGTO, Final version of the Macao Tourism Industry Development Master Plan, Summary Report , 
September 2017 . Viewed at: https://masterplan.macaotourism.gov.mo/home -en/index.html . 
4.115.   During the review period, Macao, China took several initiatives to further improve the 
tourism industry . In 2014, the MGTO launched the Quality Tourism Services Accreditation Scheme , 
to define serv ice quality standards for the tourism industry, and to encourage and support the 
industry , so as  to enhance service culture and recognize tourism merchants and practitioners who 
provide outstanding service and implement excellent service management. The Sc heme was first 
applied to the food and beverage sector , specifically to  licensed restaurants. In 2016, it was extended 
to the travel agency industry . In 2019, the MGTO collaborated with the Macao SAR Government 
Consumer Council to extend the Scheme to the retail industry . All merchants that fall into designated 
retail categories and who participat e in the Certified Shop scheme of the Consumer Council are 
automatically enrolled in the Scheme.101 As at late-2019, a  total of 281 catering businesses and 
40 travel agencies held the Star Merchant Award.102 The MGTO continues to organize training 
programmes, workshops and seminars for tourism and related activities , in order to foster 
improvement in the overall tourism quality of the trade. In 2019, the MGTO org anized a total of 
 
100 MGTO, Final version of the Macao Tourism Industry Development Master Plan, Summary Report, 
September 2017 . Viewed at: https://masterplan.macaotourism.gov.mo/home -en/index.html .  
101 MGTO, Retail Sector . Viewed at:  
https://indu stry.macaotourism.gov.mo/en/page/content.php?page_id=251 . 
102 Information provided by the authorities.  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  38 training sessions, four seminars and three workshops , under different themes , for travel 
agencies, tour guides and professionals of the hotel, retail and catering industries, engaging 
2,191  participants.103  
4.116.   The Smart Tourism Project was set up  by the MGTO in March 2019.104 The Project aims to 
bring greater convenience for visitors, industry operators and residents and to enhance t he quality 
of travel experiences in Macao , China.  To date, it has developed a tourism information interchange  
platform , an application for visitor insights , and a smart application for visitor flows.105 The MGTO 
aims to develop a large tourism database , to improve tourism management ; this will be used for 
future research on tourism promotion strategies, and to monitor visitor flows. In this regard, t he 
tourism information interchange platform plays a role in compiling  different types of tourism -related 
data resources , to provide support for the planning  and development of the tourism industry. The 
MGTO also made an effort to increase transparency, and, in this respect,  tourism statistics  were 
developed and are available online at  the MGTO website106, and the DSEC Visitor Statistics 
Database .107  
4.117.   Within the  context of the GATS, Macao, China made commitments on two subsectors in 
tourism, namely 9.A Hotels and restaurants (excluding catering) and 9.B Travel agencies and tour 
operators (based on the MTN/GNS/W120 nomenclature) (Table 4.1 4).108 For hotels and rest aurants, 
there are full ( "none") market access commitments for modes 2 and 3, and full national treatment 
commitments for mode 3. For travel agencies and tour operator services, there are full market access 
commitments for mode 2, and full national treatment commitments for mode 3. There is a restriction 
in mode 3 for market access for travel agencies and tour operators; it states that "branches and 
subsidiaries are not allowed ". However, current regulation s allow a foreign travel agency to apply for 
a travel agency licence if an applicant establishes a company that resides in Macao, China.109 
Table 4.14 Tourism and travel -related services (GATS commitments)  
 Limitations on market access  Limitations on national treatment  
Hotels and 
restaurants 
(excluding catering)  1) Unbound  
2) None  
3) None  
4) Unbound  1) Unbound  
2) Unbound  
3) None  
4) Unbound  
Travel agencies and 
tour operator 
services  1) Unbound  
2) None  
3) Branches and subsidiaries are not allowed  
4) Unbound  1) Unbound  
2) Unbound  
3) None  
4) Unbound  
Note:  Modes of supply: (1) cross-border supply; (2) consumption abroad; (3) commercial presence; and 
(4) presence of natural persons.  
Source:  WTO documents S/DOC/W/MAC, 24 January 2003; and S/DCS/W/MAC/Rev.1, 11 April 2003.  
4.118.   Under the CEPA with Mainland China, there are no specific c ommitments by Macao, China 
with respect to tourism and travel -related services.110 However, a ccording to Article 3 of the 
Agreement on Trade in Services, Macao, China "will not impose any new discriminatory measures 
on the Mainland 's services and service suppliers in the areas of services covered in this 
Agreement ".111  
 
103 Information  provided by the authorities . 
104 MGTO, Three projects come into service to push forward smart tourism . Viewed at: 
https://industry.macaotourism.gov.mo/en/pressroom/index.php?page_id=172&id=3112#.XdEWYsveE2w .  
105 Macao Yearbook 2019, Tourism , pg. 282. Viewed a t: 
http://yearbook.gcs.gov.mo/uploads/yearbook_pdf/2019/myb2019ePA01CH12.pdf . 
106 MGTO, Macao Tourism Data plus . Viewed at: https://dataplus.macaotourism.gov.mo/?lang=E .  
107 DSEC, Visitor Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TourismDBWeb/#/main?lang=en . 
108 WTO documents S/ DOC/W/MAC, 24 January 2003; and S/DCS/W/MAC/Rev.1, 11 April 2003.  
109 In accordance with  Article 15  a) of Decree -Law No. 48/98/M of 3 November 1998, as amended by 
Administrative Regulation No. 42/2004, in applying for a travel agency licence,  the applicant must establish a 
company in Macao, China.  
110 DSE, Agreement on Trade in Services . Viewed at: 
https://www.economia.gov.mo/public/docs/CEPA_CEPA_ACS/co ntent/en/attach2.pdf .  
111 DSE, Agreement on Trade in Services , Article 3 . Viewed at:  
https://www.economia.gov.mo/public/docs/CEPA_CEPA_ACS/content/en/main_text.pdf .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.4.7   Gaming  
4.119.   The gaming sector remains the major driving force for the tourism industry and for the 
overall economy; it accounted for about 50.5% of total GVA in 201 8. Gross gaming  revenue  reached 
a high record , representing 87.9% of GDP , in 2013 and , although its share of GDP declined 
afterwards (gaming revenue fell by 2.5% in 2014, and further by 34.3% in 2015), it still accounte d 
for over 65 .0% of GDP  in 2019. This downward trend was mai nly driven by several causes, inter 
alia, the global economic slowdown112, and the devaluation of the Chinese renminbi (against the 
US dollar).113 The contraction of the gaming sector resulted in a fall in GDP during the 
2014-16 period (Chart 4.2). However, and d espite the adverse economic circumstances, the gaming 
industry as a whole rebounded strongly in 2017 , back to the level of 2012 , although it contracted 
again in  2019.  
Chart 4.2 Gaming sector performance, 2012 -19 
 
Source:  WTO Secretariat calculations, based on DSEC , Statistics Database . Viewed at: 
https://www.dsec.gov.mo/TimeSeriesDatabase.aspx .  
4.120.   Gaming is a legal activity in Macao, China. As noted in the previous Review114, the sector is 
regulated , with licences granted to three concessionaires and three sub -concessionaires, each of 
which has the right to operate a land -based casino  gaming business as an independent legal person . 
The three concessionaires and three sub -concessionaires ran a total of 41115 casinos in 2018 
(Chart  4.3). During the review period, applications submitted by the Sociedade de Jogos de Macau  
(SJM) and the MGM Grand Paradise (MGM) for the extension of their terms were approved , and their 
concessions and sub -concession, respectively, were  extended until 26 June 2 022.116 There is also a 
concession each for horse racing ( Companhia de Corridas de Cavalos de Macau , SA), and 
 
112 Wang , J. and Liang , M. (2018), Characteristics of visitor expenditure in Macao a nd their impact on its 
economic growth , SAGE Journals Volume: 24 issue: 2, pp.  218-233. 1 March 2018.  
113 Macao  China' s gaming activities are mostly denominated in Hong Kong dollars , currency  which is 
pegged to the US dollar. At is turn, the Macao pataca  is pegged to  the Hong Kong dollar (HKD 1 = MOP 1.03)  
and subject to fluctuations in the renminbi/US dollar exchange rate.  
114 WTO document WT/TPR/S/281/Rev.1, pg. 72, 27 June 2013.  
115 Including three casinos with currently suspended activities. Information provided by the a uthorities.  
116 DICJ, Concessões Contratuais, Sociedade de Jogos de Macau, S. A. Chief Executive No. 37/2019 . 
Viewed at: http://www.dicj.gov.mo/web/pt/contract/SJM/2019_BO011.html ; and DICJ, MGM Grand Paradise, 
SA Sub-Concession Agreement. Viewed at: http://www.dicj.gov.mo/web/p t/contract/MGM/index.html .  
88.8%87.9%
79.8%
64.0%61.8%65.5%68.3%
67.5%
0%10%20%30%40%50%60%70%80%90%100%
050100150200250300350400
2012 2013 2014 2015 2016 2017 2018 2019Gross gaming revenue
% of GDP
-4.0%0.3%
-34.3%-21.6%
-40%-30%-20%-10%0%10%20%30%
2012 2013 2014 2015 2016 2017 2018 2019Chinese visitors
Other tourist arrivals
Gross gaming revenue
GDP at constant prices(Annual % change)(MOP billion)Chart 3.[Macao] Gaming sector's performance, 2012 -19
WTO Secretariat calculations, based on DESA, Statistics Database. Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx. Source:WT/TPR/S/ 402/Rev.1  • Macao, China  
 
- 114 - 
 
  two concessions for lotteries ( Sociedade de Lotarias e Apostas Mútuas de Macau, Ltd. , and Sociedade 
de Lotarias Wing Hing, Ltd. ).117  
Chart 4.3 Concessionnaires and sub -concessionaires  
 
Source:  Gaming Inspection and Coordination Bureau.  
4.121.   As per Administrative Regulation No. 34/2003, the Gaming Inspection and Coordination 
Bureau ( Direcção de Inspecção e Coordenação de Jogos  (DICJ)) is the gaming regulator , and 
provides guidance and assistance to the Chief Executive on the formulation and implementation of 
economic policies for the operation of casino games of fortune , other ways of gaming, par i-
mutuels118, and other gaming activities offered to the public.119 The DICJ 's main duties include: 
supervising and monitoring the gaming concessionaires ' and sub -concessionaires ' activit ies (casinos, 
horse -racing, pari -mutuels , and lotteries) to ensure comp liance with their legal, regulatory and 
contractual obligations; supervising and monitoring the suitability and financial capacity of the 
gaming companies, relevant shareholders, corporate members and key employees; classifying 
properties as casinos; inspe cting the assessments of gross gaming revenues; issuing licences for 
gaming promoters ; authorizing gaming equipment manufacturers, and gaming machines, systems 
and other gaming equipment; authorizing any changes in gaming operations (after the DICJ 
examine s a proposed plan provided by a concessionaire); enforcing and supervising preventive 
measures on money laundering and terrorist financing in the gaming sector; and preventing, 
eliminating and punishing illegal gambling  regarding administrative violations .120  
4.122.   The Government promulgated a number of laws and regulations to regulate gaming and 
related activities , including gaming promoters and gaming -related loan activities (Table  4.15). The 
key legislation on gaming is Law No. 16/2001 on the Legal Framework for the  Operations of Casino 
Games of Fortune.121 It contains provisions  regarding , inter alia , operational requirements, eligibility 
of major shareholders , management of the casinos, and the gaming tax to be levied. The sector is 
also regulated b y a number of other laws, regulations, and chief executive orders ( Table 4.15).  
According to the authorities, Law No. 16/2001 and other relevant gaming regulations are currently 
being reviewed , in preparation for the gaming concessions that will expire by 2022. During the 
review period, Macao, China made a change to the regulatory regime of gaming services: it 
discontinued greyhound  activities in 2018. Gaming activities that remain available in Macao, China 
are casino games of fortune, horse -racing , and lotteries .122 
 
117 DICJ, Concession Contracts . Viewed at: http://www.dicj.gov.mo/web/en/contract/index.html . 
118 "Pari mutuel", or mutual betting, is  a betting system in which all b ets of a particular type are placed 
together in a pool; payoff odds are calculated by sharing the pool among all winning bets.  
119 DICJ, Role and responsibilities . Viewed at: http://www.dicj.gov.mo/web/en/frontpage/index.html ; 
and Macao Yearbook 201 6, The Gaming Industry . Viewed at: 
https://yearbook.gc s.gov.mo/en/books?term=2016 .  
120 Gaming Inspection and Coordination Bureau (DICJ), Role and responsibilities . Viewed at: 
http://www.dicj.gov.mo/web/en/frontpage/index.html ; and Macao Yearboo k 201 6, The Gaming Industry . 
Viewed at: http://yearbook.gcs.gov.mo/uploads/yearbook_pdf/2016/myb2016ePA01CH14.pdf . 
121 DICJ, Law No. 16/2001 Regime jurídico da exploraç ão de jogos de fortuna ou azar em casino . Viewed 
at: http://www.dicj.gov.mo/web/pt/legislation/FortunaAzar/lei_01_016.html .  
122 Information provided by the authorities.  
Macao, China Government
SJM 
(Sociedade de Jogos de 
Macau, S.A.)
1 April 2002 -26 June 2022Galaxy Casino, S.A.
27 Jun 2002 -26 June 2022Wynn Resorts 
(Macau), S.A. 
27 Jun 2002 -26 June 2022
MGM Grand Paradise, S.A. 
20 April 2005 -26 June 2022Venetian Macau, S.A.
19 December 2002 -
26 June 2022Melco Resorts 
(Macau), S.A.
8 September 2006
-26 June 2022Concessionaires
Sub-concessionairesWT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 4.15 Main gaming casino laws and regulations  
No. Main content  
Law No.  16/2001  Sets out the legal framework for the commercial operation of 
different gambling products , with a focus on the operations of 
casino games of fortun e.  
Administrative Regulation 
No. 26/2001 (amended by 
Administrative Regulation s 
No. 34/2001 and No. 4/2002)  Gaming tender regulation ; sets out the rules applicable to the public 
tender procedure.  
Administrative Regulation No. 6/2002 
(amended by Administrative 
Regulation No.  27/2009)  Gaming promoters ' regulation , governs the licensing and activities 
of gaming promoters.  
Administrative Regulation 
No. 34/2003  Establishes  the DICJ as the gaming regulator (defines its role and 
responsibilities) . 
Law No. 5/2004  Regulates the granting of gaming credit by casino operators and 
gaming promotors.  
Law No. 10/2012 (amended by Law 
No. 17/2018)a Regulates the conditions of entry, working and gam ing in casino s. 
The revised law (effective since December 2018) stipulates that 
gaming employees are not allowed to enter casinos when off-duty. 
Administrative Regulation 
No. 26/2012  Sets the requirements for supplying electronic gaming machines and 
other electronic gaming system s, and their respective standards.  
Law No. 3/2017 (Revision of Law s 
No. 2/2006 and No. 3/2006)a Prevention and suppression of the crime of money laundering 
(No. 2/2006) ; and  prevention and suppression of the crime of 
terrori st financing (No. 3/2006).  
DICJ Instruction No. 1/2019a Internal control policies and procedures on preventive measures for 
anti-money laundering and combating financing of terrorism in order 
to prevent criminals from using casinos in Macao, China to conduct 
illegal activities.  
Chief Executive  Decision  No. 37/2019  Extending the term of the Concession Agreement for the SJM.  
a Introduced during the review period.  
Source:  Compiled by the WTO Secretariat, based on the DICJ, Legislation . Viewed at: 
http://www.dicj.gov.mo/web/en/legislation/index.html . 
4.123.   Article 21 of the Gaming Law (No.  16/2001) contains competition -related provisions.123 As 
noted in the previous Review124, the Article stipulates that the Government shall treat all gaming 
concessiona ires and sub -concessionaires in a non -discriminatory manner , and shall ensure that they 
comply with the rules of competition. Concessionaires must carry out their business activit ies in fair 
and healthy competition , with respect to the principles of a market economy. Any arranged 
agreements and practices are prohibited , in order to avoid anti -competitive behaviour. Also, any 
improper operation by one or more concessionaires of a dominant position in the market or a 
substantial market share in the gaming industry that may impede, restrict or distort competition 
between the concessionaires is prohibited.  
4.124.   Pursuant to Law No. 16/2001 and their Concession Contract s for Casino Operation, casino 
operators are obliged to pay a gaming tax, make contributions to the Government, and make local 
investments (Table 4.1 6). The gaming tax is levied on their gross gaming revenue at a rate of 35% , 
with an additional annual contribution of 1.6% to the Macao F oundation (for cultural acade mic and 
philanthropic activities )125, and an annual contribution of not more than 3% (currently 1.4% (SJM) 
 
123 DICJ, Law No. 16/2001. Viewed at: 
http://www.dicj.gov.mo/web/pt/legislation/FortunaAzar/lei_01_016.html .  
124 WTO document, WT/TPR/S/281/Rev.1, 27 June 2013.  
125 The Macao Foundation was established pursuant to Law No. 7/2001, and Administrative Regulations 
No. 12/2001, No. 4/2006, and No. 17/2011, through a merger that took place in 2001 between the former 
Macau Foundation, established in 1984, and the Macao Found ation for Cooperation and Development, 
established in 1998. The Macao Foundation is a legal person of public law that aims to promote, develop and 
study cultural, social, economic, educational, scientific, academic and philanthropic activities, including 
activities aimed at promoting Macao, China. The Foundation's activity is predominantly developed in 
Macao,  China, and may exchange and cooperate with institutions or entities whose activities are compatible 
with its purposes, and support them financially, i f necessary . The Foundation is financed with 1.6% of the 
proceeds from the gross revenues from games of chance in the territory of Macao,  China, and from 
appropriations allocated by the MSAR Government, donations from the Government or from abroad, and oth er 
revenues. Fundaçao Macau , Sobre a Fundaçao Maca u. Viewed (in Portuguese) at: 
https://www.fmac.org.mo/summary/summaryIndex?lgType=po . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  and 2.4% (others )) of gross revenue for urban development, tourism promotion , and social security.  
Revenue from gaming accounted for 8 4.4% of the Gove rnment 's total revenue in 201 9.126  
Table 4.16 Fiscal and financial contributions by casino operators  
Type  Details  
Gaming tax  Special gaming tax: 35% of gross gaming revenue (paid monthly ) 
 Premium (fixed): MOP 30 million per year  
 Premium (variable): MOP 300,000 per table per year for VIP table s 
       MOP 150,000 per table per year for regular table s 
       MOP 1,000 per slot machine per year  
Contributions  Monthly payment:  
- 1.6% of gross revenue to the Macao Foundation, which promotes cultural, 
scientific, social, economic and educational devel opment; and  
- 1.4% (SJM) or 2.4% (others) of gross revenue for urban development, 
tourism promotion , and social security  
Local investment  requirement  SJM: MOP 4.7 billion, contract sig ned in March 2002, fulfilled  
MGM: MOP 4 .0 billion, contract signed in April 2005, fulfilled  
Galaxy: MOP 4.4 billion, contract signed in June 2002, fulfilled  
Venetian: MOP 4.4 billion, contract signed in December 2002, fulfilled  
Wynn: MOP 4 .0 billion, contract signed in June 2002, fulfilled  
Melco: MOP 4 .0 billion, contract signed in September 2006, fulfilled  
Source:  Information provided by the authorities.  
4.125.   Although casino concessionaires are legally subject to profit tax, they may temporarily  or 
exceptionally be (wholly or partially) exempted from paying it , under the provisions of Article 28 (2) 
of the Gaming Law. For instance, the SJM was exempted from paying income tax during the 
2017-20 period in respect of profits generated by the operation of games of chance or other casino 
games (Table 4. 17). 
4.126.   Gaming operators are not entitled to receive subsidies.127  
Table 4.17 Temporary exemptions from payment of profit tax  
Concessionaires and sub -concessionaires  Duration  Chief Executive  
Decision No. 
Melco Resorts (Macau) , SA 1 January 2017 -2021 (5 years)  No. 330/2016  
Sociedade de Jogos de Macau  (SJM), SA 1 April 2020-26 June  2022 No. 89/2020 
MGM Grand Paradise, S A 1 April 2020-26 June  2022 No. 88/2020 
Wynn  Resorts (Macau) , SA 1 January 20 21-26 June 2022  No. 101/2020 
Galaxy Casino , SA 1 January 201 9-26 June 2022  No. 193/2018  
Venetian Macau , SA 1 January 201 9-26 June 2022  No. 194/2018  
Source:  Compiled by WTO Secretariat, based on DI CJ, Legislação, Jogos de Fortuna ou Azar . Viewed at: 
http://www.dicj.gov.mo/web/pt/legislation/FortunaAzar/index.htm l.  
4.4.8   Other services  
4.127.   During the review period, the Macao, China Government continued to emphasi ze the 
development of non -gaming sectors such as the MICE (Meetings, Incentives, Conventions and 
Exhibitions), cultural and creative industries, and traditional Ch inese medicine, to counter the 
economy 's heavy reliance on the gaming sector, which makes its more vulnerable , and subject to 
external fluctuations . 
4.4.8.1   MICE (Meetings, Incentives, Conventions and Exhibitions)  
4.128.   Since 2002, the Macao SAR Government has highlighted in its policy address the importance 
of the development of  meetings, incentives, conventions and exhibitions (MICE ) activities, which 
are defined as the part of the tourism industry dealing with business events and activities.128 The 
 
126 Information provided by the authorities .  
127 Macao SAR Government Portal, 10-billion -pataca fund aiming to bolster support for employees and 
businesses . Viewed at: https://www.gov.mo/en/news/124630/ .  
128 IPIM, Study on the Development Blueprint of Macao 's Convention and Exhibition Industry – Abstract , 
15 December 2017. Viewed at: http://archive.ipim.gov.mo/wp -content/uploads/2017/12/MICE -Extract -
_EN.pdf . The G overnment appointed the Macao Research Centre Ltd to conduct the study on MICE from 2016 WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  authorities consider that MICE activities, by bringing a number of business travellers, benefit a 
variety of sectors (e.g.  hotels and restaurants, transport, and entertainment) and promote the 
development of the entire industry chain.129 The Macao Trade and Investment Promotion Institute 
(IPIM) is responsible for developing MICE  activities . 
4.129.   MICE activities in Macao, China followed an upward trend during the review period , up to 
early 2020, when they were affected by the COVID -19 crisis . The number of events increased from 
1,015 in 2012 to 1,536  in 201 9, mainly driven by an increase in the number of meetings and 
conferences; the number of participants also rose (Table 4. 18). Moreover, participants of MICE 
events also tend to spend more than o ther visitors according to the Macao Statistics and Census 
Service (DSEC), the expenditure of the visitors at conventions and exhibitions was as much as 
2.8 times that of general visitors , from July to September 2019 .130 With respect to the structure of 
receipts and expenditure, according to the information provided by the interviewed organizers of 
the 56 exhibitions which took place in 201 9, some 61.7% of total receipts were generated from the 
rental of exhibition booths, while expenses regarding installati on, decoration and audiovisual 
performance, and p ublicity and public relations, combined, accounted for 4 5.1% of total expenditure 
(Table 4. 18). Despite its positive trend, MICE activities were affected by the outbreak of COVID -19 
in the first quarter of 2020 ; a total of 114 MICE events were held in the first quarter of 2020 (down 
from 377 in the same period of 2019). Also, the number of participants and attendees declined by 
75.9% year -on-year, to 80,000 in the first quarter of 2020.131 
Table 4.18 Overview of MICE activities in Macao, China, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Total events (no.)  1,015  1,024  1,050  1,263  1,276  1,381  1,427  1,536  
Meetings/ conferences  956 958 963 1,163  1,195  1,285  1,342  1,459  
Exhibitions and incentives  59 66 87 100 81 96 85 77 
Total participants ( no. '000)  1,613  2,034  2,614  2,516  1,722  1,902  2,118  2,003  
Structure of receipts and expenditure of interviewed exhibition organizers  
No. of organizers  54 63 82 77 54 51 60 56 
Total receipts (MOP million)  161.4  182.4  278.6  236.0  155.7  184.0  188.7  179.8  
 (% of total receipt)  
Of which:          
Rental receipts of exhibition booths  27.1 33.7 39.4 43.8 56.5 51.2 58.9 61.7 
Financial support from the 
Government or other organization s 71.5 63.6 59.0 53.6 40.3 39.2 36.9 33.7 
By type of organizers:          
Government  .. .. 2.0 1.8 3.9 3.5 4.6 4.3 
Non-government organizations  .. .. 98.0 98.2 96.1 96.5 95.4 95.7 
Total expenditure (MOP million)  243.4  299.2  347.5  304.7  220.0  228.7  248.4  281.7  
 (% of total expenditure)  
Of which:          
Installation, decoration and audio -
visual performance, etc.  23.8 30.1 25.4 23.1 27.6 27.2 27.1 29.7 
Publicity and public relations  16.4 19.2 20.1 18.9 19.0 16.1 20.4 15.4 
Rental paid for the venue  10.9 10.4 10.9 12.5 12.9 12.8 12.6 11.9 
Accommodation  9.8 8.8 12.3 11.4 8.7 8.9 9.0 8.1 
Freight  .. 3.9 5.3 5.2 3.7 4.6 4.1 4.4 
Transport  .. 3.3 7.3 5.7 4.3 4.4 3.9 4.5 
Food and beverages  5.6 3.9 2.9 3.4 3.6 3.9 3.3 3.8 
By type of organizers:          
Government  .. .. 20.4 23.3 38.6 37.0 43.7 49.2 
Non-government organizations  .. .. 79.6 76.7 61.4 63.0 56.3 50.8 
.. Not available.  
Source:  DSEC, MICE statistics . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx .  
4.130.   During the review period, the Government continued to invest significant resources to foster 
events in Macao, China, such as the Macao International Trade and Investment Fair (MIF), the Macao 
International Environmental Cooperation Forum and Exhibition (MIECF) and the Macao Franchise 
 
to 2017 , and to provide suggestions  on measures and policies to support the development of the MICE 
industry.  
129 MICE, Macau Convention and Exhibition  Development . View ed at: 
http://www.mice.gov.mo/current/intro.aspx .  
130 Information provided by the authorities.  
131 DSEC, MICE statistics . Viewed at: https://www.dsec.gov.mo/TimeSeriesDatabase.aspx .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Expo (MFE).132 The 201 9 Statistics Report by the International Congress and Convention Association 
(ICCA) accredited 54 international meetings held in Macao, China, placing it 48th worldwide and 1 2th 
in the Asia -Pacific region  with respect to the number of such events .133 With regards to the exhibition 
segment, the Global Association of the Exhibition Indu stry (UFI) 's 15th edition of the Trade Fair 
Industry in Asia report, Macao, China recorded growth of 5.2% in 2018, ranking it among the top  10 
in the region; growth was higher than the average for the region, which was of 4.8% and, according 
to an IPIM stu dy, reflected the good performance for Macao, China 's trade fair market.134  
4.131.   To help develop MICE activities , the Government launched a series of incentive measures 
(Table 4.1 9). MICE organizers who are interested in hosting conventions or exhibitions in 
Macao,  China, as well as local enterprises and non -profit entities who are interested in joining 
registered local and overseas MICE activities , are eligible for support from the Government. For 
instance, the IPIM offers the One -Stop Service for MICE Bidding and Support initiative , to attract 
convention and exhibition organizers for events to be held in Macao, China. The IPIM also provides 
financial incentives to encourage local enterprises to participate in trade fairs , to promote their 
produ cts. Table 4.1 9 lists the programmes available for the support of  MICE activities . Each 
programme has its own purpose, eligibility and limitations. The amount of financial support varies 
according to the programme.  
4.132.   In addition to the previous measures and  to the series of measures introduced by the Macao 
SAR Government to support businesses and residents in response to the COVID -19 pandemic 
(Box 1.1), the IPIM launched a series of contingency and support measures to provide immediate 
assistance to the MICE  sector to cope with difficulties that it may encounter, which include:  
• setting up a 24-hour hotline : at the beginning of the COVID -19 outbreak, the IPIM set up 
a 24-hour hotline to provide inquiry services and assistance to the convention and 
exhibition i ndustry, event organizers , and MICE visitors ; 
• releasing guidelines for COVID -19 prevention: in January 2020 , the IPIM released the 
Preventing Novel Coronavirus Pneumonia – Advice to the Convention and Exhibition 
Industry guidelines on COVID -19 prevention to the MICE sector, which includes 
coordination, management and environmental hygiene. Aside from that, the IPIM also 
called on Macao , China 's MICE sector, event organizers and MICE delegates to implement 
prevention measures ; 
• strengthening mutu al information exchange: the IPIM collect ed information o n how 
Macao , China 's MICE industry operates , by holding meetings to reinforce communication 
with the industry ; 
• launching impact assessment survey s: the IPIM launched surveys to assess the impact of 
the COVID -19 outbreak on the MICE industry. They assess  the various impacts on the 
industry, from how many events were cancelled to the estimated reduction in revenue 
derived from cancelled and postponed events. The surveys also seek to collect profit 
forecasts, which are taken into account  for the evaluation of  the epidemic 's impact on the 
economy ; and  
• organizing MICE e -workshops : since the COVID -19 outbreak, the IPIM has organiz ed MICE 
e-workshops covering  different themes , with the participation of the  local MICE industry , 
and invited MICE experts across the globe as speakers , in order to continue the sharing of 
professional knowledge and latest news about the sector . 
 
132 IPIM, Promoting Events . Viewed at: https://www.ipim.gov.mo/en/promoting -events/ .  
133 Macao SAR Government Portal , ICCA Report: Macao Ranks Top 50 among International Convention 
Cities , 25 May 2020. Viewed at:  https://www.gov.mo/en/news/125496/ .  
134 IPIM, Trade Fair Industry in Asia Report Comments on the Positive Development of Macao 's MICE 
Industry . Viewed at: https://www.ipim.gov.mo/en/ipim -news/20191105 -trade-fair-industry -in-asia-report -
comme nts-on-the-positive -development -of-macaos -mice-industry . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  Table 4.19 Support programmes for MICE activities  
Measures  Overview  
One-Stop Service for 
MICE Bidding and 
Support in Macao, 
China  The IPIM offers all -round support for convention and exhibition organizers who are 
interested in hosting events in Macao, China. Its services in clude providing the latest MICE 
information to event organizers ; assisting  them to plan and stage events  in Macao, China; 
following up the application of the Convention and Exhibition Financial Support Programme ; 
carrying out promotion at local and oversea s events  attended by the IPIM ; assisting local 
companies in organizing events, and linking them up with MICE service providers ; and 
assistance in searching for business partners.  
Convention and 
Exhibition Financial 
Support Programme  The programme provides basic assistance and/or financial support to organi zers and event 
planners of meetings/ conventions and exhibitions to be held in Macao, China. The 
Programme covers various types of event expenditure , such as accommodation, dining, 
advertising, speakers, etc. In the beneficiaries ' selection process, several criteria are taken 
into consideration, such as the nature of the event (e.g. theme, scale, and duration), the 
economic benefits to the local commun ity, past event references, and approval by 
internationally recognized associations , such as the ICCA or the UFI. 
Support Programme 
for Professional 
Training and Education 
in the Convention and 
Exhibition Sector  In order to develop better professional tal ent and capacity of staff in the MICE industry, 
the Programme provides financial support:  
(i) for organizers incorporated in Macao, China  who provide training activities in the areas 
of conventions and exhibitions, where the courses are held in Macao, Chi na or other Asian 
cities. The maximum amount of the financial support granted by the IPIM is MOP 3 million , 
and the maximum amount to be granted each year with respect to each training activity is 
MOP 600,000; and  
(ii) for employers and organizations inco rporated in Macao, China  that sponsor their staff 
to attend training and/or examinations in relation to conventions and exhibitions conducted 
in Macao, China or other Asian cites. The maximum amount of financial support granted in 
each calendar year by the  IPIM is MOP 2 million , and the maximum amount granted to 
each beneficiary is MOP 30,000 per year.  
MICE Trade Shows 
Support  Programme  The IPIM organizes MICE industry partners ' participat ion in MICE trade shows held in China 
and overseas every year. The Programme provides financial assistance for participati on in 
trade shows of entities related to tourism or MICE activit ies legally registered in 
Macao,  China.  
Financial incentives for 
participation in 
exhibitions and fairs  The IPIM provides a variety of financial incentive s to encourage enterprises and non -profit 
entities registered in Macao, China to use exhibitions for promotion purposes through 
product displays and direct contact with customers. All enterprises and non -profit entities 
regist ered in Macao, China participating in exhibitions and trade fairs registered with the 
IPIM that take place locally or internationally are eligible for the financial incentives 
programme. This incentive is only granted for participation in exhibitions or tr ade fairs held 
for two days or more. Applicants of inbound or outbound exhibitions or trade fairs not 
organized by the IPIM may receive a subsidy of up to 60% of the expenses incurred , with 
an upper limit of MOP 60,000 .  
Moreover, to encourage enterprises registered in Macao, China to make full use of online 
business platform s for business promotion, the IPIM launched the E -Commerce Promotion 
Incentive Measures  initiative , which covers a maximum of 70% of related expenses , 
including service fees, standard w ebsite set -up fees, etc , up to an annual accumulated total 
of MOP 30,000 for  each enterprise.  
Source:  Information compiled by the WTO Secretariat, based on information provided by the authorities; and 
IPIM, Incentive Measures . Viewed at: https://www.ipim.gov.mo/en/macao -exhibition -and-
conference/ .  
4.133.   The authorities noted that the Macao SAR Government will continue to closely monitor the 
local MICE sector , and react formulat ing feasible measures that meet actual needs. The Government 
will also help the MICE industry to surmount  difficulties , safeguard  the progress achieved so far , and 
maintain the steady growth of the industry with a view to continu ing to  develop and diversify 
Macao, China 's economy in a sustainable  way. In addition, the IPIM will continue to monitor and 
inform the public o f the latest development s. 
4.4.8.2   Cultural and creative industries  
4.134.   Creative and cultural industries are one of the priority emerging industries which the 
Macao,  China 's Government continued to support since the last Review, as part of its strategy to 
promot e economic diversification. According to Article 3 of Administrative Regulation No. 26/2013, 
cultural industries refer to economic activities that produce goods with cultural content and provide 
relevant services and experience by using creativity and intel lectual property based on cultural WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  experiences ; these create wealth and job opportunities , and enhanc e the overall living 
environment.135   
4.135.   During the review period, the sector grew steadily. Although its contribution to 
Macao,  China 's economy is small (the  sector represented just 0.6% of total GVA in 201 8), more 
than 2,000 organizations were operating in the sector in 201 8 (up from 1,700 in 2015), generating 
total service receipts of MOP 7. 2 billion (up from MOP 6.3 billion) (Table 4. 20).  
Table 4.20 Principal indicators of the creative and cultural industries, 2015 -18 
 
2015  2016  2017  2018  
Organizations ( no.) 1,713  1,913  2,091 2,246  
Persons engaged ( no.) 10,219  10,996  11,721 12,719  
Service receipts (MOP million)  6,254  6,752  7,048 7,180  
Compensation of employees (MOP million)  1,563  1,709  1,838 1,944  
GVA (MOP million)  2,063  2,225  2,367 2,597  
Gross fixed capital formation  955 470 443 285 
Memo:  (%) 
Services receipts (% of total services receipts)  2.3 2.6 2.3 2.0 
GVA (% of total GVA)  0.6 0.6 0.6 0.6 
Note:  The DSEC started to compile Cultural Industries Statistics in 2015. A technical note on methodology 
is available at DSEC, Cultural Industries Statistics Technical Note. Viewed at: 
https://www.dsec.gov.mo/getAttachment/5caff913645a -49a3-affd-
1fd735625315/E_CIS_Anexo_2016_Y.aspx . 
Source:  DSEC, Cultural Industries Statistics . Viewed at: https://www.dsec.gov.mo/zh -MO/Statistic?id=811 ; 
and information provided by the authorities.  
4.136.   Creative and cultural industries are mainly supported by the Cultural Industry Committee 
(Conselho para as Indústrias Culturais )136 and the Department for the Promotion of Cultural and 
Creative Industries ( Departamento de Promoção das Indústrias Culturais e Criativas  (DPICC ))137 
under the Cultural Affairs Bureau, both established in 2010. The Cultural Industry Committee acts 
as an advi sory body to assist the Government in formulating policies, strategies and measures for 
the development of the industry.  The DPICC is responsible for facilitating the growth of cultural and 
creative industries in Macao, China.138 The DPICC 's duties include:  collaborating in the process of 
developing a policy and strategies for the development of cultural and creative industries; proposing 
measures to support the development of the industries , and monitoring their implementation; and 
coordinating any public s ervices involved in the promotion and implementation of projects related 
to these industries, among others.139 
4.137.   The Macao Cultural and Creative Industries Development Policy Framework, 2014 -19 sets 
short, medium - and long -term strategies and corresponding me asures for Macao, China 's cultural 
and creative industries.140 According to the authorities, there is no new policy framework at this 
stage. The existing policy framework calls for the Government to make full use of the current 
advantages in gaming and tour ism, and focus on promoting cultural tourism, in order to drive the 
development of creative design, visual arts and cultural performances. The development of cultural 
trade will also be fostered through regional cooperation. The Government supports various  cultural 
and creative industries (e.g. fashion design, interior  design, and paintings) covered by the 
four major fields of creative design, cultural performance, art collection , and digital media.  
 
135 Fundo das Indústrias (Cultural Industry Committee ), Administrative Regulation No. 26/2013. Viewed 
at: https://www.fic.go v.mo/uploads/upload_files/rega -26-2013.pdf ; and DSEC, Cultural Industries Statistics, 
Technical Note . Viewed at: https://www.dsec.gov.mo/getAttachment/5caff913645a -49a3-affd-
1fd735625315/E_CIS_Anexo_2016_Y.aspx . 
136 Cultural Industry Committee ( Conselho para as Indústrias Culturais ) Introduction . Viewed at: 
http://www.cic.gov.mo/current/subpage.aspx?a_id=1451898364# .  
137 Instituto Cultural , Department for Promoting Cultural and Creative Industries . Viewed at: 
http://www.icm.gov.mo/en/DPICC .  
138 Instituto Cultural , Department for Promoting Cultural and Creative Industries . Viewed at: 
http://www.icm.gov.mo/en/DPICC .  
139 Instituto Cultural , Department for Promoting Cultural and Creative Industries . Viewed at: 
http://www.icm.gov.mo/en/DPICC .  
140 Fundo das Indústrias Culturais , Quadro da Política do Desenvolvimento das Indústrias Culturais de 
Macau . Viewed at: https: //www.fic.gov.mo/pt/about/frame . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.138.   Several support schemes aim to promote cultural and creative industries. For instance, the 
Cultural Affairs Bureau offers a series of subsidies and supporting initiatives through the Subsidy 
Programme Series for Macao 's Cultural and Creative Industries , dedicated to cultural and artistic 
activities such as design and filming.141 According to the authorities, t he objectives of the Subsidy 
Programme Series for Macao 's Cultural and Creative Industries  are to cultivate local talents in the 
cultural and creative s ector; incubate potential cultural and creative products ; promote and 
adverti se Macao , China 's brands ; and facilitate the growth of this sector. Since 2013, the Cultural 
Affairs Bureau has been implementing the Subsidy Programme for Fashion Design on Sampl e 
Making ; the Support Programme for the Production of Feature Film s; the Subsidy Programme for 
the Production of Original Song Albums ; and the  Subsidy Programme for the Production of Original 
Animation Short Films . 
4.139.   The Cultural Industry Fund ( Fundo das Ind ústrias Culturais )142, which is  a public entity with 
autonomy in terms of administration, finance and property , provides financial aid to projects related 
to cultural industries , in the form of subsidies and interest -free loans (Table 4. 21). It is under  the 
supervision of the Secretary for Social Affairs and Culture. It mainly supports the four  previously 
mentioned major domains of the industries.143 Commercial enterprises legally established and 
registered in Macao, China are eligible for this Fund.144 According to the authorities, t otal funding of 
MOP 502 million was provided from 2014 to 2019 (as at October  2019), for a total  of 256 projects .  
4.140.   In view of the economic effects of CO VID-19, the Cultural Industry Fund adopted a one -year 
extension of the repayment period from 2020 to 2021 for interest -free loans for 75 funded cultural 
and creative enterprise projects.145 
Table 4.21 Creative and cultural industries: funding methods and periods, and  amoun t of 
grants  
Funding methods  Key aspects for consideration  Funding 
period  Amount of grantsa 
Free 
financing  Project 
subsidies  (i) Establishment, operation  and 
development of cultural industry 
service platforms  
(ii) R&D of tangible or intangible 
products  Up to 5 
yearsb The upper limit of assistance is 
equivalent to the total 
investment volume or operating 
budget calculated after 
assessment.  
Subsidized 
interest 
for bank 
loans Projects with development 
potential  The upper limit of the 
subsidized interest is equivalent 
to the actual expense of interest 
for a certain event . 
Interest -free loansc Industrialization, standardization  
and market -oriented trend of the 
results of R&D Up to 10 
yearsb The loan ceiling is equivalent to 
50% of the total investment or 
50% of the operating budget 
calculated after assessment.  
a In general, the maximum amount of grants does not exceed MOP 9 million.  
b For justifiable exceptions, the funding period can be extended for a period not longer than half of the 
previous one.  
c For grants in the form of interest -free loans, the beneficiari es provide a guarantee.  
Source:  Fundo das Indústrias Culturais , Main application procedure . Viewed at: 
https://www.fic.gov.mo/en/funding/normal/application -info/3 . 
 
141 Instituto Cultural , Subsidy Programme Series for Macao 's Cultural and Creative Industries . Viewed 
at: https://www.icm.gov.mo/en/CCI -Subsidy .  
142 Fundo das Indústrias Culturais , Administrative Regulation No. 26/2013  (amended by Administrative 
Regulation No. 11/2019 ). Viewed at : https://www.fic.gov.mo/uploads/upload_files/rega -26-2013.pdf  and 
https://www.fic.gov.mo/uploads/upload_files/rega -11-2019.pdf . 
143 Fundo das Indústrias Culturais , Main application procedure . Viewed at: 
https://www.fic.gov.mo/en/funding/normal/application -info/3 .  
144 Fundo das Indústrias Culturais , Main application procedure . Viewed at: 
https://www.fic.gov.mo/en/funding/normal/application -info/3 .  
145 Macao SAR Government Portal, Cultural Affairs Bureau and Cultural Industry Fund support the 
development of cultural and creativ e industries by various measures . Viewed at: 
https://www.gov.mo/en/news/123845/ .  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  4.4.8.3   Traditional Chinese medicine  
4.141.   Macao, China continues to support the traditional Chinese medicine (TCM)  industry , which 
is one of priority areas for economic diversification under the guidelines of  the 
Five-Year Development Plan (2016 -20).146 In 2015, the Traditional Medicine Centre was established, 
co-founded with the World Health Organization.147 The Centre aims to foster the development of 
Chinese medicine professionals, enhanc e their qualification s through training, and increas e the 
investment of resources for the industry 's development.148  
4.142.   Moreover, under the auspices of the Guangdong -Macao Cooperation Framework Agreement, 
the Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between 
Guangdong and Macao , China  (GMTCM Park ) was inaugurated in the Guangdong -Macao Cooperation 
Industrial Zone in the Hengqin New Area149 in 2011.150 The GMTCM Park established good 
manufacturing practice pilot-testing and production, R&D, testing, industrial incubation bases , and 
other international -grade professional public service platforms that conform to Mainland China and 
the E uropean Union's certification standards . The GMTCM Park seeks to promot e the integrated 
development of industry -academy  research , and the application of technologies and products in the 
area of TCM.151  
4.143.   The GMTCM Park also plays a role in developing an international -level quality -control basis 
for TCM , and an exchange platform for the healthca re industry in PSCs.152 The Park officially 
established the Centre of International Cooperation and Exchange on 30 June 2015. Portugal and 
Mozambique were selected as pilot countries for international exchanges and cooperation work on 
that date .153 By capitalizing on PSCs as entry points, the GMTCM Park expanded its cooperation with 
different countries and regions bordering PSCs, and built cooperative networks connecting ASEAN  
and Africa n countries , and the E uropean Union. The GMTCM Park  assists enterprises with 
high-quality TCM products and technologies to break into the markets of PSCs, the E uropean Union, 
and other  economies , thus promoting the internationalization of TCM.154 
 
 
146 The Five -Year Development Plan of the Macao Special Administrative Region (2016 -2020), 
September 2016. Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf .  
147 WHO, WHO Collaborating Centres . Viewed at: https://www.who.int/traditional -complementary -
integrative -medicine/collaboration/TM_CCs/en/ . 
148 The Five -Year Development Plan of the Macao Special Adm inistrative Region (2016 -2020), 
September 2016. Viewed at: https://www.cccmtl.gov.mo/files/plano_quinquenal_en.pdf .  
149 According to the Overall Development Plan of Hengqin, the Hengqin  New Area , adjacent to 
Macao, China , is positioned as a demonstration area for the new model of cooperation between China's 
Guangdong Province ; Hong Kong, China ; and Macao, China. IPIM, Welcome to Hangqin New Area. Viewed  at: 
https://m.ipim.gov.mo/en/welcome -to-hengqin -new-area/ . 
150 The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between 
Guangdong and Macao , China . Viewed at: http://www.gmtcmpark.com/ . 
151 The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between 
Guangdong and Macao , China . Viewed at: http://www.gmtcmpark.com/ ; and information provided by the 
authorities.  
152 The Guangdong –Macao Traditional Chinese Medicine Technology Industrial Park Development. 
Viewed at: http://www.gmtcmpark.com/ . 
153 The Guangdong –Macao Traditional Chinese Medicine Technology Industrial Park Development. 
Viewed at: http://www.gmtcmpark.com/ . 
154 The Traditional Chinese Medicine Science and Technology Industrial Park of Cooperation between 
Guangdong and Macao , China . Viewed at: http://www.gmtcmpark.com/ ; and information provided by the 
authorities . WT/TPR/S/ 402/Rev.1  • Macao, China  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise imports , by HS section and major HS chapters, 2012 -19 
HS Section/HS  2-digit level  2012  2013  2014  2015  2016  2017  2018  2019  
Total imports (USD million)  8,982.1  10,140.3  11,262.1  10,602.8  8,924.5  9,450.7  11,161.7  11,167.8   
(% of total)  
01 Live animals and products  3.3 3.1 3.2 3.4 4.2 4.0 3.8 4.4 
02 Vegetable products  1.2 1.2 1.4 1.6 1.9 2.0 1.9 2.0 
03 Fats and oils  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
04 Prepared food, beverages and 
tobacco  9.6 9.6 10.3 11.1 11.8 11.6 10.5 10.5 
HS 19 Preparations of cereals, 
flour, starch or milk  1.7 2.3 3.2 4.2 3.9 3.9 3.4 3.0 
HS 22 Beverages, spirits and 
vinegar  5.0 4.1 3.9 3.6 4.2 4.0 3.6 3.9 
05 Mineral products  11.0 8.4 7.2 7.4 6.9 6.2 6.6 5.6 
HS 27 Mineral fuels, mineral 
oils, and products of their 
distillation  10.6 8.0 7.0 6.9 6.5 5.7 6.2 5.1 
06 Chemicals and products 
thereof  5.7 6.5 6.8 7.5 9.0 9.1 10.4 13.7 
HS 33 Essential oils and 
resinoids  3.0 3.8 4.0 4.1 5.1 5.4 7.1 9.9 
07 Plastics and rubber  0.8 0.7 0.7 0.9 0.9 0.9 0.8 0.8 
08 Raw hides and skins; leather  6.4 5.8 4.8 4.4 4.5 5.8 5.4 5.9 
HS 42 Articles of leather; 
saddlery and harness es; travel 
goods, handbags and similar 
containers  6.3 5.8 4.8 4.3 4.5 5.8 5.3 5.9 
09 Wood, cork, straw  0.2 0.2 0.2 0.3 0.3 0.2 0.3 0.2 
10 Pulp of wood; paper and 
paperboard  0.7 0.6 0.6 0.7 0.8 0.7 0.7 0.7 
11 Textiles and textile articles  4.6 4.1 4.2 4.8 5.8 5.6 5.6 6.4 
HS 62 Articles of apparel and 
clothing accessories, not knitted 
or crocheted  2.3 2.2 2.3 2.7 3.4 3.0 2.5 3.1 
12 Footwear, headgear, etc.  2.0 1.9 1.6 2.0 2.1 2.2 2.4 2.9 
13 Articles of stone, plaster, 
cement  0.9 0.7 0.8 1.4 1.2 1.3 0.9 0.6 
14 Precious stones and metals, 
pearls  13.2 16.2 12.9 10.8 10.3 11.1 10.7 9.8 
HS 71 Natural or cultured 
pearls, precious or semi -
precious stones, precious 
metals  13.2 16.2 12.9 10.8 10.3 11.1 10.7 9.8 
15 Base metals and articles 
thereof  2.7 3.5 4.3 4.5 3.4 2.4 2.4 2.1 
16 Machinery, electrical machines  19.4 16.6 18.2 19.1 16.5 16.4 16.6 14.1 
HS 84 Nuclear reactors, boilers, 
machinery and mechanical 
appliances; parts thereof  6.1 4.8 5.1 4.7 4.9 4.2 3.7 3.9 
HS 85 Electrical machinery and 
equipment , and parts thereof  13.2 11.8 13.1 14.4 11.5 12.2 12.9 10.2 
17 Transport equipment  5.8 5.2 4.8 4.3 3.1 3.2 3.6 3.2 
HS 87 Vehicles  5.2 5.0 4.7 4.1 2.9 2.9 2.8 2.9 
18 Precision equipment  8.2 9.0 10.0 8.5 8.0 8.0 8.4 8.4 
HS 91 Clocks and watches , and 
parts thereof  7.3 8.2 9.0 7.5 6.9 7.0 7.4 7.4 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured 
articles  3.8 3.0 3.2 4.3 4.7 4.1 3.9 3.9 
21 Works of art, collector pieces 
and antiques  0.1 0.0 0.2 0.1 0.1 0.1 0.1 0.1 
Confidential data  0.0 3.4 4.1 2.8 4.2 4.9 4.8 4.3 
Source:  WTO Secretariat 's calculations, based on data provided by the authorities; and UNSD, Comtrade 
database.  
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  Table A1. 2 Merchandise exports , by HS section and major HS chapters, including 
re-exports, 2012 -19 
HS Section/HS  2-digit level  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports (USD million)  1,020.5  1,138.3  1,241.3  1,339.0  1,256.6  1,405.8  1,510.4  1,585.6   
(% of total)  
01 Live animals and products  0.3 0.2 0.2 0.2 0.3 0.2 0.2 0.2 
02 Vegetable products  0.3 0.1 0.1 0.1 0.2 0.1 0.1 0.1 
03 Fats and oils  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
04 Prepared food, beverages and tobacco  10.9 9.4 7.9 6.8 10.0 12.6 10.4 6.0 
HS 19 Preparations of cereals, flour, 
starch or milk  1.0 1.0 1.0 0.8 1.7 5.4 5.4 1.2 
HS 22 Beverages, spirits  and vinegar  2.8 2.2 1.6 1.3 3.0 3.4 1.8 1.8 
HS 24 Tobacco and manufactured 
tobacco substitutes  6.8 5.9 5.0 4.4 5.1 3.4 2.8 2.8 
05 Mineral products  0.0 0.3 0.0 0.0 0.1 0.0 0.0 0.0 
06 Chemicals , and products thereof  0.5 1.9 2.1 4.0 2.2 2.4 4.0 5.1 
HS 33 Essential oils and resinoids; 
perfumery, cosmetic or toilet 
preparations  0.0 1.4 1.4 1.4 1.5 1.6 3.7 4.6 
07 Plastics and rubber  0.9 0.9 0.7 0.6 0.5 0.2 0.1 0.1 
08 Raw hides and skins; leather  3.0 3.3 3.3 4.0 3.5 4.0 3.5 3.9 
HS 42 Articles of leather; saddlery and 
harness es; travel goods, handbags and 
similar containers  2.9 3.2 3.2 3.9 3.4 4.0 3.4 3.9 
09 Wood, cork, straw  0.0 0.0 0.1 0.1 0.0 0.0 0.0 0.0 
10 Pulp of wood; paper and paperboard  0.6 0.4 0.5 0.4 0.3 0.2 0.2 0.1 
11 Textiles and textile articles  11.4 8.0 6.8 6.7 5.8 6.8 4.9 7.9 
HS 61 Articles of apparel and clothing 
accessories, knitted or crocheted  5.0 3.1 2.5 2.2 1.8 3.3 2.2 3.2 
HS 62 Articles of apparel and clothing 
accessories, not knitted or crocheted  5.9 4.3 3.7 4.2 3.7 3.1 2.4 4.4 
12 Footwear, headgear, etc.  1.6 1.6 2.1 0.7 2.6 2.5 2.1 3.1 
HS 64 Footwear, gaiters and  the like; 
parts of such articles  1.5 1.6 2.1 0.7 2.5 2.5 2.1 3.0 
13 Articles of stone, plaster, cement  0.0 0.2 0.3 0.3 0.2 0.3 0.2 0.6 
14 Precious stones and metals, pearls  3.3 5.6 6.2 7.4 5.8 7.9 5.9 8.6 
HS 71 Natural or cultured pearls, 
precious or semi -precious stones, 
precious metals  3.3 5.6 6.2 7.4 5.8 7.9 5.9 8.6 
15 Base metals , and articles thereof  1.7 1.9 6.4 2.3 2.1 1.7 1.8 1.1 
16 Machinery, electrical machines  23.7 24.7 23.6 18.6 18.1 17.9 22.7 23.3 
HS 84 Machinery and mechanical 
appliances; parts thereof  0.0 2.2 2.9 3.3 3.1 2.1 1.8 1.2 
HS 85 Electrical machinery and 
equipment , and parts thereof  23.7 22.5 20.7 15.2 15.0 15.8 20.9 22.1 
17 Transport equipment  0.4 0.6 0.9 2.3 1.6 0.8 0.6 0.8 
18 Precision equipment  0.0 5.8 9.8 12.6 10.4 10.3 10.6 9.4 
HS 91 Clocks and watches , and parts 
thereof  0.0 5.1 8.8 11.5 9.8 9.1 10.2 9.0 
19 Arms and ammunition  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  5.0 4.0 3.4 4.5 7.2 5.2 5.2 3.5 
HS 95 Toys, games and sports 
requisites; parts and accessories 
thereof  4.6 3.3 2.7 3.7 6.1 4.4 4.6 3.2 
21 Works of art, collector pieces and 
antiques  0.0 0.1 0.0 0.1 0.1 0.0 0.1 0.0 
Confidential data  36.4 31.1 25.2 28.2 29.0 26.7 27.4 25.9 
Source:  WTO Secretariat 's calculations, based on data provided by the authorities; and UNSD, Comtrade 
database.  
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  Table A1. 3 Merchandise imports by origin, 2012 -19 
  2012  2013  2014  2015  2016  2017  2018  2019  
Total imports (USD 
million)  8,982.1  10,140.3  11,262.1  10,602.8  8,924.5  9,450.7  11,161.7  11,167.8  
 (% of total)  
Americas  6.5 5.7 7.2 6.7 5.8 5.5 5.1 5.9 
  United States  5.5 4.9 6.3 5.6 4.7 4.3 4.0 4.7 
  Other America  1.0 0.8 0.9 1.1 1.1 1.2 1.1 1.2 
     Brazil  0.4 0.3 0.4 0.4 0.5 0.5 0.5 0.6 
Europe  31.8 31.9 32.9 30.0 30.9 32.4 32.3 35.1 
  EU-28 23.7 23.0 23.5 22.0 23.2 24.8 24.4 27.3 
     Italy 7.5 7.0 6.4 6.7 7.6 9.3 8.4 10.2 
     France  8.7 8.6 8.3 6.7 7.8 7.4 8.2 10.1 
     Germany  2.8 2.4 3.0 2.3 2.0 2.1 2.0 1.9 
     United Kingdom  2.4 2.3 2.1 1.8 1.3 1.2 1.7 1.6 
     Netherlands  0.6 0.9 1.5 2.2 1.8 2.4 1.8 1.0 
     Spain  0.3 0.4 0.5 0.5 0.5 0.7 0.6 0.5 
     Ireland  0.3 0.4 0.6 0.7 0.8 0.5 0.4 0.5 
  EFTA 7.9 8.7 9.2 7.8 7.5 7.5 7.8 7.7 
     Switzerland  7.9 8.6 9.1 7.7 7.4 7.4 7.7 7.6 
  Other Europe  0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.2 
Commonwealth of 
independent states (CIS)  0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0 
Africa  0.3 0.4 0.2 0.4 0.3 0.2 0.3 0.2 
Middle East  0.4 0.4 0.5 0.4 0.2 0.3 0.3 0.1 
Asia 60.9 58.2 55.0 59.6 58.5 56.7 57.0 54.4 
  China  32.3 30.1 30.7 35.8 34.4 31.4 33.1 31.3 
  Japan  5.9 5.8 5.3 5.9 6.1 6.7 6.6 6.7 
  Other Asia  22.7 22.3 18.9 17.9 18.0 18.6 17.3 16.4 
     Hong Kong, China  11.4 12.9 10.2 8.8 8.6 8.8 7.8 6.2 
     Korea, Republic of  2.4 2.6 1.9 1.6 2.0 2.5 2.2 2.3 
     Chinese Taipei  2.0 1.6 1.4 1.6 1.7 1.7 1.6 1.4 
     Thailand  1.3 1.0 1.0 1.0 1.2 1.2 1.2 1.2 
     Australia  0.8 0.7 0.7 0.9 1.2 1.1 1.0 1.1 
     Singapore  2.1 1.7 1.8 1.8 0.9 0.8 0.8 1.0 
     Malaysia  1.2 0.7 0.7 0.8 0.8 0.7 0.7 0.8 
     Viet Nam  0.3 0.3 0.3 0.4 0.5 0.6 0.6 0.7 
     Indonesia  0.3 0.3 0.3 0.3 0.4 0.3 0.4 0.5 
     New Zealand  0.2 0.2 0.3 0.4 0.3 0.3 0.4 0.5 
Confidential data  0.04 3.4 4.1 2.8 4.2 4.9 4.8 4.3 
Source:  WTO Secretariat 's calculations, based on data provided by the authorities; and UNSD, Comtrade 
database.  
  WT/TPR/S/ 402/Rev.1  • Macao, China  
 
- 126 - 
 
  Table A1. 4 Merchandise exports by destination, including re -exports, 2012 -19 
  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports (USD 
million)  1,020.5  1,138.3  1,241.3  1,339.0  1,256.6  1,405.8  1,510.4  1,585.6  
 (% of total)  
Americas  5.5 3.2 2.3 1.2 0.9 0.9 0.7 2.0 
  United States  4.4 2.5 1.8 1.0 0.8 0.8 0.5 1.9 
  Other America  1.2 0.7 0.5 0.2 0.2 0.1 0.2 0.1 
     Canada  0.5 0.3 0.1 0.0 0.0 0.1 0.1 0.1 
Europe  2.6 2.0 1.5 0.8 0.4 0.7 0.6 0.5 
  EU-28 2.6 1.9 1.5 0.8 0.4 0.7 0.6 0.5 
     Germany  0.8 0.4 0.4 0.3 0.2 0.1 0.3 0.2 
     France  0.5 0.6 0.3 0.2 0.1 0.3 0.2 0.1 
     United Kingdom  0.2 0.3 0.2 0.1 0.0 0.1 0.0 0.1 
     Italy 0.2 0.1 0.3 0.1 0.0 0.0 0.0 0.1 
     Netherlands  0.6 0.3 0.1 0.0 0.0 0.1 0.0 0.0 
  EFTA 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
     Switzerland  0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
  Other Europe  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Commonwealth of 
independent states (CIS)  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Africa  0.1 0.0 0.1 0.1 0.0 0.0 0.0 0.0 
Middle East  0.2 0.1 0.1 0.5 0.5 0.2 0.1 0.0 
Asia 55.1 63.6 70.7 69.2 69.2 71.5 71.2 71.6 
  China  11.0 11.4 13.0 13.3 13.2 15.0 11.1 8.4 
  Japan  0.5 0.4 0.2 1.0 1.6 0.7 0.2 0.6 
  Other Asia  43.7 51.7 57.5 54.9 54.4 55.8 59.8 62.6 
     Hong Kong, China  39.7 47.5 55.1 52.3 49.2 53.5 57.4 60.0 
     Cambodia  0.0 0.0 0.0 0.1 0.1 0.6 0.1 0.5 
     Singapore  0.8 0.5 0.7 0.7 0.8 0.5 0.6 0.5 
     Viet Nam  1.7 2.1 0.1 0.3 0.2 0.3 0.9 0.5 
     Philippines  0.2 0.4 0.7 0.4 2.9 0.2 0.2 0.3 
     Sri Lanka  0.0 0.0 0.0 0.0 0.2 0.1 0.0 0.3 
     Chinese Taipei  0.4 0.4 0.5 0.5 0.4 0.2 0.1 0.1 
     Korea, Republic of  0.1 0.2 0.1 0.0 0.1 0.1 0.0 0.1 
     Australia  0.4 0.1 0.1 0.0 0.0 0.0 0.1 0.1 
     Malaysia  0.4 0.4 0.2 0.6 0.1 0.1 0.1 0.0 
     Thailand  0.0 0.1 0.0 0.0 0.3 0.1 0.1 0.0 
     India 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Confidential data  36.4 31.1 25.2 28.2 29.0 26.7 27.4 25.9 
Source:  WTO Secretariat 's calculations, based on data provided by the authorities; and UNSD , Comtrade  
database.  
__________  