Chief Executive Edmund Ho said that Macau must position itself in order to strengthen its role as an international entrepot on the west bank of the Pearl River Delta toward the Latin world and the European Union.

The Chief Executive delivered his speech at the APEC CEO Summit 2001 in Shanghai this afternoon. He said that Macao, being part of China since ancient times, has been an international trading port and meeting place between East and West for almost five centuries. However, as a Special Administrative Region of the People's Republic of China, Macao has only just started to write a new chapter in its long history spanning several thousand years.

Concerning the recent development, he said: "Macao must position itself carefully in order to strengthen its role as an international entrepot and realise its potential as a regional hub for business services and logistical support. Of particular strategic importance is Macao's network of co-operative ties with cities on the west bank of the Pearl River Delta in Guangdong Province. Besides, we should always bear in mind the relative strength of our special relationship with the Latin world and the 15-member countries of the European Union. All these are advantages that can be utilised to turn Macao into a hub for small and medium-sized enterprises that are interested in trading with, and investing in the Mainland."

"We will of course further improve our economic and social infrastructure to raise our profile in regional co-operation and integration. More will be done to help Macao develop into a sophisticated economy. Our first and foremost task is to further open up and liberalise our domestic market. We have already opened up our mobile telecommunications sector this year. The gaming industry will be liberalised next year. We strongly believe that the gradual and orderly opening-up of our internal market will attract more capital investments, human resources, advanced management models and innovative ideas."

"In the almost two years since Macao¡¦s reunification with China, the Central Government has firmly abided by the principle of ¡¥one country, two systems' and has demonstrated great faith and confidence in Macao's public administration and civil society by letting us running our internal affairs without any interference. At the same time, the Central Government has given us invaluable support to ensure Macao's stability and progress. With a sharp fall in serious crime over the past twenty-two months, public security has improved significantly, Macao is now one of the world's safest cities to live and work. Our economy, which depends heavily on external factors, experienced a revival last year. Foreign investment is on the rise/; tourists are arriving in greater numbers than ever before. In fact, we expect a record 10 million visitor arrivals this year. For the year of 2000, Macao's GDP shown a real growth of 4.6%. In spite of the recent upheavals in the global economy and the fallout from last month's terrorist attacks in the United States, we remain optimistic and have made the necessary preparations to ensure that when the world economy recovers, Macao can stride forward in high gear."

The Chief Executive also gives a brief introduction on the unique characteristics of Macau: "A few hundred years ago, Macao was still a quiet fishing village in southern China. Through hard work and dedication of many generations of its people, Macao has undergone a spectacular transformation. Nowadays, Macao's achievements are there for all to see. We all know, of course, that Macao is relatively small in size and population. It has, nevertheless, been able to grow into a modern cosmopolitan city with its very own characteristics and attractions."

"The vast majority of Macao's population is Chinese. However, we also have a sizeable community of local residents of Portuguese and other foreign descent.

Macao's various ethnic and religious communities have lived peacefully together for several centuries. As a matter of fact, Macao enjoys one of the world¡¦s highest degrees of racial harmony and communal solidarity."

When speaking of the stable environment of Macau he said: "Under the Basic Law, Macao enjoys a high degree of autonomy except in national defence and foreign affairs. Macao's capitalist system and its unique way of life are fully protected by the Basic Law. The Special Administrative Region exercises executive, legislative and independent judicial powers, including that of final adjudication. Macao continues to be a free port, a separate customs territory and a regional financial center".

"The stable political environment enables Macao residents to develop their creative abilities and work hard to build the Special Administrative Region a home they love. Macao's return to the Motherland has further strengthened its traditionally close bonds with the Chinese Mainland and given renewed momentum to Macao¡¦s future development."

"We are proud to recognize that Macao people believe in the ¡¥one country, two systems' policy, and they, consequently, now are much more willing to participate actively in public affairs than before. Our businessmen and foreign investors have shown increasing confidence in doing business in Macao."

"Macao is just a short distance from Hong Kong, Taiwan, Guangdong and Fujian, and within reach from several Southeast Asian countries. Apart from factors of geographical proximity, the overseas Chinese communities all over the world have also contributed to Macao's extensive network of links with the outside world. The Chinese Mainland continues to enjoy sustained and strong economic growth, provides Macao with a vast hinterland for future development. The large number of regular daily passenger and cargo flights between Macao and Taiwan has resulted in the development of solid business ties between the two sides. We have now trade and investment relations with well over a hundred countries, and the Special Administrative Region is a full or associate member of, and a signatory to over 150 international organisations and multilateral treaties."

Concerning external relationship, the Chief Executive said: "Macao maintains close working relations with the 15 member states of the European Union and the Latin world, and we are contractual partners of the European Commission's Asia-Invest business development programme. We also host every two years the 'Eureka meets Asia' international forum, which has greatly enhanced our role as a platform for Sino-European scientific and technological exchanges. Macao has also developed close cultural and academic links with the European Union and countries that have a Latin heritage."

Concerning the SAR Government's policies on development of Macau, Edmund Ho said: ¡§The Government continues to adhere to prudent fiscal policies, while maintaining a simple tax structure with low tax rates in order to sustain employees' incentive to work and entrepreneurs' incentive to do business. Our current property, profit and income tax rates, standing at just between 10% and 16%."

"We offer an attractive package of incentives for foreign investments. Most imports are free of duty, and we have no foreign exchange controls."

"Our continuous investments in public infrastructures will enable Macao to function even more effectively as a free port. Based on our long-standing free-trade policies, we are confident that Macao has great potential to establish itself as a regional logistics and offshore business and service centre in the near future."

"Macao's dynamic lifestyle and cosmopolitan outlook, blending the best of East and West, provides local citizens with an abundant supply of new ideas on which to draw to express their talent and creativity. Chinese civilisation has taken deep roots in Macao over the past centuries. It has, in fact, become Macao¡¦s cultural mainstream.

However, Western culture has also found a home in Macao, where it continues to flourish. Although both are starkly different, these two cultures complement one another and continue to exist in perfect harmony."

"Our administration is firmly committed to promoting Macao's further cultural development. Culture has become one of Macao¡¦s main tourist attractions."

"Tourism and a wide range of entertainment businesses feature prominently among Macao¡¦s main economic activities. We strongly believe that the gaming industry's liberalisation next year will not only maximize public revenue but also further diversify tourism facilities and benefit economic development as a whole."

Mr. Ho concluded his speech by stating the SAR government's determination to play a part in regional cooperation: "The Macao Special Administrative Region sincerely hopes to play an ever more active part in the network of co-operative relations among the 21 APEC member economies that, as we all know, control around 43% of global trade. We can certainly complement one another perfectly and closely work together to promote social and economic development in the Asia-Pacific region, thereby benefiting the advancement of mankind as a whole."