The State Council has proposed a ‘9+2’ strategy that will create an enlarged Greater Pearl River Delta zone embracing Macau, Hong Kong and nine southern Mainland provinces. The plan is aimed at deepening economic, social, technological and infrastructure integration, according to a guidance document released by the Council on Tuesday. A local academic envisions opportunities brought by the strategy. ‘’The plan, of course, is good because more business opportunities will be brought along , rather than facing fierce competition with Hong Kong, Shenzhen or Shanghai. It could ultimately benefit Macau’s economic development,’’ Dr. William Cheung Ming Yan, Assistant Professor in Finance at the Faculty of Business Administration of the University of Macau, told Business Daily in a phone interview. Besides the SARs, the nine provinces in the plan stretch from the east coast to the inland west, embracing Fujian, Jiangxi, Hunan, Guangdong, Guangxi, Hainan, Sichuan, Guizhou and Yunnan. Collectively, the region covers a third of the population and one-third of economic output in China. Financial innovation The ‘9+2’ plan not only indicates that Macau should serve as a commerce and trade platform but also as a financial service conduit. Mr. Cheung commented that the foreign exchange market has long existed in Macau and can be a better focal point for the city to deepen its role. He appeals for more policy reading from the central government on the foreign exchange market so that the SARs can make better use of it. Nevertheless, the professor pointed out that there may be potential risks when integration is implemented. He raised one example of the Margin Trading and Short Selling market in Mainland China, which has previously raised problems and hurt investors’ confidence. Mr. Cheung indicated that despite the SAR not yet having a Stock Exchange, the city needs to be cautious with regard to such financial reform. Mr. Cheung added that demand and supply regarding the financial platform are not favourable in the short-term because not enough professions are available in the financial sector in Macau. Diversified opportunities The central government’s plan came as a pleasant surprise, said the city’s Secretary for Economy and Finance Lionel Leong Vai Tac. He said the guiding document from the central government ensured the mutual target shared between the Mainland and Macau and the Greater Pearl River Delta zone, as reported by Chinese-language newspaper Macao Daily. The Secretary indicated that one of the main points is the broader regional co-operation of the plan, which encourages the SARs to help the country in opening up. Besides economy, trade and social services, other areas such as conventions and exhibitions are also detailed in the plan. Mr. Leong added that all walks of life in the SAR should assume their responsibilities and take advantage of the opportunities. He also vows that the SAR Government would be responsible for co-ordinating all the sectors so that the plan can be moved ahead in a more efficient manner. He added that the ‘9+2’ plan complements the country’s thirteen Five-year Plan, also the SAR’s Five-year Plan so that the SAR can play its unique part and take advantage of it. Increase exchange The State Council’s plan proposes connecting the dots between the existing Closer Economic Partnership Agreement granted to Hong Kong and Macau, which is part of the central government’s plan to bring prosperity to the inland western provinces.. The Council said the increased exchanges between the Mainland and Hong Kong will help to maintain Hong Kong and Macau’s long-term prosperity and stability. The document calls for speeding up the construction of the Hong Kong-Zhuhai-Macau Bridge and the Guangzhou-Shenzhen-Hong Kong high speed railway, as well as co-operation between airports in the region.
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