Macau SAR aims to establish a technology-driven market
João Nuno Riquito and Daniel de Senna Fernandes of Riquito Advogados explain how the Macau SAR government is turning to technology to diversify the local economy
Even though the passing of new legislation in cutting-edge technology fields of knowledge has been sparse in the region, several advancements have been made in the Macau SAR with the purpose of developing an international innovation and technology hub within the Greater Bay Area, which have been greatly supported by the local government.
Besides investing in research and development projects linked to nanotechnology and artificial intelligence, the Macau SAR government has been invested in promoting STEM (science, technology, engineering, and mathematics) education in the region. This ultimately enables the establishment of artificial intelligence teaching in Macau SAR, and potentially creates the necessary conditions for a more competitive local workforce.
On an equally relevant field, the involvement of a local higher education institution in the research of dust storms in Mars and a simulation of Mars’ atmosphere may not be disregarded, as it undoubtedly contributed to the successful landing of the five-tonne Chinese space explorer Zhurong in Mars, and may inspire further astronautical investments.
Not only so: as the local market appears to be ever more eco-conscious, the increase in local investments in hydroponic projects is unsurprising, especially when considering the recently issued ‘blue bonds’ by Bank of China. This is destined to raise capital to assist the expansion of a sustainable blue economy through marine-related green projects across various domestic and overseas markets, including but not limited to offshore renewable energy and wastewater treatment.
This commitment to the development of a technology-driven market in Macau SAR has recently taken a step further through the approval of a tax relief package, which includes, but is not limited to, stamp, property and income tax exemptions, by way of Law No. 1/2021. It is aimed at companies engaged in scientific and technological innovation, including research and discovery, particularly in areas such as next-generation computing, artificial intelligence, integrated circuits, biomedicine, new energies, energy conservation and environmental protection, marine engineering, nutrition, aeronautics and astronautics.
By creating a more attractive environment for private investors, such a tax relief package may pave the way for the establishment of new high-tech industries in Macau SAR. The changes seem to be in line with the Macau SAR government’s intention of diversifying the local economy, in tandem with the Greater Bay Area Development Plan’s goals.
João Nuno Riquito
Managing partner, Riquito Advogados
Daniel de Senna Fernandes
In-house consultant, Riquito Advogados