Macao Special Administrative Region: Annual report 2014

Since the handover of Macao to mainland China 15 years ago, the European Union and its Member States have closely followed political and economic developments in the Macao Special Administrative Region (SAR) in the framework of the ‘one country, two systems’ principle. To fulfil its 1999 commitment to the European Parliament, the Commission issues an annual report on developments in Macao.

The EU believes that in 2014, notwithstanding challenges, the ‘one country, two systems’ principle continued to work well, to the benefit of the Macao SAR, China as a whole and the international community. Chief Executive Chui Sai On was re-elected for a second term in office. The election campaign was managed in accordance with the provisions of the Basic Law, with votes being cast by members of the election committee. As was the case in the Chief Executive elections of 2009 and 2004, there was only one candidate. While Macao’s Basic Law does not provide for the introduction of universal suffrage for the election of the Chief Executive, there is a growing public debate about the issue and whether the authorities should consider arrangements to promote a higher degree of public involvement in the election and to ensure there is competition for the post.

The fundamental rights and freedoms of Macao citizens continued to be respected. Positive steps were made towards improving the position of migrant workers and on combating domestic violence and trafficking in human beings. Macao’s media continued to allow expression of a broad range of views. However, media freedom is at risk due to selfcensorship, personnel policies and hindrances such as denial of access to press conferences. Academic freedom was brought into question by the decision not to renew the contracts of two professors with outspoken political views.

Macao’s marketbased economy continued to function efficiently but economic growth suffered from a marked decline in gaming revenues, on which the SAR is over-reliant. A key priority is improving the lives of ordinary citizens, who face mounting living and housing costs. Macao’s economic cooperation and integration with mainland China, especially Guangdong Province, is advancing fast, helping to overcome Macao’s shortage of land and human resources. The relocation of the University of Macau to Hengqin Island was a landmark event in this respect: Hengqin is part of the territory of mainland China but the university is under the jurisdiction of Macao. The functioning of the Macao Government and the judiciary needs to be modernised and made more efficient, including through better management of human resources.

EU-Macao relations continued to flourish, with fast-expanding trade relations and a growing cooperation portfolio based on economic, education and environment policy. Priorities for 2015 are cooperation on economic diversification, legal affairs and regulatory matters for the economy.