Macao Special Administrative Region: Annual report 2015

Since the handover of Macao to the People’s Republic of China in 1999, the European Union and its Member States have closely followed political and economic developments in the Macao Special Administrative Region (SAR) under the ‘one country, two systems’ principle. This annual report on developments in Macao is issued in line with the commitment given to the European Parliament.

In 2015, 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. 2015 was the first full year in office of the new Government of Macao, headed by Chief Executive Chui Sai On. The process of the government taking office went smoothly and was in accordance with the Basic Law. The Chief Executive announced that the government would place particular emphasis on communicating with the Macao population.

The Chief Executive was elected in 2014, in an election in which he ran uncontested. This was the third time in a row that only one candidate stood for election to the Chief Executive post. While Macao’s Basic Law and other legislative acts do not provide for the possibility of universal suffrage, the EU encourages the Macao authorities to consider ways to promote greater public involvement in the election of the Chief Executive, thereby enhancing the legitimacy of the position and contributing to good governance.

The fundamental rights and freedoms of citizens continued to be respected. Positive steps were taken towards improving the wages of low-paid workers and combating domestic violence and trafficking in human beings. Macao’s media continued to express a broad range of views despite some concerns about increasing self-censorship.

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. Improving the lives of ordinary citizens, who face mounting living and housing costs, is a key priority. Macao’s economic cooperation and integration with mainland China advanced at a fast pace, especially with Guangdong Province, helping to overcome Macao’s shortage of land and human resources. The functioning of the Macao Government needs to be modernised and made more efficient; in this connection, administrative reforms have been announced.

EU-Macao relations continued to flourish, with a growing cooperation portfolio and solid trade relations. Notwithstanding the sharp contraction in Macao's economy, EU-Macao trade grew significantly in 2015, thanks to an increase in exports of machinery and transport equipment. Priorities for 2016 are cooperation on economic diversification, the fight against human trafficking, legal affairs, regulatory matters, and research and innovation.