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A Special International Report Prepared by
The Washington Times Advertising Department - Published on October 25, 1999
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Advertisers
(1) Macau Trade & Investment Promotion Institute
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In a formal document laying out his economic blueprint, Advancing in the Face of Difficulties and Creating New Opportunities, Ho says that after Macau's reversion to Chinese administration "it will be imperative to seize every opportunity provided by this new era and maximize the potential, vitality, and inherent dynamism of the local economy." Ho recognizes that Macau's development is inseparable from mainland China support. As a result, the newly designated chief executive will fully utilize its advantages to promote mainland prosperity.
Recently, Ho traveled to Shanghai, the first mainland China city visited since becoming the chief executive designate, and he has reinforced his conviction that Macau's development is inseparable from China's support. "Since we lack the industrial and high-tech research capacity of Hong Kong, Macau will try to maximize its favorable factors and minimize its weak ones," added Ho. With gambling banned on the mainland and restricted to horse racing in Hong Kong, Macau enjoys a regional monopoly in the industry. It's the only "game in town" in the parlance of the gamblers. The chief executive's father, Ho Yin, was a legendary Chinese community leader as well as a close friend and business associate of Stanley Ho, Macau's gaming taipan.
Edmund Ho has pledged his full support and defense of the casino industry which contributes almost half of the government's revenues. Like Stanley Ho, the chief executive has gone on record stating "that it is wrong to solely blame Macau's gaming industry for the territory's public security problems." Some business leaders have called for a breakup of the STDM monopoly while others oppose replacing a system that has served Macau's economy extremely well. Stanley Ho was awarded this franchise in 1962 and has kept his promise to make significant investments in Macau's future. While the chief executive understands the need to preserve Macau's gaming industry, he has also endorsed the placement of Chinese troops after the Handover. In addition, he regrets that the economy is still excessively dependent on its gambling and tourism sector. He has recently stated in the South China Morning Post that "if the tourism and gambling industry were to encounter serious difficulties, Macau would not have enough economic support to save its economy from general decline and recession." In fact, in 1998 the gambling and tourism sector accounted for 57 percent of the government's budget receipts and almost 43 percent of GDP. Recent business initiatives for a diversified economy remain weak because many of the traditional export-led industries are experiencing a decline in exports, including textiles, toys, and electronics. International investment is marginal, limited mostly to companies seeking an alternative location to Hong Kong as their gateway to China. No doubt, Ho's future government intends to act "as a powerful protector of market mechanisms and regulations." Yet, no one in business denies that the casino operations add immeasurably to the color, character, and commerce of Macau. In a traditional sense, gambling is part of Chinese culture and commerce. And almost everyone in Macau is consuming a slice of this large seemingly sweet cake. China seems ready to abide by the specific articles of Macau's Basic Law, which protects Macau's gambling sector by stating that the post-handover government may define its own policies in the entertainment sector. Although the chief executive designate, Edmund Ho, has suggested that he intends to create a special panel to study the future of the monopoly casino franchise and to offer supervision of the gaming and betting sector of Macau's economy, the gamblers in Macau, together with many local residents, all seem to be stressing continuity rather than change, a good sign perhaps for the other Ho. |
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(1) Betting on the future with China |
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A few months ago former banker Edmund Ho Hau-wah was chosen as Macau's first chief executive designate as the Portuguese enclave prepares for the formal transition to China with the same promises of autonomy offered to nearby Hong Kong in July 1997. Ho, a youthful 44 year-old (and no relation to gaming czar, Stanley Ho), is recognized as a respected friend of the business community and a staunch advocate of law and order in Macau. Before his new appointment, Ho served as vice president of Macau's Legislative Assembly for 11 years.
Macau still experiences periodic triad turf war problems, with isolated random shootings and murders. "Rest assured, I will handle the peace and order problem," declared the chief executive after his victory a few months ago. In a recent press release, he acknowledged that "in view of Macau's present situation, a priority should be placed on law and order, and public security, including an all-out crack-down on corruption."
The Tai Fung bank (which means "Great Abundance") was established by Edmund Ho's father and was successfully restructured and saved by an infusion of capital from the Bank of China, the largest bank in Macau. Educated in business administration at Canada's York University, Ho has already relinquished his numerous business interests, which include Air Macau, the Transmac bus company, local television, and other interests.