S'pore, Macau sign MOU to boost business relations

S'pore, Macau sign MOU to boost business relations
By Chow Penn Nee, Channel NewsAsia | Posted: 13 April 2007 2208 hrs



SINGAPORE : Singapore companies and investors are now starting to look at opportunities in Macau, particularly in its booming gaming industry.

A memorandum of understanding (MOU) was signed on Friday, giving a boost to business relations between the two parties.

The MOU, signed between the the Singapore Business Federation and the Macau Chamber of Commerce, aimed to provide mutual assistance in the understanding of each other's markets and investments.

Both parties also pledged to facilitate co-operation between businesses from both sides.

Macau is hoping to attract Singapore investors, with its close proximity to the Chinese hinterland and its successful gaming industry.

Ma Iao Lai, Vice President, Macau Chamber of Commerce, said, "Macau is making a platform for a free port, and making a platform between Macau and Portuguese-speaking countries, and a platform for the Pearl River Delta, platform for the global Chinese entrepreneurs. We have very good outside connections".

Tourism and gaming are the main economic drivers of Macau, and they are seen as offering good opportunities for Singapore firms.

CapitaLand and Star Cruises are among the Singapore-listed companies which have recently announced plans to invest in Macau. And although Singapore is building two integrated resorts, gaming players in Macau are downplaying the issue of competition.

Dr Ambrose So, Director, Sociedade De Jogos De Macau, SA, said, "I think there is no direct correlation between if Singapore succeeds Macau must fail. That is not the right perception. I think (that) Singapore and Macau (each) have their own niche market. Macau has a very strong hinterland, which is China, around it, it has Hong Kong, Taiwan. Around Singapore you have India, you have South-East Asian countries. I think we can work on complementary activities... a lot of interactions where we can complement each other".

Macau's gaming industry has been booming since the sector was liberalised in 2001, helping the territory to overtake Las Vegas as the prime gaming destination in the world.

Gambling revenues from Macau's casinos hit nearly US$7 billion last year. - CNA/ms