Twenty-five years ago, the Macao Special Administrative Region (SAR) returned to China, marking a significant milestone in the nation’s journey toward rejuvenation. Since then, Macao has transformed spectacularly under the “One Country, Two Systems” policy, achieving remarkable progress across politics, economy, society, and culture.
On December 20, at a ceremony commemorating the 25th anniversary and the inauguration of the sixth-term government of the Macao SAR, Chinese President Xi Jinping praised Macao’s achievements and expressed high expectations for its future. He referred to Macao as a “pearl on the palm,” highlighting its unique role in national development.
Economic Flourishing
Since 1999, Macao’s economy has surged impressively. In the first half of 2024, Macao’s Gross Domestic Product (GDP) reached approximately 204 billion Macanese pataca (MOP) (around $25.5 billion), a significant leap from the 51.9 billion MOP recorded before its return. The per capita GDP, after adjusting for purchasing power parity, stands at around $134,000—second highest globally and the highest in Asia—underscoring Macao’s economic vitality.
Beyond its renowned tourism and leisure industries, Macao is diversifying its economy. The convention and exhibition sector, financial services, traditional Chinese medicine (TCM), cultural and innovation industries, and the emerging digital economy have become new pillars. By mid-2024, Macao hosted 101 licensed financial institutions, with total financial sector assets amounting to 2.6 trillion MOP, marking a strategic shift toward a balanced and resilient economy.
Advancing Social Well-being
Macao’s commitment to people-centered governance has led to significant improvements in employment, housing, education, healthcare, and social security. These efforts have fostered long-term social harmony and stability. The gross enrollment ratio in higher education has soared past 95 percent, with the number of universities expanding from one to ten since 1999. This educational advancement is nurturing a talent pool crucial for Macao’s sustainable development.
The SAR government has established a comprehensive medical welfare system, providing free healthcare services and additional benefits for residents aged 65 and above, enhancing their sense of security and well-being. The robust economy has resulted in low unemployment rates, standing at just 1.7 percent in 2024. Initiatives in vocational training and re-employment are further enhancing residents’ job prospects and security.
Welfare policies, including housing subsidies and reduced utility costs, are improving living standards and the overall quality of life for Macao’s residents.
Cultural Renaissance
Macao’s rich historical and cultural heritage has been a cornerstone of its identity. Designated as one of the 2025 Culture Cities of East Asia, Macao hosts international cultural events like the Macao Arts Festival and the Macao International Music Festival, attracting visitors worldwide. The Historic Center of Macao, a UNESCO World Heritage site, showcases Macao’s architectural legacy and cultural diversity.
President Xi described Macao as “a city where cultures and arts from across the world mingle” and “a living example of harmonious coexistence and integrated development of different civilizations.”
Leveraging its geographical and cultural strengths, Macao is actively participating in national development strategies such as the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Greater Bay Area integration. It aspires to be a world center of tourism and leisure, a commercial and trade service platform between China and Portuguese-speaking countries, and a base for multicultural exchange and cooperation.
Urban Development and Connectivity
Significant urban development projects have enhanced Macao’s infrastructure and connectivity. The Hong Kong-Zhuhai-Macao Bridge, an engineering marvel, has strengthened ties with the mainland and positioned Macao as a regional transportation hub. Initiatives in urban greening, beautification, and lighting are making the city more livable and attractive to both residents and visitors.
Looking Ahead
As Macao celebrates its 25th anniversary since returning to China, it stands as a testament to the success of the “One Country, Two Systems” policy. With a solid foundation built over a quarter-century, Macao is poised to continue its journey of prosperity, cultural richness, and social harmony. The SAR looks ahead with optimism, ready to embrace future opportunities and contribute further to the nation’s development.
Reference(s):
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