Discussion On The Opening Of Macau's Gambling Industry And Its Effectiveness On Financial Industry

Gambling has been a proprietary industry in Macau since 1930s. It has been a significant and supportive industry which played a decisive role in Macau抯 economy in recent year. It leads Macau抯 economy to recover from the recession steadily and is expected to keep on it抯 a role of economic core in the foreseen future. Proprietary contract will be expired in coming December 2001. Releasing the proprietary system is an essential pace for Macau抯 development. Releasing extent depends on the social economic factors such as economic environment, social security and financial status. It is believed that the Special Administration Region of Macau will open the market step by step as to minimize the caused negative effects. Opening gambling industry is not expected to generate immediate effectiveness in the short period of time, However, it is supposed that the resulted advantages to Macau抯 general economy will be prior to disadvantages in the long run. Opening the industry will increase the population of Macau and thus enhances the potential investment opportunities, which attract outside investors to increase the supply and then arouse demands for the market and enlarge the employment opportunities. Enlarged employment opportunities can bring up economic development to stimulate the demand for internal capital and smooth the capital flow ins and outs, mean while the financial industry acts as the medial and accelerates the whole opening procedure and in turn benefits from it directly. During the process, financial industry will inevitably encounter alternations in gambling industry and other related fields as well as the competitions within that. Under these circumstances, it is necessary for the moderate adjustment in the operating patterns, practical and active reforms, service functions increase and quality improvement, business varieties enlargement, hi-technology introductory / e-commerce as well as the new financial execution system. Base on these, a well- equipped foundation can certainly be built for the development and challenges in the financial industry.