The Banking and Insurance industries have experienced remarkable growth over the last two decades under the supervision of the regulatory entity Monetary Authority of Macau (AMCM), with the enhancement of legislative and supervisory practices. AMCM was created in 1989, enjoying financial and administrative autonomy, to supervise monetary and financial operations as well as insurance and related activities and institutions, according to the terms established in the regulatory statutes governing each respective area. It also advises the Macau SAR Government on the best policies to maintain the sustainability of the long-term growth of the financial sector and adopts international best practices for the development of Macao as a financial services centre. It is also responsible for monitoring the external solvency of the local currency, the Macau Pataca (MOP), and ensuring the currency's full convertibility.

Between 2002 and 2008, Macau has experienced an unprecedented boom in construction due primarily to the liberalization of the gaming industry occurred in 2002, with new luxury hotels, large scale casinos with VIP suites and mega-resorts already built or under construction, such as those on Cotai (the reclaimed land areas between Taipa and Coloane), The Venetian Macau and City of Dreams, to name but a few.

In the residential area, there has also been an enormous increase in new luxury residential developments.

This has attracted a number of international architectural design and construction companies that established their business in Macau. The recent economic crisis has had its greatest impact on this sector with some construction projects being suspended and the number of property transactions reduced, but the market has rebounded since 3rd quarter of 2009, in particular on the property transactions. Construction is also expected to pick up in 2010.

A legal regime has for the Regeneration of Old Neighborhoods been approved, honouring the qualification of Macau as a World Heritage Site, which has prompted restoration works on many run down buildings in the old areas of Macau, notably in the S. Lázaro District.

Internet, broadband and mobile services are fully liberalized and the incumbent Macau Telecommunications Company ("CTM") still holds the monopoly for fixed local and international telephony services and respective network equipment. In 2007 the first 3G licences were awarded to three of the four mobile players in Macau - CTM, China Unicom and Hutchison Telecom.

CTM’s exclusive rights under its concession agreement expire in December 2011 and thereafter all telecommunications services will be fully liberalised.

There is a general shortage of local qualified labour forcing employers to import foreign employees, in particular in the tourism, hospitality and construction areas.

A new employment law came into effect on 1 January 2009 ruling on employment contracts with Macau residents. This new law replaces the previous one dating from 1989, providing more clarity on the rights and obligations of both employer and employee.

The new legislation on the employment on non-resident labour was published in October 2009 and bacame effective on 26 April 2010. It better defines the rules and reflects the Macau Government policies of giving priority to the local workforce before resorting to foreign labour, subjecting it to an authorization process.

In 2006 a consortium formed by Sinopec and Gás Natural de Macau was awarded a licence for the supply of natural gas. The concession will last for 15 years, with a total cost of MOP10 billion (US$1.25 billion). Introduced in 2007, it is estimated that natural gas will account for a third of Macau’s electricity supply. This may constitute a big event in the Macau project finance and energy industry for the coming year.

The most significant infrastructure projects in the near future are the construction of a light rail system in Macau and the Hong Kong-Zhuhai-Macau Bridge.

As tax rates are generally moderate in Macau, it may be said that the level of taxation constitutes an incentive to development of business in Macau. Macau has established Double Taxation Exemption Agreements with Portugal (1999) and China (2004) both to avoid double taxation and also tax evasion.

With the increasing development of international businesses in Macau and the growing importance of intellectual property rights, there has been a change in attitude over IP, with the growing realization that trademarks and copyright infringements have become more than a marginal nuisance. A relatively recent reduction in trademark registration costs has helped to boost the number of IP cases brought in Macau [1].

[1] Parts of this text have been adapted from the excerpt published in Asialaw Profiles 2009.