The Macau Government is trying to persuade SAR companies to relocate computer and telecom-related services to the enclave with the bait of promises of lower operating costs.
It says it can offer substantial cost advantages over Hong Kong in the areas of telecommunications, property and labour and has succeeded in convincing companies to move their call centres and back-office functions there.
Four SAR pager companies earlier this year moved the bulk of operations to Macau, and others are expected to follow.
Macau officials are even claiming the enclave has a big pool of skilled engineers and computer technicians in the hope of attracting activities such as data analysis and management, network management and disaster recovery.
SAR Government officials deny there is a contest, but the rivalry between the two cities is heating up and will culminate when Macau returns to mainland rule next December. Macau's relocation campaign also targets companies in Taiwan.
John Murray, director of strategic and business development for Macau telecommunications carrier CTM, said: 'If Hong Kong wants to maintain its position as a leading financial centre, it has to concentrate on its strengths.' Hong Kong's manufacturing activities had migrated to the mainland's south, he said, and low-skilled labour was destined to follow.