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Industrial zone offers a lifeline to Macau firms

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Macau's small firms, struggling in the shadow of booming casinos, are hoping that a cross-border industrial park will throw them a lifeline.

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But promises of mainland labour have failed to materialise and critics are sceptical about its overall impact.

The park between Zhuhai and Macau, due to open later this month, has lured more than 30 companies in areas such as textiles, logistics, electronics and fashion design, tempted by low rents and tax concessions.

'Macau's economy relies heavily on gaming and tourism, leaving other sectors little room to grow,' said Jack Chan Wai-chi, president of the Zhuhai-Macau Cross-border Industrial Zone Chamber of Commerce. 'Through the operation of the park, the government hopes to stop some traditional enterprises withering in the shadow of the gaming industry.'

The 40-hectare park is separated into a Zhuhai zone and a Macau zone, the latter occupying 11 hectares at the northwestern corner of the Macau Peninsula.

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Mr Chan said the park was designed to allow Macau firms to benefit from Guangdong's cheap labour and land resources. It was also meant to help some mainland companies acquire 'made in Macau' status for their export goods.

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