Macau’s Chief Executive Ho Iat Seng recently highlighted that artificial intelligence and the metaverse are future development trends that can help promote Macau’s economic diversification. Defining what the metaverse consists of is difficult and this has created a lot of discussion among the local community. In short, it covers a wide variety of content and categories and can be applied in a variety of ways. To put it simply, it can be defined as a network of virtual worlds, which try to replicate reality with a focus on social connection.
The concept has developed mainly in the online commerce sector, which despite a pandemic and global recession, has maintained its strength. China has already established itself as a global leader in the metaverse, booming online commerce in all related industries and creating a significant number of new businesses and jobs in the country. It is now up to the Macao SAR Government to assist the economic recovery during the pandemic. And to promote this industrial rehabilitation and diversification, we must first ensure that online commerce grows in line with national and global development.
In addition to the expansion of the market segment and job creation, this growth also offers micro, small, medium and large companies, as well as local merchants and brands, a new business area.
There are a number of companies in Macau actively developing and investing in platforms in this sector. However, as the industry is at an early stage, it faces numerous challenges and limitations, and government support is essential. It is expected to assist in the development of the cross-border online commerce industry, namely in three ways:
– Initially, incentives should be offered to reduce cross-border costs, including subsidies to support customs fees, logistics and warehouses, as well as additional costs in using online sales and payment platforms to ensure the competitiveness of these companies.
– Promote activities that promote cross-border online commerce platforms between Macau and the mainland Chinese market. Benefits should also be offered to participants in these activities, showing the commitment to promoting cross-border online commerce and increasing awareness and sales of local brands in the mainland China market.
– Provide better support for local talent, encouraging more young people to participate in this emerging industry through funded projects and vocational training programmes. Quality tools are needed to create a good product and the cross-border e-commerce industry is a powerful tool in helping local businesses to “sell and attract capital”.
With the necessary support from the Government, small and medium-sized local businesses can survive and grow. At the same time, the long-term integration of the Deep Cooperation Zone in Hengqin is promoted, as well as a basis for the future development of technological innovation in Macao.
*Macao Livelihood and Economy Alliance/Member of the Macau Legislative Assembly
