MACAU SAR: An Introduction to General Business Law

Economic and Business Landscape

As Macau continues to navigate its economic transformation, the government has emphasised a policy of economic diversification to reduce its reliance on the gaming industry. In December 2024, Macau welcomed its sixth government.

According to official government plans, Macau is focusing on fostering new industries, including modern finance, hi-tech, healthcare, and cultural tourism and trade exhibitions. These sectors are expected to provide businesses with new growth opportunities while aligning with China’s broader development goals, particularly within the Guangdong–Hong Kong–Macao Greater Bay Area (GBA) and the Guangdong–Macau Intensive Co-operation Zone in Hengqin (the “Hengqin Co-operation Zone”).

The post-pandemic recovery of Macau’s tourism and hospitality sector has contributed to a rebound in economic activity. Government projections indicate a steady rise in GDP, driven by increased foreign investment and cross-border trade facilitated by the region’s free-trade policies. However, macroeconomic challenges remain, particularly when it comes to managing economic fluctuations, labour market stability, and regional competition.

Key Legal Developments and Legislative Review

To foster a more business-friendly environment, the Macau government has introduced several legal reforms across multiple sectors, as follows.

Aviation

Aviation policies are undergoing revisions to align with international best practices. The proposed Civil Aviation Law, introduced to the Legislative Assembly in June 2023 and still under discussion, includes updated policies on aviation safety, air traffic management, and industry standards to modernise the sector and support growth in air travel services.

ADR

In an effort to reduce the burden on Macau’s courts, the government is considering the proposed Family Mediation System Law. Currently under discussion in the Legislative Assembly, the proposed law seeks to incorporate mediation as a key mechanism for resolving family-related legal disputes.

Financial services

Macau’s financial sector has seen significant regulatory enhancements aimed at increasing transparency and strengthening investor confidence. The passage of the Tax Code (Law No 24/2024), set to come into full effect in 2026, marks a milestone in modernising Macau’s tax system by introducing new compliance measures that enhance transparency and efficiency in tax collection. Additionally, the enacted Insurance Intermediary Law (Law No 15/2024) strengthens oversight of insurance intermediaries, ensuring greater consumer protection.

To further attract international investment, financial regulations have been refined to facilitate fintech applications and cross-border financial transactions. The government has also released its White Paper on Macao Special Administrative Region’s Macau digital currency (e-MOP). Furthermore, the proposed Investment Funds Law – under discussion in the Legislative Assembly since November 2024 – seeks to establish a comprehensive framework for investment fund regulation, thereby encouraging financial sector growth.

Gaming

Enacted in August 2024, Law No 7/2024 (the “Credit for Gaming Law”) restructured Macau’s gaming credit framework by granting casino concessionaires the exclusive authority to extend credit directly to patrons. This replaces the previous regime (Law No 5/2004) and significantly alters the role of gaming promoters, who can now only act as intermediaries rather than offering credit themselves.

The change limits high-stakes players’ access to personalised credit, posing a challenge for concessionaires. To remain competitive, operators must develop innovative strategies to engage VIP patrons while complying with stricter credit regulations.

Effective from 28 October 2024, Law No 20/2024 (the “Unlawful Gambling Law”) strengthens penalties and enforcement measures against illegal gambling activities. Its key provisions include:

• expanded penalties – with increased fines and imprisonment for unauthorised gambling, online gaming, parimutuel betting, and illegal lotteries;
• targeting illegal loans and money exchanges – ie, criminalisation of the unauthorised currency exchanges within casinos, with offenders facing up to five years in prison;
• stronger enforcement – allowing night-time residential searches, extended pre-trial detention, and administrative dissolution of entities involved in illegal gambling; and
• online gaming crackdown – with unlicensed operators facing prison sentences of up to eight years, even if servers are located outside Macau.

Healthcare and medical devices

The government is also working towards improved healthcare regulation. The proposed Medical Devices Regulatory Framework, introduced to the Legislative Assembly in October 2024 and still under discussion, aims to establish clear guidelines for the approval, distribution and safety of medical devices in Macau and thereby ensure higher standards in healthcare services.

Public sector and procurement

Reforming government procurement processes is another key area of focus. The proposed Public Procurement Law, under discussion in the Legislative Assembly since December 2023, aims to enhance transparency and efficiency in contract allocation and thereby streamline procedures for businesses engaging in public sector projects.

Tourism and hospitality

As Macau continues to develop its tourism industry, legislative efforts are being made to ensure service quality. The proposed Travel Agencies and Tour Guides Law – introduced to the Legislative Assembly in March 2024 and still under discussion – seeks to regulate the tourism industry by introducing standards for travel agencies and tour guides, thereby enhancing Macau’s reputation as a travel destination.

Opportunities for Businesses

The above-mentioned legal changes collectively indicate a shift towards regulatory refinement. This serves to make Macau an increasingly structured and attractive business environment and, with the rapid integration of Macau into the broader GBA economic framework, businesses can leverage new cross-border co-operation opportunities. The establishment of the Hengqin Co-operation Zone is a major step towards deeper economic integration, providing tax incentives and relaxed market entry requirements for Macau-based enterprises.

Furthermore, the government’s strong push for innovation and technology presents significant opportunities for companies in the digital economy. Investment in AI and green technologies is being encouraged, with special incentives for firms engaging in research and development in these areas.

The evolving financial sector, particularly in digital banking and financial services, is also an attractive area for foreign investors. With continued improvements in regulatory oversight and the government’s goal of positioning Macau as a renminbi clearing hub for Portuguese-speaking countries, businesses engaged in financial services stand to benefit from these reforms.

Challenges and Risks

Despite the promising outlook, businesses in Macau face several challenges. The region’s small labour market makes it difficult to attract and retain skilled professionals, particularly in emerging industries such as fintech and hi-tech manufacturing. Additionally, businesses must navigate evolving regulatory requirements that – while creating a more structured business environment – also demand ongoing compliance adjustments.

Geopolitical and economic uncertainties, including fluctuations in China’s macroeconomic policies and global trade tensions, could also impact business operations. Companies must remain agile and adaptable, ensuring they stay informed of regulatory changes and policy directions.

Lastly, although Macau’s legal system is stable and well-developed, businesses operating in cross-border transactions must remain vigilant regarding jurisdictional complexities and evolving regulatory frameworks. Working with experienced legal advisers will be essential in mitigating risks and ensuring compliance both with local and international laws.

Conclusion

Macau’s evolving business environment presents both challenges and opportunities for companies looking to establish or expand their presence in the region. With strong government initiatives supporting economic diversification, regulatory improvements, and financial sector growth, businesses have significant potential to thrive. However, a careful and informed approach will be necessary to navigate regulatory changes, labour market constraints, and geopolitical risks.

For companies seeking to engage in Macau’s dynamic economy, staying ahead of legislative developments and leveraging government-backed incentives will be crucial to success in 2025 and beyond.