Overview

Macau, officially known as Macau Special Administrative Region of the People's Republic of China (PRC), is a former Portuguese territory that reverted to Chinese sovereignty on 20 December 1999.

Macau is governed by the Basic Law of the Macau SAR (the Basic Law). It states that Macau is part of the PRC but also defines separate executive, legislative and judicial powers. Under the Basic Law the territory is provided a high degree of autonomy under the principle of 'one country, two systems' in all areas except defence and foreign affairs (for which China is responsible).

Chief Executive

The Basic Law designates a system of governance led by a Chief Executive (CE) and an Executive Council, with a two-tiered system of representative government and an independent judiciary. The CE makes policy decisions and has the power to initiate legislation. According to the Basic Law, the CE is “accountable to the Central People's Government and the Macau Special Administrative Region”.

The CE is appointed by Beijing after election by an Election Committee representing Macau's business, cultural and social interests. Amendments to the Chief Executive Electoral Law in January 2024 require CE and Election Committee nominees to sign a declaration of support for the Basic Law, and declare their loyalty to the PRC and the Macau SAR. CEs are elected for five years and limited to two terms in office. Sam Hou-fai was elected Chief Executive designate in October 2024, and will take office in December, replacing Dr Fernando Chui Sai.

Legislative Assembly

The major functions of the Legislative Assembly are to enact laws, examine and approve budgetary matters, monitor the government's performance, and debate issues of public interest. The most recent elections for the Legislative Assembly took place in September 2021. The 33 members of the assembly serve a term of four years.

Judiciary

Macau's legal system is based on the Portuguese Civil Law. Under the Basic Law, the judiciary is independent of the executive and legislative branches of government. The judiciary comprises a Court of First Instance, a Court of Second Instance, a Court of Final Appeal, a Lower Court and an Administrative Court. Members of the judiciary are selected by an independent committee and appointed by the CE.

National Security Law

Macau’s Law on Safeguarding National Security (the Law) entered into force in 2009. The Law covers treason, secession, subversion of the government, sedition, theft of state secrets, foreign interference and collusion with foreign forces, with a maximum penalty of 25 years’ imprisonment.

In May 2023, the Legislative Assembly passed amendments, aligning the Law with Hong Kong’s National Security Law 2020. The amendments included incorporation of non-violent attempts of secession and subversion, incitement of sedition, expansion of definitions for collusion with foreign forces, and expansion of extraterritorial provisions for most offences. The Law also empowers authorities to request suspicious individuals or organizations in Macau to submit relevant financial and event information for tracking purposes.

Economic overview

Macau is part of the Greater Bay Area (GBA) initiative, which seeks to improve connectivity between the Guangdong, Hong Kong and Macau economies.

Macau’s economy is underpinned by gaming and tourism. Gaming has been licensed in Macau since 1850 and attracts large numbers of visitors from mainland China. The gaming industry dominates the local economy, providing over 70 per cent of total employment.

Since 2020, the economy has been undergoing significant transformation. The Macau government is encouraging non-gambling tourism and is seeking to attract more conference and business visitors, including by developing new infrastructure. Diversification efforts have focused on growing the MICE (meetings, incentives, conventions and exhibitions) tourism segment, as well as integrated tourism and leisure, high technologies, modern finance and Traditional Chinese Medicine.

Macau leases Hengqin Island from the PRC. Hengqin is being developed as a mixed-use area, with theme parks, resorts and residential buildings planned, and is emblematic of efforts by the Macau SAR Government to diversify its economy beyond the casino industry.

Mainland China is Macau’s most important import source. Macau depends on China for most of its food, fresh water, energy and, increasingly, labour.

Bilateral relations

Australia has business interests in Macau’s gaming, education, hospitality, creative services, construction, consumer product and food and beverage sectors.

In 2023, the total value of Australia’s two-way merchandise trade with Macau was $106 million. Major Australian merchandise export items include alcoholic beverages; jewellery; prams, toys, games and sporting goods, and watches and clocks.

An Australian Chamber of Commerce in Macau (AustCham Macau) was formally launched in January 2019 to provide targeted support to the Australian business community, and to promote trade and investment opportunities.

Since 2016, consular arrangements with Macau have been covered by the Australia-China Agreement on Consular Relations.

Approximately 2,000 people of Macanese descent live in Australia and around 2,000 Australians live in Macau.

Consular services for Macau are provided by the Australian Consulate-General in Hong Kong.

For more information see Austrade’s Doing business in Macau webpage.