Cooperation between the neighbouring Macao Special Administrative Region (SAR) and Guangdong Province has gathered momentum since the return of the SAR to the motherland in 1999.

Co-operation in the Greater Pearl River Delta (PRD), which covers Hong Kong, Macao and Guangdong, the Closer Economic Partnership Arrangement (CEPA) and the latest pan-PRD co-operative scheme are crucial to this progress.

Investment from Macao in Guangdong topped US$1.18 billion in the five years to October, accounting for 36 per cent of the total since the late 1970s, according to the Guangdong provincial government.

Imports and exports between the two surged 30 per cent year-on-year to US$1.43 billion in the first 11 months of this year, with exports from Guangdong to Macao reaching US$1.24 billion, according to the Guangzhou office of the Ministry of Commerce.

Registering 14.3 per cent growth in gross domestic product (GDP), which accounted for about one ninth of the national total, Guangdong is expecting further economic growth of at least 14 per cent this year.

The number of people passing through the Gongbei checkpoint at the Guangdong-Macao border, the second largest land checkpoint on the mainland, surged to 51 million last year from 30 million in 1999 and is expected to exceed 60 million this year. The flow has been boosted further by relaxed visa requirements for mainland residents under CEPA.

"Co-operation between Guangdong and Macao has helped boost their economies, especially in western Guangdong," said Chen Guanghan, director of Guangzhou-based Sun Yat-sen University's Centre for the Study of Hong Kong, Macao and the Pearl River Delta.

Since the first inter-governmental joint conference in late 2003, Guangdong and Macao have co-operated in service sectors under the framework of CEPA, cross-border industrial zones, study of the development of Hengqin Island, major infrastructural projects, tourism and checkpoints, according to the Guangdong government.

The two sides have also enhanced co-operation in the public health, culture, technology, education, sports, environmental protection, emergency medical aid, fire fighting and police sectors.

Guangdong and Macao agreed to further co-operation in 11 major areas during the second joint conference, which was held in Guangzhou, capital of Guangdong, late last month.

Guangdong pledged to enhance its support for Macao's role as a regional business service platform and investment by Guangdong businesses in Macao.

For the proposed bridge linking Macao, Hong Kong and Zhuhai, related parties will actively push forward the feasibility study and look into the management of the bridge's checkpoint, financing for construction, and the operation of the bridge.

Guangdong and Macao will continue working on the linking of Macao with the Beijing-Zhuhai Highway and the highway running along the western coast of Guangdong.

They will consider joining Macao to the proposed Guangzhou-Zhuhai railway in a future feasibility study. The proposed railway has received State approval.

In developing the Zhuhai-Macao Cross-Border Industrial Zone, the two sides will speed up construction of the passage between the checkpoints, formulate rules on the management of the checkpoints and reinforce planning of the zone.

The Zhuhai side of the zone has clinched 13 investment contracts worth about HK$300 million (US$3.84 million), most of which comes from Macao. During last month's joint meeting, it was agreed that the development of Hengqin Island, the largest island in Zhuhai, would be jointly carried out by Pan-PRD members, which include nine mainland provinces in southern China, Hong Kong and Macao. The pan-PRD co-operative scheme was launched in June this year.

The governments of Guangdong and Macao have pledged to step up efforts in the logistics sector, small and medium-sized enterprises and intermediary services.

Next year will also see jointly arranged business tours of Guangdong, Macao and Hong Kong for businesspeople from some Portuguese-speaking countries and trade promotion events in South America.

Editor: Olivia