A political party yesterday suggested the SAR government set up a high-level, high-powered permanent mechanism to enhance economic and other ties between Hong Kong and Macao so as to complement each other's strengths.

The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) yesterday released a study on a "Hong Kong/Macao commonwealth" modeled on the European Union.

As traveling time between the two neighboring SARs will be shortened to 20 minutes upon the completion of the Hong Kong-Zhuhai-Macao Bridge, there are many areas in which the two sides can cooperate and complement each other's strengths, DAB legislator Tsang Yok-shing explained.

For example, immigration procedures for Macao citizens entering Hong Kong should be simplified to encourage citizens of the enclave to spend their holidays, work or study in Hong Kong. The two cities could also cooperate in such areas as convention/exhibition, financial services, logistics, heritage preservation, environmental protection, security and so on.

"The two cities can set up a high-level, permanent, executive mechanism to handle issues of mutual concern. In case of important issues, the two chief executives shall also participate in the decision-making," Tsang said. "All these are areas that the two cities can handle within their autonomy."

Economic development in Macao has been growing so fast in recent years that its per capita Gross Domestic Product (GPR) has surpassed that of Hong Kong.

However, according to legislator Chan Kam-lam, Macao has been too dependent on the casino industry and the enclave is looking to pursue other economic developments.

Meanwhile, as Hong Kong's economy is transforming, it must also seek new development opportunities to avoid having its economic status being taken over in the next 10-20 years, he said.

In his opinion, Hong Kong should adjust its mentality about its independence and cooperate more with its neighbors.

Ho Lok-sang, director of Lingnan University's Centre for Economic Policy Studies, said it is always a good idea to cooperate closely with neighboring regions.

He said should Macao choose to vigorously develop its convention/exhibition industry, the enclave will inevitably be a competition to Hong Kong. But at the same time, it also means mutual opportunities.

"Hong Kong can work to attract foreign business personnel attending conventions/exhibitions in Macao to visit Hong Kong, while Macao can do the same," he suggested.

At the Legislative Council meeting tomorrow, Tsang will move a motion to debate on Hong Kong-Macao cooperation.

On Saturday, the party will organize a seminar on this subject with Secretary for Commerce and Economic Development Frederick Ma as the special guest.

(HK Edition 06/24/2008 page1)