SWOT analysis and public policy of Macao’s digital trade in services

Abstract

Macao’s trade in services has grown exponentially over the past 20 years. Based on the interview and secondary data analysis methods, this article examines the strengths, weaknesses, opportunities and threats of Macao’s digital trade in services. According to the SWOT analysis, the strengths of Macao’s digital trade in services include the significant progress in technical transformation and an increasing proportion of enterprises using computers and the Internet. The weaknesses lie in the poor information network infrastructure and a shortage of talents in information technology. Developing the digital economy in the Guangdong-Hong Kong-Macao Greater Bay Area and building an international hub for digital trade in the Guangdong-Macao In-Depth Cooperation Zone-Hengqin provide opportunities for the digital industry. The I.T. technology including ABCD, digital twins, industry 5.0, and FinTech Bridges agreements also bring the opportunities for digital trade. However, Macao’s digital trade in services faces threats from political conflicts and mistrust between countries. This paper has also made suggestions for future practice, including seeking a suitable development model for Macao’s digital trade in service, cooperating with Hengqin to build an international digital trade port and learning about successful experiences from other countries or regions such as Ireland. The findings of this paper will be beneficial to understand the strategic management and SWOT of Macao’s digital trade in services. Thus, it would be of interest to scholars as well as policymakers.