The Macau Special Administrative Region (MSAR) has decided to sign a strategic alliance with one of the largest retailers of the global e-commerce market - Alibaba. Post conducting extensive research, the Macau government has chosen Alibaba as their developing partner to undertake the development of data technologies and cloud computing. Through this agreement, Alibaba aims to enhance the qualities of the Macau’s public services such as healthcare, tourism, urban management, and transportation.

In its first five-year development plan, the Macau government had penned down its vision to introduce Macau as a smart city. In addition, the government also aims to implement various services related to information technology sector. The deployment of IoT has already been projected to contribute majorly toward the development of APAC e-commerce software market. Additionally, in the Asia Pacific region, Alibaba has the reputation of implementing stringent information security practices, due to which the MSAR government will not find the necessity to carry out the rework of existing infrastructure facilities.

Reportedly, the MSAR government has divided the Framework Agreement of Strategic Cooperation on Smart City Development project into two phases. In the first phase, they are planning to cover major areas related to technological development such as, medical services, tourism, transportation management, and training of IT professionals by implementing cloud computing data center.

By the middle of 2018, the Government Information Bureau (GCS) is expecting the release of the first phase of the project. Alibaba’s rich experience with regards to technology installation across various developed cities are likely to help government over the years ahead. The second phase of the project will commence from 2019 and end in 2021. In this phase, the development related to the customs clearance and environmental protection has been scheduled to be carried out.

Through this agreement, Alibaba has the advantage of expanding the scope of cashless transactions across various tourist spots and airports by installing consumer market tools such as mobile payments and online promotions. This strategy is likely to enhance the smart transportation network, which will favorably optimize the management of Macau transit in various modes of transport such as waterways, airways, and roads.

Apart from transportation, Alibaba plans to implement the latest electronic medical system in the healthcare sector. In the smart city plan, the healthcare sector is likely to be linked to the global online medical database, which may help healthcare providers. Alibaba’s chief officer, O Lam, has been quoted stating that Alibaba will contribute significantly to accomplish the long-term development goals of the MSAR government.

This collaboration is likely to change the face of the city by means of smart technologies. Alibaba also seems to emanate confidence that Macau is likely to become the role model for smart cities in the APAC region.