The Heritage Foundation has released today its 2010 Report on the Index of Economic Freedom. Macao’s overall score has improved slightly by 0.5 from a year earlier to 72.5, making the SAR the 20th freest among 179 economies worldwide, up one place from the year before. Macao is ranked 6th in the Asia-Pacific region while its overall score is well above the world and regional averages.

The study covers economies in different regions across the world, which have been assessed with 10 factors of economic freedom. Macao ranks relatively high in factors such as trade freedom, investment freedom, fiscal freedom, monetary freedom and financial freedom.

The Foundation’s 2010 Report says that Macao, as a free port, has long been benefitting from global trade and investment. The overall entrepreneurial environment incorporates high efficiency and low-tax, while property rights are well respected. Foreign investors can conduct business on the same terms as locals. Sound regulatory regime assures free flows of financial resources. Since the open-up of the gaming industry in 2002, Macao has attracted more foreign investors, spurring tourism and overall consumption. Other areas of growth include finance, insurance, and real estate.

In the Asia-Pacific region, Macao just ranks behind Hong Kong, Singapore, Australia, New Zealand and Japan. In the global ranking of economic freedom, Macao ranks 20th and has been classified as “mostly free”.

According to the Heritage Foundation, economic freedom is strongly related to economic performance. Per capita incomes are much higher in societies that are economically free.