Business community reacts to Sam Hou Fai’s election

The election of Sam Hou Fai as Chief Executive (CE) has stirred a mix of optimism and skepticism among local business leaders and expatriates.

With a sweeping victory, securing 394 of 400 votes from the Election Committee, Hou is set to become the first leader born in mainland China, marking a significant shift in the region’s governance.

In conversations with prominent figures from various chambers of commerce and the expat community, sentiments about Hou’s leadership are largely hopeful.

Rutger Verschuren, Chairman of the France Macau Chamber of Commerce, expressed confidence in Sam’s ability to address pressing issues.

“In a recent dialogue with Mr. Sam, we were impressed by his keen interest in addressing our concerns,” Verschuren said.

He emphasized the need for systematic improvements in human resources policies and government efficiencies to attract foreign investment while supporting local businesses.

“His commitment to fast-tracking economic diversification and integration with the mainland is promising for Macau’s development within the Greater Bay Area while protecting local business and residents’ interests,” Verschuren said.

Former International Legal Affairs Bureau head and Gaming Law Commissioner Jorge Costa Oliveira echoed these sentiments, highlighting Sam’s integrity and intelligence as key indicators for his administration.

“There are great expectations as regards Sam Hou Fai’s mandate as Chief Executive,” Oliveira said. He noted diversifying Macau’s economy is crucial, suggesting initiatives to promote Macau as a leisure and entertainment hub across Asia.

President of the Canadian Chamber of Commerce, Howard Stribbell, expressed enthusiasm about the future of Macau under the new administration.

“This is an exciting time for Macau’s future development,” he said, emphasizing the administration’s commitment to enhancing the lives of residents, particularly those who are less fortunate.

He said the focus on improving living conditions and encouraging economic diversity are not mutually exclusive; rather, they work in tandem. “When the overall economy of Macau improves, both Macau as a SAR and its residents benefit,” he explained.

The Canadian Chamber president highlighted the importance of talent acquisition and capacity building in the workforce, asserting that “Macau is poised to develop at an incredible speed” and should seek additional talent while continuously upgrading the skills of its resident workforce.

He said that external entities like the Canadian Chamber serve as vital conduits for fostering productive relationships between Macau and Canada, which can further enhance economic collaboration.

Rui Pedro Cunha, president of the Macau European Chamber of Commerce (MECC), commented that whilst we would need to see the composition of the new government to project the level of continuity and change, the future Chief Executive’s electoral campaign and announcements have created the expectation that he would institutionalize regular channels of consultation with citizens from all sectors to obtain timely feedback and inform government decision-making.

He remarked that “a critical stage has been reached by small and medium-sized enterprises that do not directly benefit from tourism, and the simplification and acceleration of the licensing process for new businesses is essential,” adding that he also believes that it’d be important, “to reach more agreements to avoid double taxation to attract multinational companies and skilled professionals, which would increase employment and further professional development.”

MECC president believes that Macau should “take better advantage of the huge market in the Greater Bay Area.” And that “It is also in Macau’s interest to open up more to the outside world and enhance its role as a platform between China and the world that has been a key part of its history.”

“It will be up to the government to create the conditions to facilitate the establishment of new industries. For example, ensuring the availability of workers with the requisite skills, knowledge, and experience by lining up talent attraction, industrial development, and education; a joined-up approach between government departments and the legislative assembly in law-making; modernizing the legal framework to remove inconsistencies and anachronisms; more agreements to avoid double taxation and government investment funds to guide capital into the new sectors, etc. The private sector then needs to take the initiative by taking advantage of these conditions”. “All this takes time, but the sooner we start, the better.”

Lawyer and Political Scientist Sérgio de Almeida Correia was more cautious, reflecting on past disappointments with previous administrations.

“I don’t have high hopes for the future Chief Executive because we’ve all had enough disappointments,” he said. Yet, he acknowledged that Sam’s background could lead to better governance. “He is undoubtedly better prepared than his predecessors,” he added, emphasizing the need for reform in public administration.

The challenges ahead for the new CE are significant. With Macau heavily reliant on gambling revenue, diversifying its economy remains a top priority.

Analysts predict that while Sam aims to enhance tourism and explore sectors like traditional Chinese medicine and finance, the gambling industry will continue to play a pivotal role in funding public welfare.

Local businesses have felt the pinch as residents increasingly shop across the border in Zhuhai for better prices and variety.

As Correia noted, creating a robust legal framework to attract financial entities is essential for fostering economic growth. He also proposed cultural initiatives, such as establishing a contemporary art museum akin to the Guggenheim in Bilbao, to draw international tourists.

As Sam prepares to take office in December, local leaders are hopeful yet wary about his ability to navigate these complexities. The overarching sentiment remains one of cautious optimism as Macau embarks on this new chapter under his leadership.

“Let’s grasp the opportunities and meet the challenges,” Sam said during his acceptance speech, signaling his commitment to serve a city he deeply loves. Only time will tell if he can transform these aspirations into reality for Macau’s diverse community. Nadia Shaw