Inward direct investment flows to the Macau SAR last year collapsed to a mere 20 percent of that in 2016, according to the latest data from the government, amounting to just over MOP3 billion for the whole 12-month period.
In a statement issued on the weekend, the Statistics and Census Service (DSEC) attributed the 80 percent decline to a general lull in investment in the gaming sector, following what the government department describes as “a generous distribution of dividends by some gaming enterprises, as well as the repayment of loans from foreign direct investors and fellow companies abroad.”
Analyzed by industry, the gaming sector recorded a negative inflow of MOP3.05 billion, which was offset by continued investment interest in both financial activities and construction, recording positive flows of MOP5.37 billion and MOP1.13 billion respectively.
Analyzed by investors’ registered place of residence, most direct investment flows came from the British Virgin Islands (MOP6.11 billion), mainland China (MOP3.56 billion) and Hong Kong (MOP3.33 billion), whereas inflow from the Cayman Islands remained negative (MOP8.64 billion).
While investment flows collapsed, however, income from such investment rose 20.4 percent year- on-year to MOP58.65 billion, with the income from the gaming sector increasing by more than one-third to MOP37.85 billion.
As at the end of 2017, stock of inward direct investment in Macau totaled MOP227.42 billion, down by 7.3 percent year- on-year.
Meanwhile, outward direct investment flows of Macau enterprises totaled MOP1.32 billion in 2017, with the earnings of such enterprises soaring 290.4 percent to MOP1.42 billion.