In 2024, the Macau Special Administrative Region (SAR) Financial Reserve recorded an investment income of MOP30.95 billion, an annual return of 5.3%, the Monetary Authority of Macao (AMCM) reported.
By the end of last year, the value of the Financial Reserve capital amounted to MOP616.21 billion, of which the basic reserve accounted for MOP153.39 billion and the extraordinary reserve MOP462.82 billion.
According to the AMCM, the 5.3% return was achieved through a diversified and balanced asset allocation.
AMCM also noted that, in 2024, in the context of a gradually controlled inflationary situation, the central banks of many countries have reduced their policy interest rates, which favored the trend of financial markets; however, the variation in the growth rate of the leading world economies, geopolitical complications and the gradual adjustment of market expectations regarding the interest rate cuts by central banks caused the prices of financial assets to retreat from their highs at the end of the year.
The authority noted that the investments followed the premise of maintaining the liquidity and safety of overall assets, focusing on allocating high-quality assets that can provide stable returns on lower risks, while moderately optimizing the structure of the listed equity portfolio to achieve capital preservation and appreciation.
The AMCM remarked that the Macau SAR Financial Reserves are essential in supporting social and economic stability, so they should be used prudently.
Fearing geopolitical uncertainty in 2025, AMCM expects that the prices of various types of assets will continue to be affected, posing challenges to the investment management of the reserves in the current year.
For this reason, the AMCM will allocate reserves investments according to the principle of “safe, efficient, and stable,” with special emphasis on controlling downside risks, holding a more significant proportion of highly safe and liquid investment products, and timely adjusting the allocation in response to market conditions. These measures aim to promote medium—and long-term results by preserving capital and increasing its value as an SAR asset.
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