Chief Executive Sam Hou Fai emphasized the urgent need for economic adaptation amid global uncertainties as the city faces “intensified competition.”
In his speech at the first plenary meeting of the Economic Development Commission for 2025 yesterday, he highlighted the significant transformations expected in both domestic and international environments, warning that factors such as unilateralism, protectionism, and economic instability will continue to pose challenges for Macau.
He stressed that intensifying competition within Macau’s tourism and gaming industries adds further pressure, making it imperative for the region to implement proactive measures to safeguard its economic stability.
“As a small-scale economy, Macau cannot remain unscathed, especially as competition in tourism and gaming from neighboring cities intensifies and looms,” said Sam, stressing that the city is not immune to the impacts of an increasingly volatile global economy.
Revenues from local casinos dropped by 5.6% in January, totaling MOP18.254 billion, according to data from the Gaming Inspection and Coordination Bureau.
This figure contrasts with the gross gaming revenue (GGR) of MOP19.337 billion reported in January last year. January revenues mark a cold start to a year in which the government projected a GGR of MOP240 billion, averaging MOP20 billion per month.
Additionally, the Chief Executive pointed out that the structural dominance of the gaming industry remains a persistent issue that will not fundamentally change in the near future.
For Sam, Macau continues to grapple with a limited visitor demographic, an imbalanced revenue structure, and a lack of innovation—problems that, he stressed, have yet to be effectively addressed.
During Sam’s political campaign, he outlined his vision for a balanced economic future, stating that “having only the gaming industry dominate” is detrimental to Macau’s development.
He underscored that economic diversification is a critical issue that “cannot be ignored,” adding that “there is no turning back,” and emphasizing the importance of developing in a diversified manner.
During the meeting yesterday, he warned that Macau must find ways to manage its internal economic inconsistencies and imbalances as consumer behaviors and economic trends evolve.
He also acknowledged that efforts to develop a more diversified industrial sector have not met societal expectations and that local small and medium-sized enterprises (SMEs) face pressing challenges that need urgent attention.
Government data shows that in 2024, the number of new companies incorporated in Macau decreased, with a total of 4,555 newly registered businesses, representing a year-on-year drop of 456.
This decline was accompanied by a 37.5% reduction in the total value of registered capital, which fell to MOP1.03 billion.
Therefore, one key area of focus, he stated, should be fostering stronger cooperation between Guangdong and Macau in the development of Hengqin.
By strengthening this collaboration, Macau could create new economic opportunities beyond its traditional sectors and work toward long-term stability.
Additionally, Sam noted that as the United States raises tariffs on imports this month, the new U.S. administration’s international strategy and uncertain policies toward China could have negative economic repercussions for Macau.
“Our country’s economy continues to face many difficulties and challenges, including insufficient domestic demand, production and operational struggles for some enterprises, and difficulties in employment and income growth for residents,” he said.
“These new situations require us to pay close attention and respond appropriately, as Macau’s economy is based on the integrated tourism and leisure industry and is highly dependent on the visitor market from mainland China,” Sam added.
Call for Constructive Solutions
Sam called on members of the Economic Development Commission and various sectors of the community to actively explore and propose practical, feasible, and effective long-term solutions to support the city’s sustained and diversified economic development.
“How can we properly address the issues of insufficient development and imbalance in Macau’s domestic economy during the economic recovery process? How can we resolve conflicts arising from industrial diversification falling short of societal expectations, as well as the common and urgent difficulties faced by small and medium-sized enterprises?” he questioned.
Sam concluded by expressing his hope that all sectors of society will put forward constructive proposals, and work together to “drive meaningful economic progress”
He called on stakeholders to take an active role in shaping Macau’s economic future, not just as questioners, but as “responders” to its challenges.
CE establishes five new working groups to enhance governance, heads two
Chief Executive (CE) Sam Hou Fai issued an internal directive to establish five new government working groups aimed at enhancing governance capacity and efficiency.
The Government Information Bureau announced in a press statement that among the groups, the CE will personally lead two: the Leading Group on Public Administration Reform and the Leading Group for Promoting the Development of the Guangdong-Macau Intensive Cooperation Zone in Hengqin.
The other three groups, led by Secretary for Administration and Justice André Cheong, include the Coordination Group for Public Administration Reform, the Legal Coordination Working Group, and the City Beautification and Sanitation Working Group.
According to the statement, the establishment of these groups aligns with President Xi Jinping’s address at the 25th-anniversary celebration of Macau’s return to China and the inauguration of Macau’s sixth-term government.
The working groups will focus on strengthening interdepartmental and cross-sector cooperation to enhance governance, improve public administration reform mechanisms, and streamline legislative coordination and planning.
Additionally, they aim to refine the legal system, foster better interaction between administrative and legislative bodies, and optimize Macau’s overall governance framework.
The groups have been tasked with approaching their work with innovation and a proactive mindset. They are expected to leverage national-level support policies to help the Hengqin Cooperation Zone achieve its second-phase development goals.
A key priority is improving governance structures to enhance public welfare and ensure better living conditions for Macau residents. RM
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