Chief Executive Sam Hou Fai delivered his first Policy Address to the Legislative Assembly yesterday – responding to the themes of “reform” and “forging ahead” that he emphasized during his election campaign, with one of the main themes being “reform for development and forging ahead to open up new horizons.”
In his 2025 Policy Address, Sam articulated his governance philosophy and development goals with clarity and purpose.
He emphasized a strong sense of responsibility, a renewed mindset, and pragmatic approaches to advance Macau’s initiatives in alignment with China’s modernization efforts, aiming to pave new avenues for the city’s growth.
To realize a Macau characterized by the rule of law, cultural vibrancy, and economic vitality, the address outlined a range of medium- and long-term policies.
Among these initiatives were key focuses on fostering patriotism and enhancing integration with the nation.
The overall direction of the new policy address is to “increase diversity, improve people’s livelihood, enhance governance, and integrate into the country.”
Bold support to families with new borns, modest for elderly
In his opening remarks, Sam stated that this year’s fiscal revenue “may not be as optimistic as expected,” highlighting that the post-pandemic recovery momentum in the tourism and gaming industries is gradually slowing.
He noted that some significant new expenditures are not reflected in the published budget, which may necessitate adjustments.
However, the policy address still emphasized that people’s livelihood is of paramount importance, with Sam saying that the current government will prioritize public interests, focus on daily necessities, and address the most urgent issues concerning the public to fulfill their yearning for a better life.
Among the measures announced, Sam included support for childbirth, such as a monthly allowance of 1,500 patacas for each infant under the age of three, totaling 18,000 patacas per year.
Additionally, the birth allowance has been increased to 6,500 patacas and the marriage allowance to 2,220 patacas, reflecting increases of 1,082 patacas and 98 patacas, respectively.
Sam stated that “these measures aim to improve fertility support policies and take a multi-pronged approach to actively address low fertility issues.”
The current birth allowance, set at 5,100 patacas, is exclusively available to public servants, following the implementation of the adjustment bill on April 1, 2018.
According to the policy address, the government will continue implementing various tax incentives and measures to benefit the public this year, including improvements to the Wealth Partaking Scheme and increases in allowances such as old-age security, welfare allowance for senior citizens, normal and special disability allowances, marriage allowances, birth allowances, and health care vouchers.
The normal disability allowance will notably increase from 9,000 patacas to 10,000 patacas annually, while the special disability allowance will rise from 18,000 patacas to 20,000 patacas per year. Additionally, disability support pensions will go up to 3,900 patacas per month from 3,450 patacas, along with suitable increases for unemployment and sickness allowances. Old-age security will also be raised from 3,740 patacas to 3,900 patacas per month, and the welfare allowance for senior citizens will increase to 10,000 patacas per year.
“At present, the economic outlook for Macau is facing uncertainty. The sources of fiscal revenue are unbalanced, with rigid fiscal expenditure being relatively large.
Therefore, we must make good use of financial resources and adhere to the principles of targeted assistance, policy bias, and resource decentralization […],” Sam emphasized.
Handouts will never be cut
Announcing the continuation of the government’s pro-people approach, including the distribution of 10,000 patacas to each local permanent resident and 6,000 patacas to each non-permanent resident in the new fiscal year, Sam pledged that the government would improve the scheme in due course.
Addressing a press conference yesterday, Sam reaffirmed that the handout scheme will remain in place, adding that it is not a universal and regular benefit, but is implemented through administrative regulations formulated once a year.
He said that timely improvement of the scheme “does not imply that the money saved is not used for fiscal reserves but rather that it will be redistributed to the groups and industries with the greatest need.”
Sam also stated that “the scheme has been implemented 17 times since its first introduction in 2008, with a cumulative amount of 92.1 billion patacas […] Macau’s budget this year includes more than 120 billion patacas in recurrent expenditure and capital investment, while gross gaming revenue is expected to be about 93.1 billion patacas.
The handouts are set to be about 7.4 billion patacas, accounting for about 15% of the government’s recurrent expenditure.”
Emphasizing the importance of recognizing that the primary challenge facing the current government is the relatively single-structured economy, Sam acknowledged both challenges and opportunities, along with the associated pressures and motivations. Looking ahead to this year, he reiterated that the essential task for the government’s administration remains aligned with the “1+4” appropriate diversification development strategy.
Impact of US tariff increases on Macau ‘not significant’
He repeatedly mentioned, both in the Legislative Assembly and at the press conference, that “the complex and ever-changing international situation has exposed Macau to more factors of instability.”
However, when asked about the depth, breadth, and direct or indirect impact of measures such as the U.S. tariff increase on Macau, he stated: “No one knows for sure, but what is certain is that the direct impact on us will be minimal.”
Sam added that the indirect impact should not be ignored, pointing out that since Macau is an export-oriented city highly dependent on tourists and the tourism and gaming industries, a rapid change in the economic environment and weakened tourist spending power could indirectly affect the local economy.
“If gaming tax revenue does not meet expectations, it will directly affect Macau’s financial foundation,” he said.
Although he emphasized that expenditure on people’s livelihood and welfare would not be affected by external fluctuations, Sam stated: “This year is a year for planning major projects, not a year for significant investment.”
Major infrastructure projects will be promoted with government support, including the Macau-Hengqin University City, the Macau International Integrated Tourism and Cultural District, and a Macau Science and Technology Research and Development Industrial Park.
“This year will not be the year of investing in these major projects, but it is imperative that we get started. There are no plans to increase the budget this year,” he added.
No other way but to transform and upgrade SME attractiveness
When delivering the policy address, Sam stressed that “small- and medium-sized enterprises (SMEs) are an important force in the economic and social development of Macau.”
At the press conference, he addressed support for traditional industries, stating: “At present, the outflow of consumption has a greater impact on SMEs.”
“Although there are many tourists in Macau, the consumption concepts and methods of tourist groups differ, which greatly impacts some SMEs in the neighborhoods. However, there is no other way but to transform, upgrade, and strengthen their attractiveness,” he added.
For Sam, “consumer spending power is still there, as evidenced by the long queues at some shops. Therefore, SMEs must transform and upgrade, and the Secretary for Economy and Finance will assist them in enhancing their competitiveness.”
As outlined in the policy address, the government will launch the “Enterprise Financing Loan Interest Subsidy Scheme,” providing a 4% interest subsidy for a maximum loan amount of five million patacas for each eligible business owner.
This support will be available for three years, with a total bank loan amount capped at 10 billion patacas.
In addition, Sam promised to build Macau’s image as an “international internet celebrity city.”
This includes plans to promote transit to Macau for tourists from regions without direct flights, as well as attracting more foreign visitors through airfare and cross-border transportation discounts. Additionally, trade and tourism outposts will be established in Southeast and Northeast Asian countries to strengthen international marketing.
“Macau should integrate with and serve the country’s overall development, as well as seek economic development. Macau should be the center of the country’s development in the east, west, south, and north,” he stated.
“The north relies on the motherland to integrate into the Guangdong-Hong Kong-Macau Greater Bay Area, the west promotes the development of Hengqin, the east goes to the sea, and the south is Southeast Asia,” he added.
CE admits complaints about gov’t productivity
Sam stated that the government will strengthen coordination mechanisms to enhance governance effectiveness, aiming to “break down departmental barriers” and promote efficient collaboration for smooth progress on reform measures.
He emphasized that the new government will “take responsibility and get things done,” addressing issues of negligence and inaction.
All public servants, especially middle and senior managers, are urged to “strengthen their sense of the big picture,” be practical, and maintain integrity. Sam encouraged them to be “brave in exploration and bold in reform,” ensuring that measures align with the Constitution and the Basic Law.
“As long as it benefits economic development and social stability, we must be bold in trying and establishing new systems,” He asserted.
Sam emphasized the crucial importance of public administration reform, stating: “There are about 35,500 civil servants and college teachers in Macau, accounting for a high proportion of the population. However, there have long been complaints about interdepartmental coordination, modes of operation, and efficiency.”
He continued, “Therefore, when I delivered the policy address, I announced the establishment of a new interdepartmental coordination group and introduced the relevant leaders to the public, while also clarifying the responsibilities of the leading departments. As the Chief Executive, I will definitely hold accountable those departments that do not cooperate and do not support the promotion of policies.”
Sam pointed out that this initiative was also in response to Xi’s call for public administration reform and improving government efficiency.
Phased plan launched to support local youths in finding jobs in GBA
The main expected goals for the city’s development this year include continuously improving the employment situation of residents and maintaining a relatively low unemployment rate.
In this regard, Sam announced a plan to subsidize 5,000 patacas per month for college graduates aged 35 or younger employed by designated companies in the nine mainland cities of the Greater Bay Area and the Guangdong-Macau In-depth Cooperation Zone in Hengqin.
This initiative aims to leverage the advantages of the Greater Bay Area to create more employment opportunities for local young people and improve their employment conditions.
“Macau’s leading industries are tourism and gaming, and other industries are relatively narrow. Therefore, the government has launched a phased plan to support young people in finding employment in the Greater Bay Area, helping them develop in a region with a wide market and diverse industries,” Sam stated.
“This will broaden their horizons and enhance their knowledge of society, work experience, and skills. The relevant plan is phased and not long-term,” the top official added.
He also vowed to prioritize the protection of local residents’ employment, saying: “We will dynamically regulate the number of foreign employees,” including promoting the localization of middle and senior management personnel in integrated tourism and leisure enterprises.
However, when asked about the fact that the transition period for satellite casinos will officially end at the end of this year, the Chief Executive called on gaming companies with satellite casinos to take responsibility and formulate plans as soon as possible to address related issues in accordance with the law. He stated: “Satellite casinos are not a new problem.”
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