‘The city is akin to the Titanic’

Dear Editor,

I feel compelled to voice the serious concern regarding Macau’s current trajectory. The city is akin to the Titanic heading toward iceberg collision—without swift, decisive action, catastrophe is inevitable.

Firstly, the so-called “diversification” strategy remains a hollow echo rather than a viable plan. After 26 years, it has proven ineffective. Genuine diversification requires radical structural reforms rather than superficial slogans.

Macau’s economy faces headwinds from all directions:

– Small and medium-sized enterprises are suffocating under regulatory barriers and government policies
– Official economic figures mask the true extent of hardship, creating a distorted view of recovery.
– The hurdles to establishing new businesses are monumental, compounded by limited access to essential services such as credit card processing—no local bank supports online payments for small enterprises, and global providers show little interest due to perceived risks.
– Staffing shortages plague many sectors, especially retail and hospitality.
– Commercial real estate is either overpriced or poorly located, disincentivizing new investment.
– The primary visitor base remains confined to casino tourists and tour groups, neither of whom contribute sustainably to diversified economic activity.

– People cannot get around! Transportation infrastructure is grossly inadequate. Casino guests often stay within the confines of the casinos and face severe difficulties returning to their accommodations or exploring the city. Macau’s current transportation options make the city seem like a third-world destination—far behind neighboring regions like mainland China and Hong Kong.

The external environment and internal policies have created a perfect storm:

– Tourists are limited to low-spending shopping experiences, with little incentive or capacity to explore beyond.
– The city’s competitive advantage—its favorable tax system, proximity to China and Hong Kong, and the allure of casinos—are not enough to sustain long-term growth.

To pivot away from this stagnation, real reform is essential. Incremental measures will not suffice; bold, targeted policies are needed:

1. Implement an escalating property vacancy tax: This would compel owners of vacant or abandoned properties to put them back into productive use, thereby stabilizing rents and revitalizing neighborhoods.

2. Introduce a ride-sharing system, such as ‘Didi Car’ or similar platforms: A reliable, affordable transportation network is crucial for both locals and visitors, alleviating congestion and improving accessibility. Current public transportation options are inadequate and fail to serve the city’s needs.

3. Open up the employment market to residents of Zhuhai and Hong Kong: By broadening the labor pool, Macau can attract fresh talent, new ideas, and foster greater economic dynamism. Keeping the market closed simply STOPS any business from coming in and creating new jobs. It LOOKS like a way to protect jobs for Macau people, but it’s a short-term trap that stifles investment and innovation. Remain with the current policy and watch Macau stagnate day after day, week after week, month after month.

4. Revise banking policies to support property renovation and small business growth: Allow banks to provide long-term loans—up to 50 years—for older buildings. This would encourage renovation, preserve architectural heritage, and stimulate neighborhood revival.

5. Ensure banks facilitate seamless online transactions for small enterprises: Competitiveness in the digital economy demands modern payment solutions. Macau must remove unnecessary restrictions and partner with global fintech providers.

6. Remove the call for gaming companies to host ‘international events’: This is possibly the worst decision that has been made for the future of Macau in the last 15 years. I’m aware of many events that were run by Macau people that no longer exist. Instead, the money flows OUT of Macau to international organizations to create events that appeal to a minority, bring in very little if any tourism and destroy the momentum that truly beneficial events were building simply because they did not ‘tick the boxes’ to count as mandatory spending.

Macau’s future depends on decisive leadership willing to abandon reliance on an outdated model. The city has the potential to reinvent itself as a vibrant, diversified hub—but only if bold reforms are implemented urgently.

Returning to Macau from China creates a sense of traveling back into the past. Business—like any enterprise—is driven by direction and adaptation. The current stagnation since the 2008 financial crisis is untenable. While other regions surge forward, Macau risks falling irretrievably behind.

It’s time for strategic action, not complacency.

A Macau resident