Third Five-Year Plan targets deeper economic diversification and national alignment

[ Photo: Yuki Lei]

The newly released Third Five-Year Plan consultation document places national development priorities ahead of well-being, with ‘One country, two systems’ and “patriots administering Macau” positioned as the city’s greatest institutional strengths throughout the planning process.

The government officially released its third five-year plan public consultation document yesterday, with the consultation period running from today through June 28, the Policy Research and Regional Development Bureau (DSEPDR) announced at a press conference.

The planning document consists of 10 chapters, featuring 69 sections and 307 key tasks. For the first time, content related to appropriate economic diversification and the Guangdong-Macau In-Depth Cooperation Zone in Hengqin accounts for one-quarter of the total text, underscoring the government’s commitment to reducing reliance on the gaming sector.

The drafting of the Third Five-Year Plan is the top priority this year, with Chief Executive Sam Hou Fai having stated repeatedly that its fundamental requirement is to proactively and closely align with the national 15th Five-Year Plan.

The administration has emphasized that Macau’s future cannot be viewed in isolation but must be understood as part of China’s broader economic and social development trajectory.

The DSEPDR director, Cheong Chok Man, acknowledged that throughout the entire planning document – from Parts One to Three – the institutional safeguards of “upholding ‘One country, two systems’” and “patriots administering Macau” are consistently emphasized as the city’s greatest institutional advantages. These principles, he noted, maintain a leading role throughout the planning process, shaping every policy decision and development goal. Cheong stressed that without these foundational safeguards, Macau’s unique position as a global tourism and leisure hub would not be sustainable.

Six guiding principles and eight development goals

The plan is guided by six principles, including alignment with Beijing’s 15th Five-Year Plan, the Guangdong-Hong Kong-Macau Greater Bay Area blueprint, and neighboring regions’ plans – alongside continuity with the second five-year plan, a problem-oriented approach, and practicality. These principles were carefully chosen to ensure that Macau’s development remains both ambitious and achievable, avoiding the pitfalls of overly theoretical planning that fails to address real-world challenges.

The eight guiding tenets include upholding the executive-led system, pursuing appropriate economic diversification, and adopting a people-centered approach. Officials stressed that the executive-led system has proven to be the most effective governance model for Macau, allowing for swift decision-making and efficient policy implementation. The people-centered approach, meanwhile, ensures that the benefits of economic growth are distributed across society rather than concentrated in specific sectors or demographics.

Eight major development goals have been set: implementing the national security outlook, enhancing governance effectiveness, achieving substantial progress in moderate economic diversification, advancing the Hengqin Cooperation Zone, integrating education, technology and talent, safeguarding residents’ well-being, making progress in building a “beautiful and smart” Macau, and better integrating into national development. Each of these goals is supported by specific policy measures and key performance indicators that will be monitored throughout the five-year period.

32 indicators mark 60% increase

The plan includes 32 key indicators for economic and social development – a 60% increase from the previous five-year plan. These comprise 12 indicators for economic and industrial diversification, eight for social welfare, two for urban development, five for environmental protection, and five for Macau-Hengqin integration. The substantial increase in indicators reflects the government’s determination to move beyond vague policy aspirations toward measurable, accountable outcomes.

According to yesterday’s press conference, the social welfare section consists of seven chapters covering social security, population policy, employment rights, medical services, housing policy, culture and sports, and youth development. The plan proposes transitioning the Central Provident Fund system from voluntary to mandatory participation and will conduct research on population policy to formulate more proactive measures. This marks a significant shift in social policy, as mandatory provident fund participation would provide greater retirement security for Macau’s aging population. The proposed population policy research will address concerns about the city’s low birth rate and its long-term implications for economic growth and social services.

National security as ‘guarantee and prerequisite’

“National security is the guarantee and prerequisite for local development,” Cheong said. While Macau is relatively stable, he noted, it must remain vigilant and prepare for potential challenges. This vigilance extends beyond traditional security concerns to include economic security, cyber security and social stability. Officials pointed out that in an era of increasing global uncertainty, small and open economies like Macau are particularly vulnerable to external shocks and must therefore prioritize resilience.

Specific provisions within the plan include improving institutional frameworks for national security organizations, strengthening the National Security Committee’s coordination capabilities, enhancing risk monitoring and early warning systems, and addressing counter-sanctions, counter-espionage and counter-interference measures. These provisions are not merely symbolic but are backed by concrete operational mechanisms and dedicated resources. The plan also includes provisions for regular security drills, inter-departmental coordination exercises and public awareness campaigns.

Balancing central support with local initiative

“The relationship between central government support and Macau’s proactive initiatives must also be handled properly,” Cheong added. “We cannot simply ‘wait, rely and ask for help.’ We must make good use of central government support while also taking the initiative.”

This statement reflects a growing recognition within the Macau administration that external support, no matter how generous, must be matched by internal drive and innovation.

He emphasized that reform and development are inseparable in enhancing the region’s governance effectiveness. “There are still gaps in the current development landscape; only through reform can we drive and promote development. We must properly handle the relationship between ‘one country’ and ‘two systems,’ uphold the ‘foundation of one country’ and make good use of the ‘advantages of two systems.’”

Non-gaming value-added targets 60% of GDP by 2030

The consultation document proposes increasing non-gaming value added to approximately 60% of GDP by 2030. Cheong explained this does not necessarily imply the gaming industry will “shrink” or “slow down,” but rather reflects the development of non-gaming sectors alongside the continued lawful and healthy growth of the gaming industry.

He outlined key balancing relationships, including between non-gaming and gaming sectors, protection and openness, and economic development and livelihood improvement. He also said Macau will promote emerging industries under the “1+4” diversification strategy, with a focus on the big health sector.

Public consultation sessions scheduled

Eight dedicated consultation sessions will be held during the consultation period, inviting representatives from various sectors, including lawmakers, business groups, think tanks, labor organizations and community bodies.

Three public consultation sessions will be held at the Public Administration Building on June 5, June 14 and June 23. Residents are encouraged to participate and provide feedback through in-person sessions and online channels.