Xi urges economic shift as city inaugurates new Chief Executive

Chinese President Xi Jinping urged the casino hub to diversify its economy as Sam Hou Fai was sworn in as the city’s new Chief Executive Friday at an event marking the 25th anniversary of Macau’s handover to China.

Since its 1999 handover, the city of 687,000 has evolved from a monopoly-driven gambling enclave into the world’s largest gaming hub, drawing hordes of tourists from mainland China.

The casino boom has improved living standards, but authorities are concerned the semi-autonomous city’s economy is unhealthily dependent on the industry.

Economically, from 1999 to 2024, Macau has witnessed its most prosperous era, marked by rapid development, an improved quality of life, and enhanced fulfillment and happiness for its residents.

Macau’s GDP per capita was ranked around 40th globally in 1999. Now Macau is the second-richest place in the world after Luxembourg, according to a Forbes magazine ranking of the world’s richest countries and regions.

During a gala dinner last week, Xi praised Macau’s progress on economic diversification over the past five years and its strengthened international influence.

He called for the city to expand its international role while attracting global talent to build a better Macau.

Xi said Friday the city should enhance its industrial development planning, strengthen policy support and boost investment to nurture internationally competitive new industries, in what observers said were stronger and more specific comments than before.

“The special administrative region’s government and all sectors of society have to show more care to young people and create a better environment and conditions for their growth, talent development and fulfilling their aspirations,” he said.

Sam has promised to accelerate plans to boost tourism and other sectors such as Chinese medicine, finance, tech, exhibitions and commerce.

Although political activism has never seriously challenged Beijing in Macau, authorities have tightened control in recent years, particularly after Hong Kong was rocked by months of protests in 2019.

Last year, the city updated its national security law.

Xi said “national sovereignty, security and development interests are above all,” while noting the need to safeguard the city’s autonomy.

He said security is a precondition for development and residents should cherish their hard-won stability and peace.

Xi emphasized that over the past 25 years since Macau’s return to China, significant progress has been made in advancing the ‘One country, two systems’ framework tailored to Macau’s unique characteristics.

He highlighted the remarkable transformation the region has undergone and its enhanced international standing.

Xi hoped for the new government to unite and lead the diverse population in seizing opportunities, driving reforms, and fulfilling responsibilities to contribute even more.

This involved further utilizing the strengths of the ‘One country, two systems’  model and achieving new milestones in its high-quality development.

“We must stay committed to this cause. The values embodied in the cause of ‘One country, two systems,’ namely, peace, inclusiveness, openness and sharing, are relevant to not only China but also the whole world. These values should be cherished by us all,” Xi said.

Xi also expressed four hopes for the newly inaugurated government: first, to promote appropriate economic diversification; second, to enhance governance as a special administrative region; third, to establish a platform for higher standards of openness; and fourth, to maintain social harmony and stability.

Further, Xi said the youth represent the hope and future of the region, describing them as a dynamic force in both the development of Macau and the broader advancement of China.

He hoped young people will cherish their connection to both the Special Administrative Region and the motherland.

Xi encouraged them to set ambitious goals, take meaningful action, and contribute to the development of the region. By doing so, he believes they can unlock their potential and play a vital role in building a prosperous motherland and a vibrant Macau.

With Beijing’s policy agenda now dominating Macau’s development, the casino hub is deepening economic links and social integration with neighboring Guangdong province.

China has designated a special zone on Hengqin Island in neighboring Zhuhai city, jointly run by Guangdong and Macau, to help foster new industries. That zone is planned to have about 120,000 Macau residents by 2035.

Xi said Macau must participate proactively in the Greater Bay Area initiative, which Beijing aims to link Macau, Hong Kong and nine other Guangdong cities into an economic powerhouse.

Xi concluded his three-day trip in Macau Friday.

During his stay, he visited the Macau University of Science and Technology and the special zone on Hengqin Island, and attended a lavish cultural performance.

He also met Macau’s former city leaders and Hong Kong’s Chief Executive, among others.

After seeing Xi off at the airport, Sam told reporters he pledged to face challenges head-on and be bold in action, saying his government would be clean, practical and close to its people. LV/Agencies