Macau is striving to reduce its reliance on casino gambling by increasing the contribution of non-gaming sectors to its GDP. The local government aims to raise this contribution to 60% by 2030.
Macau Chief Executive Sam Hou Fai introduced the “New Blueprint, New Journey, New Opportunities” plan for “high-quality development” over the next five years. He emphasized the importance of diversifying the economy away from gambling to align with the region’s “One Country, Two Systems” policy principle with Beijing.
Over the next five years, the Macau SAR Government will continue its efforts to promote appropriate economic diversification, leveraging Macau’s strengths and resource endowment to focus on key areas,” Sam said.
The government is creating a “guidance fund” with an initial deposit of MOP130 billion (US$16.1 billion) to support economic diversification and enhance Macau-Hengqin integration.
World’s Richest Gambling Hub
Despite being the world’s richest casino market, Macau is aiming to increase the contribution of non-gaming sectors due to concerns over heavy reliance on casino gambling.
The gambling industry in Macau boomed after the territory was returned to China in 1999, leading to significant growth in baccarat and slot revenue. In response to national security concerns and capital outflows, Macau began cracking down on VIP junket groups in late 2021.
To address concerns and diversify the economy, Macau SAR ordered casino companies to invest in non-gaming amenities. The government is matching this commitment with an additional $16 billion in non-gaming funding.
Investment Plan
The $16.1 billion will be used to complete the University of Macau’s Hengqin campus, establish a technology research industrial park, build the Macau National Museum of Culture, and invest in a performing arts venue.
Other projects include upgrading infrastructure at the Macau International Airport Hengqin Upstream Cargo Terminal, urban renewal initiatives, and conservation efforts around historic sites like the Ruins of St. Paul’s Church.
For the current year, GDP growth of 6.3% and an overall unemployment rate of 1.8% are forecasted by the Center for Macau Studies and the Department of Economics at the University of Macau.