Macau Secretary for Economy and Finance Tai Kin Ip warns that Macau’s fiscal revenue in 2025 might “not be as optimistic as expected,” emphasizing that the government must strictly adhere to the Basic Law’s principle of keeping expenditure within incoming revenue and managing finances prudently.
The head of the financial secretariat cites that Macau’s gross gaming revenue from January to March reached MOP57.66 billion ($7.2 billion), basically on par with the same period last year, but fell short of the budgeted target of MOP20 billion ($2.5 billion) monthly.
His opinion was shared on Tuesday at the “2025 Seminar for the industrial and commercial sectors” where he met with industry leaders in Macau before the government releases the 2025 policy address.
In his analysis, Tai Kin Ip noted that although central government policies benefiting Macau continue to show positive effects, driving steady growth in visitor arrivals, Macau’s economy faces new challenges due to increasing global economic uncertainties and noticeable changes in visitor spending patterns.
His conclusion was justified by the statistical data, which show that while total visitor spending in 2024 recorded a 5.8 percent growth, reaching MOP75.36 billion ($9.4 billion). Meanwhile, per capita spending dropped significantly by 14.6 percent to only MOP2,157 ($269), reflecting weakened spending power and the reality of uneven global economic recovery.
In response to the current economic situation, Tai Kin Ip emphasized that the SAR government will adopt a multi-pronged strategy: continuing to optimize the business environment and supporting enterprise transformation and upgrading on one hand, while vigorously promoting the “1+4” moderate economic diversification strategy on the other, focusing on cultivating emerging industries such as Traditional Chinese Medicine healthcare and modern finance.
Simultaneously, the government will accelerate the development of Hengqin, deepen cooperation with other Greater Bay Area cities, and fully leverage Macau’s advantage as a platform for China-Portuguese-speaking countries commercial cooperation service to actively expand into international markets and comprehensively enhance economic resilience.
Notably, this is not the first time the SAR government has issued warnings about fiscal revenue. Earlier last month, Chief Executive Sam Hou Fai had already clearly stated that this year’s fiscal revenue might fall short of expectations. It is understood that the government is actively researching and planning a batch of landmark development projects with significant driving effects, hoping to inject new momentum into Macau’s economy.
Chief Executive Sam Hou Fai will deliver his first policy address since taking office on the 14th of this month, with widespread public interest in how the report will address current fiscal challenges.
