The Macau SAR government plans to establish a MOP20 billion ($2.56 billion) government guidance fund this year to support economic diversification, with an initial MOP11 billion ($1.41 billion) injection from accumulated fiscal reserve returns and the remainder to be raised from social capital.
Speaking at a press conference on February 27th, Secretary for Economy and Finance Tai Kin Ip said the fund is designed to align with the central government’s upcoming 15th Five-Year Plan and to play a leading role in fostering emerging industries and accelerating industrial upgrading.
The fund is expected to attract and guide private capital into key sectors, including emerging industries, industrial transformation and upgrading projects, technology commercialization initiatives, and early-stage technology enterprises. It will also focus on projects aligned with national strategies, technological innovation, and livelihood improvement, while supporting coordinated development between Macau, Hengqin, and the Greater Bay Area.
Tai said the fund will adopt a long-term investment approach and a “patient capital” philosophy, aiming to cultivate industries capable of generating sustainable contributions to Macau’s economy. The initiative is also intended to attract high-quality enterprises and professional talent to Macau and neighboring Hengqin, create more diversified employment opportunities, and strengthen regional collaboration.
Simon Vong Sin Man, chairman of the Monetary Authority of Macau, said the decision to inject MOP11 billion was based on a comprehensive assessment of Macau’s diversification needs, the impact on fiscal reserves, and the long-term development requirements of emerging industries. He noted that the fund will not involve a one-time large-scale capital deployment and is expected to leverage additional private investment over time, potentially expanding total mobilized capital beyond the initial MOP20 billion ($2.56 billion) target.
The government aims to complete the establishment of the fund within the year and begin selecting professional fund managers, Tai said. A dedicated management entity will oversee daily operations under market-oriented principles. Tam Chi Neng, advisor to the Office of the Secretary for Economy and Finance, said the fund will be supervised by the Chief Executive and supported by a guidance committee comprising government officials, industry professionals, academics, and sector representatives to advise on strategic direction and major decisions.
Separately, Chan Chou Weng, deputy director of the Economic and Technological Development Bureau, said early-stage innovation typically carries higher commercial risk and is less likely to attract market capital, and therefore is often supported through grants. The new guidance fund, he said, is intended to support projects that have reached a stage suitable for commercialization.
The initiative comes as the Macau government continues efforts to reduce the city’s reliance on the gaming industry. However, gaming-related income remains the dominant source of public revenue. In January this year, the Macau SAR government recorded total public fiscal revenue of MOP9.63 billion ($1.2 billion), of which gaming-related taxes accounted for approximately 85 percent.
