Macau’s long-standing reliance on its gaming industry remains a significant challenge to achieving economic diversification, admits Chief Executive Sam Hou Fai.
During the first plenary session of the 2025 Economic Development Commission on Wednesday, Sam acknowledged that the structural issue of a gaming-dominated economy is unlikely to change fundamentally in the near future.
Despite efforts to promote diversification, Macau’s local small and medium-sized enterprises (SMEs) still face common challenges, while initiatives such as the development of Hengqin through Guangdong-Macau cooperation have yet to yield the desired economic transformation.
In a candid statement, Sam emphasized the difficulty of changing Macau’s economic structure, noting that the path to diversification is far from smooth.
“The issue of Macau’s overdependence on the gaming industry is a structural problem that will be difficult to solve in the foreseeable future,” he said.
This is the first time that Macau’s top official has been so direct about the current situation. Just one or two years ago, officials advocated that Macau was no longer a gaming hub, citing that the main purpose of visits was no longer gaming-related.
The reality is that gaming recovered rapidly after COVID, while other sectors in Macau, especially SMEs, lagged behind. In 2024, the situation worsened due to a significant outflow of local consumers to mainland China.
In this context, Sam pointed out that these persistent issues, along with new challenges emerging in the wake of shifting economic conditions, require immediate attention and thoughtful solutions.
At the meeting, Sam called for a collaborative approach to addressing these challenges. He urged members of the Economic Development Committee and other sectors of society to work together to develop realistic and effective solutions. He encouraged more constructive, feasible, and long-term proposals that would benefit Macau’s overall economic development.
Looking ahead, Sam emphasized that 2025 will be a pivotal year for Macau, marking the beginning of the sixth-term Special Administrative Region (SAR) government. He committed to coordinating efforts to drive the region’s economic and social development.
“We must work together to stabilize the economy while also finding ways to invigorate it and push for positive economic growth,” the official said.
He highlighted the need for a forward-thinking approach—one that leverages innovation and reform to drive diversified economic development. This includes advancing cooperation with hopes of achieving new breakthroughs in the Guangdong-Macau Cooperation Zone in Hengqin. Sam expressed his desire to enhance the involvement and sense of gain for both industry players and residents, ensuring a more inclusive path to prosperity.
