As Macau seeks to pivot away from its dependence on gaming, a broad spectrum of business leaders are voicing concerns about the pace and effectiveness of diversification efforts.
While the casino industry continues to contribute heavily to the economy, voices across various chambers of commerce emphasize the need to embrace new industries, attract skilled professionals, and streamline governmental processes to unlock potential.
This topic was explored during the latest edition of the MBtv Debates Business Series, titled “Macau SAR at 25 and Beyond – Taking the Pulse of the City’s Economy”, held at the Rui Cunha Foundation, which brought together for the first time, the heads of several chambers of commerce representing different countries.
Keith Buckley, Chairman of the British Chamber of Commerce in Macau (BritCham), noted that the liberalization of the gaming sector in 2001, which led to the development of the Cotai Strip, fundamentally transformed the region’s economy.
“The liberalization of gaming created everything: jobs, properties, and a supply chain…If it hadn’t happened, I wonder what we would’ve been looking at now.”
More than 20 years after the ongoing push for diversification has gained momentum since the introduction of new gaming concessions in 2022, which required operators to make commitments to non-gaming investments.
Under the new gaming concession renewal process, operators were required to invest over MOP100 billion ($12.5 billion) in non-gaming projects as part of their new licenses. He acknowledged the severe challenges gaming companies faced during the pandemic, calling the concession process particularly “arduous.”
However, Buckley expressed skepticism about the tangible outcomes so far. “During COVID, the Macau government realized we didn’t have any alternative to gaming,” he said. “But what has been the practical effect of the diversification efforts? I haven’t seen much impact.”
He also emphasized the need for greater government efficiency, noting the lengthy approval processes in Macau compared to other global cities like Singapore or Abu Dhabi. “Governments need to have the will to make things happen, but here, it takes too long to get licenses and approvals,” he said.
Charles Choy, Chairman Emeritus of the American Chamber of Commerce (AmCham) in Macau, agreed that diversification is no easy feat. He described gaming as “easy money” compared to other industries, making it a tough challenge for the government to mobilize efforts outside the gaming sector.
“We have the largest IR hub in the world and we have created diversification elements around it, world-class concerts, entertainment, and shows, but we need to build on this foundation of gaming and tourism.”
“I suggested to the CE-elect that perhaps the gaming sector could do more than just helping is creating an industry surrounding IR resorts.”
The city’s Chief Executive-elected, former top court judge Sam Hou Fai, emphasized during his candidacy announcement that a path toward “moderate economic diversification” is essential, after what he described as a “barbaric expansion” with a “large, negative impact” on the city,
Billy Chan, Chairman of the Australian Chamber of Commerce in Macau (AustCham), stressed the need to attract a diverse range of professionals to fuel Macau’s broader economic growth, particularly in sectors like medical research.
“We need to offer more long-term opportunities for talent, not just one-year residency permits, otherwise, we risk losing skilled professionals to other markets.”
Chan pointed out that talent retention remains a challenge, as many foreign professionals find the short-term visa system unappealing.
At the same time, leaders like Rutger Verschuren, Chairman of the France Macau Chamber of Commerce (FMCC), emphasized that improving government efficiency is critical to attracting both talent and investment.
“We need to address inefficiencies in licensing and bureaucratic red tape…Professionals are coming back, but they need to know that the system will work for them, not against them.”
Despite these challenges, there is optimism about Macau’s future. The ongoing expansion of the airport and increased connectivity to other regions are seen as positive steps toward attracting more international tourists and businesses.
“Expanding the Macau airport and adding connections will help bring more foreign tourists,” Carlos Cid Álvares, president of the Macau Delegation of the Portugal-China Chamber of Commerce & Industry (CCILC) said at the event, noting that diversification in tourism could be an essential catalyst for broader economic change.
“We have a fund of $60 billion, we have all the conditions to put forth all ideas. I think with the new government, new ideas and new blood I think a lot of changes will be put in place.”
For Niall Murray, Chairman of the Irish Chamber of Commerce of Macau (ICCM) a very complete plan needs to be put in place to advance with diversification, discussing with all stakeholders in the community and a defined strategy.
“In terms of labor attraction, the cart is in front of the wheels. You need to have the industries first and then the talent will follow.”
“Ireland is a small island in Europe but we have done well, we don’t have manufacturing industries so we jumped to services. Macau can do well seeing different examples and putting a specific detailed strategy plan”, the gaming consultant pointed out.
Ultimately, Macau’s ability to diversify will depend on a coordinated effort to address these challenges, balancing the needs of the gaming industry with new opportunities in other sectors.
“Macau needs to build on what it has, be realistic about what can be developed, and work toward long-term solutions.”
Charles Choy
“It’s not an easy path, but recognizing the challenge is the first step,” Choy said.
