Macau Invests $16 Billion to Diversify Beyond Gaming

Macau aims to transition from a primary tourism and gaming destination to a comprehensive "business city," according to Alex Che Weng Keong, president of the board of directors of the Commerce and Investment Promotion Institute of the Macao SAR. Speaking at the Fortune Leaders Forum on September 8, Che identified Las Vegas as a successful model for a casino town that has also become a "world-class venue for business, exchange, conferences, and exhibitions." Currently, the gaming industry constitutes approximately 45% of Macau's Gross Domestic Product (GDP) and generates about 80% of the government's tax revenue. The city's newly established five-year plan, which spans from 2026 to 2030, represents the third such plan since Macau was returned to Chinese rule in 1999. This plan earmarks a significant investment of 130 billion patacas, equivalent to $16.1 billion, specifically for the development of "emerging industries." A key objective within this strategic initiative is to elevate the contribution of non-gaming sectors to 60% of Macau's GDP by the year 2030. Macau, alongside Hong Kong, functions as one of China's two special administrative regions, maintaining its own distinct currency, legal framework, and customs territory. Che emphasized that Macau can leverage this autonomy to attract "emerging industries" that require regulatory flexibility. He stated that "emerging industries often need different kinds of regulatory approaches and different ways for talent to move," and that Macau "can leverage our position as an independent economy with an independent legislative system and independent regulatory system, and then invest a very large amount." A cornerstone of this diversification strategy is the Guangdong-Macao In-Depth Cooperation Zone located in Hengqin, a 106-square-kilometer island situated adjacent to Macau's border. Che described Hengqin as "a very important factor for the Greater Bay Area's future development" and "a major national strategy for empowering Macau." Furthermore, Macau's historical heritage, including its past as a Portuguese colony, offers additional advantages. The retention of Portuguese as an official language and its civil-law legal system, Che noted, "gives us a real advantage" in attracting international business and talent, particularly from Portuguese-speaking countries and regions.