Chief Executive (CE) Sam Hou Fai yesterday chaired for the first time a plenary meeting of the Economic Development Council, during which he remarked that Macau’s key economic indicators have remained on an “upward” trend over the past year, but in the face of rapid changes in the international situation, the city was still facing significant pressures in the development of its diversified industries and innovative capacity, urging the councillors to capitalise on the opportunities presented by the central authorities’ vigorous push toward Chinese-style modernisation and national rejuvenation, as well as its commitment to high-quality development, jointly promoting Macau’s economy to enter a new phase of development.
“From our internal perspective, on the one hand, we anticipate that the dominance of the gaming industry in the economic sector is a structural issue which is likely to be difficult to change fundamentally over a considerable period of time,” said Sam, who pointed out that the scarcity of resources, the monotonous structure of visitor sources, the imbalance in financial revenue, and the lack of innovation were still the “oldest problems” faced by Macau: “We must confront these issues and seek ways to improve or even resolve them.”
Yesterday’s nearly two-hour meeting was originally planned to be attended by 41 members of the government-appointed council, but in the end only 37 were present, resulting in an attendance rate of 90 percent. The meeting was held in the morning at the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries, also known as Forum Macao, in Nam Van.
In his speech prior to the closed-door meeting, Sam noted that both the internal and external environments influencing Macau’s development have been experiencing, and will continue to endure, significant and complex changes, adding that, from an international perspective, the rise of unilateralism and protectionism in recent years has posed challenges for Macau – a highly open and externally orientated micro-economy, making it difficult for the city to stand on its own feet: “We are largely dependent on tourism and gaming, but the competitive landscape is intensifying. The risks and challenges of this evolution are clear and cannot be overlooked”.
He underlined that, as an economy primarily reliant on integrated tourism and leisure and highly dependent on mainland visitors, Macau must give greater attention to the formulation and adjustment of policies to address the current challenges.
‘An old issue and a new challenge we need to face directly’
Sam also highlighted the common challenges faced by local small- and medium-sized enterprises (SMEs), noting that the new economic cycle and shifts in consumption patterns, concepts, and demographics have presented significant obstacles for Macau. He said: “We must effectively address the insufficient and unbalanced development of Macau’s economy during the recovery process,” adding that the failure to diversify industries in line with community expectations, the shared difficulties of local SMEs, and the need for collaboration to promote economic development are all urgent issues that require resolution: “How to successfully develop Hengqin through Guangdong-Macau cooperation, thereby enhancing Macau’s economic progress, is an old issue and a new challenge that we must directly face rather than avoid”.
As the inaugural year of his government, Sam reiterated the importance of earnestly implementing President Xi Jinping’s remarks on the “One Country, Two Systems” principle and Macau’s initiatives, specifically highlighting the need to promote the city’s economic development with a focus on reform and innovation, with the aim of achieving new breakthroughs in the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.
Transitioning from recovery to high-quality development
He also said that Macau’s economy was currently at a crucial stage, transitioning from recovery to high-quality development, pledging that the government will unite and lead various sectors of the community to actively integrate Macau’s development positioning of “One Centre, One Platform, One Base”*, while establishing it as a hub for international high-end talent, with a view to generating momentum and empowering Macau’s economy in the long term by connecting with the global landscape.
Meanwhile, wrapping up the closed-door meeting for the media, councillor Manuel Iok Pui Ferreira said that both Sam and Secretary for Economy and Finance Anton Tai Kin Ip made it clear that the government’s focus this year will be on coordinating efforts across the portfolios of the five local secretaries and promoting the integration of different areas, with the aim of driving the appropriately diversified development** of Macau’s economy in a “more innovative and impactful” manner, enhancing the community’s business environment, while also ensuring the sustainable development of enterprises.
Wu also quoted Tai as saying that, based on the suggestions from several fellow members, relevant policies would be formulated according to the strengths and constraints of the city’s neighbourhoods, such as the introduction of international branded intellectual properties (IPs). He added that due to significant changes in the consumption patterns of tourists and residents alike, the Economic and Technological Development Bureau (DSEDT) will implement measures to assist SMEs in enhancing their digital transformation, with details to be announced in due course.
*The government’s “One Centre, One Platform and One Base” policy refers to its determination to further develop Macau’s role as a World Centre of Tourism and Leisure and an economic and trade cooperation platform for China and Portuguese-speaking countries as well as a cultural exchange and cooperation base.
** Appropriately diversified development refers to the framework of the government’s “1+4” appropriate economic diversification model, which aims to consolidate and diversify the development of the city’s tourism and leisure industry while putting special emphasis on promoting the development of four diversified industries, namely 1) big health, 2) modern finance, 3) high-tech, and 4) MICE as well as culture and sports.
Chief Executive Sam Hou Fai (centre), Secretary for Economy and Finance Anton Tai Kin Ip (left) and Economic and Technological Development Bureau (DSEDT) Director Yau Yun Wah address yesterday morning’s plenary meeting of the government-appointed Economic Development Council, at the Forum Macao Complex in Nam Van. – Photos: Yuki Lei
37 members of the Economic Development Council attend yesterday’s plenum. – Photo: Yuki Lei
