The local government announced yesterday that it has established a system governing the operation of a so-called “guidance fund” aimed at channelling different types of private capital towards investments in Macau’s key emerging industries.
The guidance fund is one of the government’s major initiatives to advance Macau’s appropriate economic diversification.
The government said yesterday that following the establishment of the system, it is now aiming to complete the setting up of the guidance fund within this year.
The government also reaffirmed yesterday that it is planning to allocate 11 billion patacas to the guidance fund from the returns that it has earned from investing its fiscal reserves over the years, with the size of the fund expected to reach 20 billion patacas after including the first tranche of private capital.
Secretary for Administration and Justice Wong Sio Chak, who is also the spokesman for the government’s top advisory body – the Executive Council, made the announcement during a press conference at Government Headquarters yesterday.
The government first announced the guidance fund proposal in February this year.
The government set up a public enterprise in May tasked with the fund’s day-to-day operation and management.
Wong yesterday announced details of a newly drawn-up administrative regulation governing the fund’s operation.
The regulation will take effect on the day after its promulgation in the Official Gazette (BO).
Government-drafted administrative regulations, a.k.a. by-laws, do not require the legislature’s approval.
Wong noted yesterday that the guidance fund ultimately aims to advance Macau’s appropriate economic diversification and its industrial upgrading, foster the development of emerging industries, support the transformation of technological achievements and their industrialisation, create more quality jobs for local residents, and promote the diversification of employment opportunities in the city.
The administrative regulation, which clearly defines the guidance fund’s core concepts, stipulates that the fund is a policy-driven investment vehicle, setting out its objective to guide private capital towards supporting the development of emerging industries based on the principles of a long-term perspective and “patient capital”, a synonym for long-term capital.
The government will play a leading role in guiding the fund, but its operation will be mainly driven by market forces, Wong said.
According to DeepSeek, patient capital is a long-term investment approach that prioritises sustainable growth and significant future impact over immediate, short-term financial gains. It involves providing funding with the expectation of returns over an extended period, allowing investments in areas like infrastructure or pioneering technologies to mature and deliver substantial long-term economic or social benefits.
Wong said that the newly drawn-up administrative regulation governs the guidance fund’s establishment procedures and organisational structure, according to which the public enterprise running the fund will be required to prepare a plan for setting up the fund, covering details – such as business planning and shareholding structures – subject to approval by the Secretary for Economy and Finance.
The regulation establishes a multi-tier governance structure for the guidance fund, according to which a top advisory committee, chaired by the Chief Executive, will be set up. It will be tasked with providing opinions on the fund’s major policies, strategic planning, annual plans, and other important matters.
Under the governance structure, the Secretary for Economy and Finance has the power to make key decisions on the guidance fund’s daily operation and management, such as approving annual plans, major investment projects, and proposals for establishment, dissolution, and liquidation.
The public enterprise established in May this year is tasked with the fund’s day-to-day operation and implementing its investment decisions.
Secretary for Administration and Justice Wong Sio Chak (centre), Tam Chi Neng (left), an advisor to the Secretariat for Economy and Finance, and Carmen Tong Ka Man, deputy chief of the Macao Monetary Authority’s (AMCM) Monetary and Reserve Management Department, address yesterday’s press conference at Government Headquarters. – Photo courtesy of TDM
