On Monday, Sam Hou-sai, chief executive of the Macao Special Administrative Region, unveiled his inaugural Policy Address for the 2025 fiscal year, marking a pivotal moment in his new administration. Themed “Innovate to Elevate; Forge Ahead to Break New Ground”, the policy speech articulated a forward-looking agenda aimed at reinvigorating Macao’s socioeconomic fabric through strategic reforms, fiscal prudence, and regional collaboration.
Since assuming office in December, Sam has faced the dual challenges of sustaining Macao’s post-COVID 19 pandemic recovery while addressing structural vulnerabilities in its gaming-centric economy. His address, blending pragmatism with ambition, signals a commitment to transforming Macao into a resilient, diversified hub aligned with national development priorities.
A cornerstone of the policy blueprint is the continuation — and recalibration — of the widely lauded Wealth Partaking Scheme. Under this initiative, permanent residents will receive 10,000 patacas ($1,250), while nonpermanent residents will be allocated 6,000 patacas each. While maintaining this popular measure, the Macao SAR government has astutely announced plans to refine eligibility criteria to prioritize individuals who demonstrate genuine residency or substantive ties to Macao. This recalibration reflects a nuanced understanding of fiscal sustainability: While cash injections remain a vital tool for social cohesion, their long-term viability demands stricter targeting to avoid misuse.
Personally, I concur with this recalibration. By channeling resources toward residents who actively contribute to Macao’s economy, whether through employment, entrepreneurship, or civic participation, the Macao SAR government ensures that public funds catalyze productivity rather than perpetuate dependency. This approach also mitigates risks of inflationary pressures, a concern in economies overly reliant on direct cash transfers. Furthermore, it aligns with global best practices in social welfare, where means-testing and residency requirements are increasingly employed to balance generosity with accountability.
Macao’s demographic challenges — a rapidly aging population and a fertility rate that ranks among the world’s lowest — loom large over its future. The Policy Address confronts these issues head-on through a suite of measures designed to alleviate financial burdens on young families while enhancing support for seniors. Notably, the monthly childcare subsidy for Macao-born children under three has been set at 1,500 patacas for permanent residents, a significant increase that acknowledges the steep costs of early childhood care. Concurrently, marriage and birth subsidies have been elevated to 2,220 patacas and 6,500 patacas, respectively, incentivizing family formation in a society where delayed marriages and one-person households are increasingly common.
For the elderly, the Macao SAR government has pledged to augment old-age pensions and living allowances, ensuring that Macao’s seniors, who constitute nearly 13 percent of a population that is nudging 7 million, can age with dignity amid rising healthcare and living costs. These policies exemplify a holistic approach to social welfare: By addressing both ends of the demographic spectrum, the Macao SAR government seeks to stabilize population dynamics while fostering intergenerational equity. Critics may argue that monetary incentives alone cannot reverse entrenched cultural shifts, yet such measures are undeniably a critical first step in creating an environment where families feel financially secure to grow.
While social welfare reforms dominate headlines, the Policy Address’ most transformative elements lie in its economic vision. Central to this is the establishment of a 10-billion-pataca fund to bolster small and medium-sized enterprises, the backbone of Macao’s nongaming economy. The newly launched SME Bank Loan Interest Subsidy Scheme offers a 4 percent annual interest subsidy, capped at three years, for loans up to 5 million patacas. This initiative not only alleviates liquidity constraints but also encourages SMEs to innovate and expand, particularly in sectors like technology, green energy, and cultural tourism.
However, the Macao SAR government’s ambitions extend far beyond financial subsidies. In a bold strategic pivot, Sam emphasized Macao’s integration into the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and the broader Guangdong-Hong Kong-Macao Greater Bay Area initiative. By leveraging Macao’s unique status as a global tourism and leisure hub, the Macao SAR aims to position itself as a gateway for the Chinese mainland and international businesses seeking access to Greater Bay Area markets. A key component of this strategy involves incentivizing casino operators, whose concessions are up for renewal in 2030, to increase investments in nongaming sectors.
This recalibration is both timely and imperative. While gaming taxes historically contributed over 80 percent of government revenue, the COVID-19 pandemic exposed the perils of overreliance on a single industry. By mandating that casino conglomerates allocate resources to sectors like MICE (meetings, incentives, conferences, exhibitions), healthcare, and fintech, Macao can cultivate a more resilient, multifaceted economy. For instance, proposals for integrated resorts featuring AI-driven entertainment complexes or biomedical research hubs could redefine Macao’s global identity.
The Policy Address also underscores the untapped potential for collaboration between Macao and Hong Kong. While both SARs possess distinct economic identities, their complementary strengths — Hong Kong’s financial prowess and Macao’s tourism expertise — create fertile ground for partnership. Sam’s call for Hong Kong entrepreneurs to invest in Hengqin’s development is particularly astute. Hong Kong’s multinational corporations, with their extensive networks and innovation ecosystems, could partner with Macao’s SMEs to develop smart-city technologies, green infrastructure, or cultural heritage projects.
Moreover, cross-border initiatives could alleviate pressures in both cities. Hong Kong’s saturated real estate market and high living costs, for example, might be mitigated by encouraging professionals to reside in Hengqin while working in Hong Kong via improved transport links. Conversely, Macao’s hospitality sector could benefit from Hong Kong’s expertise in luxury retail and entertainment, fostering a regional tourism circuit that rivals Singapore or Dubai.
Macao’s approach to casino operators offers a paradigm for other regions grappling with corporate social responsibility. By tying license renewals to investments in community-centric projects, affordable housing, vocational training centers, or renewable energy infrastructure, the Macao SAR government ensures that private sector profits are reinvested into public goods. Hong Kong, which is facing its own challenges with wealth inequality and housing shortages, could adopt similar mechanisms for its property developers or financial institutions. Imagine a policy where banks contributing to a “social innovation fund” receive tax breaks, thereby channeling capital toward grassroots initiatives.
Sam’s inaugural Policy Address is a masterclass in balanced governance. It harmonizes short-term populism (cash transfers, childcare subsidies) with long-term structural reforms (economic diversification, regional integration). By confronting demographic decline through targeted welfare measures and reimagining Macao’s economic identity beyond gaming, the administration demonstrates a clear-eyed understanding of the Macao SAR’s challenges and opportunities.
Yet, the true test lies in execution. Success will depend on rigorous oversight of subsidy programs, seamless collaboration with Guangdong authorities in Hengqin, and fostering a culture of innovation among risk-averse local businesses. Additionally, Macao must cultivate talent, through education reforms and immigration incentives, to fuel its nascent industries.
As Macao navigates this transformative era, its policies offer valuable lessons for cities worldwide: That economic resilience stems from diversification; that demographic challenges demand intergenerational solutions; and that public-private partnerships, when strategically designed, can become engines of inclusive growth. In bridging tradition with innovation, Macao is not merely securing its own future — it is illuminating a path for others to follow.
The author is a Legislative Council member, founder of Save HK, and a member of the Central Committee of the New People's Party of the Hong Kong Special Administrative Region.
The views do not necessarily represent those of China Daily.
