Macau intends to curb problematic gambling behavior
Shift's on in Macau, the sin city of China, famed for its casinos and glitzy nightlife. But Chief Executive, Sam Hou Fai, has announced a game-changing move to step away from the one-sided dependence on gambling. Four major projects, totaling a whopping 4.2 billion euros, aim to transform Macau's economic landscape.
Bye-Bye, Casinos, Hello, Innovation
With casinos raking in around 80% of Macau's tax revenues, this move seems like a daring leap. Sam sees the one-sided reliance on gambling as a structural risk. With growing competition in Asia's gambling market and international challenges like the China-USA trade war, economic diversification is the key to sustainability.
Macau: A Special Administrative Region with a Special Role
Since 1999, when it was handed over from Portugal, Macau has been a Special Administrative Region (SAR) of the People's Republic of China. Similar to Hong Kong, Macau boasts its own legal system, customs, independent tax policies, and political autonomy. This unique status allows it to conclude international agreements and act as a bridge between China and the West within the Greater Bay Area.
Rebooting Macau: Major Projects
These four projects, unveiled at a media event, are part of a long-term strategy to promote moderate economic diversification, aligned with China's President Xi Jinping's guidelines and Macau's five-year plan. Here's a sneak peek:
University City Hengqin
A hefty 22 billion euros has been earmarked for this mega-project. The University of Macau's new campus is already under construction, with operations slated to begin in 2028. The University of Tourism will also expand into this new academic hub.
International Cultural and Tourism Quarter
This quarter, planned to be located between the Macau Peninsula and Taipa, will receive a whopping 13.2 billion euros. It's expected to house a National Museum, an international center for performing arts, and a Museum of Modern Art. These cultural gems will serve as a beacon for the city's transformation.
Airport Expansion and Logistics Hub
The Macau International Airport will undergo a 6.6 billion euro expansion, with initial construction already underway. The plan includes land reclamation to extend the runway and upgrade airport infrastructure. The aim is to establish Macau as an international air traffic hub on the western bank of the Pearl River, with potential for cross-border e-commerce and high-tech industry cooperation with Zhuhai Jinwan Airport.
Technology Park
With a vision to attract international research centers, a Technology R&D Industrial Park is in the pipeline. Customized infrastructure and funding mechanisms will draw tech companies from around the world to Macau.
Hengqin: The Cornerstone of Diversification
To support these projects, Macau will develop new legal regulations tailored to the Hengqin cooperation zone. These regulations aim to provide investors with higher legal certainty, predictability, and stability.
Sam emphasizes the importance of Hengqin in Macau's economic diversification. Already boasting several interdisciplinary steering committees, Macau plans to strengthen its connection with neighboring cities and promote real economic activities in Hengqin.
Macau's game is changing, and it's all happening in Hengqin. Stay tuned for more updates as this Asian powerhouse steps into a new era.
What about the role of technology in Macau's economic diversification?Sam plans to attract international research centers and tech companies to Macau through a Technology R&D Industrial Park, which will be part of the Hengqin cooperation zone. This move is expected to bring in innovation and potentially boost the sports industry, as technology can greatly improve the experience in fields like sports medicine, sports training, and even sports entertainment.
