During a recent visit to Macau, Chinese President Xi Jinping emphasised the urgent need for the Special Administrative Region (SAR) to diversify its economy away from its heavy reliance on gaming.
Xi’s remarks came as part of celebrations marking the 25th anniversary of Macau’s handover to China, and in a speech following the swearing-in of the SAR’s new chief executive, Sam Hou Fai.
Xi reiterated that, while Macau has made significant strides in economic recovery following the downturn caused by the pandemic, there is a need to reduce the reliance on the SAR’s casino sector.
“Efforts should be made to promote moderate economic diversification[…] and focus on cultivating new industries with international competitiveness,” the president stated.
Macau’s GDP saw an 11.5 per cent increase in the first three quarters of 2024, but over 81 per cent of government revenue still derives from gaming-related taxes. This dependency poses risks highlighted during the pandemic, prompting central authorities to call for a shift in economic focus.
Source: Asia Gaming Brief
