Macau's sole candidate for chief executive has outlined his vision for a robust economy, with the gaming industry serving as a cornerstone of stability.
Sam Hou Fai, former president of Macau's Court of Final Appeal, previously criticized the gaming industry for its "negative impact" on the SAR. However, during a press conference on 28 September, he struck a more measured tone. Sam acknowledged gaming as Macau's dominant industry but emphasized the need for its "healthy development" to ensure the city's long-term sustainability.
He also stressed the importance of diversification, citing the Covid-19 pandemic as a reminder that no government can depend on a single industry. "What would we do if another major disaster struck?" he questioned.
Promoting “diversified development” in Macau
During a three-hour session on Saturday, Sam Hou Fai stated that his administration would "protect and supervise the healthy and orderly development" of Macau's six gaming concessionaires. The Big Six—MGM Resorts, Wynn Resorts, Las Vegas Sands Corporation, SJM, Galaxy Entertainment, and Melco Resorts—have committed to contributing to this effort.
As part of their licensing agreements, these operators are required to collectively invest MOP130 billion (£12bn/€14.6bn/US$16.2bn) in non-gaming developments, including urban renewal projects and cultural attractions, to diversify Macau’s economy.
“We will periodically review the overall situation regarding the fulfilment of the concession contracts,” said Sam.
The local government will also back the growth of four key sectors: finance, technology, healthcare, and meetings and conventions.
Sam Hou Fai explained that the market-driven "1+4" strategy aims to "foster diversified economic development in Macau" and strengthen the city's role as a global tourism and leisure hub.
The shift away from gaming is already underway. In May, current Chief Executive Ho Iat-seng noted that gaming accounted for less than 40% of the city's GDP in 2023, a significant drop from around 60% in previous years.
Is Sam qualified to lead the charge?
In August, Sam Hou Fai emerged as the only candidate for chief executive, securing support from 386 of the 400 election committee members. On 13 October, these members will choose the new leader, though the majority of Macau’s 687,000 residents do not have voting rights. Sam is expected to succeed Ho Iat-seng, who is stepping down due to health issues.
If elected, Sam would become the first chief executive from mainland China, taking office in December.
However, some analysts have raised concerns about Sam's qualifications and his capability to guide Macau through its next phase of development.
“It seems ridiculous to think that a chief justice might be qualified to be chief executive,” Anthony Lawrance, founder of consultancy Intelligence Macau, told Reuters.
Ieong Meng-u, assistant professor of social sciences at the University of Macau, shares doubts about Sam Hou Fai's suitability for the role of chief executive. Ieong noted that Sam's background in the judiciary does not adequately prepare him to manage "economic restructuring, regional collaboration, or Macau's global connections."
Political commentator Sonny Lo Shiu-Hing echoed these concerns, stating that Sam's "economic experience is relatively limited." However, Lo expressed confidence that Sam could govern successfully with the support of seasoned economic advisors.
Ultimately, Ieong believes the choice of chief executive is secondary, as the top priority will always be following directives from Beijing. According to him, the incoming CE is unlikely to disrupt Macau's gaming industry due to its critical importance.
Lo agreed, stating that "casino capitalism" will persist in Macau, though it will be "tempered by greater social welfare initiatives and economic diversification."
