Interview: Gaming's GDP share declines as Macao diversifies economy, top official says

Ho Iat Seng, chief executive of the Macao Special Administrative Region (SAR) receives an interview with Xinhua in Macao, south China, Nov. 20, 2024.(Xinhua/Jin Liangkuai)

MACAO, Dec. 11 (Xinhua) -- Macao has achieved new progress in diversifying its economy as the share of the gaming industry in its GDP decreased to 37.2 percent last year, said Ho Iat Seng, chief executive of the Macao Special Administrative Region (SAR).

The figure was down 14 percentage points compared to that in 2019 when Ho began his tenure as the SAR's top official.

"The growing share of key non-gaming industries in Macao's economy over the past years is enhancing its stability and resilience," said Ho in an interview with Xinhua as Macao prepares to celebrate the 25th anniversary of its return to the motherland on Dec. 20.

Ho noted that appropriate economic diversification is essential to reducing Macao's reliance on the gaming industry and tackling long-standing challenges in the region's economic and social development.

Last year, the combined value added from Macao's four priority sectors, including traditional Chinese medicine, rose by 6.9 percent compared to 2019.

The chief executive also highlighted that enhancing the quality of life for Macao residents has been a central focus of the SAR government in the past five years. "Macao's social welfare initiatives have reached new heights."

The share of the budget allocated to essential sectors such as education, healthcare, social security, housing and community services has risen from 39.2 percent in 2019 to 44.8 percent in 2024.

Notably, public housing investments totaled 15.88 billion patacas (about 1.98 billion U.S. dollars) over the past five years. Major infrastructure projects, including light rail systems and a new bridge, have been completed, while the expansion of Macao International Airport is also underway.

"Macao's development over the past 25 years has demonstrated that the 'one country, two systems' policy is fully applicable, achievable, and popular," Ho said.

Given Macao's small population and limited land area, the region faces natural constraints, Ho noted, stressing the importance of integrating Macao more closely into China's broader national development strategies.

"This is an inherent part of 'one country, two systems' in the new era, and it is crucial to creating new opportunities, space, and momentum for Macao's growth," he said.

Over the past five years, the SAR government has leveraged Macao's unique advantages -- including its practice of "one country, two systems," status as a free trade port and designation as a separate customs territory -- to actively participate in the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.

The government has also strengthened cooperation with Portuguese-speaking countries, further expanding Macao's global reach.

In September 2021, the Guangdong-Macao in-depth cooperation zone was established on Hengqin Island, located near Macao, which Ho described as a new model of joint development and management under "one country, two systems."

Since its establishment, the number of Macao-invested enterprises and their industrial output in the cooperation zone has grown significantly, with the integration between Hengqin and Macao advancing rapidly.

Ho reaffirmed that safeguarding national security and social stability is a constitutional responsibility of the Macao SAR. "Without national sovereignty, security, and development interests, 'one country, two systems' would be meaningless," he said.

Over the past five years, Macao has strengthened its capacity to safeguard national security through the appointment of national security advisers, revisions to its national security law, and amendments to the electoral laws for the chief executive and the Legislative Assembly.

Ho attributed the success of the "one country, two systems" policy in Macao to the widespread societal recognition of the policy and the spread of the core values of patriotism and love for Macao across generations.

Educational initiatives, such as national flag-raising ceremonies, patriotic curricula, and youth exchanges with the mainland, have cultivated a strong sense of national identity among Macao's younger generation.

Reflecting on his time in office, Ho highlighted the progress achieved under the central authorities' leadership and with the support of the Macao community. "I am honored to serve as chief executive, and I will continue to work tirelessly to contribute to Macao's development," he said.