Macau sets objectives to diminish problematic gambling habits
Macau Announces Four Major Projects Totaling €4.2 Billion to Diversify Economy
Macau's Chief Executive, Sam Hou Fai, has unveiled four significant infrastructure projects aiming to reduce the economic dependence of the Chinese Special Administrative Region on gambling. Presently, around 80% of tax revenues are derived from the gaming sector, a figure that has become structurally unsustainable due to escalating competition in Asia and external challenges such as the China-US trade war.
Macau, a Special Administrative Region (SAR) since its handover from Portugal in 1999, enjoys unique rights under the "One Country, Two Systems" principle. This includes an independent legal system, currency, customs policy, and tax regime, allowing it to act as a bridge between China and the West. Within the Greater Bay Area, Macau benefits from special preferential treatment, such as duty-free status and the special regulations of the Hengqin cooperation zone.
The new projects, revealed at a media event, are part of a long-term strategy to promote moderate economic diversification, as outlined in the five-year plan and guidelines of Chinese President Xi Jinping. The combined costs of these projects will amount to approximately €4.2 billion.
The largest project is the Macau-Hengqin International Education City, which will receive nearly €22 billion in funding. The new campus of the University of Macau is already under construction, with operations scheduled to commence in 2028. In a subsequent phase, the University of Tourism will also expand into the new educational city. Situated in the Hengqin cooperation zone, the complex aims to produce highly qualified specialists, particularly in tourism, leisure, and international cooperation.
An international culture and tourism quarter, slated for an investment of €13.2 billion, will be located between the Macau Peninsula and Taipa. The heart of the district will feature a National Museum, an international center for performing arts, and a museum of modern art. These attractions will serve as the cultural cornerstone of the project, with construction expected to take two to three years.
Macau International Airport is set for expansion at a cost of €660 million, with initial construction work already underway. Land reclamation will expand the runway, and airport infrastructure will undergo a technical upgrade with the goal of making Macau an international air traffic hub on the western bank of the Pearl River. This upgrade will increase capacity for over 50 existing international flight connections and facilitate closer collaboration with Zhuhai Jinwan Airport, allowing for logistics and transport solutions for cross-border e-commerce and the high-tech industry in the Greater Bay Area.
A Macau Technology R&D Industrial Park, planned to cost an undisclosed portion of the total investment package, aims to attract research centers of international corporations. Customized infrastructure and funding mechanisms will be developed to maintain high-tech companies from around the world in Macau, integrating the research park into the Greater Bay Area network and positioning Macau as a platform for technological excellence.
To support these initiatives, Macau will create new civil and economic legal regulations tailored to the Hengqin cooperation zone. These new regulations aim to provide investors with higher levels of legal certainty, predictability, and stability. The government will commission external specialist institutions to develop a feasible concept.
Six interdisciplinary steering committees and working groups are already in place to facilitate cross-departmental project management, with more likely to follow. Macau cannot remain indifferent as gaming and tourism competition intensifies with neighboring cities. To address these risks and challenges, Macau must strengthen its connections with neighboring cities and promote real economic activities in Hengqin, where many registered companies have yet to commence operations.
What will the new Macau Technology R&D Industrial Park focus on, given the context? - Technology research and development
What is one purpose of creating the Macau Technology R&D Industrial Park, according to the text? - To attract research centers of international corporations
