Speaking at a meeting of the government-led Economic Development Council, Sam candidly outlined the city’s economic challenges but did not yet propose concrete solutions.

“In recent years, the rise of unilateralism and protectionism has posed significant challenges to the global economy. As a small-scale economy, Macau cannot remain unscathed, especially as competition in tourism and gaming from neighbouring cities intensifies and looms,” he said. “Such risks and challenges must not be overlooked.”

While Sam did not name specific regional rivals, Japan is moving forward with its first integrated resort with a casino, while Thailand is progressing towards legalising casino operations. Other regional jurisdictions, including the Philippines and Singapore, continue to expand their gaming industries.

Reliance on mainland Chinese tourists

“Macau still heavily relies on the mainland Chinese tourist market, which warrants close attention in the future,” Sam added, as the Macau government has been working to attract more international travellers in recent years.

Macau’s gross gaming revenue rose 23.9 per cent year-on-year to MOP 226.78 billion in 2024, yet the sector has seen two consecutive months of decline. Gaming revenue fell 5.6 per cent year-on-year in January, following a 2 per cent drop in December.

Falling short of expectations

While acknowledging the “positive momentum” of Macau’s post-Covid recovery, Sam also underscored the city’s continued reliance on gambling. “The economic structural problem of reliance on the gaming industry is expected to persist for a long time, without any fundamental changes,” he said.

Beyond gaming, Sam pointed to other economic challenges, including a lack of diversity in tourist source markets, limited fiscal revenue streams beyond gaming, and weak innovation capacity. “These long-standing problems require better solutions,” he said.

The administration led by Sam is also closely monitoring shifts in consumer behaviour in the post-Covid era and the economic struggles of small and medium-sized enterprises (SMEs).

From recovery to high-quality development

Despite acknowledging these issues, Sam did not present specific policy measures on Wednesday. He reiterated that the government would listen to stakeholders, including members of the Economic Development Council, which consists of officials, industry leaders, professionals, and academics.

Having assumed office in December, Sam is set to deliver his maiden Policy Address in the coming weeks. On Tuesday, the government announced the establishment of five working groups, with Sam chairing two of them to oversee public administration reform and drive the development of the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.

“We must focus our efforts on boosting the economy, driving development, and advancing construction,” he pledged on Wednesday. “By adopting new mindsets, better strategies, and stronger commitment, we can drive economic diversification and the development of the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.”

“Macau’s economy is at a critical juncture, transitioning from recovery to high-quality development,” Sam added. “[We need to] address challenges while boosting confidence, leverage both market forces and government support, and optimise existing resources while expanding new opportunities.”