Macao's next leader wants to wean its economy off gambling

Slated to become the next leader of Macao, Sam Hou Fai wants to steer China's special administrative region further away from its heavy reliance on gaming and gambling. 

Formerly Macao's top judge, Sam was elected its next leader in an uncontested vote on Sunday.

In a speech following his election, Sam said he plans to improve business conditions and support smaller enterprises, according to Chinese state media.

In the lead-up to his selection, the 62-year-old identified the diversification of Macao as an urgent issue to address.     

Speaking at a press conference at the end of September, he told local reporters that his administration would roll out various measures with the aim of stimulating economic diversification. 

He added he would consider creating public funds to promote the development of emerging industries outside gaming and gambling.

For years, the city's status as the only place in Greater China where casinos are legal had attracted high-spending tourists and helped make it one of the wealthiest cities in the world per capita.  

However, that reliance backfired during the Covid-19 pandemic when the gambling and gaming industries took major hits from border closures and social distancing policies. 

Following the pandemic, Sam's predecessor, chief executive Ho Iat Seng, had also prioritized economic diversification before he announced in August he wouldn't be seeking reelection owing to health concerns. 

Last year, Seng rolled out a diversification plan to boost a range of industries from tourism and leisure to commerce, finance, traditional Chinese medicine and exhibition. 

In May, he said the gaming industry accounted for less than 40% of the city's gross domestic product in 2023, down from peak contributions of about 60% from 2011 to 2013, according to local media. 

Beijing officials have also directed Macao to diversify its economy. 

Sam is assumed to have Beijing's blessing, having been selected by an election committee stacked with Beijing loyalists after getting 394 out of 398 votes. He will also become Macao's first chief executive to have been born in mainland China. 

Sam is expected to assume office in December when the city marks the 25th anniversary of its handover to China's rule. 

In remarks on Sunday, Sam said Macao SAR will "further promote cooperation with China in areas such as trade, finance, tourism, and high technology," according to Chinese state media.