Slowdown in Macau’s growth will drive economic diversification, says Chief Executive

24 March 2015

The Chief Executive of Macau Chui Sai On said Monday that the recent drop in growth of the region’s economy will boost the diversification of its economic structure, which remains dependent on the gaming industry.

Chui Sai On, giving the Policy Address for 2015 to the Legislative Assembly said, “The recent slowdown in economic growth leads to an acceleration of the process of proper diversification (…) which is the essential foundation for the stable development of our economy.”

The Chief Executive noted that after ten years of strong growth, the gaming industry, influenced by internal and external factors, had entered “a phase of adjustment and consolidation.”

“Despite the economic development facing great difficulties and challenges at the moment, our economy is generally well-grounded and the growth trend remains unchanged,” he said giving assurances that the government would remain “alert, optimistic and prudent.”

Chui Sai On recalled the weight of other branches of the economy, such as trade, hotels and restaurants, indicating that their revenues accounted for more than half the value of casino revenues.

“In 2014, gross gaming revenues totalled 350 billion patacas (US$43.8 billion) and, in the same period, the gross revenues not associated with gaming, particularly wholesale and retail, hotels and restaurants, construction and finance, registered a value of more than 190 billion patacas (US$23.8 billion),” said Fernando Chui Sai On.

“The rate of development of the gaming industry is starting to slow. The Government intends to intervene only in the rhythm of this sector, and not in its dynamics, seeking to develop stably, the course of its adjustment,” Chui Sai On said.

In 2015 “We will focus on improving legislation related to the gaming industry, increased supervision, regulation of the activities of companies in the sector and promoting ‘responsible gambling’,” said the Chief Executive referring the an analysis of the sector he plans to carry out this year. (macauhub/MO)