There is no way that the presumed chief executive of Macau will kill the golden goose.
The lone contender for the position of chief executive officer of Macau has revealed his ambitions for a robust economy that will be supported by a gaming industry that is stable.
Holdings (H1) of SJM
The "negative impact" that gambling has had on the Chinese special administrative region (SAR) was once criticised by the former president of the Court of Final Appeal in Macau.
On the other hand, Sam Hou Fai took a more subdued tone during a press conference on September 28. He stated that the gambling business must "develop healthily" in order for Macau to remain viable over the long term. He acknowledged that gaming is Macau's core industry.
On the other hand, Sam emphasised that Macau must not forget the takeaways from the COVID-19 epidemic, the most important of which is that no government can depend on a single industry for its continued existence. It was his question, "How would we deal with it if (in the future) major disasters occurred?"
Enhancing Macau's "diversified development" through promotion
During the three-hour meeting that took place on Saturday, Sam stated that his administration "will protect and supervise the healthy and orderly development of the six (gaming) concessionaires." In addition, the Big Six resort companies, which include MGM Resorts, Wynn Resorts, the Las Vegas Sands Corporation, SJM, Galaxy Entertainment, and Melco Resorts, have stated their willingness to contribute.
The operators are required to invest a total of MOP130 billion (£12 billion, €14.6 billion, or US$16.2 billion) in non-gaming facilities, such as urban renewal and cultural attractions, as part of the licensing agreements that authorise them to operate.
Sam stated that regular reviews of the overall situation concerning the implementation of the concession contracts would be conducted by the organisation.
A further four pillar industries, namely finance, technology, health, and meetings and conventions, will also get support from the local government with the intention of fostering their growth.
Sam stated that the "1+4" approach, which is driven by the market, will "promote the diversified development of the Macau economy" and will serve to position the city as a destination for international tourism and leisure activities.
This shift away from gaming has already started to take place. The current CEO, Ho Iat-seng, stated in May that the industry contributed less than forty percent to the gross domestic product in 2023, which is a significant decrease from the over sixty percent contribution it made in 2022.
Should Sam take the initiative to lead the charge?
During the month of August, Sam emerged as the single candidate for CE, receiving votes from 386 out of a total of 400 members of the election committee. Even though the majority of the SAR's 687,000 citizens do not have the ability to vote, those members will be the ones to choose the new leader on October 13th. Sam appears to be a prime candidate to take over for Ho, who is departing due to health concerns.
Should he be elected, he would go on to become the first leader of the city to originate from mainland China, and he would take office in December.
Sam's credentials and his capacity to steer Macau into a new age of prosperous development have been called into question by a number of commentators.
Anthony Lawrance, the founder of the consultancy Intelligence Macau, was quoted as saying to Reuters, "It seems ridiculous to think that a chief justice might be qualified to be chief executive."
In the same vein, Ieong Meng-u, who is an assistant professor of social sciences at the University of Macau, is sceptical of the claims. It was stated by him that Sam's "track record in the judiciary system" did not make him capable of "handling economic restructuring, regional collaboration, or even bridging Macau with the world."
Sonny Lo Shiu-Hing, a political expert, stated that Sam's "economic experience has been relatively weak." In addition, he stated, "I am certain that Mr. Sam will be able to successfully govern Macau with a group of individuals who have extensive experience in economic matters."
Ieong stated that in the end, the question of who becomes CE "is not important." According to the rules of the game, you are required to make the order from Beijing your first priority. Due to the fact that the gambling sector is "too important for Macau," the new CE would not put forth the courage to disrupt it.
"Casino capitalism will continue in Macau," Lo concurred with the statement. However, it will be "diluted by more social welfare and... more economic diversification," as the previous sentence states.
