Editorial | Macau’s next leader faces stiff challenge in diversifying economy

Once again, the outcome of the leadership race in Macau looks certain before the ballot takes place next month. But that does not make the job of the next leader any easier. From diversifying the casino-dominant economy to improving administration and people’s livelihoods, the challenges ahead are daunting.

Sam Hou-fai’s uncontested victory in the chief executive election is a fait accompli, having secured 96 per cent of the nominations from an election committee to become the sole candidate. The support is even higher than those for the two previous leaders, who also won without facing any rivals. A vote by the 400-member committee on October 13 will formally conclude the electoral process.

The 62-year-old former top judge came forward after Ho Iat-seng became Macau’s first post-handover leader not to seek a second term. Sam also will be the first non-locally born chief executive. The mainland lawyer came to the city in 1986, further studied law in Portugal and served as the head of Macau’s Court of Final Appeal for 25 years after the reunification in 1999.

Sam’s judicial background sets him apart from his predecessors, all of whom came from influential business families with deep roots in Macau. His perceived independence and a lack of commercial and political ties may come as a refreshing change for many looking forward to bolder economic and social reforms. But his limited political and public administration experience also is of concern. To be fair, no one is an all-rounder. Sam needs a strong team to help him push forward his agenda. He also needs to reach out to remaining election committee members, and the wider community, for support.

This is especially important as the relatively short campaign period has prevented the incoming leader from fully elaborating on his vision and undertakings. But he made no bones about his concerns for what he branded as “barbaric expansion” of the gaming industry in the past, which also affected job opportunities and choices for the younger generations.

Despite long-standing calls by Beijing for Macau’s economy to become less dependent on casino business, diversification remains a work in progress. While Sam appears to be well aware of the risks, he has yet to map out a clear strategy. The government needs to strike a balance that enables a healthy stream of revenue from gaming while exploring growth and development in other industries. Under the Greater Bay Area development plan, Macau is slated to be the region’s tourism hub. Economic restructuring and social reforms aside, the city also needs to better harness its unique strengths as the bridge between the nation and the Portuguese-speaking world and beyond. The job ahead for Sam will be challenging.