Opinion | Not just about gambling: Macao is embracing a path toward diversified and sustainable development

By Zoey Sun

Macao, often associated with its glittering casinos, the grandeur of the Venetian Hotel, and bustling crowds, has long been regarded as a hub for gaming enthusiasts. While it is undeniable that the gaming industry once served as the backbone of Macao's economy, the city has embarked on a remarkable transformation. As Macao marks the 25th anniversary of its return to the motherland, it is clear that this vibrant city has evolved far beyond its dependence on gaming, embracing a diversified and sustainable development path while integrating itself into the nation's broader strategic vision.

During the celebration of Macao's 25th anniversary of its return to the motherland, Chinese President Xi Jinping emphasized that the success of the "one country, two systems" principle which has underpinned Macao's prosperity and stability, rests on four key principles: staying committed to the fundamental policy of "one country" while leveraging the benefits of "two systems;" ensuring high-standard security and promoting high-quality development; leveraging the unique strengths of Hong Kong and Macao and reinforcing their connectivity with both the mainland and the world; and fostering core values that promote inclusivity and harmony.

Macao has embraced these principles, achieving unprecedented progress in its history. Over the past 25 years, the city has expanded its economic base from a reliance on gaming to include tourism, modern finance, and cultural industries. From its UNESCO-listed historic sites to modern luxury hotels, from international sailing regattas to music festivals, the city is proving that it is not just a place for gaming excitement but also a city of rich heritage, diverse cultural events, and world-class gastronomy.

At the heart of Macao's transformation lies the success of the "one country, two systems" principle. As President Xi highlighted, this principle has provided the institutional guarantee for Macao's prosperity and stability. Since its return to the motherland in 1999, Macao has not only maintained social stability but also achieved extraordinary economic growth. Its GDP per capita has surged from MOP 51.9 billion in 1999 to MOP 379.5 billion in 2023, while total resident savings have increased over eightfold. In recent years, Macao has actively integrated into the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), with initiatives such as the establishment of the Guangdong-Macao In-Depth Cooperation Zone, which has significantly expanded Macao's economic hinterland. Projects like the Hengqin campus of the University of Macau and streamlined customs procedures at the Hengqin Port are key milestones in the integration of Macao and Hengqin, signaling that Macao's development potential goes far beyond its 32.9 square kilometers of land.

The city has been seeking ways to diversify its economic structure. The Macao SAR government has aligned its strategies with the nation's 14th Five-Year Plan and the Outline Development Plan for the GBA, proposing a "1+4" strategy for moderately diversified economic development. For example, in modern finance, Macao has been promoting offshore RMB business and positioning itself as a financial services platform between China and Portuguese-speaking countries. In culture and sports, Macao has hosted world-renowned events like the Macau Grand Prix, drawing global attention. In healthcare, the Traditional Chinese Medicine Science and Technology Industrial Park of Co-operation between Guangdong and Macao serves as a key initiative to bring traditional Chinese medicine to the international stage, leveraging Macao's unique strengths.

Macao's transformation is not only economic but also deeply social. Since its return, the SAR government has made significant strides in social welfare, healthcare, and education. Policies such as a dual-layer social security system, 15 years of free education, and a five-tier housing program have greatly improved the quality of life for Macao residents. Initiatives like the "Wealth Partaking Scheme," which distributes economic benefits directly to residents, have further enhanced their sense of security and happiness.

Macao is breaking away from the perception that its development relies solely on the gaming industry. The city is offering a compelling story of transformation under the "one country, two systems" principle. Its journey is a vivid testament to the success of this principle and a small yet powerful window into China's modernization. Over the past 25 years, Macao has written its own legend of perseverance and progress. Standing at a new historical starting point, the city is poised to shine even brighter as it contributes, alongside Hong Kong, to the grand narrative of Chinese modernization.

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