AGP Executive Report

Macao Development Blueprint: Macao released its Third Five-Year Plan (2026-2030), aiming for high-quality growth and “appropriate economic diversification” to reduce long-term reliance on gaming, with Hengqin’s Guangdong-Macao cooperation zone highlighted as a key engine. Tourism Pulse: Visitor arrivals rose 2.4% year-on-year to 3,542,218 in July, led by mainland China and a jump from Taiwan, while Hong Kong arrivals fell. Economy Update: Revised 1H26 GDP came in at MOP209.9 billion, up 3.7% in real terms, supported by stronger service exports tied to visitor growth. Retail Snapshot: Q2 retail sales climbed 12.1% to MOP17.96 billion, with big gains in communication equipment, watches/jewellery and cosmetics, while department stores and pharmacies declined. Hengqin MICE Push: Macao-Hengqin MICE cooperation moves toward more regular support, including subsidies for ICCA-listed international conferences and incentives for first-time accreditation. Cross-border Ops: Hong Kong ran its first stress test for Huanggang Port passenger and vehicle flows, including trials of “collaborative inspection” automated channels for Home Visit Permit holders. Regional Context: China is reviewing a draft amendment to strengthen foreign-related legal services, including training and support for Hong Kong and Macao legal professionals.

Macau Economy Watch: Macau’s revised GDP for 1H26 rose 3.7% year-on-year to MOP209.9 billion, with growth supported by a 9.0% jump in visitor arrivals and stronger exports of services, including tourism and gaming. Tourism Numbers: July visitor arrivals climbed 2.4% to 3,542,218, led by mainland China (+5.4%) and Taiwan (+13.9%), while Hong Kong arrivals fell 10.2%. Retail Pulse: Q2 retail sales reached MOP17.96 billion (+12.1% year-on-year), with big gains in communication equipment and luxury-adjacent categories, while department stores and pharmacies declined. Gaming & Diversification Debate: Macau’s push to lift non-gaming industries toward 60% of GDP by 2030 faces skepticism, with observers warning the target is hard to reach given casino operators’ incentives. Policy & Business Links: A MOFCOM move added the Responsible Business Alliance (RBA) to China’s countermeasure list, raising compliance and audit challenges for firms relying on RBA-linked supplier checks. Regional Context: Hong Kong’s Tiananmen vigil activists were convicted of “incitement to subversion,” underscoring tighter national security enforcement across the city.

Macao Economy Update: The Statistics and Census Service says Macao’s GDP rose 3.7% year-on-year in real terms to MOP209.91 billion in 1H2026, led by stronger exports of services and visitor arrivals; retail sales also climbed, up 12.1% to MOP17.96 billion in Q2. Third Five-Year Plan: Chief Executive Sam Hou Fai says Macao’s 2026-2030 plan is aligned with China’s 15th Five-Year Plan, with goals tied to “One Centre, One Platform, One Base” and an international talent hub. Hengqin-Macao MICE Push: A Hengqin seminar highlighted ICCA-linked support measures, including RMB 800 per participant for qualifying international conferences and rewards for first-time ICCA accreditation. Local Education & Skills: UTM welcomed over 1,000 new students and launched new programmes, including an MBA and a cross-border dual-campus model with the Macao-Hengqin University Town. Community Safety: Police report a romance scam case where a woman lost MOP460,000 after being lured into a fake crypto investment scheme. Culture & Arts: The Macao Museum of Art opened a Qing-dynasty Guangdong paintings exhibition, while IC also backed regional exchanges tied to children’s performing arts. Tourism & Lifestyle: YOHO Gold Coast’s Taipa renovation trial run is delayed to November, with full completion now expected by February 2027.

Macao 3rd Five-Year Plan: Chief Executive Sam Hou Fai says the 2026-2030 blueprint is tightly aligned with China’s 15th Five-Year Plan, aiming for economic diversification, stronger governance, and deeper Macau-Hengqin integration. Central finance support: China’s Ministry of Finance issued RMB 6 billion sovereign bonds in Macao for the fifth straight year, with the Monetary Authority calling it a boost for the local bond market. Cross-border upgrades: Hengqin Port is set for further improvements to speed and simplify Macau-Hengqin crossings, including more contactless clearance and smarter vehicle inspection. Public health push: The Health Bureau expands hepatitis and cancer screening, including wider hepatitis B testing for residents over 40, using the Macao One Account to raise coverage. Local business & tourism: Galaxy reports a 40% foot-traffic jump tied to its “Tourism + Performing Arts” strategy, while SME credit approved fell 8.6% in 1H as delinquency ratios rose. Culture & community: A youth arts exhibition in Macau highlights “truth, goodness and beauty,” and a Global Humanity Forum Symposium is set for Dec 3-4 in Macao.

Macao Governance: Chief Executive Sam Hou Fai says the SAR’s Third Five-Year Plan (2026-2030) is key to “high-quality development,” with eight goals spanning security, law-based governance, economic diversification, Hengqin integration, education-tech-talent, well-being, and a smarter, greener city. Central Finance: China’s central government issued 6 billion yuan in sovereign bonds in Macao, supporting the local renminbi bond market. Public Health: The Health Bureau is expanding hepatitis and cancer screening under the “Healthy Macao Action Plan,” including wider hepatitis B testing via the Macao One Account. Local Economy: AMCM data shows newly approved SME credit fell 8.6% in 1H 2026, while the delinquency ratio rose to 8.5%. Cross-Border Mobility: PSP plans Hengqin Port upgrades to speed clearance and boost convenience, including more intelligent, contactless processing. Tourism & Culture: MGTO says Macao won a record seven PATA Gold Awards, while Galaxy reports a 40% foot-traffic jump from its “Tourism + Performing Arts” push. Procurement Update: Macao’s new public procurement website goes live on 1 September, replacing the Suppliers Database and IAM services. Global Spotlight: The Global Humanity Forum Symposium 2026 is set to open in Macao on Dec 3-4.

Five-Year Plan Focus: Macau has unveiled its Third Five-Year Plan (2026–2030), with Chief Executive Sam Hou Fai saying it’s built to deepen “One Country, Two Systems,” push economic diversification, and tighten integration with Hengqin—while also prioritising education, jobs, housing, elderly care and urban renewal. Fiscal Health: The Macao Monetary Authority reported fiscal reserves hitting a record 704.34 billion patacas at end-June, up 5.6% year-on-year. Tourism & Awards: Macau’s tourism push scored a record seven PATA Gold Awards, including wins for MGTO and integrated resort projects, as MGTO promoted next year’s PATA Travel Mart in Macao. Business Push: IPIM and the Industrial Association of Macau helped 12 firms take part in Hong Kong’s HKTDC Food Expo, racking up 180+ business matching sessions. Cross-Border Integration: Macau officials stressed rule and mechanism alignment with Hengqin as a key, “complicated and difficult” task for the new plan. Local Spotlight: MGM’s Glen Corales won the Hennessy MyWay 2026 Hong Kong & Macau Champion title, earning a spot in the global final. Sports Note: India’s badminton campaign at the BWF World Championships saw PV Sindhu and Ayush Shetty advance, while Lakshya Sen and Unnati Hooda exited.

Macao Five-Year Plan: Macao officially released its Third Five-Year Plan (2026-2030), with Chief Executive Sam Hou Fai calling it a key step to deepen “one country, two systems” and align with the national 15th Five-Year Plan. The blueprint targets appropriate economic diversification, aiming to lift non-gaming sectors to about 60% of GDP by 2030, while pushing Hengqin integration, urban renewal, and stronger China-Portuguese-Spanish connectivity. It also puts education, jobs, housing, elderly care and other livelihood priorities front and centre. Local Governance Reform: A draft law under public consultation would tighten oversight and improve how local associations are managed, with lawmakers backing the move and the government saying it will guide associations toward “positive development.” Tourism & Trade Push: MGTO and the local travel trade promoted Macao at Malaysia’s PATA Travel Mart, while IPIM and the Industrial Association of Macau helped 12 firms take part in Hong Kong’s HKTDC Food Expo, running 180+ business matching sessions. Weather Watch: Macau is bracing for unsettled conditions with possible thunderstorms as a low-pressure trough approaches. Cross-border Enforcement: Gongbei Customs in Zhuhai seized 158 terrapins from a Macau resident, and Hong Kong Customs sentenced a Vietnamese passenger to three months for importing duty-not-paid cigarettes.

Macao Policy Push: Macao SAR has officially released its Third Five-Year Plan (2026–2030), with Chief Executive Sam Hou Fai saying it will be rolled out through four big tasks: economic diversification, Hengqin development, urban renewal, and tighter integration with national development; the blueprint spans 10 parts and 36 chapters, sets eight development goals, and follows a 40-day public consultation. Central Support: Liaison and State Council officials backed the plan as a long-term roadmap for “One Country, Two Systems,” highlighting a governance model that pairs a capable government with an efficient market. Gaming Economy: Macao’s casino tax take rose more than 9% year-on-year in H1 2026 to about US$7.2 billion, with gaming taxes making up 84.6% of total tax income and leaving a near US$2 billion surplus. Border & Travel: Zhuhai’s Gongbei Customs seized 158 live terrapins from a Macau resident at the checkpoint, while Qatar announced free visa-on-arrival for MSAR passport holders for up to 30 days. Local Spotlight: Musician Brian Vong received an “Outstanding Person Award” for community-focused work and recent free concerts across Macau, Hong Kong and Zhuhai.

Macao Policy Update: The Macao SAR has released its Third Five-Year Plan for Economic and Social Development (2026–2030), setting eight goals from law-based governance and national security to visible progress on economic diversification, Hengqin cooperation, education-tech-talent integration, and improving public well-being. Local Governance: The MSAR government says it will push “Law-based Macao,” “Vibrant Macao,” “Cultural Macao,” and “Blissful Macao,” with major tasks focused on docking with national development and delivering results residents can feel. Cross-Border Mobility: Qatar has announced free tourist visa-on-arrival for Macao SAR passport holders for stays up to 30 days. Transport & Infrastructure: Macau International Airport Company (CAM) has been granted authority to manage the aviation-designated zone at Taipa Ferry Terminal, reviving plans to expand air functions as passenger numbers keep rising. Public Safety: A 73-year-old woman died after being struck by a tour bus near Border Gate; police are still investigating the cause. Gaming Business: Sands China will double its interim dividend, while Success Universe warns of a wider 1H26 loss tied to the closure of Casino Ponte 16.

Power & Politics: Xi Jinping used Jiang Zemin’s 100th birth anniversary to stress continuity and legitimacy, praising Jiang’s role in the Hong Kong and Macau handovers and his anti-“Taiwan independence” line. Tourism & Daily Life: Some international visitors report credit-card payment problems at Macau shops, with merchants sometimes demanding minimum spend. Transport & Safety: A 73-year-old woman died after being struck by a tour bus near Border Gate; police are still investigating the cause. Environment & Mobility: The government plans a 45% jump in electric motorcycle charging spaces to about 1,400, alongside subsidies to replace petrol bikes. Gaming & Finance: Sands China doubled its interim dividend; meanwhile former satellite operator Success Universe issued a 1H26 profit warning tied to the closure of Casino Ponte 16. Governance & Society: Authorities launched a public consultation to reform association law and tackle “sleeping associations,” with about 40% inactive for five years or more. Cross-border & Infrastructure: Residents can now use Home Return Permits at Macau-mainland e-channels at all three joint checkpoints; CAM was granted authority to manage the Taipa ferry terminal’s aviation-designated zone. Customs & Enforcement: Customs intercepted 10 smuggling cases in a week, seizing cigarettes, e-cigarettes, used phones and about 105 litres of sake. Community & Events: Food Expo and related fairs drew over 520,000 visits, setting a record.

Education & Hengqin Integration: Macao University of Tourism (UTM) is starting postgraduate teaching at the first phase of the Macao-Hengqin International Education (University) Town, with 200+ students splitting time between Macao and Hengqin and programmes spanning hospitality, digital marketing/analytics and business administration. Cross-border Travel Convenience: From Aug. 18, Macao residents and Hong Kong permanent residents can use the Mainland Travel Permit for automated immigration clearance for both departure and arrival via the Zhuhai-Macao Bridge Port, Hengqin Port and Qingmao Port. Tourism Watch: MGTO says international visitor growth is slightly below expectations, with July foreign arrivals up just 2% year-on-year and early August improving, as fuel prices, flight capacity and route changes continue to bite. Local Governance & Economy: The CE met lawmakers to gather views for the 2027 Policy Address, while a forum on the draft 20-year Urban Master Plan urged clearer “priority urban renewal zones” and housing-for-renewal mechanisms. Public Services & Compliance: DSEC’s 2026 Population By-Census data collection ended Aug. 15 (91.3% initial response), with a post-enumeration survey running Aug. 31–Sep. 18. Business & Gaming: Paradise Entertainment warned of a HK$82.6m 1H26 loss tied to satellite casino closures and weaker gaming equipment sales.

Macau Economy & Tourism: Macau’s economic climate index is expected to stay in a “stable” band, even as gaming revenue and visitor arrivals show year-on-year softness, with local indicators pointing to cautious demand. MICE & Non-Gaming Push: MICE activity held steady in 1H (918 events) but participants and attendees jumped, lifting non-gaming MICE receipts to about MOP2.43 billion (+44.8%); Q2 showed similar momentum with higher spending per visitor. Urban Planning: A forum on Macau’s 20-year Urban Master Plan draft amendments urged the government to designate “Priority Urban Renewal Zones,” backed by legal demarcation, property surveys, and public infrastructure investment, plus a “housing-for-renewal” transfer idea to ease relocation. Climate Watch: El Niño is forecast to peak early next year, bringing wetter summers and putting Macau’s drainage and climate response to the test. Gaming Business: Melco says its revamped REM luxury suites and City of Dreams retail upgrades are set to support growth in 2H, with REM’s grand opening planned after Golden Week in October. Policy Process: CE Sam Hou Fai met lawmakers to collect views for the 2027 Policy Address, covering everything from urban renewal and AI legislation to Macau-Hengqin integration and elderly services. Public Administration: A Taipa district notice board emblem is under scrutiny after claims it looks AI-generated, raising legal concerns over official symbol display. Customs & Food Safety: Customs seized 1.5 tonnes of frozen chicken feet in a parallel-trading case, with the suspect facing follow-up actions over licensing and food safety violations. Labour Rights Debate: A renewed call to review domestic helper rules is gaining traction, but critics say the discussion must also focus on workers’ rights, welfare, and living conditions.

National Mourning: China will fly flags at half-mast for former premier Zhu Rongji, with Macao also lowering flags and doing so at government sites and boundary checkpoints on 18 August, as his remains are cremated in Beijing. Diplomatic Tension: China’s embassy in the Philippines rejected claims by Defense Secretary Gilberto Teodoro Jr. over the arrest of Chinese workers at a steel plant, calling the accusations baseless and questioning why only Chinese workers were detained. Macau Economy Watch: Macao’s foreign exchange reserves fell 0.3% in July to MOP243.1 billion, while the pataca’s trade-weighted effective exchange rate index rose. Housing & Credit Signals: DSEC data showed average rents easing slightly in Q2 2026, and Monetary Authority figures pointed to higher new mortgage approvals in June but weaker SME credit growth in the first half. Gaming & Business Context: A Macau Business special report revisits how the city’s gaming model shifted from VIP dominance to broader tourism and diversification expectations. Sports & Community: Starlight 2026 wrapped in Singapore with Macau among participating teams, highlighting youth basketball ties across the region.

Macau Economy Watch: Macao’s foreign exchange reserves slipped 0.3% in July to MOP243.1 billion, while the pataca’s trade-weighted effective exchange rate index edged up, suggesting a mild overall appreciation. Local Finance & Housing: New SME credit approvals fell 8.6% year-on-year in 1H 2026, and the delinquency ratio rose to 8.5% even as delinquent loan balances shrank; meanwhile, June saw higher new mortgage approvals, but outstanding balances for both residential mortgages and commercial real estate loans continued to ease. Gaming & Diversification: Lawmakers pushed for fresh consumption incentives for community SMEs, warning that even with record non-gaming tourist spending, many visitors still concentrate spending at integrated resorts. Policy Process: Chief Executive Sam Hou Fai told Legislative Assembly members the 2027 Policy Address will further strengthen the executive-led system and improve executive-legislative coordination. Business Moves: DFI Retail Group will become the exclusive wholesaler, distributor and franchisee for GNC across Hong Kong, Macau and Singapore, aiming to rebuild and expand the brand’s footprint. Regional Context: China threatened to deport 100 Filipinos after Philippine raids on alleged illegal Chinese workers, raising fears of spillover for overseas Filipino workers in the region.

Macau Economy Watch: Macao’s foreign exchange reserves slipped 0.3% to MOP243.1 billion at end-July, while the pataca’s trade-weighted effective exchange rate index edged up, suggesting a mild overall appreciation. Property & Lending: June data show new residential mortgage approvals jumped 30.9% month-on-month, and new commercial real estate loans surged 88%; meanwhile, average rents dipped slightly in Q2, with residential rents down 0.1% quarter-on-quarter. Non-gaming Push: The government says it will invest US$16 billion over the next five years to boost non-gaming sectors, while IPIM reports 194 new investment proposals in H1, with over 60% tied to the “1+4” industries. Gaming Business: Macau gaming tax collected reached US$7.21 billion in the first seven months of 2026; Melco also flagged softer 2Q26 revenues amid resort impacts. Regional Spotlight: A special report asks whether Macau’s “camel” could form a third hump as the market moves beyond the VIP junket era.

Philippines–China Tensions: China threatens to deport 100 Filipinos after Manila raids on alleged illegal Chinese steel workers, raising fears the diplomatic spat could spill into the lives of OFWs in Hong Kong and Macao. Macau Economy Watch: The Monetary Authority of Macao reports foreign exchange reserves at MOP243.1b (end-July), while June data show new mortgage approvals up (RMLs +30.9% m/m) but outstanding balances easing; SME credit also tightens, with delinquency ratios rising even as loan totals fall. Property & Living Costs: DSEC says average residential rents edged down in Q2, with shop and office rents also generally lower. Gaming Revenue: Macau gaming tax collected hits MOP58.3b in the first seven months of 2026, and Melco’s revamped REM at City of Dreams Macau is soft-opened with a grand opening planned for early next quarter. Local Policy & Development: Lawmakers pass drug-law updates adding new controlled substances, approve a framework for using Macau coastal waters, and back funding for the Macao-Hengqin education town. Business Moves: DFI Retail becomes exclusive wholesaler/distributor/franchisee for GNC across Hong Kong, Macau and Singapore.