During a recent “Opportunity Macao” media event, journalists were taken not only to heritage landmarks and cultural districts, but also to universities, innovation projects, and the neighboring Guangdong-Macao In-Depth Cooperation Zone in Hengqin. The message was subtle but unmistakable. Macao is looking beyond its long-established reputation as the world’s gaming capital and presenting itself as a city investing in a broader future.
That ambition is not new. The Macao Special Administrative Region government introduced its “1+4” economic diversification strategy in 2022. Four years later, however, the policy is entering a more meaningful stage as the city aligns itself with the national 15th Five-Year Plan (2026-30) while preparing its own new development blueprint, the Third Five-Year Plan (2026-30).
The discussion is no longer about whether Macao should diversify. It is about how.
The “1+4” strategy begins with an important recognition. Tourism remains the city’s greatest strength and should continue to be so. Rather than reducing its importance, the government intends to enhance the integrated tourism and leisure industry by connecting it more closely with culture, exhibitions, sports, entertainment, and international events.
Around this foundation stand four priority sectors: the traditional Chinese medicine and health industries; modern finance; high technology; and the convention, exhibition, culture and sports industries. Together they represent a long-term effort to build a more resilient economy while preserving the advantages that have made Macao internationally competitive.
Perhaps the most encouraging aspect of the strategy is that it is supported by substantial investment.
The government plans to establish a guided investment fund with an initial scale of 20 billion patacas ($2.5 billion) to encourage private capital to participate in emerging industries. Over the coming five years, more than 100 billion patacas in public expenditure is expected to support economic diversification initiatives. The objective is equally ambitious: maintaining the contribution of non-gaming industries at around 60 percent of GDP while creating new engines of growth.
For a city often perceived as relying on a single industry, these commitments reflect a willingness to invest patiently in long-term transformation.
Economic transformation rarely happens overnight. New industries require investment, talent and patience before they become self-sustaining. Yet Macao appears willing to make that commitment
Equally significant is the role of Hengqin.
For decades, Macao’s greatest limitation has been geography. Land is scarce, industrial space is limited and expansion opportunities are naturally constrained. The answer is increasingly found across the boundary.
The vision of “Research and Development in Macao, Transformation in Hengqin” and “Macao registration, Hengqin production” illustrates a new development model in which innovation, manufacturing and business operations complement each other rather than compete. Plans for improved transport links, regulatory alignment and easier movement of people, capital and research materials aim to create a more integrated economic ecosystem under the concept of “Macao plus Hengqin.”
Education and talent development form another important pillar.
The proposed international university city in Hengqin will expand higher education capacity while strengthening Macao’s international character. By attracting students and researchers from the Guangdong-Hong Kong-Macao Greater Bay Area, Portuguese-speaking countries and beyond, the city hopes to create an environment where education, technology and innovation reinforce one another.
This reflects a practical understanding that economic diversification is ultimately driven by people rather than infrastructure alone.
Macao is also building upon one advantage that few places can replicate. Its unique historical links with Portuguese-speaking countries have evolved into a strategic economic asset. From trade platforms and multilingual education to cultural exchanges and digital commerce, Macao is positioning itself as a bridge connecting the Chinese mainland with Lusophone markets while strengthening its international profile.
Culture, meanwhile, is increasingly viewed as productive capital. Historic neighborhoods, museums, performing arts venues and creative industries are not simply preserved for nostalgia. They are becoming part of a broader tourism experience that encourages visitors to spend more time in the city while supporting new businesses and creative talent. Recent plans for Greater Bay Area cultural cooperation and joint arts initiatives further reinforce Macao’s ambition to become a regional center for cultural exchange.
What makes the “1+4” strategy particularly compelling is that it does not attempt to reinvent Macao by abandoning its past.
Many cities pursue diversification by chasing fashionable industries and copying larger competitors. Macao has chosen a more confident approach. Tourism remains the foundation, but it is increasingly connected with healthcare, technology, finance, education and culture. The strategy is one of expansion rather than replacement.
That philosophy was evident throughout the “Opportunity Macao” program. Instead of asking visitors to forget Macao’s identity, the city invited them to see a more complete picture: a place where world-class tourism coexists with research laboratories, university campuses, cultural institutions and cross-border innovation.
The strategy is already beginning to translate into tangible opportunities.
From June 24 to 28, Macao will host the 13th APEC Tourism Ministerial Meeting, bringing together ministers and representatives from all 21 Asia-Pacific Economic Cooperation members for the first time since the city hosted the event in 2014. Beyond its diplomatic significance, the meeting reflects Macao’s growing role as an international platform for dialogue, tourism cooperation and regional engagement.
The benefits extend beyond government officials and business leaders. Universities and students are expected to participate through internships, volunteer programs and conference support, giving young people the rare opportunity to work alongside international delegates and gain firsthand experience of a major multilateral event. It is precisely the kind of talent development envisioned by the “1+4” strategy, connecting tourism with education, international exchange and professional growth.
Economic transformation rarely happens overnight. New industries require investment, talent and patience before they become self-sustaining. Yet Macao appears willing to make that commitment.
The author is chairman of the Asia MarTech Society and sits on the advisory boards of several professional organizations, including two universities.
The views do not necessarily reflect those of China Daily.
