When the National People’s Congress adopted China’s 15th Five-Year Plan in March, it outlined the Communist Party of China’s economic and social objectives for 2026-30. It was the third five-year plan formulated under President Xi Jinping’s leadership, and it reflects his vision for China’s sustained progress. At its core is the advancement of high-quality development throughout the country, and it is all-embracing.
Thus, the 15th Five-Year Plan indicates the strategic direction of the Macao Special Administrative Region (together with that of the Hong Kong SAR). A high priority is placed upon its economic diversification, specialized finance, and regional integration. If Macao’s historic role as a China-Portugal commercial hub can be strengthened, it will undoubtedly promote China’s connectivity with the Lusophone world.
If, moreover, the SAR’s executive-led governance system is enhanced, it will help to resolve outstanding socioeconomic and livelihood issues and improve public services.
The ball, therefore, is firmly in Macao’s court. Rising to the challenge, and after a 40-day public consultation exercise that attracted 1,716 submissions and 8,230 opinions, the Macao SAR government has now formulated its own Third Five-Year Plan for Economic and Social Development of the Macao SAR for 2026-30 (“the plan”), appropriately aligned with national objectives. It was unveiled by the Macao SAR’s chief executive, Sam Hou-fai, on Aug 18, and comprises 36 chapters.
In addition to focusing on national security and enhancing government efficiency, the plan prioritizes economic progress and regional integration. While improving public welfare and more effectively coordinating education, technology, and talent recruitment, it aims to better integrate Macao into the overall national development framework. Sam called it “scientific, forward-looking, and feasible”, and he was right to do so.
By any yardstick, the plan is consequential, combining ambition with hope. Sam explained that his government intends to prioritize economic diversification through major projects and a government guidance fund. In a city famed for its casinos, the plan envisages nongaming industries comprising approximately 60 percent of its GDP by 2030.
With its unique heritage and contemporary allure, Macao is a magnet for visitors, providing context for the plan. For example, in the first half of this year, arrivals numbered 20,944,446, a 9 percent increase over the same period in 2025, when overall visitor numbers totaled 40.069 million. Under Sam’s “1+4” diversification strategy, tourism and leisure will remain Macao’s bedrock, with greater emphasis on modern finance, high technology, traditional Chinese medicine (TCM), and MICE (meetings, incentives, conferences, exhibitions).
Macao’s cultural industries are uniquely placed to play a full part in ensuring greater diversification and reducing gaming-dependence. Thus, in 2025, the SAR was designated the “Culture City of East Asia”, leveraging the theme “East-West Encounter, Asia in Harmony”. This involved blending Macao’s traditional Chinese-Portuguese heritage with regional artistic exchanges and technology-driven exhibitions, thereby showcasing its unique role in the story of China.
By focusing on digital media, creative design and live performances, Macao’s cultural industries achieved 9.73 billion Macao patacas ($1.21 billion) in service receipts in 2024, and the Cultural Affairs Bureau will have its foot firmly on the pedal going forward. This will include expanding the role of the China-Portuguese (Spanish)-speaking countries platform to strengthen economic and trade exchanges.
The 15th Five-Year Plan envisages the Guangdong-Hong Kong-Macao Greater Bay Area becoming an economic powerhouse by 2035, and the development of Hengqin Island (in neighboring Zhuhai) as a special zone is crucial to this goal. As Sam explained (Aug 11), “High-quality development of the cooperation zone in Hengqin is key to breaking new ground in Macao’s appropriate economic diversification.” The special zone was established in 2021, and the plan commits the SAR to expanding its activities there, including the joint development of the two places as an integrated world-class tourism and resort destination. Under the model of “Hengqin posing the challenges, Macao providing the sci-tech solutions”, constructive collaboration is the name of the game going forward.
From Macao’s perspective, the greatest benefit is that Hengqin connects it to the Chinese mainland market. This means, for example, “double 15-percent” tax incentives and exemption from corporate income tax on new outbound investment.
In practical terms, the Macao-Hengqin cooperation arrangement involves facilitating scientific and technological research, high-end manufacturing and TCM. Every effort will be made to attract foreign investment in e-commerce, financial services, and manufacturing, with support from modern facilities.
For example, the completion of the Macao International Airport Hengqin Upstream Cargo Terminal is on course for 2027, which will strengthen Macao’s competitiveness in air freight (with a target annual handling capacity of 300,000 metric tons). At the same time, the plan envisages not only greater connectivity in the rules and systems of the two places, but also their alignment with international standards, thus creating a legal environment in Hengqin similar to Macao’s.
Indeed, Sam was spot-on when he said Hengqin was “becoming a hub of openness and a hotbed for investment”, and the futures of the two places are inextricably intertwined.
Within the SAR, urban renewal efforts will be accelerated. While maintaining social stability, the plan indicates that Macao “will adopt innovative thinking and bold actions” in pursuing regeneration. This will include, for example, conservation-led revitalization projects in the vicinity of Macao’s landmark St Paul’s Church. The idea is to significantly improve the appearance of older neighborhoods, including Iao Hon, and to “advance the construction of a beautiful and smart Macao”. At the same time, Sam emphasized the “need to safeguard the integrity of the UNESCO-listed historic center of Macao”, which was reassuring for residents and heritage lovers alike.
In addition to deepening cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area, the plan also contemplates enhanced collaboration with the Hong Kong SAR, a welcome feature. Apart from economic issues, this will include areas such as justice, anti-corruption practices, civil service exchanges, and sports. This, Sam said, will enable the two places “to leverage their platform roles for the country’s high-level opening-up and for supporting the country’s ‘dual circulation’ development strategy”. In other words, by working together and pooling their talents, the two SARs will have a big impact on the Greater Bay Area and beyond.
As Sam emphasized, his vision is for all sectors to “move forward together, strive with determination, and jointly open a new chapter in the development of Macao and Hengqin”. If the plan is faithfully implemented, there is every reason to suppose his hopes will become a reality and that the entire country will benefit. It certainly deserves to succeed, and everybody should put their shoulders to the wheel.
The author is a senior counsel and law professor, and was previously the director of public prosecutions of the Hong Kong Special Administrative Region.
The views do not necessarily reflect those of China Daily.
