AGP Executive Report

Macau Gaming Watch: Macau’s casino gross gaming revenue (GGR) slipped 1.2% year-on-year to MOP21.9 billion in August, though it was up 8.1% from July; for the first eight months, GGR rose 3.7% to MOP169.1 billion, with analysts pointing to post–World Cup demand and premium visitation. Macao-Singapore Business Push: Chief Executive Sam Hou Fai met Singapore PM Lawrence Wong in Singapore, focusing on cooperation in finance, healthcare and tourism, and how Singapore can tap Hengqin and the wider Greater Bay Area. Diversification Funding: Macau’s government guidance fund framework is now in place to steer “patient capital” into priority sectors and jobs, with an expected fund size of 20 billion patacas after private capital. RMB Bond Link-Up: The AMCM welcomed Shenzhen’s plan to issue RMB1 billion offshore RMB municipal bonds in Macau in early September (3-year tenor), reinforcing Greater Bay Area financial ties. Hotel Market Pulse: Summer hotel occupancy stayed above 90% in July, but room rates faced pressure in some districts as supply grows and competition from Zhuhai/Hengqin intensifies. Tech & Innovation Angle: Xinhua highlighted China’s push to turn sci-tech hubs—including the Guangdong-Hong Kong-Macao Greater Bay Area—into stronger lab-to-market engines for industrial upgrading. Culture & Tourism: MGM Cup 2026 lion dance championship returns to Barra Square with a record 25 teams and 280 athletes from 14 countries/regions, boosting Macau’s event calendar.

Macau Finance & Diversification: The MSAR government has set up the operating system for a new “guidance fund” to steer private capital into non-gaming industries, aiming to complete the setup this year and seed it with MOP11 billion from fiscal-reserve investment returns, targeting a larger pool of MOP20 billion once private capital is added, with “patient capital” as the guiding principle. Gaming Sector Watch: Macau’s casino market is showing signs of fatigue at the ultra-high end, with Seaport Research flagging softer demand in Macau and Las Vegas, even as operators keep investing to defend market share. Company Stress Signals: Macau Legend warned it is still in talks with lenders to extend loan repayment terms after turning Adjusted EBITDA positive in 1H26, but said going-concern risks remain because borrowings due within 12 months and covenant breaches could trigger immediate repayment. Melco Results: Melco International’s parent reported 1H26 net revenue up 2.7% to HK$20.5b, but profit fell 11.8% on higher costs, while it booked impairments tied to underperformance and closures. Cross-border Business Ties: Chief Executive Sam Hou Fai wrapped up meetings in Singapore with leaders including Lawrence Wong, pushing deeper Macao-Singapore cooperation and linking it to opportunities under China’s 15th Five-Year Plan and Macao’s Third Five-Year Plan. Trade & Enforcement: Hong Kong Customs seized about US$8.5m of suspected smuggled goods from river trade vessels departing for Macao, including suspected pharma and cosmetic injection vials. Local Economy Data: AMCM said Macau’s 2025 balance of payments preliminarily recorded a surplus of about MOP166.4b, driven by a larger services account surplus, especially travel services. Tourism & Culture: The 22nd Macau Comic Festival (MCF22) drew nearly 100 anime and fan groups over two days at Macau Tower, highlighting Macau’s creative industry momentum.

Macao-Singapore push under 3rd Five-Year Plan: Chief Executive Sam Hou Fai says China’s 15th Five-Year Plan and Macao’s 2026–2030 Third Five-Year Plan will open “new opportunities” for Macao-Singapore cooperation as he meets Singapore PM Lawrence Wong and other senior officials during an eight-day Singapore–Indonesia–Malaysia trip, with a focus on trade, investment, digital economy, higher education and industrial transformation. Patient-capital diversification plan: Macao will set up a government “guidance fund” to back non-gaming projects, using “patient capital” and a fault-tolerance approach to prioritise medium- to long-term social and industrial benefits. Cross-border entrepreneurship spotlight: A Macao–Hengqin youth entrepreneurship delegation highlights startup momentum in Hengqin’s integrated development, with Hong Kong now joining a cross-border research translation circle. Trade compliance pressure: A US transshipment crackdown is set to raise documentation and process scrutiny for exporters, adding cost and delay risks for supply chains. Healthcare quality upgrade: Queen Mary Hospital in Hong Kong gains accreditation under China’s International Hospital Accreditation Standards (2021 version), reinforcing public healthcare quality alignment. Macao economy snapshot: AMCM data shows MSAR accounts recorded a surplus of about MOP166.4 billion in 2025, driven by a larger services account surplus. Smuggling enforcement: Hong Kong Customs seized about $8.5m of suspected smuggled goods from river trade vessels bound for Macao, with investigations ongoing. Business moves: Revelyx Bio launches YY003 (ready-to-use rBoNT/A) via a licensing deal; China Medical System also licenses 10XB-101 for focal fat reduction in mainland China, Hong Kong and Macau.

Casino Financials: Macau’s Paradise Entertainment swung to a HK$82.6m (US$10.5m) 1H26 loss as its satellite casino management ended, with its supplier arm LT Game revenue down 67.1%—yet it points to an upcoming Macau approval for next-gen LMG. Gaming Restructuring: Success Universe posted a HK$52.9m (US$6.75m) 1H26 loss after Ponte 16’s satellite casino closure, and said Pier 16’s HK$160m loan facilities are up for negotiation with its bank. Trade & Food Safety: Macau Customs seized 950kg of frozen beef worth about 30,000 patacas in a parallel-trading den, with the case handed to the Municipal Affairs Bureau after storage was found at room temperature. CE Diplomacy & Business: Chief Executive Sam Hou Fai is in Singapore meeting ministers and the Chinese business community, using the trip to push public health, TCM, ageing governance, and wider trade links as he leads a SEA business delegation. Transport Incentives: Barra’s heavy-vehicle carpark will offer one hour free parking from midnight tomorrow through Dec 31 to better manage demand. Local Culture: Macau Artist Society marks its 70th anniversary with a major exhibition at Sands Macao running to Sept 15. AI & Gambling Risk: A study warns AI-backed baccarat side-bet advantage play is spreading across Asia, potentially draining hundreds of millions annually.

CE–Singapore Health & TCM Ties: Macao Chief Executive Sam Hou Fai met Singapore’s Ong Ye Kung in Singapore, discussing cooperation on public health, traditional Chinese medicine and ageing-society governance, with a focus on Hengqin’s TCM industrial park. Regional Strategy & Business Push: Sam also kicked off an eight-day official trip to Singapore, Indonesia and Malaysia to promote opportunities under Macao’s 3rd Five-Year Plan (2026-2030), attract international resources to Macao and Hengqin, and hold trade, tourism and investment events with business matchmaking. Hengqin Diversification Platform: A Xinhua report highlights Hengqin’s role as a commercialisation base for Macao’s innovation push, pointing to rapid institution build-out and lab-to-product pathways. Gaming Risk Watch: Differential Labs says AI-assisted baccarat side-bet advantage play is spreading across Asia, with estimated annual leakage of US$500m–US$700m and growing difficulty for operators to detect. Charity & Disaster Relief: Macao will donate RMB30 million via the Macao Foundation to support Tibet mudslide rescue and recovery, alongside medical assistance and a community appeal. Corporate/Markets: UBS reiterated a Buy on Wynn Macau, while International Entertainment Corporation reported a 50.6% revenue rise to HK$852.5m for the year ended June 30, 2026.

Macao-SEA Push: Chief Executive Sam Hou Fai has kicked off an eight-day official visit to Singapore, Indonesia and Malaysia, aiming to promote Third Five-Year Plan opportunities, attract international resources for Macao and Hengqin, and drive trade, tourism and investment matchmaking. Hengqin Diversification: A new China Focus piece highlights how Hengqin’s scale and research-to-industry platforms are helping Macao commercialise innovation under the Guangdong-Macao In-Depth Cooperation Zone. Mudslide Relief: The MSAR government will donate RMB30 million via the Macao Foundation to support rescue and recovery in Tibet’s Gyirong County after a deadly mudslide, with additional medical assistance planned. Gaming Capital Markets: UBS reiterated a Buy on Wynn Macau, while local banking data showed slightly lower composite interest rates in Q2 and electronic payment values rose in July for restaurants and retail. Corporate Moves: Black Spade Capital, Lawrence Ho’s family office, expands into space via a de-SPAC deal with Astrum Space. Business Performance: Tycoon Group reported a sharp turnaround to profit in its 2026 interim results, while International Entertainment Corporation posted a 50.6% revenue rise in FY2025/26.

CE Southeast Asia Push: Macao Chief Executive Sam Hou Fai has departed for an eight-day trip to Singapore, Indonesia and Malaysia, leading a government and business delegation to promote opportunities under the 3rd Five-Year Plan, attract international resources for Macao and Hengqin, and deepen “southward” cooperation. Tourism Trade Outreach: MGTO will join the wider delegation with a travel trade mission and seminars in the three cities, pitching Macao’s “tourism +” positioning and its major development projects to Southeast Asian partners. Hengqin Integration & Transport: The trip also spotlights Greater Bay Area connectivity, with Macao-Hengqin integration framed as a key driver for investment and cross-border business matchmaking. Disaster Relief: The MSAR government will donate RMB30 million via the Macao Foundation to support Tibet mudslide rescue and recovery in Gyirong County, alongside medical assistance and a public appeal for community support. Gaming Market Signals: UBS reiterated a Buy on Wynn Macau, setting a HK$7.00 price target, as the stock closed at HK$5.72. Macao Economy Snapshot: Latest DSEC data showed July electronic payments rising in restaurants (+3.1% y/y) and retail trade (+6.3% y/y), while the 2025 balance of payments preliminaries point to a services surplus driven by travel exports.

Macao–ASEAN Push: Chief Executive Sam Hou Fai will lead a delegation to Singapore, Indonesia and Malaysia from Aug 29 to Sept 5, with trade, tourism and investment roadshows plus business matchmaking to deepen cooperation across economics, science and education. Tourism Marketing: MGTO is backing the trip with Southeast Asia destination branding, including multilingual mini drama series produced with iQIYI to spotlight Macao’s attractions. Hengqin Integration & Logistics: A joint China–Hong Kong–Macao postal meeting in Kunming highlighted Hengqin’s role in expanding cross-border mail routes and improving mail handling. Integrity & Governance: CCAC Commissioner Ao Ieong Seong led a delegation to Foshan, Zhongshan and Hengqin to study integrity education and anti-corruption practices. Macao Economy Data: DSEC reported July electronic payments rising 3.1% for restaurants and 6.3% for retail; unemployment stayed at 2.4% (May–July). Finance: AMCM said Macao’s composite interest rates edged down in Q2 2026, while the 2025 balance of payments showed a current account surplus. Gaming Sector: CBRE flagged SJM’s staff cuts and margin pressure as satellite casino closures continue, while Wynn Macau lifted its interim dividend after stronger 1H results.

Macau Economy & Finance: The Monetary Authority of Macao said composite interest rates edged down in Q2 2026, with the pataca rate slipping to 1.15% and the HK dollar rate to 2.20%. Trade & External Accounts: AMCM also released 2025 preliminary balance of payments data showing a current-account surplus of MOP165.6 billion, driven by higher travel services exports. Labour Market: DSEC reported the local unemployment rate held at 2.4% (May–July 2026) while underemployment eased to 2.2%, with job seekers mainly coming from gaming and retail. Consumer Pulse: Electronic payments rose in July—restaurants & similar +3.1% and retail trade +6.3% year-on-year—signalling steadier spending momentum. Tourism & Business Links: MGTO is sending a travel trade delegation to Singapore, Jakarta and Kuala Lumpur (29 Aug–5 Sep) and will run multilingual mini-drama branding with iQIYI to push Macao in Southeast Asia. Public Policy & Governance: The CE briefed civil groups on the 3rd Five-Year Plan’s security priorities, with a focus on safeguarding national security and building a “high-level safe city.” Regional Integration: UM held a smart grid forum in the Macao-Hengqin education town and launched a first cohort for its smart power grid master’s programme. Infrastructure for Daily Life: The LRT extended its weekend bicycle-on-train trial until Dec 31, aiming to support greener commuting. Gaming Sector Watch: CBRE said SJM cut staff by 10% as satellite casino closures squeeze margins, while Wynn Macau raised its interim dividend after a profit jump in 1H26. Corporate Moves: Macau tycoon Lawrence Ho’s family office Black Spade Capital completed a de-SPAC into the space sector via Astrum Space, targeting an NYSE listing.

GenAI in Finance: AXA Hong Kong & Macau and Manulife Hong Kong have been picked for Hong Kong’s first GenA.I. Sandbox++ cohort, with AXA focusing on AI governance, cyber resilience and risk controls, and Manulife testing “BetterClaims AI” to help advisers answer medical and critical-illness claims enquiries under regulator oversight. Gaming & Capital Returns: Wynn Macau raised its 1H26 interim dividend to HK$0.223 per share after a 570% jump in net profit to HK$1.55 billion, driven by derivative gains, while casino revenue rose 14.7% on stronger mass-market volumes. Public Transport Green Push: LRT extended its weekend bicycle trial through Dec 31, letting folded bikes (or bikes with one wheel removed) enter stations and trains within size limits. Macao Security Planning: Secretary for Security Chan Tsz King briefed associations on the MSAR 3rd Five-Year Plan security portfolio, stressing national security safeguards and building a high-level safe city. Hengqin Cargo Integration: Hengqin Upstream Cargo Terminal moved into substantive operations with a pilot air-cargo palletizing shipment, using joint customs supervision to streamline Macau-linked logistics ahead of full operation in 1H27. Tourism Calendar: MGTO announced the 34th Macao International Fireworks Display Contest runs Sept 12–Oct 4, adding large-scale drone shows for the first time.

Macau Gaming Watch: Investment banks cut August GGR forecasts after softer daily play in the first 23 days, though premium-mass momentum improved and upcoming arena concerts are expected to prop up the rest of the month. Hengqin Cargo Push: Macau International Airport’s upstream cargo terminal project moved into substantive operations with pilot air-cargo palletizing on Hengqin, using a joint “one lock” customs and aviation security setup; the terminal is on track for completion/acceptance by early 2027. Public Sector Reshuffle: The government approved next week’s mergers and restructuring to save resources and boost efficiency, including combining the Consumer Council and FDCT into DSEDT and moving the Macao Conservatory under DSEDJ. Tourism & Events: MGTO confirmed the 34th Macao International Fireworks Display Contest runs Sept 12–Oct 4, adding large-scale drone shows for the first time. Corporate & Consumer: SJM cut staff by 10% since the start of the year as it targets margin relief post-satellite closures, while Domino’s China operator DPC Dash keeps expanding store count and sales.

Government Restructuring: Macao will merge and streamline several public entities from Sept. 1, aiming to cut workforce and save resources, including combining the Consumer Council and FDCT into the Economic and Technological Development Bureau and moving the Macau Conservatory from the Cultural Affairs Bureau to the Education and Youth Development Bureau. Gaming Outlook: Investment banks trimmed August gross gaming revenue forecasts after softer daily trading, while analysts still point to concerts later in the month as support; CBRE also said SJM cut staff by 10% since the start of the year amid efficiency efforts. Air Cargo Push (Hengqin): Hengqin Upstream Cargo Terminal began pilot air cargo palletizing, extending security screening and palletizing from Macau International Airport to Hengqin under a joint customs supervision model, with full operations targeted for 1H 2027. Tourism & Events: MGTO confirmed the 34th Macao International Fireworks Display Contest runs Sept. 12–Oct. 4 with 10 international teams and first-time large-scale drone shows, plus a higher budget of MOP18.9 million. Public Health: Hong Kong reported no lead-poisoning cases among children after a Macau-linked infant formula lead scare, with follow-ups ongoing.

Macao–Hengqin Air Cargo Push: The Guangdong–Macao In-Depth Cooperation Zone in Hengqin rolled out incentives to strengthen Macau’s role as a west-bank air cargo hub, including RMB1/kg subsidies for eligible freight using the Macau International Airport Hengqin Upstream Cargo Terminal (cap RMB5m per applicant) and support for handling fees, warehouse rentals and facility operating costs through Dec. 31, 2028. Airport Operations Upgrade: Macao International Airport launched pilot cargo palletization on Hengqin, extending security screening and palletization from MIA to Hengqin as the Hengqin cargo terminal nears completion (target end-2026; operations in first half of 2027), with e-commerce and daily-use goods shipped onward to Malaysia and the Philippines. Tourism & Night Economy: The MGTO unveiled the 34th Macao International Fireworks Display Contest, running 12 Sept–4 Oct, with fireworks plus drone shows and community activities under the “Set Sail for Macao, where the Silk Road Sparkles” theme. Public Health Update: Hong Kong’s Department of Health said no lead poisoning cases were found among children after the infant formula lead scare, while Macau continues follow-up on the Frisolac Prestige Stage 1 batch. Gaming Market Snapshot: J.P. Morgan analysis of June 2026 results showed Wynn Macau as the standout concessionaire, gaining market share as Sands China slipped. Food Delivery Tensions: Macau’s food delivery platforms face renewed pressure as riders protest pay cuts and call for stronger regulation. Corporate Moves: FORTÉ announced it has acquired APAC systems integrator Vega Global, adding offices including Macau and expanding managed services across 70+ markets.

Hengqin–Macau Air Cargo Push: The Guangdong–Macao In-Depth Cooperation Zone in Hengqin rolled out incentives to strengthen Macau’s role as a west-bank air cargo hub, including RMB1/kg subsidies (cap RMB5m per applicant), support for import-export facilities and warehouse rentals, and handling-fee subsidies for firms using the Macau International Airport Hengqin Upstream Cargo Terminal through Dec. 31, 2028. Debt Management Watch: Melco Resorts Finance will redeem USD600m of 5.625% senior notes early on Sept. 23, nearly 10 months ahead of the 2027 maturity, continuing the group’s broader financing reshuffle. Gaming Market Snapshot: J.P. Morgan flagged Wynn Macau as the June-quarter standout, lifting its GGR market share to 14% (+120 bps QoQ) as Sands China slid, with market-wide mass GGR up but VIP down sharply. Local Policy & Business Climate: Macau’s commerce and finance sectors urged stronger incentives to speed up urban renewal, citing property ownership bottlenecks and slow redevelopment in older districts ahead of the 2027 Policy Address. Food Delivery Tensions: Macau’s food delivery platforms faced renewed pressure as riders protested pay cuts, with industry calling for tighter regulation and updated legal protections. Cross-border Cooperation: A 7th high-level postal services joint meeting in Kunming focused on integrating Greater Bay Area postal routes and processes, with CTT Macao pointing to Hengqin as a key diversification lever. Regional Business Links: IPIM ran promotion seminars in Shenzhen and Guangzhou for Portuguese- and Spanish-speaking country expansion, drawing nearly 300 enterprise representatives and 150+ business negotiations. Corporate Expansion Signal: FORTÉ announced its acquisition of Vega Global, expanding its workplace technology footprint that already includes an office presence in Macau.

Macao’s 3rd Five-Year Plan in action: IPIM ran two promotion seminars in Shenzhen and Guangzhou (19–21 Aug) to help nearly 300 enterprises expand into Portuguese-speaking/Spanish-speaking markets and Southeast Asia, with over 150 business negotiations and interest in setting up Macao settlement operations. Urban renewal push: Macao’s business sector urged stronger incentives to speed redevelopment in older districts, citing property ownership bottlenecks and rising vacancies that are slowing revitalisation. Jobs and skills: DSAL and the Macau Federation of Trade Unions will hold five job-matching sessions in early September, offering nearly 400 positions across security, cleaning, tourism, transport and retail. Public safety and crime trends: The Correctional Services Bureau’s 2025 report says fraud topped offences among 1,230 inmates, followed by drug trafficking and related crimes. Cross-border logistics cooperation: The 7th high-level postal meeting among Mainland, Hong Kong and Macao opened in Kunming, with Macao’s postal authority highlighting Hengqin integration and plans to expand cross-border routes. Fraud warning: PJ reported a “fake police” scam that cost a young local woman about 1.9 million patacas. Insurance leadership: Sompo Asia Pacific appointed Winnie Chau as Senior Underwriter, Financial Lines, covering Hong Kong, Macau and Taiwan.

Macau Economic Pulse: DSEC says Macau’s real GDP grew 3.7% in 1H2026, led by tourism and gaming services exports as visitor arrivals rose 9%, while investment weakened and output still sits below 2019 levels. Policy Blueprint: The government has started collecting public views on the 2027 Policy Address (until Sept 23), with CE Sam Hou Fai aiming to align next year’s priorities with the MSAR’s 3rd Five-Year Plan. Hengqin-Macao Transport Push: Transport chief Raymond Tam outlined plans to link the LRT to the Hengqin checkpoint and coordinate with the Guangzhou-Zhuhai-Macao high-speed rail, alongside upgrades to the Lotus Bridge and UM undersea tunnel. Urban Renewal & Property Bottlenecks: Business associations urged stronger incentives to speed redevelopment in older districts, citing slow progress and property ownership consolidation issues. Jobs & Hiring Drive: DSAL and FAOM will run five job-matching sessions in early September, offering nearly 400 vacancies across security, tourism, transport, cleaning, hotel and retail. Smart City Research: UM’s State Key Laboratory of Internet of Things for Smart City held its academic committee meeting, reviewing progress and setting directions for talent and technology transfer. Scam Warning: PJ reported a local woman lost about MOP 1.9 million in a “fake police” scam involving mainland impersonation and demands for a large deposit. Food Innovation for Industry: CPTTM’s Food Innovation Series Seminar focused on turning culinary ideas into market-ready, standardised products for Macau’s food and catering sector. Gaming Market Snapshot: Citi’s table survey found fewer premium mass players but higher wagers, suggesting players are still spending despite recent softness. Smart Nursery Dispute: The Zonta Club defended its closure of Smart Nursery, rejecting CCAC-linked mismanagement claims and citing operational and administrative constraints.