AGP Executive Report

Macao’s 3rd Five-Year Plan: Macao officially unveiled its 2026-2030 blueprint, aiming to align with China’s 15th Five-Year Plan and push appropriate economic diversification, with the Guangdong-Macao In-Depth Cooperation Zone in Hengqin positioned as the key engine—driven by technology and education. Macau Economy: The revised 1H26 GDP reached MOP 209.9 billion, up 3.7% year-on-year, supported by stronger visitor arrivals and exports of tourism and gaming services. Hengqin MICE Push: Hengqin’s Industrial Development Bureau joined ICCA and highlighted new support measures for international conferences, including subsidies and rewards for first-time ICCA accreditation. Cross-border Legal Services: China is set to review a draft amendment to the lawyers law to strengthen foreign-related legal services, including training and support for firms—relevant to Hong Kong and Macao legal professionals. Gaming Finance Watch: Moody’s said Las Vegas Sands and Sands China should maintain covenant compliance, with leverage expected in the low 3x range, despite ongoing expansion work. Community & Culture: Hong Kong’s “Carnival of Care and Harmony” promoted multicultural inclusion, while Macau’s MICAF Fun Day arts carnival returns with family-friendly activities.

Macao’s 3rd Five-Year Plan: Macao released its 2026-2030 economic and social blueprint, putting “appropriate economic diversification” at the core to reduce long-term reliance on gaming and push growth via emerging industries, a government guidance fund, and deeper Guangdong-Macao cooperation in Hengqin. Macau Macro Watch: The revised 1H26 GDP came in at MOP209.9 billion, up 3.7% year-on-year in real terms, with services exports rising 7.3% on stronger visitor arrivals. Non-gaming Target: A special report says the government’s goal to lift non-gaming industries to about 60% of GDP by 2030 has been extended from 2028, with doubts about how fast operators will shift investment. Hengqin MICE Push: The Industrial Development Bureau of Hengqin joined ICCA, and new Hengqin measures offer subsidies for ICCA-listed international conferences plus rewards for first-time accreditation—aimed at attracting more global bids. Cross-border Legal Services: China is reviewing draft amendments to the lawyers law to strengthen foreign-related legal services, including support for law firms and training for international legal affairs specialists. Macao-Hengqin Education Link: A Swiss business school’s one-year applied AI master’s will include study periods in Macao and the Greater Bay Area, targeting non-tech entrants for AI-enabled customer experience leadership. Local Business & People: UTM welcomed over 1,000 new students for 2026/27, including new management/data science and MBA programmes, with a cross-border dual-campus model in the Macao-Hengqin education town. Cybercrime Alert: Police reported a MOP460,000 romance scam tied to a fake “China Aerospace” investment pitch using crypto. Tourism & Events: MICAF Fun Day returns for two weekends in August with water/foam play, workshops and performances at the Macao Cultural Centre Plaza. Gaming Market Pulse: Asia Q2 earnings coverage notes Macau’s brief FIFA-linked slowdown, but highlights continued investment in luxury accommodation and premium experiences as a growth driver.

Macao Economic Outlook: Macao’s revised GDP for 1H26 rose 3.7% year-on-year to MOP209.9 billion, supported by a 9.0% jump in visitor arrivals and stronger exports of services, with Q2 GDP up 0.3% to MOP102.4 billion. Diversification Blueprint: The SAR’s 2026-2030 Third Five-Year Plan puts economic diversification at the core, aiming to cut long-term reliance on gaming and push growth via emerging industries, Hengqin’s Guangdong-Macao cooperation zone, and government guidance funds. Retail Pulse: DSEC data showed Q2 retail sales up 12.1% year-on-year to MOP18.0 billion, led by big gains in communication equipment, watches/jewellery and cosmetics, while department stores and pharmacies fell. Hengqin MICE Push: Hengqin’s MICE support measures for ICCA-included conferences offer per-participant and per-event subsidies, with extra rewards for first-time ICCA accreditation. Cross-border Services & Compliance: China is reviewing draft changes to its lawyers law to strengthen foreign-related legal services, while MOFCOM’s new countermeasure list under the Anti-Foreign Sanctions Law adds RBA and other entities, potentially affecting compliance workflows for firms operating in China. Tourism & Events: MGTO said international visitor arrivals under summer expectations, while MICAF Fun Day returns with a weekend arts carnival in Macao. Local Life: A romance scam case in Macao ended with MOP460,000 lost to a fake “military officer” investment pitch.

Macau Economy: Macau’s revised 1H26 GDP rose 3.7% year-on-year to MOP209.9 billion, helped by a 9.0% jump in visitor arrivals; exports of services grew 7.3% with other tourism services up 10.8% and gaming services up 5.5%. Retail Pulse: Retail sales in 2Q26 climbed 12.1% year-on-year to MOP17.96 billion, led by big gains in communication equipment (+84.1%) and jewellery/watches (+38.6%), while department stores fell (-18.6%). Gaming & Investment: Las Vegas Sands says it won’t cut Macau promotional spend “in the foreseeable future” as it targets premium share gains, even if it weighs on near-term EBITDA. Diversification Push: Macau’s third five-year plan keeps the non-gaming GDP target around 60% by 2030, but analysts warn the goal is hard to reach given operators’ incentives. Cross-border Legal Services: China plans to review draft amendments to the lawyers law next week to strengthen foreign-related legal services and training, including support for Hong Kong and Macao legal practitioners. MICE in Hengqin: Macau-Hengqin MICE cooperation moves toward regularised growth, with ICCA-related subsidies and new incentives for international conferences. Education & Talent: UTM welcomed over 1,000 new students for 2026/27 and launched new management/data science and MBA programmes, with a cross-border learning model in the Macao-Hengqin University Town.

Macao Economy Watch: DSEC revised 1H2026 GDP to MOP209.91 billion, up 3.7% year-on-year in real terms, with growth led by exports of services (+7.3%) and a 9.0% rise in visitor arrivals; private consumption also grew (+2.7%). Retail Snapshot: Retail sales hit MOP17.96 billion in 2Q2026 (+12.1% y/y), with big gains in communication equipment (+84.1%) and jewellery/watches (+38.6%), while department stores (-18.6%) and pharmacies (-9.4%) lagged. Policy & Diversification: Chief Executive Sam Hou Fai said Macao’s 3rd Five-Year Plan (2026-2030) is aligned with China’s 15th plan, aiming for economic diversification, Hengqin cooperation, and improved governance. Hengqin MICE Push: The Macao-Hengqin MICE cooperation seminar highlighted ICCA-linked subsidies (up to RMB 1 million per event) to boost international conferences. Cross-border Welfare: A new initiative supports direct cross-border welfare allowance payments to Hong Kong seniors in Guangdong via linked bank accounts. Crime & Courts: Judiciary Police reported an online romance scam that cost a victim MOP460,000 via a fake “military officer” investment pitch. Community & Education: Correctional Services Bureau is studying extending continuing education subsidies to inmates, alongside vocational training and pre-release job support.

Macau Economic Blueprint: Chief Executive Sam Hou Fai said the SAR’s Third Five-Year Plan (2026-2030) is tightly aligned with China’s 15th Five-Year Plan, with eight goals spanning diversification, law-based governance, education and talent, people’s well-being, and deeper Hengqin integration. Central Finance Support: China’s Ministry of Finance issued RMB 6 billion sovereign bonds in Macao for the fifth straight year, with tenors from 2 to 10 years and the deal reportedly oversubscribed—another push for the local bond market. Public Finances Watch: Macao’s fiscal reserves rose to MOP 704.34 billion by end-June, up 0.3% from May, with analysts pointing to both budget surpluses and investment returns. SME Credit Conditions: AMCM data showed newly approved SME credit fell 8.6% in 1H26, while the delinquency ratio edged up to 8.5%, prompting calls for more flexible repayment plans. Tourism & Entertainment Demand: Galaxy Entertainment reported a 30-40% jump in event-weekend foot traffic, with 74 events drawing 560,000+ spectators, reinforcing the “Tourism + Performing Arts” strategy. Cross-border Mobility: China expanded its 240-hour visa-free transit to 57 countries (effective Aug 20), with Hong Kong and Macao counting as third regions for qualifying itineraries.

Macao Development Blueprint: Macao Chief Executive Sam Hou Fai said the SAR’s Third Five-Year Plan (2026-2030) is a governance and growth roadmap, aligning with the national 15th Five-Year Plan and pushing appropriate economic diversification beyond gaming while prioritising people-first policies like education, employment, housing, elderly care and urban renewal, with deeper integration into the Guangdong-Macao Hengqin cooperation zone. Central Finance & Markets: The central government issued 6 billion yuan of renminbi sovereign bonds in Macao, reinforcing the SAR’s bond-market ecosystem and connectivity with the mainland and international markets. Public Finance Snapshot: Macao’s fiscal reserves rose to MOP704.34 billion by end-June, with both basic and extraordinary reserves increasing. SME Credit Watch: Monetary Authority data showed SME credit approved fell 8.6% in 1H26 to MOP4.5 billion, while the delinquency ratio edged up to 8.5%. Tourism & Entertainment Demand: Galaxy Entertainment reported a 40% foot-traffic jump driven by its “Tourism + Performing Arts” strategy, with weekend events boosting spectators and spillover to retail and dining. Education in Hengqin: The new Macao-Hengqin University Town is now operating under a “three universities, one campus” model, enabling cross-institution course selection. Health & Social Security: Under the Non-Mandatory Central Provident Fund system, the 2026 Special Allocation is set to be credited from 24 September for eligible elderly residents, with application rules varying by automatic payment status. Business Innovation: Kanghong Pharmaceutical’s conbercept ophthalmic injection (Lumitin) received Guyana marketing authorization, adding to its overseas regulatory footprint. Global Linkages: The Global Humanity Forum Symposium 2026 will open in Macao on Dec 3-4, with Ban Ki-moon confirmed, focusing on civilizational dialogue and culture-industry integration.

Macao’s Third Five-Year Plan (2026-2030): The Macao SAR government has unveiled its new blueprint for high-quality development, aiming to lift non-gaming sectors to about 60% of GDP by 2030, deepen integration with Hengqin, accelerate urban renewal, and strengthen connectivity with the mainland and global partners. The plan also highlights a government guidance fund to back high-value industries such as integrated circuits, digital tech and biomedicine, alongside a people-first push covering education, jobs, housing, elderly care and social security. Fiscal buffers: Macao’s fiscal reserves hit a record 704.34 billion patacas at end-June, up 5.6% from end-2025, supported by budget surpluses and investment returns. Tourism recognition: Macao received a record seven PATA Gold Awards at the PATA Travel Mart in Kuching, with MGTO and integrated resort projects winning across marketing, sustainability and social media categories. SME “going global”: IPIM and the Industrial Association of Macau helped 12 companies take part in Hong Kong’s HKTDC Food Expo, generating over 180 business matching sessions and strong on-site sales. Gaming industry pressure: Success Universe issued a loss warning after the Ponte 16 closure, while Galaxy raised its interim dividend, underscoring diverging momentum across Macau operators. Policy oversight for associations: A draft law under public consultation would tighten rules on local associations’ management and set clearer procedures, with lawmakers backing the changes.

Macao’s New Five-Year Plan: Macao has released its Third Five-Year Plan (2026-2030), setting a roadmap to cut reliance on gaming by pushing non-gaming added value toward about 60% of GDP by 2030, while deepening Hengqin integration and accelerating urban renewal; the blueprint also puts education, employment, housing, elderly care and city upgrades front and centre, with implementation backed by major projects and a government guidance fund. Tourism & Trade Push: MGTO and the local travel trade promoted Macao at Malaysia’s PATA Travel Mart, winning seven PATA Gold Awards across marketing, sustainability and social responsibility, while IPIM and the Industrial Association of Macau helped 12 firms debut at Hong Kong’s HKTDC Food Expo, generating 180+ business matching sessions and strong on-site sales. Financial Services & Fintech Pivot: Macao’s diversification drive spotlights modern finance and fintech, including plans for digital currency adoption and cross-border payment systems tied to controlled trials of the e-MOP and settlement upgrades. Gaming Industry Signals: In corporate updates, Galaxy Entertainment lifted its interim dividend, while Melco delayed its debt-reduction timetable; meanwhile, Paradise Entertainment warned of a likely 1H26 loss tied to satellite casino closures and weaker equipment sales. SME Leasing & Local Economy: The Housing Bureau opened applications for commercial spaces in public housing estates, offering rents from MOP 3,000 to MOP 45,000, supporting food, clinics and retail operators.

Macao Policy Roadmap: Macao SAR officially released its Third Five-Year Plan (2026–2030), setting 8 development goals and 4 priority tasks: economic diversification via key projects, accelerating Hengqin development, pushing urban renewal, and deeper alignment with national strategy. Central Support Signals: Liaison and State Council officials said the plan strengthens “law-based governance” and a governance model combining a capable government with an efficient market, positioning Macao as “One Centre, One Platform, One Base.” Gaming Revenue Watch: Casino tax receipts rose over 9% year-on-year in H1 2026 to about US$7.2b, with gaming taxes still dominating total tax income; the government targets over US$29b for the year. Resort & Hospitality: Melco unveiled REM, a new luxury hotel at City of Dreams Macau (149 rooms), with a grand opening slated for October. Aviation Expansion: Macau’s airport operator CAM was granted authority to manage the aviation-designated zone at Taipa Ferry Terminal, aiming to expand capacity as passenger numbers have already surpassed earlier projections. Customs Crackdown: Gongbei Customs seized 158 terrapins from a Macau resident, warning that transporting CITES-listed species without permits is illegal. Local Culture: Filmmaker Keo Lou released “Peaceful Journey,” shifting wartime storytelling toward civilian trauma after “The Rhythm of War.”

Macao Policy Blueprint: The Macao SAR government released its Third Five-Year Plan for Economic and Social Development (2026-2030), setting eight goals from law-based governance and national security to economic diversification, Hengqin cooperation, education-tech-talent integration, and improving people’s well-being, with a focus on “smart” and beautiful Macao. Gaming & Finance: S&P Global said Melco’s adjusted EBITDA margin is likely to stay flat through 2026 amid intense concession competition and marketing/commission pressure, but debt reduction and cash flow should support improvement in early 2027. Airport & Connectivity: CAM was granted authority to manage the aviation-designated zone at Taipa Ferry Terminal, reviving plans to add air functions to ease pressure on existing airport capacity as passenger volumes have already surpassed earlier projections. Tourism Demand Signals: MGTO reported international visitor arrivals under expectations during summer months, especially in July, while Sands China doubled its interim dividend despite weaker profit, reflecting a still-competitive operating environment. Business & Trade Ecosystem: Tech Data expanded its IBM distribution footprint to add Hong Kong and Macau among other Asia-Pacific markets, aiming for more consistent partner-led growth. Cross-border Payments: A report said some international visitors faced credit-card payment issues in Macau, including merchant minimum-spend rules. Regional Welfare Collaboration: The Hong Kong Jockey Club approved nearly HK$70 million for a three-year cross-boundary social welfare capacity-building programme across the GBA.

Macau Tourism & Payments: MGTO says international arrivals are slightly below expectations, with July foreign arrivals up just 2% YoY and early August improving to about 10%, as fuel costs, route cuts and flight capacity weigh on demand. Separately, some international visitors report credit-card payment friction at local merchants, including minimum-spend rules that can catch tourists off guard. Gaming & Corporate Finance: Sands China will double its interim dividend to HKD0.50 per share, even as 1H26 profit pressures persist; meanwhile, former satellite operator Success Universe flags a wider 1H26 loss tied to the cessation of casino operations at Ponte 16. Transport & Infrastructure: CAM has been granted authority to manage the aviation-designated zone at Taipa Ferry Terminal, reviving plans to add air functions as passenger traffic has already surpassed earlier projections; the airport operator will take over the terminal’s aviation space under a new concession framework. Customs & Trade Controls: Macau Customs intercepted 10 smuggling cases in a week, seizing e-cigarettes, cigarettes, used phones and about 105 litres of sake. Policy & Business Environment: The government proposes a “payment-at-customs-clearance” consumption tax collection model to reduce upfront tax pressure and refund paperwork for importers. Local Economy & Diversification: Melco expects its REM hotel and property upgrades to support growth in 2H26, while the economic climate index is forecast to stay in a stable range.

Macau Tourism Watch: The Macao Government Tourism Office says international visitor arrivals are slightly below expectations, with July foreign arrivals up only 2% year-on-year and early August improving to about 10%, while flight capacity cuts, fuel prices and geopolitical uncertainty weigh on demand. Gaming & Corporate Earnings: Sands China declared an interim dividend after 1H26 profit fell 3.6% as casino costs rose; Paradise Entertainment warned of an HK$82.6 million 1H26 loss tied to satellite casino closures and weaker EGM terminal sales. Cross-border Facilitation: From Aug 18, Macao residents and Hong Kong permanent residents can use the Mainland Travel Permit for automated immigration clearance via Zhuhai-Macao Bridge, Hengqin Port and Qingmao Port. Policy & Business Climate: The Legislative Assembly is set to vote on a consumption tax “payment-at-customs-clearance” system aimed at cutting upfront payments and refund paperwork. Local Economy Signals: Macau’s economic climate index is forecast to stay stable next quarter, but gaming revenue and hotel indicators remain soft. Hospitality Appointments: W Macau – Studio City named Sammy King as General Manager, as Melco prepares REM’s October grand opening and property upgrades. Regulation & Enforcement: Customs seized 1.5 tonnes of frozen chicken feet in a parallel-trading case, and Macau’s gaming machine licensing expanded with Acres Manufacturing approved by the DICJ.

Resorts & Hotels: Melco says its newly soft-opened REM at City of Dreams Macau and retail revamps are meant to lift growth in 2H26, with a grand opening planned after Golden Week in October and the former Countdown Hotel reshaped into about 150 luxury suites. Macau Economy: The Macau Economic Association expects the economic climate index to stay “stable” next quarter, but flags softer gaming, visitor arrivals, hotel demand, and falling IR operator closing prices, alongside low loan-to-deposit ratios and continued property price declines. Tax & Trade Facilitation: The government proposes a “payment-at-customs-clearance” consumption tax system, letting DSEDT collect tax from importers’ pre-opened bank accounts at clearance to cut upfront cash pressure and refund paperwork. Policy Process: CE Sam Hou Fai met Legislative Assembly lawmakers to gather input for the 2027 Policy Address, covering diversification, Macau-Hengqin integration, elderly/children services, urban governance, AI legislation, and district revitalisation. Gaming Finance: Sands China declared a higher interim dividend despite 1H26 profit slipping on higher casino costs, while Paradise Entertainment warned of a likely HK$82.6m 1H26 loss tied to satellite casino closures and weaker gaming equipment sales. Public Finance & Banking: Macau’s foreign exchange reserves fell 0.3% in July to MOP243.1b, and banking data showed June mortgage approvals rising while outstanding balances eased. Consumer & Compliance: Customs seized 1.5 tonnes of frozen chicken feet in a parallel-trading case, with the suspect facing fines and follow-up by relevant authorities. Workforce & Social Issues: A local opinion piece argues domestic helpers need stronger protection and, before further regulation, better pay and living conditions. Community & Education: SJM awarded 36 employee children scholarships worth MOP20,000 each, supporting studies across tech, healthcare, and finance. Safety: A 73-year-old woman died after being hit by a coach near the Barrier Gate; police say the case is entering the judicial process.

Flag Protocol: China will fly flags at half-mast in Beijing, Hong Kong and Macau for former premier Zhu Rongji’s cremation on Tuesday, with the mourning rules matching past premier funerals. Macau Finance: Macao’s foreign exchange reserves edged down 0.3% in July to MOP243.1 billion, while the pataca’s trade-weighted effective exchange rate index rose. Banking & Credit: Monetary Authority data show SME credit approvals fell 8.6% in H1 2026, with delinquency ratios ticking up even as delinquent balances declined; mobile payments rose in Q2 while credit card turnover fell. Property & Rents: Residential rents dipped slightly in Q2 2026, and shop/office/industrial rents also eased in the quarter. Policy & Governance: Chief Executive Sam Hou Fai told Legislative Assembly members the 2027 Policy Address process will further strengthen executive-led governance and cooperation with lawmakers. Gaming Economy: Macau gaming tax collections reached US$7.21 billion in the first seven months of 2026, and the city’s non-gaming push continues to be a key theme. Business Moves: DFI Retail will become exclusive wholesaler/distributor/franchisee for GNC across Hong Kong, Macau and Singapore. SME Pressure: Lawmakers say SMEs are still struggling despite strong tourist spending, urging more targeted consumption incentives and better foot-traffic support. Pensions: A bill to shore up pension fund resources was approved unanimously, aiming to prevent a projected funding shortfall.

Macau FX & financial pulse: 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 rose, pointing to an overall appreciation. SME credit pressure: New SME credit approvals fell 8.6% year-on-year in H1 2026, and although delinquent SME loans eased, the delinquency ratio edged up as the loan base shrank. Property & payments data: Q2 2026 saw residential rents dip slightly quarter-on-quarter, while mobile payments grew (MOP8.7 billion in value, +3.0% QoQ) even as credit card turnover declined. Gaming economy watch: Gaming tax collections reached US$7.21 billion in the first seven months, and gaming tax revenue rose 9.3% through July, underscoring continued fiscal momentum. Business moves: DFI Retail Group will be the exclusive wholesaler/distributor/franchisee for GNC across Hong Kong, Macau and Singapore, aiming to rebuild store footprint and distribution. Policy & diversification: The Legislative Assembly seminar on the 2027 Policy Address highlighted tighter executive-legislative interaction, while IPIM reported 194 new investment proposals in H1 2026, with over 60% tied to the “1+4” industries. Hengqin education push: The Macau-Hengqin International Education (University) Town’s first transitional campus is set to start operations this month, with total investment around RMB18 billion and a focus on AI, robotics and microelectronics.