The Government plans to set up an investment and development fund. Part of the fund would be spent on projects including Macao’s work to advance the development of the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area).

The Chief Executive, Mr Chui Sai On, today disclosed during a question-and-answer session at the Legislative Assembly the Government’s plan relating to such a fund.

There was an estimated 49 projects relating to Macao’s participation in the Greater Bay Area, under guidelines set out in the outline development plan for the Greater Bay Area, a document issued by the State Council.

As of the end of January, Macao’s basic fiscal reserves and surplus reserves amounted in aggregate to 569.54 billion patacas, while there was the equivalent of a total of 163.25 billion patacas in foreign-exchange reserves at the beginning of the year.

Mr Chui went on to say in his comments to the Legislative Assembly that the Government had the financial capability to establish an investment and development fund. It was foreseen as not only a way for improving returns on publicly-held capital, for the benefit of public funds, but also for assisting in realising policy goals mentioned in the Greater Bay Area outline development plan.

Macao investment in Greater Bay Area projects would – Mr Chui hoped – facilitate Macao’s own effort to achieve adequate economic diversification, and to create a greater number of job opportunities for Macao people.

It was likely the proposed fund would be set up in the second half of the year, said Mr Chui. It would be managed by a Government-owned entity operating independently of the current structure of public administration. It would be run in accordance with market-led and commercial principles.

Investments made by such a fund would carry a certain degree of risk, when compared to investment vehicles such as the Guangdong-Macao Cooperation and Development Fund. The latter was designed to be run on the principles of capital protection and security, and with predictable returns.

Regarding questions in the Legislative Assembly relating to the refreshment of rights to casino gaming operations in the city, Mr Chui said the Government was conducting internal work with the aim of amending the current legal framework for the gaming sector. This was in order to allow for a public tender process for gaming rights when the current Macao concessions and sub-concessions expire in 2022.

Once the law revision process was completed, the Government would initiate the public tender procedures in relation to gaming rights, said Mr Chui.

The Chief Executive said the Government had sufficient time for such revision of the law, and had confidence public tender procedures could be completed by the time the current concessions and sub-concessions expire.

The Government did not see the need to exercise the legal option of extending the current concessions and sub-concessions, added Mr Chui.

Mr Chui reiterated factors to be weighed when considering bids for gaming rights in Macao included: development of gaming and non-gaming offerings; the welfare of local employees; and whether bidders would help Macao in fostering its strategic position as a world centre of tourism and leisure.