Macao Launches 20 Billion Pataca Guidance Fund With Six Casino Operators as First Private Investors

^{Macao's government has launched a 20 billion pataca guidance fund, with the territory's six casino operators contributing 9 billion patacas. (Photo: Doraemon.tvb / Wikimedia Commons)}

The Macao government has launched a 20 billion pataca (MOP20 billion) government guidance fund, with the territory's six casino operators contributing MOP9 billion as the first private capital investors, the Macao SAR Government said. The deal extends Macao's drive to diversify its economy beyond gambling.

How the Fund Is Funded and Structured

A signing ceremony took place on Friday 23 October at the Government Headquarters, marking the fund's official launch. The ceremony was witnessed by Chief Executive Sam Hou Fai, Liaison Office director Zheng Xincong and Secretary for Economy and Finance Ng Wai Han. The agreement was signed by Che Weng Keong, chairman of Macau Investment and Management Company Limited, and representatives of the six operators.

The initial fund size is MOP20 billion, made up of MOP11 billion from the government, drawn from accumulated returns on fiscal reserves, and a combined MOP9 billion from the six operators. The government's announcement refers to them as integrated tourism and leisure enterprises. Photographs released with it show agreements signed with Galaxy Casino S.A. and MGM Grand Paradise, S.A.

Under the announcement, the fund operates under Law No. 11/2025, the Investment Funds Law, and Administrative Regulation No. 26/2026, which sets the regime for managing government guidance funds. Macau Investment and Management Company Limited manages it.

The fund uses a three-tier structure made up of a guidance fund, a parent fund and sub-funds. The parent fund and sub-funds are run through a market-based mechanism by professional fund managers selected through an open selection process. The government says the approach reflects long-termism and what it calls patient capital.

Where the Money Will Go

The fund will focus on emerging industries, industrial transformation and upgrading, the commercialisation of scientific and technological achievements, and start-up technology companies. It aims to support the coordinated development of Macao and the Guangdong-Macao In-depth Cooperation Zone in Hengqin, as well as the wider Guangdong-Hong Kong-Macao Greater Bay Area.

The announcement describes the fund as the result of negotiations between the government and the operators:

The establishment of this government guidance fund is the outcome of amicable negotiations between the MSAR Government and the six enterprises. It embodies the spirit of collaboration between the MSAR Government and the business community.

In her address, Ng said promoting appropriate economic diversification is a "must-do" for Macao and that the government is implementing its "1+4" diversification strategy, in line with the national 15th Five-Year Plan. She described the fund as an innovative financial policy measure that mobilises social capital.

Operators and Diversification Commitments

Ng also said the six operators continue to meet the non-gaming investment commitments set out in their concession contracts, which she said contributes to diversification. The government and the operators have worked together before, including on joint efforts to boost tourism in Macao.

Chinese President Xi Jinping has previously urged Macao to diversify beyond gambling during a visit to the territory. Separately, the government's news portal lists Chief Executive Sam Hou Fai as due to deliver the 2027 Policy Address on 16 November.