On 28 August, ex-Macau judge Sam Hou Fai announced he will run for chief executive, to succeed outgoing CE Ho Iat Seng. Sam is Chinese born and does not have a business background.
A week earlier, Ho announced he will step down due to health concerns.
If elected, Sam, former head of the Court of Final Appeal, will continue the drive toward a more diverse economy. He is expected to be the only candidate. That means less reliance on gaming as an economic driver.
“For a period of time, the tourism and gaming industry developed in a disorderly manner and expanded wildly,” Sam told reporters according to Bloomberg. “Having one dominant industry is not beneficial for Macau’s long-term development and has had a very negative impact.”
City needs new industry
Sam’s view is in line with the government’s commitment to industries such as healthcare, finance and technology, plus tourism-related segments like gastronomy and the arts. The need for a shift became glaringly apparent during the pandemic. Covid-19 shut down the city’s borders for almost three years, and decimated its key industry.
Also on orders from Beijing, Macau continues to wage war on capital flight, money laundering and cross-border gambling. The crackdown caused the virtual collapse of the VIP junket industry, which catered to high rollers from the Chinese mainland.
At its peak, VIP patrons contributed about half of casinos’ gross gaming revenue (GGR). In June, lawmakers added new measures to curb illicit money-exchange gangs at casinos.
Analysts question Sam’s resume
Is Sam equipped to lead the economic transformation of the world’s premier gaming hub? Some experts are doubtful. Sam reportedly lacks business and government experience and does not have a big social network.
“It seems ridiculous to think that a chief justice might be qualified to be chief executive,” Anthony Lawrance, founder of consultancy Intelligence Macau, told Reuters.
Ieong Meng-u, assistant professor of social sciences at the University of Macau, shares that skepticism. He said Sam’s “track record in the judiciary system” doesn’t make him capable of “handling economic restructuring, regional collaboration or even bridging Macau with the world.”
The appointee is not chosen in a general election, but is selected by 400 party loyalists. Ho’s successor will be named 13 October.
Original article: https://igamingbusiness.com/casino/macau-ce-candidate-diversify-economy/
