Analysers: Macau's fresh CE lacks on political chops and economic experience

Analysers: Macau's fresh CE lacks on political chops and economic experience

 The only Macau chief executive candidate running on Sunday, October 13, was chosen with 99.5% of the vote.  Former judge Sam Hou Fai has to pick up the dual arts of politics and government now.

 Originally Court of Final Appeal in Macau, the 62-year-old mainland native obtained 394 of 398 votes.  He will succeed Ho Iat-Seng in December, who is resigning for medical reasons.

 Early criticism of Macau's casino business by Sam has been underlined in news sources as severe  After declaring his candidature in August, he referred to the industry as "barbaric."

 Gaming has "developed in a disorderly manner... expanded wildly" and needs to be controlled, he declared.  Dependent on one sector, "is not beneficial for Macau's long-term development," he said.

 Sam reflected the stance of the central government, which holds that Macau ought to develop its economy outside gaming.  The direction, he said, "mandatory... not a question of choice."

 Top industry of Macau won't "be shut down"
 The candidate then admitted later on how important gaming is to the city.  During the COVID-19 epidemic, casinos closed for three years; but, they recovered once borders opened early in 2023.  Gross income for the sector last year was MOP 183.1 billion (£17.45 billion/€20.95 billion).

 "Gaming is Macau's main industry," Sam said, "so I must develop healthily."

 He claimed in a 28 September policy speech that his government would "protect and supervise the healthy and orderly development of the six concessionaires".  Later, he gave gambling operators his assurance: "The sector will not shrink or be shut down."

 "1+4" is resilience.
 The CE-elect promised in a weekend press conference that he will implement Ho's "1+4" strategy to develop Macau as a World Centre of Tourism and Leisure while supporting the expansion of four new sectors.  Top of the list are big health, finance, and technology.  A last group covers sports, culture, MICE (meetings, incentives, conferences and exhibits).

 The government concurs Macau is ideally located as a conference city.  With 22 five-star hotels, Macau will be the "hotel capital of the world" in 2023, replacing London.  But as many of the hotels are situated in casino resorts, gambling is an inevitable component of that title.  Among them are the Karl Lagerfeld, the Londoner Court and Hotel, the Galaxy Hotel, Grand Lisboa Palace Macau.

 Sam is unlikely to upset the casino business, said to Ieong Meng U, assistant professor of government at University of Macau, since it's just "too important for Macau."

 Is Sam qualified to do the work?
 Sam faced no opposition.  Some view him as carefully chosen by Beijing to guide the city into its next stage of growth.

 Although his lack of political experience worries onlookers, political pundit Sonny Lo Shiu-Hing told Macao News that a strong government will help.  "He will have to rely on the executive council members who could have more experience in economic and financial development," he remarked.  With a group of seasoned economic advisers, Sam will be able to effectively rule Macau.

 Consultant to the Chinese Association of Hong Kong and Macao Studies, Lau Siu-kai told The Standard in August: "Sam might have really limited contacts.  [But he] shouldn't have too much trouble using Beijing's great help to solve issues.

 Macau casinos will have less wiggle room.
 Managing partner with consulting iGamiX Ben Lee told iGB Sam "is first and foremost a judge."  Having black and white conditioning throughout the past few decades, he will probably view things literally.

 Lee says this implies casino concessionaires "probably have less wriggle room than they have gotten away with the past two decades in terms of non-gaming investments and efforts."

 Furthermore handicaps Sam in his aim to diversify the economy as Beijing desires, Lee notes, his lack of expertise outside the court.  "He neither an administrator nor a politician.  His main difficulty will be reversing the Macau bureaucracy to focus on diversification.