Macau warned to bet on diversity as Beijing cracks the whip

Macau has been told to address its overreliance on casino revenues "in the interests of the whole nation" in the most blunt warning yet about the need for economic diversification.

A top official in charge of Hong Kong and Macau affairs, Li Fei, delivered the pointed warning a day after Macau Chief Executive Dr Fernando Chui Sai-on announced sweeping changes to his ruling team as the city prepares to welcome President Xi Jinping later this month to lead celebrations for the 15th anniversary of its return to Chinese rule.

Macau's already battered gaming stocks fell sharply following Li's comments, amid concerns the worst contraction of the city's economy since 2009 will not be reversed any time soon.

It is widely accepted that Beijing's nationwide "tigers and flies" anti-corruption crackdown coupled with a general slowdown in the mainland economy has led to a slump in numbers at the casino tables.

Speaking in the city yesterday Li - who is chairman of the Macau Basic Law Committee and deputy secretary general of the National People's Congress Standing Committee - stressed that the "overwhelming dominance" of the gaming industry not only worked against the interests of Macau but also the whole nation. Previous warnings have focused mainly on Macau.

"The overwhelming dominance of gambling in Macau is not in line with the overall interest of Macau and the fact that Macau's economy, especially gaming, is closely connected with the mainland determines that when one judges the overall interest of Macau, one cannot focus only on Macau's economic growth and tax revenue.

"One must take into account the socioeconomic safety, stability and developmental interest of the mainland and the whole nation," Li said.