Macau must look beyond gaming to grow economy

Governance does not appear to have been an issue of concern in Macau until recently, when a political awakening is fuelling demand for a bigger say in public affairs. Chief Executive Fernando Chui Sai-on seems to be well aware of the trend. Having been elected uncontested for a second term, he is under growing pressure to address the changing aspirations.

This can be reflected in the new team he has put in place. In what is seen as the biggest political shake-up since the handover in 1999, nine of the 10 principal officials have been replaced. These include the five top policy secretaries and the anti-corruption chief. The 57-year-old leader said he hoped the new team would bring innovative spirit and a new dynamism for the next five years.

Whether the new faces will bring new thinking remains to be seen. But the sweeping change is symbolic of a clean start for Chui's second term. Some outgoing officials were inherited from former chief executive Edmund Ho Hau-wah. They will have served for 15 years when they step down later this month. It is in the government's interest to replenish new blood and groom more political talent for the future.

But it takes more than personnel changes to tackle the challenges ahead. Economically, the former Portuguese enclave is grappling with shrinking casino revenues, partly due to China's crackdown on corruption and extravagance. Gross revenue has plunged 23 per cent year-on-year. Politically, the public is becoming more assertive, as reflected by the mass protest in May against lucrative post-retirement benefits for officials and the high turnout in the mock ballot for the chief executive polls this summer.

For years, the city has been dishing out casino windfalls to appease the people. But the effect is wearing off. Chui has rightly conceded that his governance had fallen short of public expectation, setting the right tone for reform. The next step is to articulate a blueprint that does not rest on cash handouts from volatile casino revenues.

The pressure for economic diversification has never been stronger. On Wednesday, a senior Beijing official issued the sternest warning yet that Macau's overreliance on casino revenue was not only against the interest of the city, but also the whole nation. The way forward is obvious. The city needs to develop more engines for economic growth.