Macao's new five-year plan: New horizons for economic diversification

Editor's note: Alexandr Svetlicinii, a special commentator on current affairs for CGTN, is an associate professor of Global Legal Studies at the University of Macau, where he also serves as program coordinator for the Master of Law in International Business Law. The article reflects the author's opinions, and not necessarily the views of CGTN.

OnTuesday, the Macao Special Administrative Region (SAR) of the People's Republic of China released its Third Five-Year Plan for Economic and Social Development. The document sets out the major directions for Macao's development during the 2026-2030 period.

At the official press conference, the SAR Chief Executive Sam Hou Fai called it "scientific, forward-looking and feasible" and framed it as Macao's contribution to the PRC's 15th Five-Year Plan under the principle of "One Country, Two Systems." Drafting included a 40-day public consultation that attracted more than 1,700 submissions from various stakeholders.

The first major feature of the plan is its focus on economic diversification, as Macao continues its long-term effort to gradually reduce its dependency on gaming and tourism. The diversification strategy, labeled "1+4," keeps tourism and leisure as the anchor while building up four supporting industries: modern financial services, high technology, traditional Chinese medicine, and MICE (meetings, incentives, conferences and exhibitions) alongside cultural industries.

The plan ties these directions to specific infrastructure and a government guidance fund intended to channel initial investment. Growing these nascent sectors will require closer cooperation between industry, universities and research institutions to build Macao SAR's homegrown expertise, in addition to attracting talent from outside.

The second feature is the deepening of the Guangdong-Macao Intensive Cooperation Zone in Hengqin, an island district in Guangdong Province adjacent to Macao that the central government has designated as an extension of Macao's economic space. The plan pledges to improve physical connectivity to support the daily lives of SAR residents who increasingly live, study, or work in Hengqin.

Universities and businesses are being encouraged to expand there too. The University of Macau's new campus in Hengqin, under construction since late 2025, is due to begin trial operations in 2028 and reach full capacity in 2029. A related flagship project, the Macao-Hengqin International Education (University) Town, is meant to widen the reach and capacity of Macao's higher education sector well beyond what the peninsula's limited land can support on its own.

Other Hengqin-based initiatives include the Macao International Integrated Tourism and Culture Zone, Macao international air hub on the west bank of the Pearl River, and the Macao Science and Technology Research Industrial Park. Hengqin's appeal also rests on special policies unavailable elsewhere in Macao, such as a tiered customs system and preferential taxes for qualified enterprises, which the plan wants to use more fully to attract Macao capital and talent to Hengqin.

Beyond Hengqin, the plan also focuses on integration with the wider Guangdong-Hong Kong-Macao Greater Bay Area (GBA), a cluster of 11 cities that together form one of China's most dynamic economic regions. It commits Macao to a more active role in developing the GBA, pooling resources with neighboring cities and seeking breakthroughs where cooperation has been slow, while strengthening ties with Hong Kong SAR, particularly in finance, tourism, and transport.

Concretely, this means pushing forward projects like the Guangzhou-Zhuhai (Macao) high-speed rail link, aligning social security policies so residents can access adequate services regardless of which GBA city they live in, and expanding medical insurance subsidies for Macao residents who choose to live in Guangdong Province. The broader GBA already shows what this can look like: Immigration and customs clearance at Hengqin checkpoints now takes as little as a few minutes.

The plan also addresses the everyday concerns of ordinary residents, with specific commitments related to elderly care and youth employment; it expands Chinese mainland internship placements for Macao students, alongside a Hengqin-Macao recruitment zone and career subsidy schemes to help young people find suitable employment.

Small and medium-sized enterprises are promised further financial incentives, capacity-building assistance, and brand development support, alongside continued urban renewal and public housing programs. The plan also sets out 35 measurable indicators, covering GDP growth, unemployment, and housing supply, giving it greater accountability. Externally, the plan leans on Macao's decades-old role as a bridge between China and Portuguese-speaking countries, now framed as a financial and trade platform.

In sum, Macao's new five-year plan is a disciplined continuation of the SAR's development strategy, pairing tourism-fueled prosperity with a slower, more deliberate effort to build a diversified economy and a region more livable and more resilient to external shocks.

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