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A contender for Macau’s top job has said the city is grappling with a local spending dip as residents head across the border for their weekends. Photo: Elson Li

Former judge eyeing job as Macau leader says gambling-based economy must diversify

Sam Hou-fai, former president of city’s top court, formally announces election bid, vows better integration into national development plans

A former top Macau judge eyeing the role of city leader has vowed to diversify the local economy, arguing the gaming sector’s uncoordinated development has created “a very large, negative impact”, while pledging to engage with small businesses amid a dip in consumer spending.

Sam Hou-fai, the 62-year-old former president of the gaming hub’s Court of Final Appeal, formally announced his election bid at a press conference on Wednesday, pledging to better integrate Macau into the country’s development strategies, solve deep-seated problems through reform and improve governance standards.

In his declaration to run for chief executive, Sam said: “It is made out of a strong sense of mission to uphold Macau’s long-term prosperity and stability.

“It also derives from an original aspiration to work together for a better future for Macau and to deliver better lives for the people of Macau.”

Sam singled out the city’s reliance on a gaming industry dominated by six casino operators, stressing it needed to diversify its economic structure.

“There have been times when [the gaming industry] developed in a disorderly way and expanded wildly. This not only squeezes the resources of our society and manpower from all aspects, but also affects our young people’s choice of employment and career development,” he said.

“The dominance of one industry is unfavourable to the long-term development of Macau and has brought a very large, negative impact.”

Macau’s six casino concessions were renewed in December 2022, with new terms requiring operators to make major financial commitments in terms of non-gaming elements.

While Sam is expected to only reveal his full election platform next month after the two-week nomination period closes, he said his key economic policy directions would include enhancing Macau’s ties with Portuguese-speaking countries and Southeast Asia.

He was also asked how he intended to alleviate pressure on the city’s struggling small and medium businesses if elected.

Sam said the consumption patterns of mainland Chinese visitors had changed since the Covid-19 pandemic, while locals had become more keen on spending their weekends across the border.

“We need to explore how to change the business model and approach, and how to innovate business methods, because we cannot change the overall situation of society,” he said.

“This is very difficult. We can only cater to and follow the trend in order to grow and elevate.”

Sam Hou-fai, the former president of Macau’s Court of Final Appeal, first signalled his interest to run in the election last Thursday. Photo: Elson Li

He also said it was important that Macau’s healthcare system had the ability to efficiently respond to social needs, but stopped short of laying out his plans on that or other livelihood issues.

Sam, born in Guangdong province’s Zhongshan in 1962, became a lawyer on the mainland and then moved to Macau in the 1980s.

He later studied law in Portugal and returned to the city in 1993, becoming a local judge four years later. He was appointed as head of the city’s top court in December 1999, when the casino hub reverted to Chinese administration.

The veteran judge first signalled his interest to run in the chief executive election last Thursday, shortly after incumbent leader Ho Iat-seng announced he would not seek a second term, citing unspecified health concerns.

Sam submitted his resignation a day later, which took effect on Wednesday this week.

He said at the press conference that it took him six days to discuss the decision to run for chief executive with his family, as well as resign from his former post and put together his campaign office.

Sam stressed that he has lived in the city for nearly 40 years and “knows Macau as well as many famous people”.

Tourists take pictures at the Ruins of St Paul, one of Macau’s iconic tourist attractions. Photo: Elson Li

He also argued it was normal for residents to not know him well, saying a judge’s lack of public exposure in a tight-knit community such as Macau’s was proof of the city’s favourable environment for the rule of law.

“Due to the nature of my job, I have always taken the initiative to learn about things and contact people from all walks of life. I believe I know Macau well enough,” he said.

On the subject of his leadership capabilities, he compared the task of managing Macau’s judiciary with running a “comprehensive and compact administration”.

Observers have raised concerns about Sam’s lack of a track record outside the judiciary, expressing hope that the next leader will better listen to public views in light of Ho’s unpopular tenure.

Professor Ieong Meng-u, a political scientist at the University of Macau, said Sam presented himself as a guardian of Beijing’s policies for the gambling hub in his first public appearance as a potential leader.

“Sam emphasised Beijing’s plan on Macau’s development, and it is why he described the gaming sector as developing “in a disorderly way” because that’s how Beijing perceived it, but it doesn’t mean he would change the [sector’s] status quo, at least not in the next few years,” he said.

The scholar also said while it was “reasonable” for Sam to cite experience managing the courts to counter doubts about his lack of administrative experience, “it might not be persuasive enough” to secure him the top job.

Sam’s campaign office is headed by legislator Ip Sio-fai, who also chairs the Macau Association of Banks. The deputy head is Chan Ka-leong, a member of the city’s decision-making Executive Council and director general of the General Union of Neighbourhood Associations of Macau, an influential community group.

Macau’s next chief executive will be chosen by a 400-strong Election Committee on October 13, with the nomination period running from Thursday until September 12.

A candidate must obtain at least 66 nominations to secure a place in the election, with some analysts expecting the contest to be a one-horse race.

Separately, commerce minister Wang Wentao briefed Macau’s political elites on the city’s importance as a “precise” connector between China and Portuguese-speaking countries at a Wednesday session on the key takeaways of the third plenary session of the 20th Central Committee.

The Beijing official also commended the Macau government for steadily promoting “appropriate” economic diversification, which had a “good start” with “results beginning to show”.

The contribution of non-gaming industries to the economy has expanded from less than 40 per cent to more than 60 per cent.

He was also joined by Shen Chunyao, chairman of the Legislative Affairs Commission of the National People’s Congress Standing Committee.

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