AGP Executive Report

Macau Tourism & Economy: Macau’s visitor numbers kept climbing in July, up 2.4% year-on-year to 3,542,218, with mainland arrivals rising 5.4% and Taiwan up 13.9%, while Hong Kong fell 10.2%; for the first seven months, arrivals reached 24.49 million (+8.0%). Growth Watch: The latest revised 1H26 GDP came in at MOP 209.9 billion, a real +3.7% year-on-year, supported by exports of services (+7.3%) as visitor arrivals grew. Retail Pulse: Retail sales in 2Q26 rose 12.1% to MOP 17.96 billion, led by big jumps in communications equipment (+84.1%) and watches/jewellery (+38.6%). Public Safety: Macau reported 249 locations inspected in July anti-illegal worker operations, finding 86 suspected illegal workers. Policy & Compliance: MOFCOM’s new countermeasure list added the Responsible Business Alliance (RBA), warning companies relying on RBA audits in China to review mitigation steps. Culture & Community: The MICAF Fun Day Arts Carnival returns this month, and a Qing-dynasty Guangdong paintings exhibition opened at the Macao Museum of Art.

Macau Tourism Watch: Macau welcomed 3,542,218 visitor arrivals in July, up 2.4% year-on-year, with mainland China rising 5.4% to 2,701,203 and Taiwan up 13.9% to 104,833, while Hong Kong arrivals fell 10.2% to 561,713. Macau Economy: The revised GDP for 1H26 hit MOP 209.9 billion, growing 3.7% in real terms, supported by a 9.0% rise in visitor arrivals and stronger exports of services. Cost of Living: July’s Composite CPI rose 1.12% year-on-year, with food and transport among the drivers. Public Safety & Labour: In July 2026, 249 locations were inspected in anti-illegal worker operations, with 86 suspected illegal workers detected. Local Culture & Family Fun: The “Lucidity in a Prosperous Era” Guangdong Qing-dynasty painting exhibition opened in Macao, and the MICAF Fun Day Arts Carnival returns this month with water and foam parties plus kids’ activities. Regional Politics: Hong Kong’s Tiananmen vigil activists Lee Cheuk-yan and Chow Hang-tung were convicted of incitement to subversion, facing up to 10 years.

Macau Economy Watch: Macau’s revised GDP for 1H26 rose 3.7% year-on-year to MOP209.9 billion, with visitor-driven services exports up 7.3% as arrivals climbed. Tourism Numbers: July visitor arrivals reached 3,542,218 (+2.4% y/y), while Jan–July totals hit 24.49 million (+8.0% y/y), with same-day visitors up and overnight stays slightly down. Retail Pulse: Retail sales grew 17.2% y/y in 2Q26 to MOP17.96 billion, led by big jumps in communication equipment and luxury-adjacent categories like watches and cosmetics. Public Health: Macao Union Medical Center will host a public open day on 5 September, offering hospital tours, consultations across 18 disciplines, and health talks. Local Culture & Family Fun: Two cultural exhibitions and a children’s arts carnival are on the calendar, including “MICAF Fun Day” with water and foam activities at the Macao Cultural Centre Plaza. Safety & Crime: Police say an online romance scam cost a local woman MOP460,000 after she was lured into a fake crypto investment scheme by a man posing as a retiring military officer. Regional Rights: Hong Kong’s Tiananmen vigil activists Lee Cheuk-yan and Chow Hang-tung were convicted of incitement to subversion, facing up to 10 years.

Macau Economy Watch: DSEC says Macau’s GDP rose 3.7% year-on-year in real terms to MOP209.91 billion in the first half of 2026, with growth driven by higher visitor arrivals and exports of services; in July, visitor arrivals climbed 2.4% to 3,542,218, though overnight visitors fell 2.9%, while the Composite CPI edged up 1.12% year-on-year. Retail & Property Signals: Retail sales hit MOP17.96 billion in Q2 (+12.1% y/y), led by big jumps in communication equipment and luxury-adjacent categories, while department stores and pharmacies declined; property transactions rose in H1, but Q2 saw a drop in residential unit deals. Public Finance: China’s Ministry of Finance issued RMB-denominated sovereign bonds in Macao for the fifth straight year, with RMB 6 billion offered to professional investors. Local Life & Culture: UM will host the World Universities Public Speaking Invitational Championship on Aug 28–29, and the IC-backed “Sounds of WOODerland” baby theatre project is part of a wider regional performing-arts exchange. Tourism & Lifestyle: Bar Patuá at MGM COTAI is spotlighted for Macanese heritage-themed cocktails, while YOHO Gold Coast’s revamped trial operations have been pushed to November.

Macau Governance & Economy: Chief Executive Sam Hou Fai says Macau’s 3rd Five-Year Plan (2026–2030) is closely aligned with China’s 15th plan, with a focus on Macau’s national role as a “One Centre, One Platform, One Base” and an international talent hub. Public Finance: China’s Ministry of Finance successfully issued RMB-denominated sovereign bonds in Macao for the fifth straight year, with RMB 6 billion total across 2-, 3-, 5- and 10-year tenors, reportedly oversubscribed. Cross-border & Infrastructure: The Public Security Police Force says Hengqin Port will get upgrades to speed up and simplify Macau–Hengqin crossings, including more contactless options and smarter inspection systems. Public Services: Macau’s new Public Procurement Website launches on 1 September, replacing the Suppliers Database and IAM’s Suppliers Services Platform. Health: The Health Bureau expands hepatitis and cancer screening under the “Healthy Macao Action Plan,” including more hepatitis B screening for eligible residents via Macao One Account. Culture & Community: UM hosts the World Universities Public Speaking Invitational Championship on Aug 28–29, open to the public. Local Life: Macau Customs and Judiciary Police seized 100 Zopiclone pills from a Hong Kong man at the Hong Kong–Zhuhai–Macao Bridge. Arts: Two local artists, Alley Leong and Sin U Lam, present “Soft Bodies, Hard Structures” at Casa Garden from next Thursday to Sept 30. Tourism & Entertainment: Galaxy reports a big visitor lift tied to “Tourism + Performing Arts,” while Las Vegas Sands says it won’t cut Macau reinvestment spend anytime soon.

BWF World Championships (Macau-linked): Ayush Shetty’s run at the BWF Worlds ended in the Round of 16 on Aug 20, losing straight games to Indonesia’s Alwi Farhan after earlier stunning Shi Yu Qi; PV Sindhu also advanced to the prequarters, while Lakshya Sen crashed out in a shock defeat. Public Procurement Overhaul: Macau’s new Public Procurement Website goes live ahead of the 1 September law change, and the IAM Suppliers Database and related services will be discontinued—suppliers are urged to register on pcp.gov.mo to keep access to future tenders. Macau-Hengqin Integration: Hengqin Port is set for upgrades to speed and simplify cross-border clearance, and the Hengqin university town’s first-phase campus is now fully operational under a “three universities, one campus” model with course-sharing planned next academic year. Health Policy: The Health Bureau is expanding hepatitis and cancer screening under the Healthy Macao Action Plan, including more hepatitis B screening via Macao One Account notifications. Economy & Governance: Macau released its 2026-2030 Third Five-Year Plan, with priorities on diversification, Hengqin integration, urban renewal, and stronger connectivity; fiscal reserves also rose to about MOP704.34 billion by end-June. Global Spotlight in Macau: The Global Humanity Forum Symposium 2026 is set to open in Macao on Dec 3-4, exploring “harmony in diversity,” with Ban Ki-moon confirmed. Tourism & Entertainment: Galaxy reports a 40% foot-traffic jump tied to its “Tourism + Performing Arts” push, while MGM’s Macau mixologist Glen Corales won the Hennessy MyWay Hong Kong & Macau title and will compete globally.

Macao’s Third Five-Year Plan: The MSAR unveiled its 2026-2030 roadmap, aiming to cut reliance on gaming by pushing non-gaming value toward 60% of GDP by 2030, backing tech and biomedicine, and accelerating Macau-Hengqin rule alignment for deeper integration. Public Finance: Fiscal reserves hit a record 704.34 billion patacas at end-June, up 5.6% year-on-year, with basic and extraordinary reserves both rising. Hengqin Integration: Administration and Justice Secretary Wong Sio Chak said aligning rules and mechanisms with Hengqin is “complicated and difficult” but key to the plan’s integrated-development push. Tourism Recognition: Macau won a record seven PATA Gold Awards, with MGTO and resort projects praised for marketing, sustainability, social responsibility and talent development. Sports & Community: Macau’s Asian Games delegation (145 members) entered final preparations for Aichi/Nagoya in September. Culture: IC staged “Sounds of WOODerland” and invited regional industry partners to discuss re-staging and touring local children’s works. Business/People: UM began classes at its Dezhi Plaza teaching site in Hengqin, while IPIM and industry groups sent 12 Macao firms to Hong Kong’s HKTDC Food Expo for matching and sales.

Economic Diversification Push: Macau unveiled its Third Five-Year Plan, aiming to lift non-gaming added value to about 60% of GDP by 2030, with a government-backed fund and big bets on modern finance, healthcare, advanced tech and conventions, plus steps toward a digital currency “e-MOP” and cross-border payment systems. Urban Renewal & Hengqin Integration: The plan also sets up city-wide building “health checks” for urban renewal and deepens Hengqin ties through technology and education, while Hengqin Port marked six years with over 110 million passenger crossings. Tourism & Trade: MGTO promoted Macao at Malaysia’s PATA Travel Mart and said Macao won seven PATA Gold Awards, while IPIM and the Industrial Association of Macau helped 12 firms take part in Hong Kong’s HKTDC Food Expo with 180+ business matching sessions. Gaming Industry Pressure: Success Universe warned of a wider 1H26 loss after the Ponte 16 satellite casino closure, as Macau tightens its satellite casino rules. Public Safety: A lawmaker urged clearer limits and rest rules for outdoor work during extreme heat. Sports (Macau in the spotlight): At the BWF World Championships in New Delhi, India’s Tanisha Crasto and Dhruv Kapila beat Macau’s Leong Iok Chong and Ng Weng Chi 21-11, 21-11 to reach the pre-quarters.

Macau Policy Rollout: Macau’s Third Five-Year Plan (2026–2030) was officially published, with Chief Executive Sam Hou Fai saying implementation will focus on economic diversification, Hengqin development, urban renewal, and tighter alignment with the national development agenda. Central Government Backing: Liaison Office and the State Council’s Hong Kong and Macao Affairs Office both framed the plan as a “single roadmap” to guide high-quality growth under the “One Country, Two Systems” framework. Gaming Revenues: Casino tax receipts rose more than 9% year-on-year in H1 2026 to about US$7.2 billion, with gaming taxes making up 84.6% of total tax income and leaving a near US$2 billion surplus. Luxury Hospitality: Melco unveiled REM, a new luxury hotel at City of Dreams Macau, set to open in October with 149 rooms and a “Rapid Eye Movement” themed concept. Workforce Training: SJM’s “Forge My Own Journey” programme welcomed its second cohort of 61 students, pairing study with paid workplace training over four years. Culture & Arts: The Xu Beihong Cup youth competition exhibition in Lou Lim Ioc Garden features 300+ artworks, celebrating the artist’s legacy and local creativity. Travel Update: Qatar now waives visa fees for Macao SAR passport holders on arrival for stays up to 30 days. Public Safety: Gongbei Customs seized 158 terrapins from a Macau resident at the Gongbei checkpoint, warning that carrying endangered species without permits is prohibited.

Third Five-Year Plan: Macau’s Chief Executive Sam Hou Fai says the MSAR Government will lead society to implement the Third Five-Year Plan (2026–2030), aiming for “Law-based Macao”, “Vibrant Macao”, “Cultural Macao” and “Blissful Macao”. Aviation at Taipa Ferry Terminal: CAM has been granted authority to manage the aviation-designated zone at Taipa’s ferry terminal, reviving plans to add air functions as passenger numbers keep rising. Border and travel rules: Macau residents can now use Home Return Permits at e-channels at the three Macau-mainland joint checkpoints (HZMB, Hengqin, Qingmao), instead of only Macau ID cards. Tourism and payments: International visitors report credit-card payment issues in Macau, with some merchants demanding minimum spend. Transport safety: A 73-year-old woman died after being struck by a tour bus near Border Gate, the city’s fifth fatal traffic accident this year. Environment push: Electric motorcycle charging spots in public parking lots will rise 45% to about 1,400, with subsidies for replacing petrol bikes. Telecom overhaul: Macau lawmakers approved a new unified telecom licensing framework with longer renewable terms. Local governance reform: A public consultation targets “sleeping associations”, with plans to screen inactive groups and require rectification.

Cross-Strait Politics: Xi Jinping praised Jiang Zemin’s legacy at a ceremony marking Jiang’s 100th birthday, highlighting Jiang’s role in the “smooth return” of Hong Kong and Macau and his anti–Taiwan independence stance. Tourism & Payments: Some international visitors report credit card payment problems in Macau, with merchants sometimes demanding minimum spend amounts. Transport & Borders: Macau residents can now use Home Return Permits at all three Macau–mainland joint checkpoints’ e-channels (HZMB, Hengqin, Qingmao), instead of only Macau ID cards. Aviation Move: Airport operator CAM has been granted authority to manage the aviation-designated zone at Taipa Ferry Terminal, with a concession agreement set to be signed. Public Safety: A 73-year-old woman died after being struck by a tour bus near Border Gate on Aug 16; police are still investigating the cause. Environment & Mobility: DSPA says electric motorcycle charging spaces in public lots will rise 45% to about 1,400 this year. Governance Reform: Government launches a 45-day consultation on a new legal framework for associations, targeting “sleeping associations” (about 40% inactive for five years or more). Economy Beyond Gaming: Macau’s MICE sector saw Q2 revenue of MOP1.59 billion (+54.8% YoY) as participant numbers jumped 37.6%.

Telecom Overhaul: Macau’s Legislative Assembly has approved a draft law to create a unified telecom licensing framework, merging fixed-line, mobile, internet and TV into one convergent system, with 15-year renewable licences for network installation/management and 8-year renewable licences for service delivery. Tourism Watch: MGTO says international visitor numbers are still slightly below expectations—about 2% year-on-year growth in July and around 10% in early August—blaming flight capacity cuts, fuel prices and wider uncertainty, even as overall arrivals hold up. MICE Momentum: Macau’s non-gaming MICE sector posted a strong Q2: 499 events were flat, but participants and attendees jumped 37.6% to 314,000, lifting MICE receipts to MOP1.59 billion (+54.8% year-on-year). Cross-border Convenience: From Aug 18, Macao residents and Hong Kong permanent residents can use the Mainland Travel Permit for automated immigration clearance at key Zhuhai-Macao Bridge and Hengqin/Qingmao automated channels. Digital Government: The Digital Policy Office hosted an “AI+ Civil Service” session on using AI to speed up service workflows and improve public service delivery. Local Economy Signals: Macau’s economic climate index is forecast to stay “stable” next quarter, despite weaker gaming revenue and softer visitor and hotel indicators.

Macau Urban Planning: A forum on the draft Macau Urban Master Plan (2020–2040) amendments urged the government to spell out major projects via land-use changes and to set up “Priority Urban Renewal Zones,” with legal demarcation, property-right checks, and infrastructure funding—plus ideas like “housing-for-renewal” transfers to ease relocation. Climate & Resilience: The Meteorological and Geophysical Bureau warns El Niño could peak early next year, bringing wetter summers and putting Macau’s drainage and climate response to the test. Policy Address Prep: Chief Executive Sam Hou Fai met lawmakers to collect views for the 2027 Policy Address, covering everything from the Third Five-Year Plan and Macau–Hengqin integration to AI legislation and urban renewal. Tax & Business Costs: The government proposes a “payment-at-customs-clearance” consumption tax system, letting tax be collected from importers’ bank accounts when goods clear customs to cut refunds and reduce business burden. Local Governance Scrutiny: A Taipa notice board emblem is under legal concern after a netizen flagged it as possibly AI-generated. Gaming & Tourism Signals: Melco says its REM hotel and City of Dreams retail revamp are set to support growth in 2H26, while Sands China declared an interim dividend despite higher casino costs, and Paradise Entertainment warned of a likely 1H26 loss tied to satellite casino closures. Community & Daily Life: Macau’s first “butterfly-friendly garden” is set to open next month in Luís de Camões Garden, and Customs seized 1.5 tonnes of frozen chicken feet in a parallel-trading case. Workforce Rights Debate: A domestic-helper commentary argues Macau should also focus on workers’ living conditions and pay, not just tighter oversight.

National Mourning in Macau: Flags at Macao Government Headquarters, Santa Sancha and all boundary checkpoints will fly at half-mast on 18 August for former Chinese premier Zhu Rongji, who died on 12 August in Beijing. Policy Dialogue: Chief Executive Sam Hou Fai met Legislative Assembly members after a seminar on the 2027 Policy Address, stressing stronger executive-legislative cooperation as the Government prepares its blueprint. Gaming and Diversification Watch: Macau’s non-gaming push continues alongside gaming—MICE receipts for non-gaming industries rose sharply in Q2, while IPIM reported 194 new investment proposals in H1, with more than 60% tied to the “1+4” industries. Local Economy Signals: DSEC data showed average rents easing slightly in Q2 2026, while Monetary Authority figures pointed to lower foreign exchange reserves month-on-month and mixed credit trends for mortgages and SME lending. Business Moves: DFI Retail Group will become GNC’s exclusive wholesaler, distributor and franchisee for Hong Kong, Macau and Singapore.

Local Governance & Policy: Chief Executive Sam Hou Fai told Legislative Assembly members the Government will keep strengthening the executive-led system and improve cooperation as it gathers views for the 2027 Policy Address. Pension Reform: Lawmakers unanimously approved a bill to shore up pension fund finances, creating a flexible mechanism to transfer money from the general account to the pension account to prevent a projected MOP9 billion shortfall from 2027-2031. Economy & Diversification: IPIM reported 194 new investment proposals in 1H2026, with more than 60% tied to the “1+4” industries, led by big health, modern financial services and high tech. Hengqin Education Push: The Macau-Hengqin International Education Town’s first transitional campus at Dezhi Plaza is set to start this month, with the wider RMB18 billion project rolling out in phases to 2030. Property & Consumer Pulse: DSEC data showed average residential rents edged down 0.1% QoQ in Q2; meanwhile, mobile payments rose to MOP8.7 billion (+3.0% QoQ) with 106.1 million transactions (+9.7%). Business & Non-Gaming: MICE activity held steady at 499 events in Q2, but receipts for non-gaming industries jumped 54.8% to MOP1.59 billion. SME Pressure: Lawmakers said SMEs are still struggling despite record tourist spending and urged renewed, sector-specific consumption incentives and better transport to bring foot traffic to community shops. Gaming Snapshot: Macau gaming tax collected reached US$7.21 billion in the first seven months of 2026, and gaming tax revenue rose 9.3% through July.

Local Governance: Chief Executive Sam Hou Fai met Legislative Assembly members to gather views on the 2027 Policy Address, stressing stronger executive-legislative interaction under Macao’s executive-led system. Gaming & Tourism Economy: Macau gaming tax collected hit MOP58.3 billion (US$7.21b) in the first seven months of 2026, with the government on track for 60.7% of its annual gaming-tax budget. Resort Updates: Melco has soft-opened the revamped REM hotel at City of Dreams Macau, converting 330 standard rooms into 150 premium suites, with a grand opening planned for after October’s Golden Week. Finance & Payments: DSEC and the Monetary Authority reported softer rents in Q2, while mobile payments rose to MOP8.7b in value (+3.0% QoQ) and 106.1m transactions (+9.7% QoQ). Property & Credit: New mortgage approvals picked up in June, and SME credit saw weaker new approvals in H1 even as delinquency ratios edged up. Business Expansion: DFI Retail Group will be the exclusive wholesaler, distributor and franchisee for GNC across Hong Kong, Macau and Singapore, following a court win. Cybersecurity: A report says China-linked hackers used autonomous AI agents to attack Taiwan government systems, highlighting the wider regional cyber risk.