Chinese President Xi Jinping called for Macau to diversify its economy during a three-day visit to inaugurate new leader Sam Hou-fai. Xi emphasized the need to "promote moderate economic diversification and focus on cultivating new industries with international competitiveness."

Macau's transformation since returning to Chinese rule 25 years ago has been remarkable, with GDP growing from US$6.4 billion in 1999 to over US$47 billion last year. However, the region remains heavily dependent on casino revenues, which account for over 80% of tax income.

While praising Macau as a "pearl in the nation's palm" and a successful example of the "one nation, two systems" policy, Xi expressed concern about "profound changes" in the internal and external environment. His administration has previously scrutinized the casino sector for potential money laundering and capital flight issues.

The new chief executive, Sam Hou-fai, shares Xi's vision for economic reform. As Macau's first mainland-born leader and former top judge, Sam acknowledges that reliance on a single industry poses challenges for long-term development.

Beijing's strategy includes integrating Macau into the Greater Bay Area project, alongside Hong Kong and Guangdong province cities, to create a diverse economic powerhouse. The focus will be on developing new sectors such as financial services and technology while maintaining Macau's existing capitalist system and way of life, as promised under the 50-year agreement following its return to Chinese rule.

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