The Macao SAR Government is planning to establish a “guidance fund” to invest in non-gaming projects and has introduced related draft legislation, proposing “patient capital” as a core principle. The concept does not prioritize short-term gains but focuses instead on medium- to long-term investment returns.
The government said that such a fund is intended to steer social capital into key areas, achieve industrial upgrading and realize long-term appreciation of public assets.
The fund will be established as a policy-driven investment vehicle, guided by long-termism and patient capital to support the development of emerging industries while adhering to a framework of government guidance and market-based operations.
The government specifies that the guidance fund will invest via fund investments, direct investments and joint investments. Investment scope must align with policy goals including appropriately diversified economic development for Macau, national strategies and coordinated development with the Guangdong-Hong Kong-Macau Greater Bay Area and the Hengqin Guangdong-Macau Deep Cooperation Zone.
The government also emphasized the fund’s focus on the “patient capital” principle, requiring evaluations to emphasize the fund’s industrial guidance and social benefits rather than short-term financial returns; and to set up a tolerance/fault-forgiveness mechanism that clearly regards investment losses caused by objective factors such as market or policy changes as normal commercial risks, provided that the managing entities and related personnel follow compliant decision-making procedures, conduct sufficient due diligence and have no conflicts of interest.
Macau Chief Executive Sam Hou Fai earlier said the government will direct MOP$130 billion to non-gaming investments and set up a guidance fund, with the goal of raising Macau’s GDP share from non-gaming elements to 60% by 2030.
