Posted on: August 28, 2024, 08:56h.
Last updated on: August 28, 2024, 09:01h.
Macau’s former top judge has announced his intention to run for the gambling hub’s highest leadership position — chief executive — and he fired a warning shot toward the casino industry on Wednesday.
Sam Hou Fai, 62, stepped down as president of the Court of Final Appeal ahead of his announcement this week. He is expected to be the only candidate to be approved to run for office by a pro-Beijing election panel.
Macau has its own financial system and a degree of political autonomy as a Special Administrative Region (SAR) under China’s one country, two systems policy. However, candidates for the chief executive role are chosen by the Beijing-approved 400-strong panel comprised of politicians and businessmen. This renders ordinary citizens’ right to vote for their leader almost meaningless.
‘Wild’ Expansion
Sam’s views on the gaming industry echo Beijing’s policies, which have long sought diversification of the SAR’s economy. The central government is currently engaged in a crackdown on money laundering and capital flight from the mainland, which has moved from targeting the casino junket industry to illegal money-exchange businesses.
For a period of time, the tourism and gaming industry developed in a disorderly manner and expanded wildly,” Sam said at a press briefing Wednesday, as translated by Bloomberg. “Having one dominant industry is not beneficial for Macau’s long-term development and has had a very negative impact.”
The casino industry’s dominance has strained the resources of society such as manpower, and narrowed the career choices of young people, Sam claimed. As such, the city’s economic and political development faced “unavoidable” challenges, and Macau needs to “reform and innovate.”
“Macau’s long-term development is only possible with the country’s support,” Sam added, referring essentially to heightened cooperation with Beijing.
Casino Stock Impact
Shares in Macau casino operators fell slightly on the news. Sands China Ltd. was down 2.8% Wednesday, while MGM China dropped 2.5%.
Hailing from Zhongshan, Guangdong Province, in mainland China, Sam would be the first chief executive to be born outside of Macau, if elected this October. He would also be the first chief executive hailing from the legal profession as opposed to the business sector.
His predecessor, Ho Iat Seng, announced last month that he would not seek a third term as chief executive, citing poor health.
