AGP Executive Report

Macau-Malaysia Dealmaking: Chief Executive Sam Hou Fai wrapped up a four-day Malaysia visit and departed Kuala Lumpur, after meetings with Prime Minister Anwar Ibrahim and a push to turn ties into practical cooperation across trade, investment, finance, tech, education, and MICE. Healthcare + Tourism Push: Macao Union Medical Center (Peking Union Medical College Hospital) deepened Southeast Asia links via hospital and research exchanges in Singapore, Indonesia and Malaysia, aiming to expand “healthcare + tourism” services. Diversification Blueprint: In Malaysia, Sam reiterated Macao’s “1+4” economic diversification plan under the 2026–2030 Third Five-Year Plan, targeting non-gaming growth and new pillars like high-tech, modern finance, TCM and big health. Business Matching Results: A Kuala Lumpur investment promotion seminar drew 300+ participants, ran nearly 120 matching sessions, and secured 54 cooperation agreements spanning high-tech & AI, biomedicine, halal-friendly initiatives, and tourism. Cultural Industry Calendar: The 38th Macao International Music Festival (theme: “Silk Resonances”) announced Oct–Nov programming plus citywide “Floating Notes” outreach. Brand & Retail Ops in Macau: Authentic Brands Group named HiMaxx as Lee’s operating partner across Greater China, including product development and retail/wholesale distribution in mainland China, Hong Kong and Macau.

Macao-Malaysia Business Push: Chief Executive Sam Hou Fai wrapped up a four-day Malaysia visit, meeting PM and Finance Minister Anwar Ibrahim and pushing higher-level cooperation tied to Macau and Hengqin’s Greater Bay Area role, with trade, finance, science and tech, education, and MICE on the agenda. Deal-Making in Tourism and Tech: In Kuala Lumpur, Macao’s economic, trade and tourism investment promotion seminars drew 300+ participants, ran nearly 120 business matching sessions, and secured 54 cooperation agreements spanning high-tech & AI services, biomedicine, traditional Chinese medicine and big health, plus halal-friendly initiatives. Talent Attraction: A “Study in Macao” education fair in Kuala Lumpur launched a new promotional push to attract international talent and deepen education links. Diversification Blueprint: A long read highlights Macao’s “1+4” diversification plan under the third five-year framework, aiming to lift non-gaming industries toward ~60% of GDP by 2030 while using Hengqin to ease space limits. Gaming Margin Pressure: CBRE flags rising gaming commission pressure in Macau, with commissions hitting a record share of GGR amid intense premium promotions. Industry Services: Macau’s Film & Television Industry Service Centre began trial operation, offering consultation and referral support to the sector.

Macao-Malaysia Business Push: Macau Chief Executive Sam Hou Fai met Malaysian PM and Finance Minister Anwar Ibrahim in Kuala Lumpur, with both sides backing deeper cooperation across trade, tourism, finance, tech, education and MICE, and positioning Macau–Hengqin as a Greater Bay Area gateway for Malaysian firms. Deal Momentum: A Macau economic, trade and tourism investment promotion seminar in Kuala Lumpur drew 120+ business match sessions and ended with 60+ signed agreements spanning tourism, high-tech & AI services, TCM and big health, plus pharma registration and distribution. Talent Attraction: Macau launched a “Study in Macao” education fair in Malaysia, kicking off a series of promotional initiatives aimed at attracting global talent. Gaming & Property Pressure: CBRE flagged margin pressure for Macau casinos as gaming commissions hit a record 20.9% of gross gaming revenue, while JLL said Macau’s property recovery is losing steam with cautious demand into H2. Culture With Industry Reach: The 38th Macao International Music Festival rolls out “Silk Resonances” with 12 citywide “Floating Notes” activities, extending cultural programming beyond venues.

Macao–Malaysia Deal Push: Chief Executive Sam Hou Fai wrapped up a Kuala Lumpur leg of his Southeast Asia trip, pitching Macao as a bridge to the Chinese mainland and ASEAN and urging closer trade, investment, digital economy, TCM, green energy and cross-border e-commerce ties after multiple business agreements were signed. Gaming Margin Pressure: CBRE flagged rising gaming commissions as a share of gross gaming revenue hit a record 20.9% in the June quarter, squeezing concessionaires’ EBITDA flow-through even as August revenue dipped 1.2% YoY. Property Market Cools: JLL said Macau’s property recovery lost momentum in 2Q26, with weaker residential and commercial demand keeping transactions low and price pressure on offices/retail likely to persist. Healthcare & Pharma Deals: GSK agreed to pay Hutchmed $110m upfront for HMPL-A830, a KRAS-EGFR-targeted solid-tumour therapy, with potential milestones up to about $1.2bn; separately, CMS’ Lumirix® (ruxolitinib cream) won NMPA approval for atopic dermatitis indication expansion. Local Industry Compliance: In Construction Limited was fined $640,000 over a fatal 2025 site accident tied to lifting and safety regulation breaches. B2B Consumer Tech Launch: Macau Ke Hon Technology opened global B2B wholesale for KEHON RING, a screenless wellness wearable positioned for corporate gifting with a lifetime zero-subscription model. Luxury Hospitality Boost: Wynn Palace secured a spot on The World’s 50 Best Hotels Extended 51–100 list, reinforcing Macau’s luxury tourism positioning.

Greater Bay Area Connectivity: Hong Kong hosted the Greater Bay Area Conference 2026, with officials pitching the region as a “super connector” linking mainland and global markets amid fast tech and geopolitical shifts. Macao Tourism & Business Travel: PATA and GBTA signed an MoU to boost the corporate travel side of PATA Travel Mart 2027 in Macao (20–22 Sep 2027), using GBTA’s corporate buyer network and knowledge programming. Macao–ASEAN Trade Push: Chief Executive Sam Hou Fai met ASEAN’s secretary-general in Jakarta, urging ASEAN firms to use the Macau–Hengqin platform for tourism, investment, trade and MICE links. Macao Logistics Innovation: Macao is testing drone deliveries for medical samples between Conde de São Januário Hospital and PUMC’s Macao Medical Center, targeting 10–15 minutes but flagging airspace, customs and standards hurdles. Gaming Industry Signals: CBRE said Macau’s gaming commissions as a share of GGR hit a new high in 2Q26 amid intense promotions, while August GGR fell 1.2% y/y. Hospitality Branding: Wynn Palace entered the World’s 50 Best Hotels Extended 51–100 list (rank 96), reinforcing Macau’s luxury tourism positioning. Responsible Gaming: Sands China trained 42 staff as responsible gaming ambassadors, including UNLV-backed problem gambling modules. Food Retail Deal: Wellcome partnered with CJ Foods to distribute 100 Korean products in Hong Kong, targeting over US$22m in sales. Biopharma (Greater China): GSK agreed to pay up to ~$1.3b for Hutchmed’s HMPL-A830 KRAS-EGFR therapy rights outside Mainland/HK/Macau/Taiwan, with clinical testing expected in H2.

Healthcare & Pharma Deals: CMS’ Lumirix® (ruxolitinib phosphate cream) wins NMPA approval in China for mild-to-moderate atopic dermatitis, with a faster Priority Review path for pediatric use. Oncology Licensing: HUTCHMED inks a GSK deal for HMPL-A830, a KRAS-EGFR antibody-targeted therapy conjugate, with $110m upfront and up to $1.295bn in milestones, while keeping development/commercialisation in Mainland China, Hong Kong, Macau and Taiwan. Macau Industry Push: Macau targets 10–15 minute drone deliveries for medical samples between Conde de São Januário Hospital and Peking Union Medical College Hospital’s Macao Medical Center, but says airspace, customs and standards mean expansion will be cautious. Gaming Economy Watch: CBRE flags Macau’s gaming commissions share hitting a new high (20.9% in June quarter) amid intense promotions, even as August GGR fell 1.2% year-on-year. Cross-border Business & Tourism: CE Sam Hou Fai presses deeper Macau–ASEAN trade, investment and tourism ties in Jakarta, while a Macao–Indonesia investment seminar in Jakarta produced 36 cooperation agreements from 120 match sessions. Local Governance & Compliance: Macau launches a 45-day public consultation to modernise the legal framework for associations, aiming to fix long-standing overlaps and regulatory gaps.

Gaming Equipment & Upgrades: Macau-based Asia Pioneer Entertainment reported 47.3% YoY revenue growth to HK$33.9m (H1 2026) and a 90-fold profit jump, driven by replacement demand and technical upgrades for integrated resorts in Macau and Southeast Asia. Brand Expansion in Retail: Authentic Brands Group named Shanghai Huizhong as operating partner for Lee across China, Hong Kong and Macau, covering product, sourcing and distribution ahead of the Lee acquisition expected to close in 2H26. Cross-Border Social Services: Guangdong–Macao Pension Link+ was upgraded with an online application channel via “Macao One Account,” letting residents apply for pensions and allowances and have payments credited to designated mainland banks with remittance fees waived. EV Services in Macau: NIO opened its first NIO House centre in Macau, saying it will deepen Greater Bay Area presence with expanded products, charging and battery-swapping infrastructure via its authorised partner. ASEAN Cooperation: Chief Executive Sam Hou Fai met ASEAN Secretary-General Kao Kim Hourn in Jakarta, pushing “pragmatic” Macau–ASEAN cooperation as part of a wider Singapore–Indonesia–Malaysia tour. Film & TV Industry Support: Macau’s Film and Television Industry Service Centre started trial operations, offering mainland consultation, referrals, employment info and guidance on permits, classification and copyright. Urban Renewal: Work is set to begin on Pátio do Espinho near the Ruins of St. Paul’s, with a task force formed to study protective conservation and revitalisation under the Third Five-Year Plan. Legal Framework for Associations: Macau launched a 45-day public consultation on a unified legal regime for associations, aiming to fix long-standing regulatory gaps affecting thousands of local groups. Household Tech Showcase: Midea highlighted “Zoned Care. Omni Clean” at IFA 2026, targeting more targeted laundry and floor-care solutions for European households. Energy Storage Market Watch: Sungrow said battery energy storage shipments hit record levels and H1 BESS revenue outpaced PV, while margin pressures persist amid pricing and regional mix shifts.

Macao–Indonesia Business Push: Macao’s CE Sam Hou Fai helped convene a Jakarta investment promotion seminar that drew 350 guests and produced 80+ cooperation agreements across tourism, high-tech, healthcare, and MICE, positioning both sides along the Maritime Silk Road. Film & TV Industry Support: The Macao Film and Television Industry Service Centre started trial operations, offering mainland job referrals, company registration guidance, policy and copyright info, and festival support to help local producers expand. Urban Renewal Near Heritage Core: Work is set to begin on Pátio do Espinho near the Ruins of St. Paul’s, with a task force coordinating protective conservation and revitalisation under the Third Five-Year Plan. Cross-border Social Security Upgrade: “Guangdong–Macao Pension Link+” was upgraded so residents can apply online via “Macao One Account,” with payments credited to designated mainland bank accounts and cross-border remittance fees waived. Gaming Economy Signal: Macau’s August casino GGR fell 1.2% year-on-year to MOP21.89 billion, though it rose month-on-month. Tech & Manufacturing Moves: Asia Pioneer Entertainment (8400.HK) reported a 90-fold H1 profit jump on EGE upgrades and is targeting overseas expansion; HEC Group signed Macau partnerships to scale Cordyceps sinensis production and commercialization.

Macao Film & Television: The Macao Film and Television Industry Service Centre has started trial operations, offering mainland job referrals, company registration guidance, policy and copyright info, and support for festival participation—aimed at tightening Macao–Mainland industry links. Macao–Indonesia Cooperation: Chief Executive Sam Hou Fai used his Jakarta stop to push the China 15th Five-Year Plan and Macao’s 3rd Five-Year Plan as a springboard for deeper Macao–Indonesia ties under Belt and Road frameworks, with a large business delegation in tow. Urban Renewal & Heritage: A new working group is set to drive conservation and revitalisation for Pátio do Espinho near the Ruins of St Paul’s, focusing on planning improvements and removing safety risks. Tourism-Tech: Macao University of Tourism and Xia Ding Technology launched an AR smart-dining research project using AI glasses to test new service experiences for hotels and food-and-beverage operators. Gaming Economy: Macau’s August casino gross gaming revenue fell 1.2% year-on-year to 21.89 billion patacas, even as month-on-month growth continued. Smart Tourism & Industry Diversification: The government guidance fund framework is moving forward under a “patient capital” approach to steer private investment into emerging sectors and local jobs. Transport & Logistics Context: Hengqin cargo and aviation logistics integration continues to progress, with airport cargo pilots highlighted as part of regional transport build-out.

Macau Gaming: Macau’s 20 casinos posted August gross gaming revenue of 21.89 billion patacas, down 1.2% year-on-year, though up 8.05% month-on-month—another sign of uneven momentum for the core sector. Tourism & Hospitality: Hotel occupancy stayed high (91.6% in July), but room rates faced pressure as more supply and competition from Zhuhai and Hengqin pushed some districts’ prices down up to 10% year-on-year. Economic Diversification Funding: The Macao government set up the operating system for a new “guidance fund” to steer “patient capital” into non-gaming priorities, with a planned scale of 20 billion patacas and a focus on long-term industrial upgrading and local jobs. Smart Tourism Tech: Macao University of Tourism and Xia Ding Technology launched an AR smart-dining research project using AI glasses, aiming to reshape service experiences for hotels and food-and-beverage operators. Regional Business Links: A Macao–Singapore economic, trade and tourism investment seminar in Singapore drew 74 industry cooperation agreement signings, feeding into the Third Five-Year Plan push. Cross-border Logistics: Macau International Airport’s Hengqin upstream cargo terminal handled its first shipment, marking progress on aviation logistics integration. Talent & Skills: Hong Kong’s Construction Industry Council sent young competitors to WorldSkills in Shanghai, underlining skills training as a career pipeline. Mobility & Consumer Tech: Tesla launched a more affordable Model 3 in Hong Kong and Macau, cutting starting prices while trimming features.

Macau Economic Diversification: The government has set up the operating system for a new “guidance fund” to steer private capital into non-gaming emerging industries, targeting a fund scale of about MOP20 billion and aiming to complete the setup this year, using “patient capital” and a policy-first, long-term approach. CE–Singapore Business Push: Chief Executive Sam Hou Fai wrapped up meetings in Singapore with PM Lawrence Wong and other ministers, agreeing to deepen high-level practical cooperation and urging firms to expand trade, investment, higher education, digital economy and industrial transformation links. Tourism & Creative Industries: Macau Comic Festival (MCF22) returned to Macau Tower with nearly 100 anime and fan groups, a doujinshi market, cosplay and performances—another boost for local creative production. Hengqin Education & Talent: Education and Youth Development Bureau data show 10 higher education institutions and about 70,000 students in 2026/27, while UTM’s postgraduate welcome at the Macau-Hengqin University Town highlights “dual-city learning” and industry-academia resources. Health & Community: Seasonal influenza vaccination in Hong Kong starts Sept 17, with early uptake urged for high-risk groups—relevant for regional workforce and visitors. Trade Compliance Watch: A US transshipment crackdown is raising compliance burdens for exporters, a reminder for Macau-linked supply chains. Biotech Launch: Revelyx Bio launched globally (excluding mainland China/HK/Macau) its YY003 recombinant botulinum toxin A, with Phase II topline data expected in Q3 2026.

Macao–Southeast Asia Push: Chief Executive Sam Hou Fai is in Singapore for meetings with Deputy Prime Minister Gan Kim Yong and Health Minister Ong Ye Kung, focusing on public health, TCM, governance for ageing societies, and using Macao’s “bridge” role to pull in new industrial and talent links. Patient-Capital Diversification: Macao plans a guidance fund for non-gaming projects, backed by draft legislation and a “patient capital” approach that prioritizes medium- to long-term social and industrial benefits over short-term returns. Hengqin Entrepreneurship & Talent: A Macao–Hengqin youth delegation showcased startup progress in Hengqin’s entrepreneurship valley, highlighting nanomaterials and flexible tactile sensing work by Macao youth founders. Cross-Border Trade Enforcement: Hong Kong Customs seized about US$8.5m of suspected smuggled goods from river trade vessels bound for Macao, including suspected pharma products, cosmetic injection vials, cigars and Chinese herbs. Aviation Logistics Integration: Macao International Airport’s Hengqin upstream cargo terminal handled its first shipment, marking progress in aviation logistics integration. SME Innovation Talk: PSITI Kevin Choi spoke at an APEC SME resilience seminar in Guangzhou, outlining Hong Kong’s SME scale and support direction. Healthcare Ops: Hong Kong’s seasonal influenza vaccination programmes start Sept 17, with early registration urged for eligible groups. Business & Culture: Paradise Entertainment eyes a US market return via its supplier arm after a 1H26 loss, while Hengqin’s cultural programme launches an interactive “Peach Blossom Spring” show in September.

Macao–Singapore Business Push: Chief Executive Sam Hou Fai met Singapore’s Ong Ye Kung in Singapore to deepen cooperation on public health, traditional Chinese medicine, and ageing governance, as part of an eight-day SEA trip with about 120 business representatives. Hengqin Diversification: A new Xinhua explainer highlights Hengqin’s role as a commercialization platform for Macao’s diversified industries, pointing to research-to-product pathways enabled by the Guangdong-Macao In-Depth Cooperation Zone. Transport & Logistics: Barra’s heavy passenger vehicle carpark at the public transport interchange will offer one-hour free parking from midnight tomorrow through Dec 31, while separate coverage notes Macao-Hengqin cargo integration progress via Hengqin cargo terminal pilots. Cross-border Connectivity: Hong Kong and Shenzhen completed another Huanggang Port stress test, including “joint one-stop” vehicle lanes and large-scale clearance drills ahead of opening. Industry & Markets: Analysts turned bullish on consumer-cyclical names including Wynn Macau and Xtep, while International Entertainment Corporation reported a 50.6% revenue rise (gaming-led) in its latest results. Creative & Entertainment: CREATIVE MACAU marked its 23rd anniversary with a members exhibition themed “PRESENT,” and a Hengqin Cultural Art Centre interactive comedy premieres Sept 11 with AI-assisted elements.

Macao–Hengqin Diversification: A key focus of Macao’s Third Five-Year Plan is turning Hengqin into a commercialization engine for tech and lab-to-production industries, with the Guangdong-Macao In-Depth Cooperation Zone already attracting research institutions and enterprises. CE Overseas Push: Chief Executive Sam Hou Fai is in Singapore (then Indonesia and Malaysia) to promote Third Five-Year Plan opportunities, attract international resources, and strengthen ties in talent development, science and technology, and TCM—backed by trade, tourism and investment roadshows plus business matchmaking. Cross-Boundary Transport Readiness: Hong Kong and Shenzhen completed a second Huanggang Port stress test, including “joint one-stop” vehicle lanes and thousands of vehicle trials, to prepare for opening and emergency coordination. Air Cargo Integration: Macao International Airport’s Hengqin upstream cargo terminal moved toward operational integration, signaling progress for regional aviation logistics. Digital Entertainment & AI: Cyberport’s Digital Entertainment Leadership Forum 2026 opened, spotlighting AI and immersive tech for cultural and creative industries. Gaming Industry Signals: International Entertainment Corporation reported a 50.6% revenue rise (to HK$852.5m) with stronger gaming performance, while hotel revenue dipped due to renovations. Local Economy Pulse: DSEC data showed July electronic payments rising for restaurants and retail, while unemployment stayed steady for May–July 2026.

Macao–Hengqin Industrial Push: A new Xinhua explainer says Hengqin—about three times Macao’s size—is becoming the space Macao needs for lab-heavy and mass-production industries, with the Guangdong-Macao In-Depth Cooperation Zone accelerating since 2021 and institutions like the Macao Institute of Materials Science and Engineering helping turn research into products. CE “Down South” Outreach: Chief Executive Sam Hou Fai is in Singapore to kick off an eight-day, three-country Southeast Asia push (Singapore, Indonesia, Malaysia) aimed at attracting international resources and promoting Third Five-Year Plan opportunities, including talent, science and technology, and TCM links. Cross-Boundary Transport Readiness (GBA): Hong Kong and Shenzhen completed a second Huanggang Port stress test, including “joint one-stop” vehicle lanes and large-scale passenger/vehicle trials, to prepare for the port’s opening. Tourism Branding for ASEAN: MGTO is sending a travel trade delegation and running multilingual mini drama promotion across Singapore, Indonesia and Malaysia to market Macao’s “tourism +” and destination appeal. Local Economy Signals: DSEC data shows July electronic payment values rising for restaurants and retail, while the May–July unemployment rate for local residents stayed at 2.4%. Governance & Workforce: The Macau Civil Servants’ Association submitted proposals ahead of the 2027 Policy Address, including retirement support for serious illness and stronger local hiring requirements for major projects.

CE Trade Mission: Macao Chief Executive Sam Hou Fai has started an eight-day, three-country Southeast Asia trip (Singapore, Indonesia, Malaysia) to push the 3rd Five-Year Plan, attract international resources, and deepen cooperation with ASEAN, with roadshows and business matchmaking plus a focus on industrial parks, tourism, urban renewal and housing know-how. Tourism Branding: MGTO is backing destination marketing in the same region with multilingual mini drama “Cahaya Macao” (Malay/Indonesian/English) co-produced with iQIYI, launching Aug 30 to spotlight Macao’s landmarks and communities. Cross-Boundary Transport Readiness: Hong Kong and Shenzhen completed a second Huanggang Port stress test, including “joint one-stop” vehicle lanes and large-scale passenger/vehicle drills, as opening preparations ramp up. Air Cargo Integration: Macao International Airport’s Hengqin upstream cargo terminal moved ahead with pilot air cargo operations, signaling progress in Macau–Hengqin aviation logistics integration. Payments & Jobs Snapshot: July electronic payments rose for restaurants (+3.1% YoY) and retail trade (+6.3% YoY), while May–July unemployment held at 2.4% for residents, with many job seekers previously from gaming and retail. Smart Power Talent: UM held a smart grid forum in Macao–Hengqin’s education town and launched a Master’s intake for smart power grid talent, linking AI and next-gen power dispatch training.