AGP Executive Report

Macau Gaming Outlook: J.P. Morgan and Seaport Research Partners cut their 2026 Macau GGR forecasts again after September gaming revenue fell 1.2% y/y to MOP$18.1b, citing softer China demand, tax enforcement effects on high-net-worth sentiment, and weak daily run-rates heading into October. Energy & Fuel Supply: China suspended October fuel exports beyond Hong Kong and Macau, tightening global diesel and jet fuel availability as the Iran-linked Strait of Hormuz remains disrupted; oil jumped above $100/bbl and markets weighed supply risk. US-Europe Diesel Pressure: The US urged France and Germany to release emergency diesel stocks, warning of a potential US export ban if Europe doesn’t act. Macau National Day Events: Macau held a flag-raising ceremony and a PRC 77th anniversary reception, with Chief Executive Sam Hou Fai stressing alignment with the 15th Five-Year Plan and risk-focused governance. Regional Business Moves: DFI Retail Group will take full control of Starbucks licensed operations across Asia, including Macau, and plans more outlets and menu expansion through 2029. Shipping Bids: China-linked bulk carrier sale tenders were announced, including “XIE HAI 107” (15,785t) via online bidding.

Macao National Day: Macao marked the 77th anniversary of the PRC with a grand reception at the China-Portuguese-speaking Countries Commercial and Trade Service Platform Complex, where Chief Executive Sam Hou Fai said Macao’s progress depends on steadfast support from the motherland, as nearly 1,200 guests attended. Macao Governance & Finance: The SAR government amended interest-free loan schemes for local SMEs and young entrepreneurs to extend benefits to businesses operating in Hengqin, while also announcing a plan to streamline the Monetary Authority of Macao’s structure by cutting board members from five to three. Gaming & Tourism Outlook: Wynn Resorts told investors it can’t pinpoint a single cause for Macau’s slower 2026 fundamentals, but said any “pause in spend” is likely temporary; meanwhile, Success Universe partially refinanced Ponte 16 debt, citing stronger tourism and non-gaming spend momentum. Regional Business Moves: DFI Retail Group said it will expand Starbucks in Vietnam and Thailand and take full control of Starbucks operations across seven Asian markets, following a deal to buy out Maxim’s stake for about US$340 million. Energy Pressure: China suspended fuel exports for October beyond Hong Kong and Macao, tightening global diesel and gasoline supply and pushing oil prices higher—an issue that matters for Macau’s import-linked costs.

Macau Policy & Finance: The government extended interest-free loan support to Hengqin for local SMEs (up to MOP600,000) and young entrepreneurs (up to MOP300,000), aiming to deepen Greater Bay Area business links. It also plans to streamline the Monetary Authority of Macao (AMCM) by cutting board members from five to three and reducing departments, with changes due in weeks. Tourism & Consumer Economy: Sands China extended its firecracker-industry exhibition at Sands Gallery to Nov 29 and added guided tours plus a free seminar during National Day Golden Week. DSEC data showed August electronic payments rising for restaurants (+1.8% y/y) and retail trade (+7.0% y/y). Gaming & Corporate Moves: Wynn said it can’t pinpoint a single cause for Macau’s slowdown but expects a temporary pause in spend; meanwhile Success Universe partially refinanced Ponte 16 debt, citing stronger tourism and non-gaming spend momentum. Retail & Brands: DFI Retail Group agreed to take full control of Starbucks-licensed operations across seven Asian markets, including Macau, in a deal that effectively reshapes its Maxim’s Caterers partnership. Food Safety: IAM found a black truffle sauce product with excessive arsenic and ordered a stop-sale and recall. Business Outlook: The IMF Article IV report expects Macau’s economy to keep growing, projecting 3.3% expansion in 2026. Regional Business Links: DHL Express appointed Julian Neo as MD for Hong Kong and Macau from Oct 1, while Shenzhen Airlines launched a Bandar Seri Begawan–Shenzhen route.

Macau Economy Watch: The DSEC reported August electronic payments rose for both restaurants & similar (+1.8% y/y to MOP1.23bn) and retail trade (+7.0% y/y to MOP5.01bn), with strong gains in cosmetics/sanitary articles and watches/jewellery. National Day & Community: Macau is lining up PRC National Day events, including a flag-raising ceremony and reception on Oct 1, plus fireworks and a fun run. Public Services Upgrade: The Macao One Account app will launch an AI-powered enquiry platform next Monday, routing routine questions to chatbots and complex cases to human staff. Healthcare & Business Events: The Macao Union Medical Center marked its 2nd anniversary with a medical and health forum, while the 2026 Macao Franchise Expo (Oct 21-24) will spotlight coffee and bakery with end-to-end brand matching. Cross-border Trade Facilitation: Hong Kong-Zhuhai-Macao Bridge fresh produce imports will move to 24-hour operations from Oct 1, with food safety inspections continuing at the Hong Kong Port. Regional Logistics Leadership: DHL Express appoints Julian Neo as Managing Director for Hong Kong and Macau effective Oct 1. IMF Outlook: The IMF’s Article IV staff report says Macau’s economy is expected to grow 3.3% in 2026, citing resilience from tourism and stable labour conditions.

Deep-sea clean energy: China Three Gorges says the first turbines for the Yangjiang Qingzhou Phase 5 and Phase 7 offshore wind projects have been grid-connected, using a high-voltage flexible DC system and the “Heart of Sea Wind” converter station to move power from 70km offshore—an engineering milestone for large-scale deep-water renewables. R&D push: China’s science ministry outlined 2026-2030 priorities to strengthen basic research, tackle core technologies and speed up industrial rollouts, with AI to reshape how research is done. Cross-border crime crackdown: Mainland and Hong Kong police dismantled a cross-border underground banking ring in Guangdong, arresting 170+ suspects and freezing/seizing major assets, after abnormal fund flows were detected. Macao digital security: CTM and Huawei launched an integrated QKD-communication target IP network for quantum-secured communications, aiming to protect government, finance and critical infrastructure across the Greater Bay Area. Macao governance tech: Macao’s AI-powered government service enquiry platform on the Macao One Account app will go live next Monday, routing routine questions to chatbots and complex cases to staff. National Day logistics: Macao announced flag-raising, receptions, fun run and fireworks for the 77th PRC anniversary, with multiple free museum entries. Pharma deal with spillover relevance: Novo Nordisk licensed Hengrui’s oral once-weekly GLP-1/GIP candidate HRS-1596 in a deal up to US$2.6bn, excluding mainland China, HK, Macao and Taiwan—watch this for regional competitive pressure on obesity treatments. Gaming sentiment watch: CreditSights flags tighter China capital controls as a potential drag on Macau high-roller sentiment, though it expects limited direct impact on GGR. Telecom reform: Macau’s proposed Telecommunications Law would replace fragmented, technology-specific rules with a unified licensing and competition framework. National Day business angle: Macau’s National Day events lineup includes a large-scale reception and community activities, supporting local footfall ahead of the holiday period.

Telecom Reform in Macau: Macau’s Legislative Assembly has advanced a proposed overhaul of the telecommunications law, aiming to replace fragmented, technology-specific rules with a unified, technology-neutral licensing and competition framework. Pharma Deal with Macau Exclusions: Hengrui Pharma shares jumped after it licensed its once-weekly oral GLP-1/GIP dual agonist HRS-1596 to Novo Nordisk in a deal worth up to US$2.6 billion, with the territory excluding mainland China, Hong Kong, Macao and Taiwan. Digital Finance Boost in Hong Kong: Hong Kong priced around HK$20 billion of digital green bonds across HKD, RMB, USD and EUR, setting a record for the largest digital bond issuance and expanding tokenised settlement tools. Macau Housing Market Move: The Housing Bureau in Hong Kong began the flat selection process for Wang Fuk Court owners, with the full exercise expected to finish by end-November. Macau Business & Community: SJM Resorts said it is shifting focus to optimizing asset productivity and improving Macau’s gaming mix after the direct management model; meanwhile, a Macau survey found 36.2% of residents volunteered in the past year.

EV Outlook: A China energy-industry expert expects the country’s EV penetration rate to keep climbing, targeting 75–80% by 2030 as July penetration hit 65%. Macao Gaming Strategy: SJM says it has shifted to direct management, focusing on asset productivity and improving Macau’s gaming mix after satellite casino closures. Sustainability in Hospitality: Artyzen Grand Lapa Macau won a Carbon Disclosure Award – Macau for energy and water efficiency, waste reduction and emissions monitoring. Sports & Tourism: Galaxy Entertainment Macao International Marathon is set for Dec 6, with registration details and expanded spots for the full and half marathons. Community & Skills: A survey finds 36.2% of residents volunteered; Macau also returned from WorldSkills Shanghai with gold, silver and bronze. Trade & Business Links: Macao will host PLPEX, a trade exhibition for nine Portuguese-speaking countries, Oct 21–24. Health & Economy Signals: Macao’s unemployment rate for June–August edged up to 2.5% for local residents, while merchandise trade rose in August.

Macao-Portugal Trade Push: Macao will host the 2026 Portuguese-Speaking Countries Products and Services Exhibition (PLPEX) from Oct. 21-24 at The Venetian Macao’s Cotai Expo, covering about 8,000 sq m and five zones spanning cross-border e-commerce, agriculture, marine tech, food & beverages, and professional services, with business matching on wine/spirits, coffee and agri supply chains. Local Economy Watch: Macao’s merchandise trade grew in August, with exports up 10.8% and imports up 18.4% year-on-year, while the trade deficit widened to 1.66 billion patacas. Jobs Snapshot: Macao’s local resident unemployment rate edged up to 2.5% for June-August as fresh graduates entered the market, even as underemployment fell. Health & Food Safety: Hong Kong’s FEHD and Centre for Food Safety stepped up school lunch box inspections, while CHP reported four Legionnaires’ disease cases (Sept. 20-26) and urged proper water-system maintenance. Biotech Deal: MindRank signed a commercialization agreement with 3SBio subsidiaries for an AI-designed oral GLP-1 candidate (MDR-001), covering mainland China, Hong Kong and Macau with potential RMB 1.75 billion in transactions. Clinical Trial Update: HUTCHMED initiated Phase 1a dosing in China for HMPL-A830, targeting KRAS-altered solid tumors via an antibody-targeted therapy conjugate.

Macao-Hengqin Business & Legal: Chief Executive Sam Hou Fai met the Political Department director of the Supreme People’s Court to deepen judicial exchanges and cooperation, with a focus on legal guarantees for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. MICE & Tourism Economy: Macao’s MICE sector kept racking up international wins, including “Best Conventions Destination (Asia)” and “Best BT-MICE City,” as IPIM pushes deeper Macao-Hengqin event collaboration to unlock more Southeast Asian demand. AI Data Centre Investment: Brightray Veridian signed a prefabricated module sales framework agreement with a Macao customer for a planned AI data centre campus in Coloane targeting about 40MW IT capacity, with delivery expected in Q3 2027. Gaming Supply Chain: LT Game launched slot game “Burstin’Chillies” at Manila’s Solaire, signaling its push to expand EGM footprint across Southeast Asia and beyond, including North America. Cyber & Youth Risk: Macau’s authorities linked a rise in juvenile delinquency to prolonged exposure to unmonitored online content, with customs reporting a sharp increase in teenagers involved in smuggling electronics. Global Business Context: China will strengthen university tech commercialisation platforms, including in the Guangdong-Hong Kong-Macao Greater Bay Area, aiming to turn research into industrial growth.

AI Data Centers in Macau: Brightray Veridian signed a prefabricated module sales framework for a planned 40MW AI data centre in Coloane, with delivery targeted for Q3 2027, pending a tenant and a definitive sales deal. Macao Legal Modernisation: Chief Executive Sam Hou Fai met the Political Department director of China’s Supreme People’s Court to discuss deeper judicial exchanges and cooperation, including legal support for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. MICE Momentum: Macao’s MICE sector picked up major international awards, including “Best Conventions Destination (Asia)” and “Best BT-MICE City,” while pushing Macao–Hengqin collaboration to tap more global event business. Sports & Tourism Calendar: The 2026 Galaxy Entertainment Macao International Marathon is set for 6 December, with organisers highlighting upgrades in race management and services to attract runners and visitors. Youth, Tech and Risk: Macau’s authorities link a rise in juvenile delinquency and cyberbullying concerns to unmonitored online exposure, alongside a sharp increase in teenagers involved in cross-border smuggling of electronics. Regional Business Context: China will strengthen university tech commercialisation under the 15th Five-Year Plan, with the Guangdong-Hong Kong-Macao Greater Bay Area named as a key platform region.

AI & Finance Ties: Wall Street’s biggest banks are still underwriting record AI deals while also helping Chinese AI and semiconductor firms raise billions, underscoring how financial links persist despite tighter U.S. controls. Macao Tech & Data Centers: Brightray signed a prefabricated module sales framework for a planned 40MW AI data centre campus in Coloane, with delivery targeted for Q3 2027, pending tenant and lease conditions. Macao Legal Modernisation: Chief Executive Sam Hou Fai met the Supreme People’s Court’s Political Department director to discuss deeper judicial exchanges and legal guarantees for the Guangdong-Macao Hengqin in-depth cooperation zone. Macao MICE & Tourism: Macao’s MICE sector picked up major international awards again, including “Best Conventions Destination (Asia)” and “Best BT-MICE City,” as the city pushes Macao–Hengqin collaboration. Local Economy Watch: DSEC data shows unemployment for local residents edged up to 2.5% (June–August 2026), with more fresh graduates entering the job market. Health Policy: Hong Kong’s health chief met WHO FCTC head Andrew Black to deepen tobacco-control cooperation, including strategies targeting alternative smoking products. Culture & Events: Macao will host the Bocuse d’Or Asia-Pacific selection on 1–2 November, and the Galaxy Entertainment Macao International Marathon is set for 6 December.

Macau-Hengqin Legal & Governance: Chief Executive Sam Hou Fai met the director of the Political Department of China’s Supreme People’s Court, discussing deeper judicial exchanges and cooperation, and legal guarantees for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, as Macau pushes legal modernisation under its 3rd Five-Year Plan. Macao Economy & Jobs: Macau’s unemployment rate for June–August 2026 edged up to 2.5% while underemployment fell to 2.0%, with most job seekers coming from gaming and wholesale/retail and a higher share of fresh graduates entering the market. MICE & Tourism Momentum: Macao’s MICE sector again won major international awards, including “Best Conventions Destination (Asia)” and “Best BT-MICE City,” highlighting continued Macao–Hengqin collaboration to unlock new event opportunities in Southeast Asia. AI Data Centre Deal: Brightray Veridian signed a prefabricated module sales framework agreement with a Macao customer for a planned 40MW AI data centre in Coloane, targeting delivery in Q3 2027 (subject to tenant and lease conditions). Business & Trade Spotlight: A new Macao pavilion call invites local cultural and creative firms to submit products tied to Macao’s World Heritage or intangible heritage for the Cross-Strait (Xiamen) Cultural Industries Fair, running until 7 Oct.

Macao-Hengqin Legal Modernisation: Chief Executive Sam Hou Fai met Supreme People’s Court Political Department director Sun Zhenping, discussing deeper judicial exchanges and cooperation to strengthen legal guarantees for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, as Macau pushes modernisation under its 3rd Five-Year Plan. MICE Momentum: Macao’s MICE sector keeps racking up wins, with the city named “Best Conventions Destination (Asia)” and “Best BT-MICE City” for the fourth straight year, while IPIM and Hengqin partners expand joint MICE links for Southeast Asia. AI Data Centre Deal: Brightray signed a prefabricated module sales framework agreement with a Macao customer for a planned 40MW AI data centre campus in Coloane, targeting delivery in Q3 2027 (subject to tenant and lease conditions). Energy & Cybersecurity: Envision Energy secured TÜV SÜD certification for its wind farm control system security, supporting long-term resilience for future energy systems. Employment Snapshot: DSEC reported June–August 2026 unemployment at 2.5% (+0.1pp), driven by fresh graduates entering the labour market. Creative City Spotlight: Macao will host the Bocuse d’Or Asia-Pacific selection on 1–2 Nov, boosting the city’s UNESCO Creative City of Gastronomy profile. Cultural Trade Platform: Macao’s Cultural Affairs Bureau is inviting local creative firms to consign products at the Cross-Strait (Xiamen) Cultural Industries Fair, featuring World Heritage or intangible heritage elements.

AI Data Center Build-Out in Macao: Brightray Veridian signed a prefabricated module sales framework for a planned ~40MW AI data centre in Coloane, with delivery targeted for Q3 2027 (framework only; definitive deal depends on securing a tenant and lease). Legal Modernisation Push: Chief Executive Sam Hou Fai met Supreme People’s Court Political Department director Sun Zhenping to deepen mainland–Macao judicial cooperation and support legal guarantees for the Hengqin Guangdong-Macao In-Depth Cooperation Zone. MICE Momentum: Macao’s MICE sector picked up major international awards, including “Best Conventions Destination (Asia)” and “Best BT-MICE City,” as IPIM and partners expand Macao–Hengqin event collaboration. Tourism & Gastronomy Spotlight: Macao will host the Bocuse d’Or Asia-Pacific selection on 1–2 Nov, positioning the city as a UNESCO Creative City of Gastronomy. Labour Snapshot: Macao’s unemployment rate edged up to 2.5% (Jun–Aug 2026) as more fresh graduates entered the market; underemployment fell to 2.0%. Energy & Cybersecurity: Envision Energy’s wind farm control system received TÜV SÜD IEC 62443-3-3 SL2 certification, strengthening long-term resilience for future energy systems. Sports Calendar: The Galaxy Entertainment Macao International Marathon is set for 6 Dec.

MGM Takeover Fallout: Barry Diller’s People Inc has withdrawn its $17.6bn-plus bid for MGM Resorts, sending MGM shares down about 10% and leaving analysts to reprice the casino group’s Macau and Japan Osaka development—still seen as under-valued by the market. Macau Tourism & Events: With Mid-Autumn and National Day holidays approaching, Macau is preparing for a border-crossing surge and boosting northern district spending via a Mid-Autumn/National Day market running through the weekend. Health & Community: The Health Bureau will offer free flu jabs from next Tuesday for high-risk residents and certain non-resident workers, while the Municipal Affairs Bureau plans an “Animal Protection Fun Day” Oct 4 with free rabies vaccinations and adoption-focused activities. Business & Education: Galaxy Entertainment Group donated MOP 1 million to the Macao University of Tourism Development Foundation to deepen university-enterprise collaboration. Heritage & City Services: The Cultural Affairs Bureau will restore the historic “Pátio das Palmas” gate (about MOP 200,000), and the Municipal Affairs Bureau will step up street cleaning and waste collection ahead of peak visitor days.

Renewables & GBA Energy: China’s Fanshi offshore wind project in Yangjiang, Guangdong—using 18MW ultra-large turbines—entered full operation on Sept. 24, with 131 turbines (33 at 18MW) about 81km offshore and a target of over 6.6 billion kWh of clean power annually to support the Guangdong–Hong Kong–Macao Greater Bay Area. Macau Tourism Readiness: The Municipal Affairs Bureau (IAM) will step up street cleaning, garbage collection and public toilet management during the Mid-Autumn Festival and National Day Golden Week, adding bins and increasing inspections in key tourist and port areas. Gaming & Education Philanthropy: Galaxy Entertainment Group donated MOP 1 million to the Macao University of Tourism Development Foundation to support campus development, teaching and research, and international cooperation. Trade & Business Platforms: Macao’s Global Legal & Sustainable Timber Forum 2026 wrapped up with 140+ business matching sessions and signed agreements totaling MOP 2 billion, highlighting Macau’s role in sustainable timber supply chains. Cross-border Retail Expansion: Zhuhai Duty Free opened an arrivals duty-free store at Hengqin Port, completing the port’s arrivals/departures network and boosting shopping options for Macau–Hengqin travellers. Local Business Growth: Sands China selected 24 enterprises for its Rua das Estalagens revitalisation programme, combining new business recruitment with shop rebranding support. Tech for Building Efficiency: ClearVue and LandVac started a real-world trial at a Macau hotel to compare next-generation photovoltaic insulating solar windows against legacy glazing, tracking power generation and energy performance. Capital Markets Update: Zenta Group clarified its updated share count after completing its acquisition of ZentoAI, citing changes not reflected on some market-data platforms.