Government is already guaranteeing 11 billion patacas this year – coming from the Financial Reserve – to which it expects to add 9 billion from the private sector. In total, 20 billion patacas to leverage projects in areas of scientific innovation and cutting-edge technologies.
Tam Chi Neng, an advisor to Tai Kin Ip’s office, explained that the fund acts as a strategic guide, not a controlling shareholder. To ensure this, government investment is subject to a concentration limit, capping equity stakes in any single project at 20–30%.
Defined as a “patient” fund, the “first five years are considered an investment period,” with “the following ten years” being the time when the Fund plans its exit. The recovered capital at that point, from the sale of shares held by the Fund, “can be used to leverage new projects,” explained Tam, anticipating a circular logic of continuous participation in new projects.
Also read: Tai Kin Ip inspects Hengqin, promotes industry collaboration between Hengqin and Macau
The Government Orientation Fund will have a structure divided into parent funds and sub-funds; managed by “experienced managers with proven track records,” who will now be recruited; the officials present at the press conference explain.
Ultimate oversight rests with the Chief Executive, but day-to-day governance is delegated to a public enterprise. This entity will select expert fund managers to manage the structure’s underlying parent funds. These professionals will be tasked with the full investment lifecycle—identifying opportunities and overseeing growth—before recommending an exit strategy to the Government once the projects achieve commercial stability.
In addition to the scientific and technological innovation required by this Fund, the Government will give “priority to Macau companies and the interaction they promote between Macau and Hengqin,” Tai Kin Ip assumed. Although companies from the Greater Bay Area or, for example, Portuguese-speaking countries can apply, they can only do so if they establish headquarters in Macau and have established work teams there. The Government also assumes here the strategy of attracting foreign capital and expertise.
The President of the Administrative Management Board of theMacao Monetary Authority, Vong Sin Man explained that several criteria were followed to define this amount – and not another. On one hand, “I am convinced that we will raise significantly more than 9 billion patacas in the private sector”; on the other, analyzing the amounts of the Financial Reserve, the needs to diversify the economy, the possible synergies between Macau and Hengqin…, we understand that this amount is sufficient at this stage.”
