In 2025, investment by the Financial Reserve posted a record return of MOP 42.92 billion. This not only boosts confidence in the coffers of the Macao SAR, but also draws significant public attention to the management and use of public funds.
At present, the information released by the Monetary Authority of Macao (AMCM) on returns is fairly basic, publishing only overall figures without detailing the portfolio or performance. By contrast, Hong Kong’s Exchange Fund provides a breakdown of returns and the proportions allocated to bonds, equities and alternative investments, allowing the public to better understand its risk management and return structure.
It is suggested that the authorities, without compromising commercial confidentiality, disclose asset classifications and risk distribution. In addition, the AMCM should improve its disclosure mechanism, moving beyond the simple announcement of balances towards a more systematic and transparent explanation of performance.
As for the use of returns, the Government has announced the allocation of MOP 11 billion to establish a “Government Guidance Fund” aimed at industrial diversification. This shows that a mechanism already exists to channel returns towards important policy objectives. Beyond capitalisation, consideration should also be given to how investment returns can be used to improve people’s livelihoods.
In view of the positive returns of more than MOP 100 billion over the past three years, I would put forward three suggestions:
- establish a regular allocation mechanism to transfer part of the excess returns to the social security system;
- study the creation of a dedicated solidarity fund to strengthen support for low-income families and vulnerable groups facing severe financial pressure;
- implement targeted poverty alleviation measures, transforming “financial dividends” into “social benefits” that enhance citizens’ sense of well-being.
With a more forward-looking and systematic approach, the Macao SAR Government should increase transparency and improve distribution, building a financial reserve system that is both resilient and humane. The continuous optimisation of policies will help ensure long-term fiscal strength and allow residents to share in the dividends of economic development, contributing to a harmonious society.
