The local government hosted a presentation session yesterday for representatives from the finance industry and other sectors briefing them about its ongoing preparations for setting up a so-called “guidance fund” aiming to channel different types of private capital towards investments in Macau’s key emerging industries, where officials underlined that the operation of the fund will be subject to a “multidimensional” oversight mechanism with the aim of ensuring its transparency.
Yesterday’s presentation session, held at the Macau Science Centre (MSC) in Nape, came after the government announced details of the fund during a press conference late last month.
Delivering a speech during yesterday’s presentation session, Macau Monetary Authority (AMCM) President Vong Sin Man summarised basic information about the guidance fund outlined by Secretary for Economy and Finance Anton Tai Kin Ip during last month’s press conference.
Tai said during last month’s press conference, Vong noted yesterday, that the local government is planning to allocate 11 billion patacas to the guidance fund from the returns that it has earned from investing its financial reserves over the years, with the size of the fund expected to amount to 20 billion patacas after including the first tranche of private capital. Tai said at that time that the guidance fund aims to channel different types of private capital towards investments made in Macau’s key emerging industries and future industries.
Tai underlined during last month’s press conference, Vong noted yesterday, that the government will play a leading role in guiding the fund, but with its operation to be mainly driven by market forces. Tai also stressed at that time that the operation of the guidance fund will stick to the principle of “patient capital”, a synonym for long-term capital, without prioritising short-term financial returns as its main objective, and instead favouring a long-term and systematic strategy to vigorously promote the development and upgrading of key industries.
According to DeepSeek, patient capital is a long-term investment approach that prioritises sustainable growth and significant future impact over immediate, short-term financial gains. It involves providing funding with the expectation of returns over an extended period, allowing investments in areas like infrastructure or pioneering technologies to mature and deliver substantial long-term economic or social benefits.
Tai also underlined last month that the guidance fund ultimately aims to solidly advance Macau’s appropriate economic diversification and its industrial upgrading, support the transformation of technological achievements and their industrialisation, create more quality jobs for local residents, and promote the diversification of employment opportunities in the city.
In his speech yesterday, Vong pointed out that the setting-up of the guidance fund will be an important measure to innovate Macau’s investment and financing mechanisms, maximise the effectiveness of public financial resources, and serve the real economy and industrial diversification.
Presenting details of the fund during yesterday’s session, Tam Chi Neng, an advisor to Tai’s office, noted that the guidance fund’s operation will be overseen by the chief executive, while the government will set up a public enterprise tasked with the fund’s day-to-day operation and management.
Tam underlined that the government will now advance various aspects of preparation tasks with the aim of completing the setting-up of the guidance fund within this year, including the setting-up of the public enterprise running the fund and the drawing-up of an administrative regulation governing the fund’s operation.
Tam said that it will be important to ensure the transparency of the guidance fund’s operation. He said that the fund’s operation will be subject to a “multidimensional” oversight mechanism, the modus operandi of which will be outlined by the future administrative regulation governing the fund’s operation.
Government-drafted administrative regulations, aka by-laws, do not require the legislature’s approval.
Tam noted that according to the future administrative regulation, the guidance fund will be operated and managed by a public enterprise, because of which members of the public can check details of the public enterprise’s operation, personnel structure and other aspects as well as its annual reports on the website of the Public Assets Supervision and Management Bureau (DSGAP).
Tam said that according to the future administrative regulation, the guidance fund’s operation will be required to undergo regular evaluation of its performance conducted by a third-party entity, and its operation will be published by a report every year.
Moreover, Tam noted, the fund’s operation will be subject to oversight by the Legislative Assembly (AL).
Macau Monetary Authority (AMCM) President Vong Sin Man (centre) speaks during yesterday’s presentation session at the Macau Science Centre (MSC) as other officials including Tam Chi Neng (second from right), an advisor to the Secretariat for Economy and Finance, look on. – Photo: Tony Wong
