ECONOMIC DIVERSIFICATION

Looking ahead, economic diversification -- particularly into non-gaming services -- remains crucial for Macao's stable growth over the long term, Syed said.

Macao's recent strong economic growth has been concentrated in the tourism sector, mainly related to the gaming industry, which accounts for four-fifths of exports, three-quarters of fiscal revenue, one-quarter of employment, and more than half of GDP in Macao. That leaves the city vulnerable to external disturbances.

Syed suggested that Macao authorities could firstly develop the services around the gaming industry, such as hotels, entertainment and retail sectors, to diversify the economy.

There is also some potential in the area of financial services, such as financing for small and medium enterprises, as there is no capital market in Macao and banks currently dominate the financial sector, Syed noted.

The Chinese mainland's economic rebalancing in the next few years could also provide opportunities for Macao's economic diversification.

As the mainland rebalances its economy toward households and private consumption, demand for services will start to rise. Macao can adapt itself to meet the new demands related to legal, education, accounting and other services coming from mainland residents, which will create new growth engines to bolster the economy's resilience, said Syed.