Direct investment in SAR gaming sector dropped by a third in 2020

Direct investment in the Macau SAR gaming sector has declined by 30 per cent to MOP126.7 billion (US$15.8 billion) in 2020 when compared to the previous year, data published by the Statistics and Census Bureau (DSEC) reveals.

Macau’s casino gross gaming revenue shrank by 79.3 per cent year-on-year to MOP60.44 billion in 2020, amid the disruption to travel and the economy caused by the Covid-19 pandemic.

On the other hand, direct investment in Financial Activities increased by 4.6 per cent year-on-year to MOP86.8 billion according to the DSEC.

Overall, the Macau SAR reported a total of MOP300.2 billion in inward direct investment last year, a 14.5 per cent reduction from last year, with most of it coming either from Hong Kong or the Cayman Islands were the two major sources of investment.

Direct investment from Hong Kong decreased by 5.3 per cent year-on-year to MOP84.06 billion, while investment stock from the Cayman Islands dropped by 12.9 per cent to MOP69.74 billion.

Still, each of the two known offshore jurisdictions represented a higher amount of direct investment in the SAR than Mainland China with MOP58.7 billion.

Meanwhile, the stock of outward direct investment totalled MOP69.8 billion, an increase of 21.6 per cent year-on-year, with Mainland China and Hong Kong the major destinations for outward investment from Macau enterprises.

The volume of outward direct investment in mainland China stood at MOP 61.29 billion, of which Guangdong accounted for 77.6 per cent.

At the same time, investment stock in Hengqin rose by 64.6 per cent year-on-year to MOP27.86 billion in 2020.

Most direct investment was carried out by enterprises engaged in Real Estate Development, Leasing & Sale Activities and the Wholesale & Retail sector, with both representing MOP27.2 billion and MOP 12.3 billion, respectively.