MACAO -- The appropriate economic diversification is the priority of the Macao Special Administrative Region (SAR) government, said the SAR's Chief Executive Sam Hou-fai on Monday, while delivering the 2025 fiscal year policy address at the Legislative Assembly.

This was the first policy address since Sam took office. He said the relatively undiversified economic structure remains the primary challenge for the current SAR government.

Sam noted that long-standing issues persist, such as a narrow visitor base, imbalanced fiscal revenue, and insufficient innovation capacity.

Furthermore, the progress of diversifying industries still falls short of social expectations, and the role of Hengqin in supporting Macao's economic diversification has yet to materialize fully.

He pointed out that efforts must be focused on enhancing economic governance systems, continuously improving the business environment, enriching the content of the world center of tourism and leisure, accelerating the cultivation and development of key emerging industries, and fostering new quality productive forces based on Macao's realities.

Small and medium-sized enterprises (SMEs) are vital to Macao's economic and social development, Sam emphasized, adding that the SAR government will take a long-term perspective, tapping into local communities' rich historical and cultural resources, revitalizing the community economy, and supporting SMEs in upgrading their quality and development.