The Government would continue to adopt safe, effective and prudent strategies in managing its investments, said the Secretary for Economy and Finance, Mr Leong Vai Tac.

In 2016, Macao’s fiscal reserve recorded a total investment income of 3.31 billion patacas, representing an annual return of 0.8 percent.

Allocated assets contributing to the generation of last year’s investment income included global bonds; while the reserve’s investments in foreign exchange and equity markets recorded deficits due to the market volatilities experienced worldwide.

Mr Leong made the comments on Monday (27 March) on the sidelines of a banquet to mark the 9th anniversary of the People’s Alliance of Macao and the inauguration ceremony of the Alliance’s new management board.

Secretary Leong said he had directed the Monetary Authority of Macao to monitor closely developments in the global economy in 2017, and steadily to diversify the investment profile, based on a full and balanced assessment of risk factors.

Mr Leong additionally said the Government’s investment in the equity market – an investment overseen externally by asset managers – had an allocation of 11 percent of the Government’s fiscal reserve. The Government would study the possibility of increasing the proportion of investment in the equity market in order to allow the participation of more investment professionals, in a bid to ensure a profile of investment that aligns with Macao’s development needs, he added.

Mr Leong said – regarding an interest rate increase in the United States – that the SAR Government had been closely monitoring how to ensure maintenance of Macao’s economic growth. It was looking in particular at how the city might be affected by possible changes in the purchasing power available to some of its visitors, due to the move by the U.S.