To properly manage the fiscal surpluses and ensure the payment capability of public finances, the SAR Government enacted Law No. 8/2011, the “Fiscal Reserve Regime”, with the Monetary Authority of Macao being responsible for the investment and management of the Fiscal Reserve. In 2025, Macao SAR’s Fiscal Reserve registered an investment income of MOP42.92 billion, with an annual return of 6.9%, marking a record high.

At the end of last year, the Fiscal Reserve amounted to MOP666.74 billion, with the Basic Reserve and the Excess Reserve at MOP167.29 billion and MOP499.45 billion, respectively.

Diversified Allocation, Sustainable Long-term Progress

In the first half of 2025, tariff measures impacted the global trade landscape, geopolitical tensions heightened, and global financial markets underwent significant changes, with major equity and bond markets experiencing adjustments. Subsequently, progress in trade negotiations led to a gradual reduction of tariffs, coupled with major economies adopting relatively loose monetary policies and expansionary fiscal policies to support growth, along with sustained boom in the artificial intelligence sector, collectively drove risky asset prices to recover and gradually trend upward. Throughout the year, equity and bond markets generally demonstrated strong resilience.

In the face of complexity and volatility in financial markets, allocation of the Fiscal Reserve across major asset classes was dynamically adjusted, bond and equity portfolio structures were appropriately optimized, and high-quality assets were introduced. While emphasising the preservation of liquidity and safety of the overall investment portfolio, a satisfactory investment return was achieved through a more diversified and balanced asset allocation.

Adhering to the Principles of “Safety, Effectiveness, and Stability”

Entering 2026, major global economies will continue to deploy various policy measures for promoting economic growth, presenting both opportunities and challenges in the investment spectrum. The monetary policy stance of major central banks, the evolution of international trade relations, and changes in the geopolitical landscape will be important considerations influencing the Fiscal Reserve’s asset allocation decisions. Upholding its medium- to long-term objectives of achieving capital preservation and appreciation, the Fiscal Reserve will continue to strictly adhere to the investment principles of “safety, effectiveness, and stability” by balancing its investment returns and risks through prudent, flexible and well-diversified asset allocation.