Inside Asian Gaming

November 2014 inside asian gaming 17 down payment on a 100-square-meter apartment, which at current prices costs a whopping 104.9 million patacas (US$13 million). For many of those young people, moving out and living independently from their parents is no longer an option. So, beyond experiencing a fleeting sense of patriotic pride, what enthusiasm can the average Macau citizen rationally muster when he hears his city has overtaken Singapore to become Asia’s GDP per capita leader? With GDP per capita of $55,182 in 2013, Singapore took the 14th spot on the global list. But its wealth is better distributed among its populace, with median income (including employers’ central provident fund contributions on behalf of their employees) working out to $35,559 per annum. Further boosting the livability of the Lion City is the affordable, high-quality public housing provided by the Singapore Housing Development Board, which houses 80% of Singaporeans, some 90% of whom own the units they live in. Singapore’s Housing Development Board sprung from a far-sighted government policy introduced in 1964, dubbed The Home Ownership for the People Scheme, and it’s been credited with boosting the economic, social and political stability of the city-state. Macau should take note, for while its gaming taxes have endowed it with bulging fiscal reserves capable of funding a far more extensive public housing program than it has pursued so far, it seems to lack the political will and leadership to follow through. Macau people had long been regarded as politically apathetic, but that’s rapidly changing. Political activism has flared up in recent months—some refer to it as Macau’s political awakening— after the city witnessed on 25th May the largest protest since the Gauging the potential size of the market for any product is crucial in determining how successful it can be. Technology providers have access to a virtually unlimited international market (with some exceptions, of course, like Facebook in China). Hardware can be shipped easily the world over and software can be downloaded anywhere there’s an Internet connection. Getting back to the Forbes list, it’s good to see some old family money hanging in there. You’ve got your heirs and heiresses: three Waltons with holdings in the Wal-Mart chain of discount retail stores (the world’s largest company by revenue), as well as three members of the Mars clan—their dynasty consisting of the eponymously named food manufacturer that ranks as one of the biggest in the world, best known for its chocolates and candies, including the iconic Mars, Snickers, Maltesers and Twix. Despite their rich legacies, because they operate in free markets, both Wal-Mart and Mars must continue innovating to retain their dominant positions. And, of course, let’s not forget our favorite billionaire, Sheldon Adelson at No. 15—unquestionably an innovator in his field. But it’s not Mr Adelson we’re concerned with here. It’s the man ranked immediately after him, Hong Kong’s Li Ka Shing, worth more than US$31 billion. He is Asia’s richest man, and though he’s got holdings in a diverse range of businesses it was property development that sent his net worth skyward and continues to generate the bulk of his wealth. Milking Markets and Stifling Innovation EVOLVING MACAU The transformational casino development in Macau over the past dozen years has come with a 170% rise in the median wage, though that’s hardly kept up with the almost 480% increase in GDP per capita over the same period. As happens all too often, the rich get richer while the poor are ignored—until, as we’ve seen in Hong Kong, they finally take to the streets. Hong Kong’s property developers strenuously deny charges of collusion either among themselves or with the government to keep housing prices high. What is undeniable, however, is they’re generating astonishingly outsized returns in relation to the size of the market they serve. Arguably, they’re also stifling innovation in their city Among the top 30 members of Forbes ’ 2014 list of “The World’s Billionaires” there was strong representation from the technology field. There’sGates,Ellison,Zuckerberg,Google’sPageandBrinandAmazon’s Bezos. Even former New York City Mayor Michael Bloomberg, ranked 13th, made his first fortune supplying technology that transmitted real- time financial data and information to investors. It’s encouraging to see technology entrepreneurs achieving such great wealth because it means innovation is being rewarded, which in turn will drive more innovation. Also of note, all of these tech-related billionaires are American or are based in the US, suggesting America values technological innovation and will therefore likely continue to lead the world in producing it. >>