Public service reform to finish by 2029, pension scheme under strain: CE

 November 19, 2025

Public service reform to finish by 2029, pension scheme under strain: CE

Chief Executive Sam Hou Fai has signaled the need to complete his government reform in three years, with this drive to finish in phases.

Speaking to lawmakers over his 2026 policy address on Wednesday afternoon, Sam said “most of the goals” would be achieved by 2029.

The 63-year-old laid out an ambitious plan for a shake-up of bureaus in the policy address for the next fiscal year.

Calling the merging process “arduous,” the city leader on Wednesday called on all government workers to proactively participate in the reform to “elevate civil servants’ social status and dignity.”

The Executive Council last month unveiled a proposal to rescale public services, placing caps on the numbers of leaders, departments, and divisions.

The sweeping structural reform unveiled on Tuesday also came as the city leader decided to keep pay for civil servants unchanged.

During Wednesday’s Q&A session with legislators, Sam promised to maintain their retirement arrangements.

His words sought to reassure government workers amid surfacing concerns over possible reductions in the public pension scheme.

“The public administration reform does not involve staff redundancies, dismissals, pay cuts, or demotions,” he told lawmakers.

Information provided by Sam shows that civil servants’ retirement system, last updated in 2007, is experiencing growing burdens.

Currently, 7,114 government workers are working and contributing, versus 5,928 pension recipients.

However, a gap is expected to emerge and widen, with an estimated 2,996 contributors but 10,020 pension recipients by 2030.

In 2026, contributions paid in could hit a total of MOP1.14 billion (US$0.14 billion), while payouts are likely to reach MOP4.1 billion.

A shortfall of MOP2.96 billion is likely to result from the difference.

The scenario could grow even more grim: the pay-ins are predicted to hit MOP570 million, which is just a small fraction of MOP6.86 billion in expected payouts.

This means the deficit could more than double to MOP6.28 billion then.

https://www.macaubusiness.com/public-service-reform-to-finish-by-2029-pension-scheme-under-strain-ce/

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