Macau shuts most businesses, holds mass testing amid outbreak

HONG KONG • The world's biggest gambling hub Macau held its second day of mass Covid-19 testing yesterday after dozens of locally transmitted cases were discovered at the weekend, with most businesses shut but casinos remaining open.

The testing of Macau's roughly 600,000 residents is expected to end today as the former Portuguese colony adheres to China's "zero-Covid-19" policy that is aimed at eradicating all outbreaks.

The citywide tests had covered almost 340,000 people by yesterday morning.

Most residents were asked to stay home, restaurants were shut for dining in and border restrictions tightened, meaning casino revenue is likely to be close to zero for at least a week, and likely for the coming weeks, analysts said.

A Bloomberg Intelligence index of Macau's six major casino operators fell 1.9 per cent yesterday. Sands China plunged as much as 8.3 per cent, before paring losses to 2.2 per cent, while Wynn Macau dropped 3.4 per cent.

Macau's government relies on casinos for over 80 per cent of its income, with most of the population employed directly or indirectly by the casino industry.

The spread of the coronavirus had been kept largely under control in Macau, and its previous outbreak was in October last year.

But the government said a chain of transmission discovered on Saturday posed an extremely high risk of community spread.

The latest outbreak came suddenly and has been spreading rapidly, with the source still unknown, Macau's Chief Executive Ho Iat Seng said in a statement on the government's website.

An outbreak in the neighbouring Chinese territory of Hong Kong this year saw more than one million confirmed infections, and more than 9,000 deaths, swamping hospitals and public services.

Hong Kong has seen an increase to over 1,000 daily cases in the past week. But officials said they are unlikely to further tighten restrictions as the pressure on medical services has not increased.

Macau has only one public hospital, and its services are already stretched on a daily basis.

The territory's swift plan to test its entire population comes as it keeps open the border with mainland China, with many residents living and working in the neighbouring Chinese city Zhuhai.

China, in contrast, has not opened its borders to Hong Kong, which has been largely isolated from the mainland and the rest of the world.

Macau's legislature is this week due to approve an amended gaming law which will lay the groundwork for what is required from the multi-billion-dollar casino operators to continue operating.

Analyst Vitaly Umansky of Sanford C. Bernstein said: "Depending on how quickly Macau is able to get the newest outbreak under control, there is risk of delay to finalisation of the gaming law amendments and subsequent concession tender process."

AGENCE FRANCE-PRESSE, BLOOMBERG, REUTERS