Beijing Wants Macau Turned into IT Hub

Can Macau transform from gambling hub to one of innovation?

Before the coronavirus pandemic, Macau was the world's power horse when it came to generating billions of dollars in profits from gambling -- for years the former Portuguese colony's casino revenues were greater than all of those in Las Vegas combined. It generated over 80 percent of the Macau's tax income.

China had wanted Macau to diversify its income sources for years, and the gaming resorts tried to create entertainment, fine dining restaurants and shopping, but these initiatives were completely overshadowed by casinos. 

Macau depends heavily on casinos for its tax base

Mainland gamblers didn't care for shows that tried to be like those in Vegas, or Michelin-starred restaurants, and the shopping -- they just wanted to eat bowls of noodles so they could play at the VIP tables, dropping thousands of dollars per round.

However now with Covid-19 pandemic approaching its second year, it has laid bare how vulnerable Macau is to depending on gaming, and in the past week there was sensational news of Macau police arresting Alvin Chau Cheok-wa, who allegedly ran illegal cross border gambling activities. 

The free-wheeling days of fast money, VIP rooms, and escorts are over.

Instead Beijing wants to take the opportunity to turn the gambling capital into an IT hub.

The place will be Hengqin, a small island in between Macau and Zhuhai that will jointly be governed by both the Macau and Guangdong authorities. 

Hengqin is an island near Macau and Zhuhai

It will be one step forward in rebranding Macau as "the new centre of international technologies" to connect the Asia Pacific tech ecosystems with the rest of the world.

Huh?

What tech ecosystems? And wasn't Hong Kong supposed to be an IT hub too?

In Beijing's plan, Macau is being encouraged to develop integrated circuits, new energy projects and artificial intelligence, among other tech sectors, and to establish a supply chain for chips, from design to testing.

That will also include enhancing the research abilities of Macau universities to drive innovation and technology. There are other industries Beijing wants to develop too, like Chinese medicine, gems, tourism and financial services. 

Meanwhile tech firms like Tencent as helping the Macau Water Supply Company digitise its operations to offer smoother and faster services, and install meters to detect unusual water consumption. 

Huawei is also working with Macau's telecoms operator CTM on Macau's smart city initiative, using big data technology.

Are Macau's sleepy streets ready for change?

While this all sounds great, the reality is that Macau's population is just under 650,000, the city is small, rundown and not very efficient to get around.

Young people are either in the gaming or hospitality industries, or they have left Macau to develop their careers elsewhere, like Hong Kong. Students don't go to Macau universities to study high tech and innovation, and trying to change that perception will be a hard sell.

The Macanese don't have the aggressive go-getter mentality to work hard -- they are so used to getting free money from the government and having their pay from casinos artificially high that it will be hard to wean them off the gaming industry.

In addition, Macau doesn't have the man power or the education level to set up a supply chain for chips let alone artificial intelligence. 

And what will happen to all those casinos that are there and the ones that are being built? Will those be turned into high-tech hubs instead? 

It seems Beijing has major pipe dreams for Macau that may never become a reality...

Red-Faced Tencent Artificial Intelligence

Tencent's translations of the Boao Forum were hardly impressive

At the Boao Forum for Asia last week in Hainan, Tencent was keen on showing off its AI or artificial intelligence translation system, but it looks like this technology won't replace humans anytime soon.

The simultaneous translation system spouted gibberish that was displayed live in a big screen at the event and in a WeChat mini program. These included garbled characters, repeated words and even broken Chinese. There were many screen shots of these posted on social media last week.

A screen shot shows the gibberish

Tencent quickly acknowledged the errors and promised to improve in the future.

"The AI interpreter had some errors and gave wrong answers to several questions during the forum," Tencent said in a statement. "Our simultaneous [translation] machine, an artificial intelligence (AI) product, has a drawback, but it is still learning and growing."

For example, it translated "Belt and Road Initiative" -- China's international infrastructure development plan that covers more than 68 countries -- as "a road and a waistband".

Cue the laughing emojis.

So while critics are laughing, human interpreters can breathe a bit easier, knowing their jobs are still in tact -- for now.

"I do not think the technology is mature enough... Maybe in the next two years," said Lim Huisin, who has served as a conference interpreter on the mainland for the past five years. "I am not too worried about being replaced by a machine."

Personally I'm glad to hear this AI translation system isn't up to scratch yet -- the top translators in China are excellent -- they really do translate things quite accurately and with good English! Try to beat that, AI!