Macao can further develop the technology-and-innovation sector to diversify its economy, taking advantage of the city's unique role in the Guangdong-Hong Kong-Macao Greater Bay Area, a venture capitalist said.

Technology is a way for entrepreneurs and young people to innovate, and to create companies and startups that can potentially transform the traditional sectors, said Chibo Tang, a partner of Gobi Partners, a venture capital firm based in Shanghai and Kuala Lumpur.

If Macao, whose economy is largely concentrated in the gaming industry, wants to diversify its economy, then "it really needs to embrace technology and pave the way for young entrepreneurs to flourish in their own fields of interests", he said.

In an interview with China Central Television in November, Macao chief executive-designate Ho Iat-seng said the city's employment rate is high and the average monthly salary exceeds 20,000 pacatas ($2,493), but more than 80 percent of college graduates still work in the gaming industry. This poses a challenge not only for young people's career development, but also Macao's future.

Macao ranked fourth among the 11 cities in the Bay Area in terms of creativity, after Shenzhen, Hong Kong and Guangzhou, according to the 2018 Chinese Corporate Innovation Report by HSBC Bank (China). Under the Bay Area development plan, unveiled in February, an innovation-and-technology corridor will be built linking the four cities.

Noting that one of the Bay Area's goals is to be a global innovation and technology hub, Tang said Macao has to utilize its strengths to help realize this objective.

For example, Hong Kong and Macao are the only two special administrative regions in the Bay Area. While Hong Kong, to many entrepreneurs, is often regarded as a steppingstone to the Chinese mainland market or Southeast Asia, Macao is very uniquely positioned as an inroad into Portuguese-speaking markets.

"I hope Macao will find its own path (and) its own value in the Bay Area," Tang said.

There are also challenges for Macao since the city is still in the early stage of technological development. "There needs to be a lot of support and resources that are provided to all stakeholders within the startup and innovation ecosystem," Tang said, adding that the Macao government has to put this at the top of its priority list for economic development.

The rest of the ecosystem and players have to come in, including venture capitalists, investors as well as startups and entrepreneurs, said Tang. "It's only when everyone comes to the table that innovation can really happen."

According to Tang, Gobi Partners plans to set up a fund in Macao to invest in early-stage startups, which he hopes will be launched soon. We foresee a lot of opportunities for technology to come in and transform (Macao), he said.

"It's fairly clear that (Macao's technological development) still lags behind," Tang said. "But, whatever is lacking, that's actually the greater opportunity."