New Macau leader to diversify economy from gaming

Chinese leaders, who face challenges in corporate governance in Macau, also pledged to better regulate gaming regulations in the territory, whose $15 billion casino industry overtook that of Las Vegas in late 2006.

"Over the next five years, we shall actively develop the appropriate diversification of the economy," Chui said in a speech after being sworn in as Macau's chief executive as the territory marked the 10th anniversary of its handover to China from Portuguese colonial rule.

"While enhancing regulations on the gaming industry, we will also put emphasis on the convention, exhibition, logistics and cultural industries. We will also focus on the upgrade and transformation of traditional industries."

Chinese President Hu Jintao told the ceremony that he wanted to encourage Macau to work with China's Pearl Delta region, which encompasses Guangdong province, to further develop its economy.

Pro-democracy activists planned a protest later to demand the Chinese government introduce universal suffrage in the territory and intensify the fight against corruption.

Despite its casino industry boom, analysts say Macau is beset by corruption, organized criminal gangs and North Korean money laundering that could hamper its development.

Returned to Chinese rule after being a Portuguese colony for 442 years, Macau faces stiff competition in the gaming industry from markets like Singapore and Malaysia.

Macau's gaming industry has been dominated by casino magnate Stanley Ho and his family, who own SJM Holdings <0880.HK>, Melco International Development <0200.HK> and Sands China <1928.HK>.

Other international names with a strong presence include Wynn Resorts and the Las Vegas Sands .

(Reporting by Stefanie McIntyre and Gary Ling in Macau and Lee Chyen Yee in Hong Kong; editing by Ron Popeski)