Human resource development (HRD) is a strategic issue in Macao, a Special Administrative Region of China. It is a critical element for sustainable socio-economic development amid pressing concerns about severe labour shortages. More qualified human resources will be needed by the growing service and hospitality industries as Macao postures itself as a world tourism and leisure hub. Large and small businesses alike will need to hire more foreigners to fill their labour needs, but government labour policies have remained very restrictive toward migrant workers. During the past six years, the government has also advocated more aggressive localisation of various jobs and positions. Human resource issues and challenges of Macao are examined through in-depth interviews with key stakeholders and recommendations are made for policies and strategies to sustain the development of human resources in the region.