Welfare state is often perceived as a response to help people coping with shocks caused by economic down turn. However, as argued by Hamnett, welfare state can directly assist economic restructuring. Thus, social policies can be responses to unsatisfied social needs or be proactive measures to push for economic changes. Macau is in a somewhat special position in that policy-makers are aware that the economy has been excessively dependent on the gaming industry. The government prevent it from being hit by recess through economic restructuring. In this paper, we examine the current social spending pattern and the nature of the social security system in Macau and establish that social policy in Macau is largely reactive. To achieve economic restructuring, there needs to be more proactive measures to facilitate human development and more stress on social investment.