This article aims to identify key features of the healthcare system in Macau and to discuss its policy development and issues. The system is characterised by the Government’s major role in financing the healthcare services，the partnership between the public and private sectors in the service provision，and the broad coverage of the public and subsidised healthcare. While the level of healthcare expenditure in Macau is comparatively low，the health status of the citizens is highly satisfactory. It is therefore concluded that Macau has an efficient healthcare system. Furthermore，it is suggested that the Government should pay serious attention to three policy issues：the exploration of another effective way of healthcare financing apart from taxation；minimising the impact of the healthcare voucher system on service fees in private clinics；and studying the feasibility of a universal social health insurance.