This paper explores the attributes and particularities of the Macao SAR Reserve Fund. The Fund is a one-off transfer to the Macao SAR upon its formation, and its primary role in the Macao economy is obviously different from that of foreign exchange reserve. In order to understand the alternate functions that could be undertaken by the Fund, some notable principles concerning the management of public funds, such as consideration of externalities, comparison of costs and benefits, as well as risk and macroeconomic goals, are reviewed. Notable experiences in the USA and Hong Kong SAR are also examined. On the basis of all evidences and references being presented, it is suggested that the principal of the Fund should be maintained as a minimum amount of fiscal reserves of the Macao SAR. In view of some puzzles which are currently restraining the recovery of the economy, it is also feasible to promote “public good” by making use of the Fund to guarantee loans for properly-run small and medium-sized enterprises, as well as to support human capital investment. However, effective measures and procedures must be adopted to secure the principal of the Fund