The development of private higher education in Macau has experienced rapid growth in the past two decades. The purpose of this paper is to understand this trend by investigating the facts and figures supplied by official sources and to analyze the role between the Government and the private sector. This paper shows that the attitude of the Macau Government is neither authoritative nor laissez-faire toward private higher education. On the one hand, the Government is investing heavily in the public sector. On the other hand, it is assisting the private sector by various means. However, there is a lack of systematic planning in the area of public-private partnership. There are also two issues which may hinder the current development of private higher education. They are an outdated legal framework and a lack of standardized quality assurance measures.