The Collective Wisdom Policy Centre, a local think tank, held a press conference yesterday about a research study suggesting ways to assist local small and medium-sized enterprises (SMEs) to improve their business environment.
The centre is affiliated with the Macau General Union of Neighbourhood Associations, commonly known as Kai Fong.
The press conference was held at the centre’s office in Avenida de Horta e Costa.
The attendees included Collective Wisdom Policy Centre Vice President Li Yongjian and board members Choi Hang Kit and Director Qi Wenhao.
Choi pointed out that SMEs account for over 90 percent of all businesses in Macau, generating more than 40 percent of employment and serving as a vital component of its economy and culture. Although Macau’s GDP in 2024 recovered to 86.4 percent of pre-pandemic levels, the rebound has been uneven: tourism-related sectors such as gaming and hospitality have benefited from the massive return of visitors, while SMEs in residential neighbourhoods have been facing the dilemma of “revenue growth without profit growth” due to local consumers’ decrease in spending locally and rising costs such as restaurants’ expenditure on buying food and beverages nowadays accounting for 36.4 percent of their operational costs, Choi said.
Choi also said that business confidence remains weak, with new company registrations last year dropping by 25.8 percent compared to pre-pandemic 2019, while business liquidations rose by 24.1 percent. The financing environment has also deteriorated, Choi said, with newly approved SME loans plunging 31 percent year-on-year. A sluggish property market has further complicated collateral-based lending, exacerbating liquidity pressures. Choi said the report calls for targeted policies to address structural challenges and support sustainable SME development.
Qi said that the report found that local SMEs face seven critical challenges: Rising operational costs, financing constraints, weak consumer demand, changes in tourists’ spending habits, intensifying competition, digital transformation pressures, and inefficient administrative approval procedures – all creating development bottlenecks that need to be solve urgently and require targeted policy support.
Li said that the government needs to help local SMEs transform, such as by streamlining administrative approval procedures and enhance tax incentives to reduce operational burdens; enhance financial support, expand credit guarantee programmes and extend loan grace periods; collaborate with gaming enterprises to channel tourist flows into residential neighbourhoods; accelerate digital transformation, provide subsidies for e-commerce platforms and offer technical training to boost online competitiveness; focus support on community-based businesses by lowering rents and utility costs.
Collective Wisdom Policy Centre Vice President Li Yongjian (middle) and board members Choi Hang Kit (left) and Qi Wenhao pose before the start of yesterday’s press conference at the centre’s office on Avenida de Horta e Costa.
A shopper looks at various types of fruit on sale at street stalls near Rotunda de Carlos da Maia, colloquially known as “Three Lamps”, yesterday. – Photos: Armindo Neves
