Macau Institute of Management (MIM) President Samuel Tong Kai Chung told reporters yesterday that the city’s economy had already passed its “worst period” in second quarter last year, adding that Macau’s economy is recovering “slowly but steadily”.
Tong made the remarks on the sidelines of MGM and Macau Young Entrepreneur Incubation Centre (MYEIC) Youth Entrepreneur Nurturing Programme at Macau MGM.
Tong noted that the speed of the economy’s recovery could be affected by three aspects, firstly, it’s the development of the novel coronavirus pandemic, secondly it depends on Hong Kong’s COVID-19 situation. Tong said and last but not least it depends on the vaccine’s effectiveness.
Tong also said that the city’s economy mainly comprises three factors – trade in services (TIS), local consumption expenditure, and foreign direct investment. He pointed out that in recent years the investment market for gaming industries has been saturated, adding that only if Macau has more interesting investment projects, such as collaborations with Hengqin, could it attract foreign investors.
In terms of local consumption expenditure, Tong said that it highly depends on the unemployment rate in Macau. He said that if the unemployment rate stays at three to four percent then the figures will be slowly recovering. However, he added that if the unemployment rate suddenly increases the local consumption expenditure will be “pressured”.
Tong said that even though the figures in the first quarter of this year might increase, it still wouldn’t be at the same level as 2019.
Tong also said that he acknowledged that the consumer price index (CPI) has been decreasing in recent months. However, he said that tourism is the external factor of the index, yet even though overall the figures are decreasing but the numbers for food and non-alcoholic beverages continues to increase by three percent.
According to Tong, February will be an important month to examine the recovery of local economy.
Macau Institute of Management (MIM) President Samuel Tong Kai Chung talks to reporters on the sideline of MGM and Macau Young Entrepreneur Incubation Centre (MYEIC) Youth Entrepreneur Nurturing Programme at Macau MGM yesterday. Photo: Prisca Tang
