Secretary for Economy and Finance Lei Wai Nong said yesterday that there will be “various favourable conditions” in Macau next year for its continuous economic recovery.
The policy secretary also underlined that the government’s e-consumption benefit scheme will not become a permanent measure because it is merely a “special and temporary” measure that aims to relieve residents’ financial hardship resulting from the COVID-19 pandemic.
Lei made the remarks during a one-day Q&A session in the legislature’s hemicycle about his portfolio’s policy guidelines for next year.
Lei underlined that the government’s work for Macau’s economy next year will put special emphasis on intensively promoting the city’s economic recovery, promoting appropriate economic diversification, and fully engage in the development of the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.
External environment, internal momentum
“The nation is always the strongest backing for Macau’s development. With the central government’s strong support, Macau will have various favourable conditions next year for its economic development, in terms of both the external environment it will face, and its internal development momentum,” the policy secretary said.
In terms of the external environment next year, Lei said, the global economy will continue to have many elements of uncertainty. Nevertheless, Lei said that with the continuous recovery of commercial and trade activities among countries and regions worldwide, and with the central government’s continuously strengthened capability to bring the COVID-19 situation under control while ensuring continuous socioeconomic development, the national economy will stay in a stable and good condition.
Lei underlined that with the central government’s resumption of mainlanders’ electronic applications for a travel permit to Macau, which formally got off the ground on November 1, and with the central government’s upcoming resumption of tour groups from “four provinces and one municipality”, i.e., Guangdong as well as Fujian, Jiangsu, Zhejiang and Shanghai to visit Macau, the local government expects the number of visitor arrivals to Macau next year to “notably” recover.
Lei said that the expected recovery in the number of visitor arrivals next year will help boost Macau’s community economy, adding that this would enable the local government to obtain “concrete” achievements in its ongoing work to boost the city’s economic recovery.
‘1+4’ model
In terms of Macau’s internal development momentum, Lei said, the local government will make an all-out effort to adopt a “1+4” model to appropriately diversify Macau economy.
The 1+4 model was laid out last week by Chief Executive Ho Iat Seng’s 2023 Policy Address, which was delivered to the legislature last week, according to which the government will consolidate the development of the city’s tourism and leisure industry while putting special emphasis on promoting the development of four key new industries, namely 1) big health, 2) modern finance, 3) high-tech, and 4) conventions and exhibitions as well as culture and sports.
Lei also noted that Macau’s up to six new gaming concessions, which are slated to start on January 1 next year, will be required to invest more intensively in non-gaming projects.
Lei said that the development of non-gaming elements was needed to “change” Macau’s perceived image as nothing more than a gambling city.
The policy also underlined that Macau’s integration into Hengqin’s development will be a “big trend” for Macau’s continuous development.
Lei noted that Macau’s development of the local government’s proposed four key new industries will require its strengthened participation in the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.
Furthermore, Lei said that in conjunction with the national development strategies, Macau will enrich and expand the functions of its role as a business service platform between China and Portuguese-speaking countries.
Lei rules out quarterly 8,000-pataca consumption subsidy
Meanwhile, veteran directly-elected lawmaker José Maria Pereira Coutinho suggested during yesterday’s Q&A session that the government should issue an 8,000-pataca consumption subsidy to every local resident every quarter next year.
In reply to Coutinho’s question, Lei said that while the government respects his decision to make the suggestion, the government “absolutely” does not agree with it.
The local government has rolled out a number of rounds of its electronic consumption benefit scheme since the COVID-19 pandemic started to affect Macau in early 2020.
This year’s electronic consumption benefit scheme that started on June 1 and will end on February 28 next year comprises a 5,000-pataca start-up fund and a 3,000-pataca immediate discount grant. In addition, the government started to issue another 8,000-pataca consumption subsidy late last month with the aim of relieving residents’ financial hardship resulting from Macau’s previous COVID-19 outbreak that began on June 18 and started to subside in late July. The new 8,000-pataca subsidy, which has been topped up into mobile payment platform accounts or e-consumption smartcards, can be used until June 30 next year.
The new 8,000-pataca consumption subsidy, which is no longer divided into the two segments of a start-up fund and an immediate discount grant, is officially known as the Living Subsidy.
Lei underlined yesterday that the government has rolled out its electronic consumption benefit scheme merely on a temporary basis as a special measure to respond to the adverse impact of the COVID-19 pandemic on the local economy, because of which, he said, the scheme will not become a permanent financial support system.
Money for expanding tourists’ destinations & building public projects
Meanwhile, Lei said during yesterday’s Q&A session that the local government will allocate 650 million patacas from the public coffers next year to be used for its measures to attract visitors from a wider range of destinations, such as rolling out more types of hotel and transport discounts and special offers.
Lei also said that in response to the weak local market demand resulting from the COVID-19 pandemic, the local government will continue to increase its investment in public infrastructure projects. He said that the government has budgeted 22.3 billion patacas for new infrastructure projects next year.
Meanwhile, Macau Monetary Authority (AMCM) President Benjamin Chan Sau San said during yesterday’s Q&A session that Macau’s financial industry has “notably” expanded since the start of the COVID-19 pandemic. The city’s financial industry last year accounted for 15.4 percent of its gross domestic product (GDP), becoming Macau’s second largest sector, Chan pointed out.
Secretary for Economy and Finance Lei Wai Nong addresses yesterday’s Q&A session about his portfolio’s 2023 policy guidelines in the Legislative Assembly’s (AL) hemicycle. – Photo: GCS
