The government’s “wealth-sharing” handout scheme was launched in 2008 and since then all Macau ID card holders have been entitled to an annual cash premium – and a community leader yesterday urged the government to set up a minimum number of days per year that beneficiaries would have to remain in Macau in order to be able to receive the cash handout, while an economist said that the effect of issuing cash handouts to people not residing in the city on stimulating local consumption was “limited”.
Public broadcaster TDM’s Chinese-language radio station “Ou Mun Tin Toi” hosted its regular current affairs phone-in programme, “Ou Mun Gwong Cheung”, yesterday morning to discuss the government’s “wealth-sharing” handout scheme. The phone-in programme was addressed by Macau General Union of Neighbourhood Associations (Kai Fong) Social Affairs Committee Vice Chief Leong In Pong, Macau Economic Association Vice President Henry Lei Chun Kwok, and Macau Comprehensive Social Studies Association Chairman Nelson Kot Man Kam.
The handout scheme has been implemented for 17 consecutive years, with each local permanent resident currently entitled to 10,000 patacas, while non-permanent residents receive 6,000 patacas.
“The ‘wealth-sharing’ handout scheme was initiated [by then Chief Executive Edmund Ho Hau Wah] in response to the financial turmoil in Macau at that time and to address price inflation, among other issues,” Lei said, pointing out that in light of the government’s decision to advance the scheme from July to April in response to the challenging socio-economic environment during the three-year COVID-19 pandemic (2020-2022), “the scheme has evolved into a form of financial assistance for grassroots residents”.
He also said that the handout scheme could enhance people’s sense of gain, yet he also pointed out that it might lead to rising prices, which would be detrimental to the overall interests of Macau, “due to the fact that certain groups – such as people not residing in Macau who choose to save the amount in local banks until they return specifically to Macau to withdraw it, resulting in limited effects on boosting consumption in Macau”.
Lei said that the government should legislate to stipulate the basic eligibility requirements for receiving the handout and to set up a mechanism for adjusting the amount of the handout in response to the aspirations of the community, while enhancing the stability of the scheme. He also urged the government to study the feasibility of increasing the rates for minors and the elderly.
Regarding views in the community that some of the beneficiaries have moved away from Macau for many years but are still eligible for the handout, with some even holding other nationalities, Kot said that the scheme favoured low-income earners, suggesting that the government review the eligibility criteria of the scheme beneficiaries, while considering adjusting the amount of the wealth-sharing handouts according to different income groups.
Citing official statistics that about 48,000 beneficiaries applied for their handout cheque to be sent by post to countries overseas last year, Leong urged the government to take the Non-Mandatory Central Provident Fund system as reference by requiring its beneficiaries to stay in Macau for a minimum number of 183 days per year, so that the handout could be better utilised in the local community.
Leong also said that quite a number of residents were still facing economic challenges, calling on the government to relaunch its consumption card, e-commerce incentive and other pecuniary support programmes to stimulate the local economy.
He said that as the handout scheme was supposed to be a universal measure, careful consideration should be given to whether there should be any biased targets, such as children, the elderly and low-income earners.
Pedestrians walk past the Financial Services Bureau (DSF) on Avenida da Praia Grande yesterday. The bureau handles the government’s annual “wealth-sharing” handout payments. – Photo: Yuki Lei
