2016 Policy Address | Lionel Leong faced with gaming and SME woes

Lionel Leong pictured yesterday at the AL

The gaming industry should develop into a “sophisticated and robust model,” said the Secretary for Economy and Finance during yesterday’s Policy Address presentation at the Legislative Assembly (AL). In the aftermath of the Dore scandal and other episodes that affected the industry, particularly the VIP sector, Lionel Leong reiterated the need to revise some of the related laws and strengthen oversight. He added that the mid-term review of the gaming industry would be publicized at the beginning of 2016.
After 17 consecutive months of gaming revenue slump, some lawmakers inquired about gaming prospects, with Zheng Anting arguing that the increase in gaming tables should be unequal, benefiting operators that follow the government’s directives. The secretary said that the current policy of allowing an average growth of three percent or less should be kept, and explained how the tables will be allocated: “The allocation of gaming tables will depend on whether their proposals meet our direction towards the world center of tourism and leisure. It’s not that every casino operator will have three percent more gaming tables.”
Grilled by Pereira Coutinho over the alleged inefficiency of the gaming regulator, Mr Leong said that, “the industry must increase service quality and promote non-gaming elements. (…) Honesty is a very important value in order to attract tourists to Macau. The gaming operators must be honest and only being honest can we attract more tourists.”
Several lawmakers brought up for debate the alleged dire straits faced by Small and Medium Enterprises (SMEs): “In the future, SMEs may cease to exist in Macau. The city hasn’t got traditional retail stores. Only the big investors coming from outside can have companies here. Many investors are afraid of investing in Macau,” said Kou Hoi In. In the lawmaker’s opinion, the Policy Address didn’t pay much attention to SMEs and there’s a pressing human resources issue, offering examples of companies facing serious staff shortages. “How can the SMEs recruit personnel?” he asked.
Mr Leong said that one of his priorities would be to cut the red tape in public administration services that are under his watch, allowing space for a different dynamic. “The public services must foster the conditions which contribute to the flourishing of new ideas,” he said, adding that an incubation center focused on creating business for young people would be created.
Regarding youth entrepreneurship, Melinda Chan was one of the lawmakers who noted that nowadays “it seems to be essentially about opening cafes,” observing that the revenue drop affects several sectors, including gaming, retail and real estate. “If we keep on going like this, unemployment may rise,” she said, asking if there’s any plan envisaged in case that happens.
Chan Meng Kam brought up a controversial issue when he asked about the prospects of the real estate industry. He specifically wanted to know why the government keeps on paying increasingly higher rents for the offices it needs to lease (given the lack of its own facilities) if the market has been dropping. Lionel Leong said that he was “a bit shocked with the high prices that are paid for those rentals,” but refused to give a concrete figure, since “that might have an impact on the private market.” However, during the budget debate at the AL on Monday, he said that the government expects to pay MOP1b
on office rents during 2016.
According to Leong, the building of facilities to host public departments is much needed. Meanwhile, temporary hosting facilities may be built.
The secretary also said that the meeting, incentives, conferencing and exhibitions (MICE) industry is a key element in the region’s economic diversification. According to him, the development must be made betting on “quality more than quantity” and coordinated by the Macau Trade and Investment Promotion Institute (IPIM).
Another strategic area long ago identified by the mainland and local authorities is the role of Macau as a platform in the cooperation between the Portuguese-speaking countries and China. Mr Leong noted that there are positive developments and the region’s platform role “is starting to be known in several Chinese provinces”. He added that IPIM will create a department to deal with the Lusophone countries, although it is not clear whether it will overlap with the Forum Macau secretariat.
There was not much talk about the role of Macau in Hengqin. In that respect, Mr Leong said that the building up of Traditional Chinese Medicine Technology Industrial Park should be accelerated and local companies should be incentivized to invest in the Guangdong province free trade zones.
As would be expected, the issue of non-resident workers was also debated, with lawmakers linked to grassroots associations (like Kwan Tsui Hang and Au Kam San) stressing that those workers “are only adequate to fill shortages” when there are no resident workers available for the jobs. Other lawmakers connected to the business sector noted that the current human resources situation in the region is unsustainable.

black list

Given the junket woes, Zheng Anting proposed the implementation of blacklists for customers owing money to VIP rooms. Lionel Leong didn’t say if he agrees with such a proposal or not, but argued that the Office for Personal Data Protection (GPDP) should be consulted, since the proposal involves sharing personal information.

pork more expensive

Pereira Coutinho observed that the price of pork in Macau is more expensive than in Hong Kong and Zhuhai, estimating that the difference ranges between two and three percent. “Since you go many times to Beijing, can you talk with them and try to diversify Macau’s food sources?” he quipped.