POLICY ADDRESS 2016 | Chui explains ‘prudent and conservative’ gaming revenue forecast

Chui Sai On

Several lawmakers asked the Chief Executive about plans to deal with the gaming revenue downturn during the second consecutive day of the Policy Address presentation at the Legislative Assembly.
In a session fully devoted to lawmakers’ questions, the CE reiterated the forecast he made on Tuesday, saying that casino revenue is expected to come in at MOP200 billion (USD25 billion) next year, the lowest since 2010. According to him, this is a “prudent and conservative” estimate that bears in mind the “very significant” drop in gaming revenues.
Mr Chui said that the massive economic growth registered during previous years has allowed the administration to save “for periods of greater hardship,” stating that the region has a surplus of MOP30 billion.
The government’s long-term strategy, he answered, is to depend less on gambling, inviting operators to invest in areas like hotel services and retail.
“The non-gaming sector represents one third of the [gaming operators’] revenues. In the past, that ratio was 9 to one (…) We can’t deny that the gaming industry is relevant to allow the development of other sectors, but there are other areas linked to gaming concessionaires that registered growth,” he said. “It’s important to provide opportunities so that the working-age population may work in other areas besides gaming.”
The ongoing mid-term review of the gaming industry will also include junket operations. “Given the recent incidents [a reference to the Dore case, among others] we will strengthen oversight.”
The shortage and unavailability of housing at affordable prices was a recurrent issue brought up by lawmakers during yesterday’s Q&A session. Recognizing that many people are unable to buy residential properties in Macau and can’t apply for affordable housing (given that they have incomes above the cap to apply), Chui showed a special concern for the younger generation. He reiterated that a new housing scheme may be established for them. Under that scheme, they would be able to rent flats at affordable prices and later buy them.
“The essential is that we have the land to be able to develop [that scheme]. After finding a job, youths want to have a house. But it is difficult to ascertain which kind of housing they need,” he stated, adding that the government intends to organize a public consultation on the matter.
The CE also mentioned the plan to provide 28,000 public housing units within the new reclamation Zone A. Besides, he expects that the real estate market will develop “in a healthy way” and pledged to promote the recovery of unused land lots in order to build affordable housing.
Concerning delays in major infrastructure projects, like Taipa’s Pac On ferry terminal and the Light Rapid Transit (LRT), Chui noted that interruptions are not exclusive to Macau: “Slippages also happen in other regions, given the technical difficulty and litigation that sometimes arises.”
Also regarding major infrastructure projects, Ho Iong Sang expressed his disappointment with the announcement that fourth link between Macau and Taipa will be via a bridge, instead of a tunnel. “There’s a big discrepancy between the will of the people and this decision,” he said, alleging that the bridge doesn’t allow the motorcyclists to circulate under all kinds of weather.
The CE reiterated that the decision to build a bridge linking Taipa to reclamation Zone A has already been taken, and hinted that a fifth link could be built in the future: “Some people argue that more connections between Macau and Taipa should be made. But we must be pragmatic. At this point, the government is focused on the works to create a fourth link as soon as possible. Whit the region’s development, other infrastructure projects will be studied.”
Unsatisfied with the 2.53 percent raise for civil servants announced at the Policy Address, lawmaker Pereira Coutinho questioned how services can improve if the stability of the public administration human resources is at stake. “The workers’ morale is at a low point. There were cases of civil servants that even committed suicide,” said Coutinho, who is also the Macau Civil Servants Association president.
“I was very shocked with what happened to two public administration workers,” Chui said yesterday, two weeks after the alleged suicide of the director-general of the Customs Service, Lai Man Wa. “We must pay more attention to the pressure that is put on the shoulders of workers. There’s a need to be more aware of those issues. Next year we will bear that in mind when we revise the public administration careers. People expect to improve their livelihood, be less affected by inflation and have a healthier relationship with their family members.”
Other topics discussed yesterday included public transportation (a set of policies to prioritize it over private transportation was listed), healthcare (students where advised to invest in a medical career), and national education. “When he visited Macau in December, Xi Jinping left us four wishes, one of them being the strengthening of youth education so that the nuclear values of patriotism may continue,” he said, adding that students should be informed about Macau and mainland China. Consequently, schools are being financed to teach the subject, whose curriculum has been established for primary and secondary institutions.

vouchers to purchase goods and services

Answering a question posed by Chan Chak Mo on how to stimulate internal consumption, the CE hinted that a new type of voucher may be introduced. “The government may launch a new type of voucher to be used when purchasing goods and services, for example in restaurants,” he said.

pearl horizon proposal before dec 10

The CE mentioned that the government will present a solution for disgruntled Pearl Horizon buyers, sharing their concerns regarding the investments they made in the high-end project. The Pearl Horizon 25-year land-use term is set to expire on December 10. Uncertainty remains over whether the land-use agreement will be extended. Kwan Tsuin Hang was one of the lawmakers that criticized the administration over its slowness to solve the issue. She said that waiting until December 10 to present a solution is “too late.” Chui said that the proposal would be made before December 10.