Lawmaker Ip Sio Kai has called on the government to establish a new permanent fund to support micro, small and medium sized enterprises (SMEs) in case of catastrophe. The lawmaker proposed that the “SMEs Risk Guarantee Fund” be linked to an insurance system that covers epidemic and pandemic conditions.
The proposal was delivered at the Legislative Assembly this week through a spoken inquiry in the period before the agenda.
“I propose that, as soon as possible, the government [research and develop], together with the financial and insurance sectors, a ‘risk protection fund’ for SMEs and micro-enterprises. [This would] include ‘insurance in the event of epidemics,’ so that business owners can take on this insurance to [bolster themselves against] risks and resume, as soon as possible, their normal activities after damage caused by natural disasters,” Ip said.
“The financial capacity of these companies, in terms of premiums, must be seriously considered. In addition, the [government] should also investigate the reasons for the relatively few requests for insurance against major catastrophes [since the scheme’s launch in 2019],” the lawmaker added.
Ip called on the government to expedite these measures, explaining that, given the current situation and the possibility of further outbreaks, more financial losses for most business owners may be on the horizon.
For Ip, the insurance and its link to the “SMEs Risk Guarantee Fund” would work as a “shock absorber” for the economy and increase overall economic resilience. It would also provide more incentives for companies to take on insurance plans that would significantly improve their post-disaster recovery capacity.
Speaking on behalf of the four lawmakers of the commercial and industrial sector, Ip said: “We – the four lawmakers from the commercial and industrial sectors – have already proposed to the authorities the elaboration of the ‘Law for the Promotion of Micro, Small and Medium Enterprises,’ to improve their business environment…. First, it is necessary to examine, as soon as possible, the creation of the ‘Risk Guarantee Fund for Micro, Small and Medium Enterprises,’ to support [their response] to losses caused by the pandemic and reduce its impact. Second, attention must continue to be paid to the survival of micro, small and medium sized enterprises, and to the strengthening of guarantees for them and their workers. [Moreover,] the definition [of SMEs] and of the legal retirement age must be clarified, to support the continuous development, health, and stability of these companies.”
Emphasizing the importance of the matter, Wang Sai Man – another of the lawmakers representing the commercial and industrial sector – also delivered an inquiry to the government articulating the ideas raised by Ip.
Agreeing with Ip, Wang focused more specifically on the establishment of a legal age for retirement in Macau, claiming that it would contribute to the revitalization of the workforce. For Wang, the policy would provide more job opportunities for the younger generation, reduce the unemployment rate, and at the same time offer stable living conditions for the elderly to relax into their retirement, “harmonizing society.”
