Lei Cheng I
Macau’s investment residency policy has long been out of date, and should be suspended for a full review, lawmaker Lei Cheng I urged in a recent written inquiry to the government.
The Macau Federation of Trade Unions (FOAM) representative pointed out that the region launched three residency-granting schemes in 1995 through the Macau Trade and Investment Promotion Institute (IPIM), but there has been next to no adjustment in its criteria till today.
“The Chief Executive should respond to this matter in his next Policy Address, but it would be better if the government could pause the scheme right now and start discussing and reviewing it within society before opening the gate again,” she told the Times.
Lei said that the government had to cease the residency scheme for an acquisition of property in 2007, due to its pressure on society such as soaring property prices and a rampant speculation. Nevertheless, the other two schemes granting residency to applicants with major investments as well as to the management and technical personnel are still running without clear criteria or enough transparency.
“There is a certain degree of randomness in the IPIM’s approval system for both schemes. There are no specific standards in accordance with Macau society’s actual needs,” she stressed. “This doubt is the biggest problem of the policy. Only after a transparent vetting system is established could we reopen the applications again,” she urged.
Lei argues that “the entire perspective of attracting capital investment needs to be changed,” as the policy was initially launched to boost the economy during a crisis time, while today the same development model is no longer fit for the city.
“The schemes have deviated from the original purpose of the policy. There has always been questioning from the public if these schemes have become a negative impact,” she said.
“Our hospitality and gaming workers are questioning if those approved positions are really in great demand in Macau, or if our local workforce is really incompetent for those middle-level management positions,” she added.
The lawmaker pointed out that the neighboring city of Hong Kong has recently ceased its Capital Investment Entrant Scheme to “avoid troubles in the future.” Moreover, several countries including Canada and Singapore have canceled or tightened their investment residency policies since last year, in order to cope with the change in global investment trends and local society’s demand.
Lei warned that those moves might bring about an uncertain impact to Macau. Thus “now is the right time to suspend and review the policy, before more social consequences and misuse of the policy would occur.” “The Macau government itself has also realized the problems in current schemes as indicated by the consultation on population policy,” she said.
Despite her call for an immediate suspension on the investment residency schemes, the lawmaker said it would still take several years for the government to process the existing applications.
“The residency scheme for investors in real estate lasted for six more years since it was cancelled in 2007. The last approval for that scheme was granted in the third quarter of 2013,” she indicated.
Over 4,000 applicants were on the waiting list for the IPIM’s assessment when the scheme was called off.
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