AL Plenary | Public consultation on 60-billion-pataca ‘sovereign wealth fund’ planned for 2020

The local government has planned to conduct a public consultation on the establishment of a 60-billion-pataca Macau investment development fund.

In July, the local government proposed to invest 60 billion patacas to establish a Macau investment development fund management company. The government later withdrew the bill before the close of the last legislative session.

Regarding the company’s capital, MOP59.88 billion would be provided by Macau SAR government, the Macau Trade and Promotion Institute and by Macau’s Industrial and Commercial Development Fund.

The fund was proposed for investment in projects in the Greater Bay Area.

The Chairman of the Monetary Authority of Macao (AMCM), Chan Sau San, said during yesterday’s Legislative Assembly (AL) that the bureau has already initiated preparatory works for the public consultation concerning the setting up of the company.

It is estimated that in the middle of 2020, a consultation text can be published and that the AMCM will organize briefings to explain the issue to the public and more specifically, to lawmakers.

According to Chan, the consultation text will include an explanation of the ideas behind the company’s establishment and policy guidance.

The local government claims to be open to the establishment of the company. However, the government representative indicated that the final decision regarding the company’s establishment depends on the results of the public consultation. Yesterday, this question was specifically raised by lawmaker Ho Ion Sang.

During the discussion, several lawmakers, including Leong Sun Iok and Sulu Sou, accused the local government of lacking transparency regarding the company, instead proposing that the local government establish a public fund monitoring regime before raising any investment plan.

Leong said that due to the lack of transparency, it is difficult for the public to learn about the details of the company, which would in turn lead to strong opposition to it in broader society.

“The key point is that the government is acting under a double standard. It is quick at spending money but [acts] slow at monitoring those public capital investment companies,” Sulu Sou complained.

Even though the local government has already withdrawn the bill, Sou thinks that the government should not use the withdrawal as an excuse not to provide information to the public.

Lawmaker Mak Soi Kun, citing Chinese President Xi Jinping, wants the local government to upgrade its administration ability in order to keep up with society’s development.

Previously, the local government allocated an investment of 20 billion yuan (25.6 billion patacas) for the establishment of the Guangdong-Macau Cooperation and Development Fund.

Secretary for Economy and Finance Lionel Leong and other government representatives were at the AL yesterday to answer the lawmakers’ questions regarding the fund. The local government also held public consultations to answer the public’s questions.

However, the 60-billion-pataca fund was suddenly announced by the Executive Council without informing the society first.

“How does the government explain, at the AL a 20-billion-pataca fund but ignores a 60-billion-pataca project?” Mak asked.

Deputy Director of Financial Services Bureau Ho In Mui claimed that monitoring public capital invested companies is the goal of the local government, indicating that the local government is not monitoring or, at least not sufficiently monitoring, public money invested companies.

“We have some plans. We will establish some framework for the companies to follow first. Then we will have more detailed instructions. But we need to do it step by step,” said Ho.