Closure of VIP rooms, junket operators, dominate AL plenary

The cessation of gaming promoter Suncity Group’s operations – and the consequent loss of a large number of its employees’ jobs – dominated lawmakers’ attention in yesterday’s plenary session at the Legislative Assembly (AL).

Attending the AL to present and debate the Budget Law 2022 bill, the Secretary for Economy and Finance Lei Wai Nong was grilled by several lawmakers on the topic. Debate focused on the government’s forecast of MOP130 billion of gross gaming revenue (GGR) for 2022.

Ella Lei

Pereira Coutinho

Ron Lam

Lawmakers Leong Sun Iok, Ella Lei, José Pereira Coutinho, and Ron Lam were some of the most active critics of the government. They considered the figure put forward too optimistic, particularly given the instability created in the VIP gaming sector by the closure of its largest operator and the consequent suspension of cooperation between several gaming operators and junkets in the VIP market.

Along with the cessation of operations and resultant loss of all revenue generated by junkets, the loss of thousands of jobs is likely to create further problems for the government – especially the potential increase in people seeking income support.\

“I suspect that MOP130 billion of GGR for next year might be too optimistic,” said Leong, noting the closure of the VIP rooms and the potential impact on gaming revenue.

Ella Lei remarked that lawmakers are very concerned about this matter because of the potential consequences for the market.

“Just one [junket] company [can trigger the unemployment] of over 1,000 workers. If more will close, how [can the government] handle this?” Ella Lei asked.

Pereira Coutinho followed Leong and Lei’s line of questioning, asking the government to downgrade its GGR projections.

Leong Sun Iok

Ngan Iek Hang

“We need to be more realistic and less optimistic regarding the gaming results for next year,” said Coutinho.

“The government explains this [figure] with an increase of visitation from tourists but we don’t see this happening. What we see is that those that are currently coming cannot even support the SMEs (Small and Medium Enterprises) in the Food and Beverage sector [alone], [a sector seeing] more [closures] every day and more people relocating out of Macau. I think saying that it is prudent to forecast [the GGR] in MOP130 billion is an exaggeration,” Pereira Coutinho said. He called on the government to focus on reducing government expenditure instead.

“The Light Rapid Transit (LRT) is stopping for six months. I think that it should stop for far longer than six months,” Coutinho said, as an example. “If we cannot reach that amount [of GGR] we will be into trouble, and we will end up needing to use the reserves again.”

Coutinho called on the Secretary to provide assurances to lawmakers that borders will reopen, especially to Hong Kong, and that more visitors will come from both the neighboring region and the mainland – preferably in tour groups.

Secretary Lei dodged the question, saying only that local authorities are constantly working together with neighboring authorities to ease border restrictions and increase visitation “as soon as possible.”

Ho Ion Sang

Song Pek Kei

In his reply, Lei Wai Nong stated that VIP rooms are part of the casinos and as such are under the purview of the concessionaires, implying that the government will undertake these responsibilities.

In the period before the agenda, a total of seven lawmakers spoke. Apart from the four already mentioned, Ngan Iek Hang, Ho Ion Sang, Song Pek Kei delivered inquiries to the government, calling for swift action on the junkets and their dismissed employees. They claimed that if the government does not address this issue and identify an immediate solution, much economic and social damage will be done as a result of the immediate loss of thousands of jobs.

Pereira Coutinho took the claim even further, calling on the government to “force” gaming concessionaires to reinstate the workers within their teams.

Other lawmakers, including Leong and Ngan, noted these workers are mostly young people with minimal skills and academic qualifications, a situation which creates significant challenges in finding other jobs compatible with their lifestyles.

Separate regime for wealth partaking scheme

Asked by lawmaker Ron Lam about government measures to financially support the community, the Secretary noted that the wealth partaking scheme, also known as annual cash handouts, may be transformed into a separate program with its own rules.

“For now, the [wealth partaking] scheme is a policy. We can think about turning it into a regime. But we need to take into account the residents abroad that cannot return to Macau at the moment, due to the pandemic. We can discuss this [topic] if there is consensus, but [if we do this] it needs to be within a regime to be enforced progressively for a period of maybe five to 10 years,” Lei said.

Asked by Lam about the reinstatement of the government’s investment of MOP7,000 per year into the Central Provident Fund, Lei repeated the response given on previous occasions. That is, the amount invested is determined by a government account surplus. In the situation of a budget deficit, as the government has had since 2020, this would be impossible, as it would breach the law.

In response, lawmaker Lam requested the president of the AL to hold a separate vote for number 1 of Article 5 of the bill which relates to the topic, so he could express his objection to the cessation of investments next year.

Despite fears that the 2022 budget would need to be amended, the bill was passed on its final reading with votes in favor from all lawmakers present.

318 Suncity workers calling on DSAL for help

The number of former employees of the gaming promoter company Suncity Group requesting help from the government regarding their dismissal is now 318, the Secretary for Economy and Finance Lei Wai Nong reported yesterday at the Legislative Assembly.

In response to lawmakers’ questions on the matter, Lei updated the figure, saying: “As of today [yesterday], 318 workers [have] requested help from the Labour Affairs Bureau (DSAL). The bureau is already following up on their cases and is trying to find ways to re-employ these workers. [These] include several job posts, such as drivers, cashiers, croupiers, and other professions,” Lei said.

In the session, lawmakers noted that other staff members not directly related to gaming activities, such as marketing and public relations, are also requesting assistance.