Gov’t reduces operational costs due to rent

The government has announced that it is reducing rent and operational costs as much as possible for the office buildings where government departments are located.

In a reply to a written inquiry from lawmaker Leong Sun Iok, the director of the Financial Services Bureau (DSF), Iong Kong Leong said that such expenses have been dropping since 2019, with several services being relocated from rental offices to government-owned spaces.

Iong said that in 2019, the cost of leasing offices, warehouses, and parking spaces totaled approximately 70 million patacas. This amount dropped to 69 million patacas in 2020, 62 million patacas in 2021, and 57 million patacas last year.

The DSF director noted that rental expenses have dropped by 18.6% when comparing 2022 to 2019. According to the latest forecast for this year, the estimated expenditure on rent is expected to be 54 million patacas.

Iong also said the reduction in rental expenses will likely continue in the future as more government-owned spaces, currently under construction, are completed.

Listing some of the most significant projects – both planned and already under construction – Iong referenced the public facility building to be located at the land plot B6 of Zone A of the new landfills and the public office buildings being built at the plots 12 (A2/G) and 25 (A1/G) of NAPE.

There are also office buildings planned for the plot of land located near the former Cotai Border Post and at Q-1D of ZAPE, recently discussed at the Urban Planning Committee.

According to DSF, in total, the facilities are expected to create a usable area of over 130,000 square meters.

Iong also noted that, once complete, priority will be given to the services that are currently located in rented spaces as relocating such services will rapidly reduce the government’s rental expenditure.