Gov’t risks controversy by mixing handouts with consumption cards: association

The new government should implement a more moderate policy in its first year to foster resident support and mitigate potential backlash from mixing consumption cards with cash handouts under its Wealth Partaking Scheme, unless the amount is increased, according to Nelson Kot, chairman of the Macao Comprehensive Social Studies Association.

“If consumption cards and cash handouts are combined, it will cause social controversy unless the amount is increased,” Kot told the Times.

He believes that the new government should adopt more moderate policies in its first year to gain resident support and avoid excessive negative feedback.

In his view, given the government’s relatively strong financial position, it should avoid combining these two distinct policies.

“Unless the cash handout and consumption card amounts are increased to MOP15,000 or even MOP20,000, maintaining the MOP10,000 standard while merging the two will likely provoke a strong reaction,” he cautioned, advising the government to refrain from rushing into this decision for now.

These remarks were made to the Times a few days before Chief Executive (CE) Sam Hou Fai delivered his first Policy Address, with the aim of shaping expectations for the inclusion of these issues in the address.

The 2025 Policy Address outlined the continuation of cash handouts this year. Regarding potential changes to the cash handout measures and the eligibility of recipients, the government has recently sought input from community groups on these issues.

Among the feedback were calls for the government to consider alternative distribution methods, such as consumption cards or vouchers, to replace cash.

On April 14, the day the Policy Address was released, the CE reaffirmed through the media that the cash handout scheme is a temporary measure established annually through administrative regulations, rather than a universal policy mandated by law.

Therefore, it must be adjusted through these regulations. He emphasized that the current scheme will not be abolished; instead, there is a consensus to improve it.

The 2025 cash handout scheme will provide “eligible” permanent residents with MOP10,000 and non-permanent residents with MOP6,000, with an estimated expenditure of about MOP7.4 billion. Sam previously stated that the funds saved from these changes will not be allocated to the fiscal reserve but will instead be redirected to support groups and industries in need.

“Cash handouts have indeed provided important support to most Macau residents. While some residents have differing opinions on cash handouts – such as whether friends living overseas should receive this benefit – we believe that this matter should be reviewed by the government,” Kot said.

The chairman told the Times that he had previously advised the government to redistribute consumption cards, originally part of the previous administration’s efforts to mitigate the economic effects of the Covid-19 pandemic, and to consider increasing their value.

He believes that this measure will help enhance the economic capacity of small- and medium-sized enterprises (SMEs) in Macau in the short term, thereby reducing the number of business closures and vacant shops.

However, he emphasized that the consumption cards should never be linked to the ongoing “Community Consumption Grand Prize” campaign. “That campaign is temporary assistance for SMEs or businesses in the northern district, while consumption cards can be used over the course of a year. If each consumption card is set at MOP10,000, it is estimated that over MOP6 billion will be injected into the Macau economy,” he added.

On one hand, Kot hopes the government will issue consumption cards again, but he urged officials not to conflate the two schemes.