Intense preparation for ‘consumption grand prize’

Officials are intensifying efforts to stimulate Macau’s local economic activity, with the government gearing up for the launch of the “Macau Consumption Grand Prize” in early October.

This initiative follows the success of the “Grand Prize for Consumption in the Northern District during the Weekends,” which has proven effective in boosting community spending.

The upcoming consumption drive is designed to encourage residents to shop within their neighborhoods, thereby enhancing economic resilience across all districts of Macau.

The initiative, which will run for approximately three months, aims to distribute electronic benefits to consumers who make purchases on weekdays, redeemable on weekends.

This structure mirrors the successful model used in the Northern District, where residents have already adapted to similar promotional strategies.

In recent meetings, the Economic and Technological Development Bureau (DSEDT) collaborated with the Monetary Authority (AMCM) and various stakeholders to finalize the details of the program.

The DSEDT anticipates over 22,000 small- and medium-sized enterprises (SMEs) will participate, providing a much-needed boost to local businesses struggling with competition from neighboring regions.

Angus Chu, Distinguished Professor and Head of the Department of Economics at the University of Macau, expressed optimism about the initiative to The Times.

“The Macau Consumption Grand Prize will certainly stimulate local consumption and benefit local SMEs,” he stated.

“Previously, the government led a campaign on the Northern District’s spending drive, and it was very successful. The participating businesses saw a 10% to 30% increase in sales.”

He noted the allocated budget of MOP102 million is expected to generate about MOP500 million for local businesses […] and this grand prize campaign serves as one useful policy tool to stimulate the local economy and strengthen local SMEs.”

Chu emphasized the importance of economic diversification, stating, “The gaming sector accounts for about 36% of Macau’s GDP in 2023, a significant decrease from 63% between 2011 and 2013. This grand prize campaign serves as one useful policy tool to stimulate the local economy and strengthen local SMEs.”

He added, “The government has made good progress on economic diversification and is likely to continue doing so… If there is sufficient fiscal budget, I am hopeful that the government will continue exploring more policy measures to support local SMEs.” Nadia Shaw