The recent conclusion of the city-wide consumer incentive program at the end of last month generated approximately four times the consumption multiplier effect for Macau’s retail and catering industries, leading a lawmaker to advocate for the establishment of a long-term consumption support mechanism by the government.
Recalling recent findings from a think tank survey on the livelihood index, residents’ confidence in income growth and satisfaction with financial conditions remain in the lower-middle range.
Coupled with pressures from consumption outflow, the business environment for small- and medium-sized enterprises (SMEs) in local neighborhoods such as NAPE, Iao Hon, and Fai Chi Kei continues to deteriorate. In response, legislator Chan Lai Kei proposed establishing a regular consumption-oriented mechanism to stabilize business expectations during his remarks while presenting his agenda yesterday.
During a Legislative Assembly session last week, Chan proposed that, in response to the structural challenges faced by community SMEs next year, short-term emergency measures be upgraded into a long-term, targeted policy package – such as the Community Consumption Grand Prize – to foster a more resilient, vibrant, and sustainable economic ecosystem.
He acknowledged, “While current consumption-boosting policies have proven effective, their temporary and intermittent nature can distort consumption patterns – leading to premature spending and stockpiling – and fail to provide SMEs with stable business expectations.”
He further emphasized that establishing a normalized consumption-oriented mechanism, along with the advance announcement of community consumption incentive frameworks for local residents on a six-month cycle, will encourage businesses to invest in storefront beautification and service innovation.
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