Lawmakers express support for gov’t assistance, yet calls on greater measures for SMEs

Several lawmakers have expressed support for the recent government announcement of a MOP10 billion subsidy plan targeting SMEs and residents in need amid the current economic situation caused by the pandemic.

A series of nine measures including cash handouts, tax refunds and tax exemptions have been announced by the government in response to pressures that residents and businesses are facing.

However, lawmakers have called on the government to put more assistance measures in place for small and medium enterprises (SMEs).

Lawmaker Lei Leong Wong noted that SMEs employ 40% of workers in Macau, which he considers an “important part of the employment and economic market.”

“The government needs to strengthen support for the operation of SMEs, safeguarding the employment of those who work for SMEs,” he said.

The lawmaker hopes that the government will consider the assistance measures carefully and promote more targeted employment and economic support to solve the operational problems of SMEs.

Lawmaker Song Pek Kei suggested that the government could regulate food delivery platforms.

“Some SMEs feel hopeless,” reported Song, noting that food delivery platforms take commissions of 20% to 40% from order prices.

If this continues, Song said, the sector will see a significant reduction in operations as many operators “will definitely close their businesses after six months.”

Lawmaker Ella Lei from the Macao Federation of Trade Unions (FAOM), emphasized the struggle of the restaurant industry, which is facing difficulties as most restaurants need to pay expensive rents, causing immense pressure on operators.

For nearly three weeks now, all restaurants have been prohibited from providing dine-in service.

Restaurant owners previously interviewed by the Times have said that the business climate for restaurants has deteriorated.

Staff in the sector, apart from those at integrated resorts, have also expressed concern as they have been asked to take unpaid leave until the situation improves – but there is no light at the end of the tunnel given the surging daily Covid-19 case numbers. 

“Affected by a new outbreak, it is likely that unemployment numbers will continue to rise,” said Lei.

One measure in the stimulus package is new cash handouts of MOP15,000, which will be given to all resident taxpayers who have reported income subject to tax of between 6,000 and 480,000 patacas over a cumulative period of two years (2020 and 2021).

The latest data from the Statistics and Census Service shows the number of unemployed people from March to May standing at 12,800, and the number underemployed at 12,700 people.

Lei hopes the government can expand this assistance measure to benefit more residents, especially those who have been unemployed for a long time, as well as those who are suspended from work or on leave without pay.

She also called on the government to strengthen support for vulnerable groups. 

Meanwhile, lawmaker Leong Sun Iok said that he has received several requests for help from people who are unemployed or furloughed due to the closure of businesses.

During the pandemic, all casinos have attempted to cushion their financial blow by subjecting employees to leave without pay, salary reductions or internal job transfers.

The government has allegedly requested that casino operators reduce on-duty staff by 90%, a further blow for the already-vulnerable sector and its employees, which is already in crisis.

Fewer than ten gaming tables are still running amid the current outbreak. 

Synergy of Macao president Ron Lam expressed hopes that the threshold for assistance measures can be lowered. He stressed that the pandemic affects many people, and multiple groups may be affected: not just low-income people, but also middle-income people.

The statement echoed Lei’s sentiment as she noted that, although the government has stated that the assistance measures cover nearly 80% of employees, “the unemployed may not be supported by the assistance measures.”

Lam added that some residents with jobs in the insurance sector are neither employees nor freelancers, and therefore have been ineligible to receive support from the assistance measures in the previous rounds. Staff Reporter