Leong predicts ‘possible changes’ in economy for 2019

The Secretary for Economy and Finance, Lionel Leong, has warned that due to factors such as the reduction of the exchange rate of the Renminbi and the rise of the preferential interest rate, the local economy could pass from a forecasted rate of “stable and positive” to “stable with possible changes,” the Government Information Bureau informed in a statement.

Leong was speaking on Friday on the sidelines of a public event when he revealed the government’s forecasts, noting that economic trends are unpredictable but future changes in the local economy could result from the influence of international policies or measures. He recalled that due to the indexation of the interest rates, Macau is influenced by external factors.

Nevertheless, Leong assured that the government was prepared for this situation and counter-cycle periods, noting that local capability to respond to these situations is high.

The secretary added that he has already instructed the services under his authority to constantly assess and monitor the influences generated by the trade disputes between China and the United States, as well as the increase in interest rates and possible changes in the local employment market.

Currently, he noted the results of this assessment fall within his expectations.

Furthermore, he explained that Macau has sufficient capital to face the impact of negative factors, in order to prevent them from having a direct reflection on the retail sector.

Leong warned that contrary to what has happened in the last 10 years where the banks did not increase interest rates, this time banking corporations have already announced that they will start to increase rates. This will be a reflection of the increase of the financial burden of credit, especially the those related to mortgages.

Despite the less positive forecast, the secretary is confident that the economic structure of Macau will be able to tackle this issue and that extra gaming elements can provide support to the operations of the sector.

Commenting on the outcomes of the investigations done to the Macao Trade and Investment Promotion Institute (IPIM) and the procedures and standards of attribution of temporary residence, Leong said the investigations closed without any record of unlawful actions performed by staff of the organization.
The secretary also said that the government understands the need to review the laws and guidelines on this topic and will do so in a timely manner. RM