Macao Chamber of Commerce urges gov’t to invest in ‘silver economy’

The Macao Chamber of Commerce (ACM) has proposed a series of measures targeting the elderly to the government.

According to the ACM, the proposals aim to boost investment in the so-called “silver economy,” as Macau’s population is aging and seniors are playing an increasingly important role in society.

In an interview with public broadcaster TDM, U Kin Cho, vice president of the ACM, said the proposals were presented to the government during a recent meeting with Chief Executive Sam Hou Fai as part of preparations for next year’s Policy Address.

“It is important to develop a 10-year plan for the silver economy as soon as possible. This plan should outline specific measures for development and recommend that the government establish a silver economy development fund. This fund would encourage small and medium-sized enterprises (SMEs) to develop niche products or industries such as home appliances and smart home technologies, helping the elderly adapt to their lifestyles,” U said.

Another proposal concerns the creation of a “reverse mortgage” system for the elderly.

“Additionally, it is hoped that the financial sector will develop flexible mortgage options, ensuring that the elderly have adequate financial security for their retirement,” U said.

A reverse mortgage is a loan, usually secured by residential property, that enables the borrower to access the property’s value. Unlike a regular mortgage, it does not require monthly repayments; instead, the borrower receives monthly payments from the bank as a form of retirement income.

The loan remains valid while the homeowners are alive. When they pass away, their family or heirs may choose either to repay the mortgage and keep the property or transfer it to the bank to settle the debt.

This system is in place in several countries and regions, including neighboring Hong Kong.

The Hong Kong Mortgage Corporation Insurance Limited (HKMCI), a wholly owned subsidiary of The Hong Kong Mortgage Corporation Limited, operates the Reverse Mortgage Programme, which allows people aged 55 or above to use their residential properties as security to obtain reverse mortgage loans.

Under this program, borrowers can receive monthly payouts over a fixed term or for life. They may also apply for lump-sum payouts to meet personal needs. Generally, repayment is not required during the borrower’s lifetime unless the agreement is terminated under specific conditions.

When a reverse mortgage is terminated, the property owner (or their representative) can redeem the mortgaged property by repaying the outstanding loan. If not, the lender will sell the property to recover the owed amount. In cases of shortfall, the HKMCI covers the difference through insurance, while any surplus is returned to the property owner (or their representative).