Hester Cheang, Jay Chun, Wilfred Wong, Chan Tze Wai and Hubert Wang
Gaming executives have called on local small and medium enterprises to be more competitive, while taking opportunities presented by the Greater Bay Area.
Although gaming operators are making significant purchases from local SMEs, supporting them in response to the government’s initiatives, officials believe that there is still a need for these SMEs to put themselves on par with competitors from the neighboring region.
At a forum at the MGS Summit 2018 yesterday, two casino operators echoed these sentiments regarding the need for local SMEs to find their own path towards diversification.
Wilfred Wong, president of Sands China Ltd., emphasized that the gaming operator provides a procurement academy for these SMEs, with around 50 to 60 suppliers being trained yearly as a step to assist them in cultivating business startups.
“While we are very happy to place orders with local SMEs [and] to procure locally, it is very important that in this day and age, where there is global competition, for them to stand on their [own two] feet,” said Wong.
“This competition from all over the world is going to exist forever and therefore, we cannot confine ourselves or limit our horizons to the Macau environment,” he added, encouraging local startups to explore opportunities in the city’s neighboring regions.
Meanwhile, Hubert Wang, senior vice president of Finance and chief financial officer at MGM China Holdings noted that local SMEs could be used to help diversify the SAR’s economy – particularly in helping build the city’s culture and arts sector.
Although Wang said that passion remains a key factor in starting up a business, he also said that it does not suffice to establish a long-lasting business in the SAR, citing that only up to 5 percent of businesses are successful after three years of operation.
“Startups not only require passion, because we know [the] failure ratio of startups is quite high, […] but we need planning and how to make things good; we need strategies,” said Wang.
According to Wang, the city’s diversification path itself needs to be diversified. “Macau has a limited area of land and therefore we need to make [the best of] every project. We need to focus on culture and arts,” said Wang.
“In the past, we had casino operators [that are] now transforming to [become] integrated resorts. It is the diversified product mixture. […] We need to go beyond those limitations and focus on the industrial supply chain,” the executive added.
Wang pledged that MGM would continue its engagement with the 600 local SMEs with whom it is currently working.
Commenting on diversification, Wilfred Wong noted that there is a need to change the mindset of the young entrepreneurs, encouraging them to engage with enterprises in the Greater Bay Area.
“I think the locals prefer to stay in Macau, instead of doing more business in other regions, so we need to change the mindset. […] Our role is to send tourists to the communities,” said Wong, citing the provision of shuttle buses by gaming operators.
“SMEs also need to play their role and need to sharpen their competitiveness to maintain the tourists. They need to work on their own to strengthen competitiveness […] especially when it comes to the Greater Bay Area,” he added.
Since the SAR benefits from its geographical location, Wong believes that wbusiness operators can benefit from the SAR’s diversified culture and continue to aim to become one of the international market centers.
“The young people in Macau need to work harder in the Greater Bay Area. If not, it’s going to be the Guangdong [entrepreneurs] that will get the opportunities in the market. How can these SMEs respond to the need of the Greater Bay? We need to work harder on that,” Wong added.
Sands confirms budget increase for SCC rebranding
PRESIDENT OF Sands China Ltd., Wilfred Wong, has confirmed that there is an increase in the budget for the rebranding of Sands Cotai Central into The Londoner. Initially it was announced that the rebranding project would cost some USD1.1 billion. “There has been an increase in the scope of the works. As we plan, we look at different public areas, different designs, we feel that there is a need to upgrade some of [these] refurbishments in order for us to remain competitive,” said Wong on the sidelines of yesterday’s forum. “It’s two years away, so we’re looking ahead and we’re very happy to invest in the future of Macau,” he added. Wong added that different projects would commence at different dates, with the first one kicking off after Chinese New Year.
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