Pereira Coutinho claims economy is not as strong as the gov’t suggests

Lawmaker José Pereira Coutinho believes the actual state of the local economy is not as positive as the government has been portraying.

He argues that this situation calls for greater intervention from the Legislative Assembly (AL) members to enhance their oversight efforts.

Pereira Coutinho’s comments were made during an interview with the media on the sidelines of the AL Spring Lunch yesterday afternoon at the MGM Macau.

Addressing priorities for the new government led by Sam Hou Fai, the lawmaker said, “We need measures that can increase employment. We are extremely dependent on gambling revenue, and investments made in the non-gaming sector have not been effective in terms of hiring, creating new jobs, and boosting revenue for other economic activities. We must do much more to build confidence in Macau’s future.”

According to the government, the city’s economy is on track for continued recovery, driven by sustainable tourism, rising non-gaming investments, and a stable financial system.

However, for Coutinho, the economy is “not in good shape.”

“Unemployment is high, inflation is skyrocketing, and the inflation rate [announced] doesn’t reflect the reality people are facing,” he added.

Government data shows that Macau’s inflation rate for 2024 was 0.74%, a decrease of 0.2 percentage points from 2023’s 0.94%.

Price indices for essential goods, like food and non-alcoholic beverages, increased by 1.1%, but lower prices for items like pork and edible oils partially offset the rise. Housing and fuel costs grew by 0.45%, while transport costs dropped by 3.26%.

Additionally, it’s becoming increasingly difficult to find a job in Macau.

The lawmaker noted that many young graduates have been searching for their first job for two or more years, which he believes is a serious issue.

“It’s not easy because, as you know, the civil service isn’t hiring anymore, with a few exceptions, and the six gaming concessionaires are not looking to hire more staff either. We will soon face another major problem with the satellite casinos, a matter that was addressed in the past but remains unresolved.”

He pointed out that if the satellite casinos close permanently, tens of thousands of jobs could be lost—not only in the casinos but also in the surrounding areas where they operate.

“The restaurants and other services surrounding the satellite casinos, which mostly operate in the city center, are at risk. This issue must be addressed. The only solution I see is to extend the deadline [for the closure of casinos not owned by license holders] for another three years to allow time to find long-term solutions,” he explained.

Pay raise for civil servants not expected

When questioned about his expectations regarding a potential pay raise for civil servants in the 2025 Policy Address, Pereira Coutinho said he doesn’t expect one.

“It seems the Secretary [for Economy and Finance] is hesitant about adjusting the salaries of civil servants, claiming concern over causing waves in society,” the lawmaker said, though he expressed that such an adjustment is necessary and justifiable, given the growing loss of purchasing power due to rising prices of essential goods and services.