Policy Address | Lionel Leong Salary growth and labor import top lawmakers’ concerns

Lionel Leong (center)

Last Friday, Secretary for Economy and Finance, Lionel Leong continued to answer questions posed by the lawmakers, during the second day of his Policy Address presentation at the Legislative Assembly. The main concerns covered in Friday’s session were the employment issues of non-resident workers.

The number of non-resident workers in Macau and how their salary levels  have resulted in the extensive import of workers was the matter that was discussed most thoroughly.

Au Kam San said that he is not against importing workers but he opposes abuses against a large inflow of non-resident workers. “Locals have been affected by [Macau’s] migrant workers related policies, […] the behaviours promoted by the government goes against the protection of the public,” said Au.

Lawmaker Kwan Tsui Heng said that there are two non-Macau resident workers for every five employees. Kwan gave an example of the consequences of this ratio by saying that construction workers are earning salaries that are as low as their salaries in the year of 2010.

“If we acknowledge the importance of construction workers, and if we consider that their work is demanding, why are their salaries so low?” asked Kwan.

She also remarked that human resources industries have experienced a decline in their salaries that began 30 years ago, when the government, at that time, interfered in the economy and imported a great number of workers, including those working in the catering and hygiene industry.

Kwan pressed the point by asking, “How much have these workers’ salaries improved [over the past years]?” She strongly supports salary improvement for all workers and stated that she is also committed to “improving the salaries of non-resident workers. They are human, they also need to live in Macau. [We] can not depend so much on cheap labour.”

Kwan, like Au, also opposes the abusing over importing labour. “Non-resident workers should be a supplement to the local workforce, but it is the opposite which is happening,” noted Kwan.

She also pointed out that many migrant workers have acquired semi-permanent resident status under Macau’s immigration policies.

Another problem addressed by Kwan referred to the number of Macau residents occupying relatively high positions in Macau companies. She suggested that the city should aim to maintain the ratio of employees at a more equitable 85 percent share of Macau residents in executive levels.

Similar topics were also raised by several other lawmakers, such as Leong Veng Chai, Chui Sai Peng Jose, and Lam Heong Sang.

In replying to the lawmakers, Leong said that Macau’s average salary increased 5.4 percent since the year of 2000 until 2015. He said that starting from the second half of 2014, Macau’s economy entered an adjustment period, and that employee’s salaries “did not decrease but were in fact increased.”

He then added that “both the industries and the employees indicated that the employees’ salaries all increased.”

The Secretary for Economy and Finance claims that more Macau residents have worked in Macau as managing staff. According to Leong, from 2010 until the first three quarters of 2016, there was a 47 percent increase in the number of Macau residents working as managing staff.

“There is a trend for residents to move upwards,” said Leong. In reply to more questions posed by lawmakers regarding issues over the city’s labour force, Leong said that the government is planning on establishing an inspection system which will allow the government to collect data from resident and non-resident workers on big construction sites. Julie Zhu

Gov’t to research trade union law

The Secretary for Economy and Finance, Lionel Leong, said that the government will research the possibility of establishing a trade union law in the region. Leong’s statement came after Au Kam San’s query at the Friday’s Legislative Assembly meeting. Au raised the topic, asking, “When will the trade union law be complete? If you are not willing to answer the question, I hope that AL’s staff can require all parities to deliver references related to the law.” Triggered by Au, Tsui Wai Kwan voiced the opposite opinion saying that it is not the right time to put this law onto the agenda. Tsui countered that “when the [workers] have law and weapon held in their hands, there will be people causing troubles. It is equal to the US’s gun control problems.”

Oil price remains high compared to rest of the world

Ho Ion Sang and Sio Chi Wai have doubts over the reasons behinds Macau’s expensive oil prices.

According to the Statistics and Census Service (DSEC), the oil import price has decreased to MOP4.39 per kilogram in September this year, compared to MOP8.32 per kilogram in February last year, representing an approximate 50 percent decrease.

However, in Macau, despite this decrease, oil has always been sold for more than MOP13 per kilogram, regardless of the import price.

Macau pays MOP4.4 (per kilogram) to mainland China for importing oil. Hong Kong only pays HKD3.79, according to Ho.

Ho had questioned on why Macau residents need to “suffer from the expensive oil [prices].” He also asked the secretary for an explanation of why the importing price has decreased but the selling price remains the same.

Sio Chi Wai commented that it is because of the related industry, which has been manipulating the price.

Leong said that the Macau Economic Service (DSE) has been observing the change in oil price and have been organizing meetings with the industry regularly. He claims that the authority requested the commercial chamber and oil sellers to launch a questionnaire in order to understand the reasons that contribute to the evolution in oil prices.

However, he said that this measure would not substantially increase our understanding of the changes in price. He also mentioned that, at the current stage, he expects the oil industry will, by meeting with the authority regularly, begin to understand the public’s concerns about the changes in the price of oil.