Policy Address – Press conference | CE clarifies LRT in the Peninsula is to be built and IACM might by dissolved

Speaking to journalists after his presentation at the Legislative Assembly (AL) of the Policy Address from the government for 2017, Chief Executive (CE) Chui Sai On clarified that the Macau Light Rail Transit (LRT) project will not cease after the conclusion of the Taipa line and connection to Barra.

According to the CE the project will continue as originally planned with the extension of the LRT lines to the Peninsula, although not further detailing whether or not the infrastructure will be built by the shoreline or more towards the city center.

“Our ideas for the time being remain the same. We are going to continue,” said Chui adding, “We have done several surveys and listen to many opinions for example on Rua de Londres [in NAPE] and in the Northern area. Besides, we have provided opportunities for all the lawmakers and experts to express their ideas and suggestions.”

After confirming that the project would be continuing, “as planned,” Chui left more details to be explained by the Secretary for Transport and Public Works, Raimundo do Rosário adding: “Until the end of this year we are going to address in more specific terms this topic [by the secretary].”

Answering on another topic, the CE admitted that the announced plan to create a municipal body without political power might involve the extinction of the current Civic and Municipal Affairs Bureau (IACM).

“There is that possibility,” said Chui Sai On in response to the question of whether such a municipal body could or could not lead to the extinction of the IACM, adding that “this work [of creating the municipal body without political power] is already ongoing.”

Among several other topics addressed in the press conference, the CE made a remark on the recovery of the economy and specifically of the gaming industry. He estimated that in 2017 gambling revenue should reach around MOP200 billion, a sum very close to the figure expected for this year.

“We didn’t set a higher target than this year because we think there are still uncertain factors,” Chui said.

Still the CE said to expect positive gambling revenue growth “of single-digit but positive.”

The CE also mentioned that the gaming industry has been recovering since August after more than two years of continuous decline.
In the words of the leader of the region’s government, Macau is accomplishing the orders of President Xi Jinping who during his visit to the region back in 2014 told Macau to diversify its economy following Beijing’s crackdown on corruption and capital outflows.

On the topic of diversification, Chui mentioned that the government would also continue to support and boost “projects adjacent to the gaming industry.”

The CE gave examples of sectors the government has interest developing like “budget hotels and shopping malls in order to attract more families,” he said.

‘A conservative forecast’

Chui’s gambling revenue target for 2017 is unchanged from his forecast for this year. Macau has already reported MOP184.6 billion in gambling receipts in the first 10 months of 2016. “The government has historically, and rightly, presented a conservative forecast as it relates to gross gaming revenue,” Grant Govertsen, a Macau-based gaming analyst at Union Gaming Group LLC, said by e-mail. “Based on trends we’re seeing today, we remain comfortable with our expectations for mid-single digit growth next year.”