Third round of stimulus package set to roll out in phases from April

The details regarding the new round of the much-anticipated stimulus packages were made public yesterday morning, but experts say that the rules for this digital voucher scheme are complicated, which may reduce its efficiency to foster the economy when compared to the previous two rounds of financial subsidy.
The particulars of the MOP29.2 billion stimulus package was released by officials yesterday morning. The scheme adopts a four-pronged approach, including the MOP7.24 billion cash handout scheme, MOP5.69 billion domestic spending facilitation scheme, MOP334 million vocational training scheme and MOP15.96 billion tax incentive and allowance scheme.
In yesterday’s media briefing, Secretary for Economy and Finance Lei Wai Nong stressed that this financial stimulus will follow a different tactic which necessitates the consumption power “initiated” by local consumers, when compared to the previous two rounds launched last year — which were designed to play as a financial lifeline handed out by the government to help individuals and business weather the economic fallout brought about by the Covid-19 pandemic.
The previous two rounds of financial measures, particularly the e-voucher schemes, were intended to inject capital into Macau’s economy, which were considered as “emergency” approaches, Lei addressed the media.
“But this round of stimulus package demands a combined effort of the government and the whole society, in a bid to generate a more efficient and lasting cycled economic benefits in Macau,” he added.

Details of four-pronged approach
In the forthcoming plan, the cash handout scheme will be considered as the priority. Similar to the first round of stimulus announced in February 2020, the government is set to roll out an early cash distribution of MOP10,000 and MOP 6,000 to each Macau resident and non-Macau resident, respectively, starting from April.
Pre-pandemic, the SAR government originally distributed cash handouts to individuals during the summer period.
The domestic spending facilitation scheme — comprised of three sub-programs: the e-voucher, the spending discount for seniors and the domestic travel programs — will be considered as the second focal point. Such scheme is slated to last from May to the end of 2021.
The SAR government has earmarked MOP5 billion in the e-voucher program, the beneficiaries of which are extended to all people residing in Macau, including all Macau ID holders, blue cardholders, and foreign national students.
In comparison to the two previous electronic consumption voucher schemes — which distributed MOP3,000 and MOP5,000 to every Macau ID holder in May and August 2020 respectively — this year’s e-voucher scheme requires an individual to spend first before being granted an e-voucher. It also involves more constraints regarding the granting and redemption of e-vouchers.
For instance, an individual can receive five MOP10 coupons after spending MOP50 through one of the city’s eight digital payment platforms. In addition, a practice of “3-times boosting effect” will be applied to the redemption of the e-voucher, meaning an individual can redeem one MOP10 coupon whenever they spend at least MOP30 in each transaction. Each coupon is only valid for 15 days, with a monthly limit of MOP600 and a daily limit of MOP200.
When taking into account the payment pattern among the elderly, most of whom are more inclined to use cash, Lei said, the government will also launch a dedicated consumption program for the city’s seniors aged 65 or above. The move involves an investment of MOP567 million.
The eligible elderly can enjoy an instant discount of MOP10 when they spend MOP30 on each transaction through their contactless payment cards, the Macau Pass — also known as their senior citizen cards. Moreover, the seniors can enjoy benefits through this program and the aforementioned e-voucher programmer simultaneously.
Through the third sub-program, the MOP120 million domestic travel program, a Macau resident can enjoy a subsidy of MOP280 and MOP200 when spending on domestic tours and local accommodation, respectively. The move is to encourage locals to travel domestically and foster the city’s tourism industry.
The third focal point will be centered on the MOP334 million vocational training scheme, in which the government will offer subsidized vocation training programs to local employees. This year’s scheme — with no limit set in terms of the quota of participants and allowing those who are on unpaid leave to apply even without the referral by the employers — is deemed as an enhanced version, said the director of the Labour Affairs Bureau (DSAL), Wong Chi Hong. It is extended to benefit casino staff for this round as well.
The MOP15.96 billion tax incentive and allowance scheme will be the last focus. It covers measures like the rebate of 70% occupational tax paid in 2019; exemption of 5% tourism tax for tourism-related businesses; deduction of the income supplementary tax for 2020 for the small and medium enterprises; and allowances for medical, educational purposes and so on.