![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/05/matias-opinion-screenshot-director-MB.jpg\")
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\nMacau Business magazine l\u00a0July\u00a02024
By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWe often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. Successful integration hinges on a gradual approach, supported by measures to cushion its side effects.
\n\n\n\nIn recent weeks, mainland authorities have implemented several measures to address this balance. These include extending the stay for mainland Chinese individuals holding business visas for Macau, introducing a new multiple-entry visa arrangement for package tours between Macau and Hengqin, adding eight mainland cities to the individual visit scheme for the SARs, and increasing the duty-free allowance for arrivals from Hong Kong and Macau.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Macau-border-checkpoints-1028x685.jpeg\")
In a further step towards enhanced northbound mobility, non-Chinese permanent residents of Macau and Hong Kong will now enjoy a multi-entry travel permit of up to five years for mainland entry\u2014a much-welcome development.
\n\n\n\nWhile these gifts from the central government are significant steps to support the city\u2019s business development, is the SAR government doing enough locally to counter the impact of domestic consumption outflows and address the socio-economic challenges faced by numerous SMEs?
\n\n\n\nSome measures have been adopted. For instance, in mid-June, the SAR announced an extension of the repayment period for interest-free financial assistance provided to local small and medium-sized enterprises (SMEs) and young entrepreneurs. This was an absolutely necessary move.
\n\n\n\nHowever, the lifeline needs to be extended further for these companies. Despite encouraging tourism and gaming figures (though the latter have seen some recent slowdown), data, business surveys, and naked-eye observation are crystal clear: you can\u2019t sweep it under the rug. Food and beverage establishments, especially those outside integrated resorts and tourist hotspots, various types of retailers, particularly supermarkets, and watch-clock-and-jewellery shops, have seen year-on-year double-digit declines, sometimes by as much as one-third. A number of these businesses are being left with no option other than closing for good.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/elina-sitnikova-4wv-Q4g-7V4-unsplash.jpg\")
Local consumers have cited as significant advantages the better value for money and superior customer service obtainable across the border, which may seal the fate of many small businesses here. Who can blame them?
\n\n\n\nA handful of pressing questions arise: How do we cope with this? How can we increase competitiveness? How do we lower fixed costs, such as commercial property rentals and labour, and improve service quality to stem the outflow of local consumption and attract visitors, especially to residential areas?
\n\n\n\nAny suggestions? How about rolling out an e-consumption voucher scheme modelled on those used during the pandemic? Or perhaps, even bolder, consider transferring part of the cash handout to a local consumption voucher plan? True, giving a man a fish will feed him for a day, while teaching him to fish feeds him for a lifetime, but the clock is ticking, and there is a need to do both at the same time at this stage.
\n\n\n\nWe often hear the Government say: there\u2019s only so much we can do. Is that really the case? Besides policymaking, is there a deeper issue\u2014one related to the mindset in the local business sphere?
\n\n\n\nIn any case, it seems clear that while a number of local companies and businesspeople are venturing into Hengqin or other areas of the Greater Bay Area, encouraged by existing incentives, there is a need to ensure that the small businesses remaining local\u2014the lifeblood of the city\u2019s way of life\u2014have a future, one that younger generations can feel confident about.
\n\n\n\nOne hopes the current and the incoming government (and socio-economic actors) will have the ability, determination, and conditions to effectively make the cake bigger and more inclusive, ensuring that SMEs aren\u2019t left to live on crumbs. And, by the way, it would be wise to ensure that the lion\u2019s share is not seized by the entrenched interests that hinder our city\u2019s modernization.
\n", "content_text": "Macau Business magazine l\u00a0July\u00a02024\n\n\n\n\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nWe often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. Successful integration hinges on a gradual approach, supported by measures to cushion its side effects.\n\n\n\nIn recent weeks, mainland authorities have implemented several measures to address this balance. These include extending the stay for mainland Chinese individuals holding business visas for Macau, introducing a new multiple-entry visa arrangement for package tours between Macau and Hengqin, adding eight mainland cities to the individual visit scheme for the SARs, and increasing the duty-free allowance for arrivals from Hong Kong and Macau.\n\n\n\n\n\n\n\nIn a further step towards enhanced northbound mobility, non-Chinese permanent residents of Macau and Hong Kong will now enjoy a multi-entry travel permit of up to five years for mainland entry\u2014a much-welcome development.\n\n\n\nWhile these gifts from the central government are significant steps to support the city\u2019s business development, is the SAR government doing enough locally to counter the impact of domestic consumption outflows and address the socio-economic challenges faced by numerous SMEs?\n\n\n\nSome measures have been adopted. For instance, in mid-June, the SAR announced an extension of the repayment period for interest-free financial assistance provided to local small and medium-sized enterprises (SMEs) and young entrepreneurs. This was an absolutely necessary move.\n\n\n\nHowever, the lifeline needs to be extended further for these companies. Despite encouraging tourism and gaming figures (though the latter have seen some recent slowdown), data, business surveys, and naked-eye observation are crystal clear: you can\u2019t sweep it under the rug. Food and beverage establishments, especially those outside integrated resorts and tourist hotspots, various types of retailers, particularly supermarkets, and watch-clock-and-jewellery shops, have seen year-on-year double-digit declines, sometimes by as much as one-third. A number of these businesses are being left with no option other than closing for good.\n\n\n\n\n\n\n\nLocal consumers have cited as significant advantages the better value for money and superior customer service obtainable across the border, which may seal the fate of many small businesses here. Who can blame them?\n\n\n\nA handful of pressing questions arise: How do we cope with this? How can we increase competitiveness? How do we lower fixed costs, such as commercial property rentals and labour, and improve service quality to stem the outflow of local consumption and attract visitors, especially to residential areas?\n\n\n\nAny suggestions? How about rolling out an e-consumption voucher scheme modelled on those used during the pandemic? Or perhaps, even bolder, consider transferring part of the cash handout to a local consumption voucher plan? True, giving a man a fish will feed him for a day, while teaching him to fish feeds him for a lifetime, but the clock is ticking, and there is a need to do both at the same time at this stage.\n\n\n\nWe often hear the Government say: there\u2019s only so much we can do. Is that really the case? Besides policymaking, is there a deeper issue\u2014one related to the mindset in the local business sphere?\n\n\n\nIn any case, it seems clear that while a number of local companies and businesspeople are venturing into Hengqin or other areas of the Greater Bay Area, encouraged by existing incentives, there is a need to ensure that the small businesses remaining local\u2014the lifeblood of the city\u2019s way of life\u2014have a future, one that younger generations can feel confident about.\n\n\n\nOne hopes the current and the incoming government (and socio-economic actors) will have the ability, determination, and conditions to effectively make the cake bigger and more inclusive, ensuring that SMEs aren\u2019t left to live on crumbs. And, by the way, it would be wise to ensure that the lion\u2019s share is not seized by the entrenched interests that hinder our city\u2019s modernization.", "date_published": "July 07, 2024", "date_modified": "July 07, 2024 - 13:34", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Macau-Zhuhai-shopping3.jpeg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": "We often hear the saying: you can\u2019t have your cake and eat it too. Regional integration is indeed a two-way street, or perhaps more aptly, a multiple-entry boulevard. Just as globalization brings broader economic and societal benefits through the increased mobility of people, goods, services, and capital, it also creates winners and losers. " }, { "id": "https://www.macaubusiness.com/stock-markets-mostly-drop-yen-gains-after-38-year-low/", "url": "https://www.macaubusiness.com/stock-markets-mostly-drop-yen-gains-after-38-year-low/", "title": "Stock markets mostly drop, yen gains after 38-year low", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/austin-distel-EMPZ7yRZoGw-unsplash-150x150.jpg\")
\nMajor stock markets mostly dropped Thursday as Europeans gears up for key elections, the US awaits inflation data and Japan contemplates measures to strengthen the yen.
\n\n\n\nThe Japanese currency edged up against the dollar after hitting a 38-year low Wednesday, putting investors on alert for a possible intervention by Japanese authorities.
\n\n\n\nThe Japanese unit’s latest retreat came as uncertainty surrounded the Federal Reserve’s timetable for cutting interest rates, and the Bank of Japan’s caution in tightening monetary policy.
\n\n\n\nTraders sold equities as tech firms face pressure amid concerns that a long-running rally in the sector may have been overdone.
\n\n\n\nInvestors were meanwhile awaiting outcomes in French and British general elections due over the next week.
\n\n\n\n“Today sees the US economy come into sharp focus, with the final GDP and core durable goods orders data released ahead of tomorrow\u2019s crucial core PCE inflation release,” noted Joshua Mahony, chief market analyst at Scope Markets.
\n\n\n\n“Signs of weakness in the jobs market have started to spread through alternate areas of the economy, with yesterday’s new home sales figure falling to a 2024 low.”
\n\n\n\nA forecast-busting read on the PCE index, the Fed’s favoured gauge of inflation, could push back expectations for a rate reduction and put further upward pressure on the dollar.
\n\n\n\nIn Japan, vice finance minister Masato Kanda said this week that authorities were keeping a close eye on movements in foreign exchange markets and were ready to step in with yen support 24 hours a day.
\n\n\n\nTheir determination was put to the test after the yen fell to 160.87 per dollar late Wednesday — its weakest since 1986 — as US Treasury yields spiked.
\n\n\n\nAnalysts say it is possible traders will keep pushing the envelope to see at what point the government will act, with some saying the unit could hit 170.
\n\n\n\nIn Europe, France’s political future was up in the air with the far right surging in polls but other forces fighting to the end three days before a high-stakes parliamentary vote.
\n\n\n\nIt comes ahead of a UK national vote on July 4, with the right-wing Conservatives led by Prime Minister Rishi Sunak on course to lose power to the centre-left Labour party.
\n\n\n\nKey figures around 1100 GMT –
\n\n\n\nLondon – FTSE 100: DOWN 0.3 percent at 8,202.55\u00a0points
\n\n\n\nParis – CAC 40: DOWN 0.5 percent at 7,570.40
\n\n\n\nFrankfurt – DAX: UP 0.2 percent at 18,181.83
\n\n\n\nEURO STOXX 50: DOWN 0.1 percent at 4,913.02
\n\n\n\nTokyo – Nikkei 225: DOWN 0.8 percent at 39,341.54 (close)
\n\n\n\nHong Kong – Hang Seng Index: DOWN 2.1 percent at 17,716.47 (close)
\n\n\n\nShanghai – Composite: DOWN 0.9 percent at 2,945.85 (close)
\n\n\n\nNew York – Dow: FLAT at 39,127.80 (close)
\n\n\n\nDollar/yen: DOWN at 160.46 yen from 160.73 yen on Wednesday
\n\n\n\nEuro/dollar: UP at $1.0704 from $1.0680
\n\n\n\nEuro/pound: UP at 84.60 pence from 84.57 pence
\n\n\n\nPound/dollar: UP at $1.2651 from $1.2625
\n\n\n\nBrent North Sea Crude: UP 0.5 percent at $85.66 per barrel
\n\n\n\nWest Texas Intermediate: UP 0.4 percent at $81.20 per barrel
\n", "content_text": "Major stock markets mostly dropped Thursday as Europeans gears up for key elections, the US awaits inflation data and Japan contemplates measures to strengthen the yen.\n\n\n\nThe Japanese currency edged up against the dollar after hitting a 38-year low Wednesday, putting investors on alert for a possible intervention by Japanese authorities.\n\n\n\nThe Japanese unit’s latest retreat came as uncertainty surrounded the Federal Reserve’s timetable for cutting interest rates, and the Bank of Japan’s caution in tightening monetary policy.\n\n\n\nTraders sold equities as tech firms face pressure amid concerns that a long-running rally in the sector may have been overdone.\n\n\n\nInvestors were meanwhile awaiting outcomes in French and British general elections due over the next week.\n\n\n\n“Today sees the US economy come into sharp focus, with the final GDP and core durable goods orders data released ahead of tomorrow\u2019s crucial core PCE inflation release,” noted Joshua Mahony, chief market analyst at Scope Markets.\n\n\n\n“Signs of weakness in the jobs market have started to spread through alternate areas of the economy, with yesterday’s new home sales figure falling to a 2024 low.”\n\n\n\nA forecast-busting read on the PCE index, the Fed’s favoured gauge of inflation, could push back expectations for a rate reduction and put further upward pressure on the dollar.\n\n\n\nIn Japan, vice finance minister Masato Kanda said this week that authorities were keeping a close eye on movements in foreign exchange markets and were ready to step in with yen support 24 hours a day.\n\n\n\nTheir determination was put to the test after the yen fell to 160.87 per dollar late Wednesday — its weakest since 1986 — as US Treasury yields spiked.\n\n\n\nAnalysts say it is possible traders will keep pushing the envelope to see at what point the government will act, with some saying the unit could hit 170.\n\n\n\nIn Europe, France’s political future was up in the air with the far right surging in polls but other forces fighting to the end three days before a high-stakes parliamentary vote.\n\n\n\nIt comes ahead of a UK national vote on July 4, with the right-wing Conservatives led by Prime Minister Rishi Sunak on course to lose power to the centre-left Labour party.\n\n\n\nKey figures around 1100 GMT –\n\n\n\nLondon – FTSE 100: DOWN 0.3 percent at 8,202.55\u00a0points\n\n\n\nParis – CAC 40: DOWN 0.5 percent at 7,570.40\n\n\n\nFrankfurt – DAX: UP 0.2 percent at 18,181.83\n\n\n\nEURO STOXX 50: DOWN 0.1 percent at 4,913.02\n\n\n\nTokyo – Nikkei 225: DOWN 0.8 percent at 39,341.54 (close)\n\n\n\nHong Kong – Hang Seng Index: DOWN 2.1 percent at 17,716.47 (close)\n\n\n\nShanghai – Composite: DOWN 0.9 percent at 2,945.85 (close)\n\n\n\nNew York – Dow: FLAT at 39,127.80 (close)\n\n\n\nDollar/yen: DOWN at 160.46 yen from 160.73 yen on Wednesday\n\n\n\nEuro/dollar: UP at $1.0704 from $1.0680\n\n\n\nEuro/pound: UP at 84.60 pence from 84.57 pence\n\n\n\nPound/dollar: UP at $1.2651 from $1.2625\n\n\n\nBrent North Sea Crude: UP 0.5 percent at $85.66 per barrel\n\n\n\nWest Texas Intermediate: UP 0.4 percent at $81.20 per barrel", "date_published": "June 27, 2024", "date_modified": "June 27, 2024 - 19:29", "author": { "name": "AFP", "url": "https://www.macaubusiness.com/author/afp/", "avatar": "https://secure.gravatar.com/avatar/f874b805e642365202fe3b870afdad24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/austin-distel-EMPZ7yRZoGw-unsplash.jpg", "tags": [ "China", "Editorial", "International", "MNA" ], "summary": "Major stock markets mostly dropped Thursday as Europeans gears up for key elections, the US awaits inflation data and Japan contemplates measures to strengthen the yen." }, { "id": "https://www.macaubusiness.com/editorial-shifting-gears/", "url": "https://www.macaubusiness.com/editorial-shifting-gears/", "title": "EDITORIAL \u2013 Shifting gears", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/shifting-gear-2-150x150.jpg\")
\nMacau Business magazine l June 2024
By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe recent seven-day visit of Xia Baolong, Beijing\u2019s top official in charge of the SARs, was no ordinary \u201cinspection\u201d.
\n\n\n\nIt was the second tour of its kind in one year, mirroring Xia\u2019s visits to the neighbouring Hong Kong SAR. And for Macau it carried a different tone, substance and context compared to the one in May 2023. A key takeaway was the focus on \u201cpolishing the golden business card of Macau as an international metropolis\u201d. While those less enthusiastic might suggest this sounds like \u201cold wine in new bottles\u201d, we believe that Xia\u2019s message, with such emphasis at this juncture, carries special significance.
\n\n\n\nIt brings to light unfinished tasks and serves as a mobilising and encouraging factor in the drive to meet targets and swiftly implement policies. Government and key economic and social actors are required to rise to the challenge. We need to get this right. The city\u2019s \u201cinternationalisation\u201d bar has just been raised by the central authorities \u2013 a much-welcome development.
\n\n\n\nAs suggested by the Director of the Hong Kong and Macau Affairs Office, leveraging the SAR\u2019s advantages is of paramount importance. These advantages are closely intertwined with Macau\u2019s distinctive features, which can be turned into a maximised competitive edge. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact.
\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas. At the risk of sounding like a “broken record\u201d, we reiterate: bold measures are more advisable than a piecemeal approach.
\n\n\n\nAs suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact
A polished international metropolis implies stronger efforts in welcoming more highly skilled professionals from around the world. That metropolis should have the ambition to compete with peer hubs such as Singapore, Hong Kong and Dubai in attracting top-notch talent in designated areas. The talent attraction scheme, launched last year, was presented as the missing tool to level up the city\u2019s attractiveness. It was certainly a key step, but is it yielding results quickly and broadly enough given the intense competition from metropolises in Greater China and the Asia-Pacific region? The case for recalibrating and expanding this mechanism is growing stronger.
\n\n\n\nOn the visitation front, while tourism recovery gains steam, there remains a gap between the pace of recovery of overall visitors and that of foreign arrivals. As we move forward, one expects that gap to gradually close, hopefully as a result of the intense promotional roadshows recently held in Southeast and Northeast Asia. Additional moves are expected in this respect. Here, the expansion of multilingual customer service surfaces as a key direction, which also implies further opening the imported labour door, in addition to better equipping the local workforce.
\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas
An issue \u2013 a rather embarrassing one \u2013 that has been plaguing visitor experience and annoying locals is the same old taxi woes. Old habits die hard, right? The long-awaited additional 500 licences to be awarded may be a step forward, but it\u2019s likely to be too little, too late. Tackling the taxi lobby\u2019s vested interests head-on is a must, as is implementing thoughtful arrangements allowing ride-sharing services and platforms, which are tested and well-functioning elsewhere (starting in the neighbouring Greater Bay Area cities).
\n\n\n\nAll this can leverage the important \u201ctourism+\u201d strategy, which emerges as a key pillar in polishing Macau\u2019s international allure. This is reflected in the “City of Performing Arts” and “City of Sports Events” directions. While there has been much focus on developing the city\u2019s concert economy \u2013 more international acts are highly desirable in this respect \u2013 sports events are also a key direction, as elaborated in this issue\u2019s special report. As we are one year away from being one of the host cities of the National Games, this is, as we point out, \u201can opportunity that cannot be missed\u201d for Macau, nearly two decades after the SAR was home to the East Asian Games, the first of three multisport international events held between 2005 and 2007.
\n\n\n\nAll in all, with the bar raised and higher stakes, it\u2019s time to jump higher and shift gears.
\n", "content_text": "Macau Business magazine l June 2024 \n\n\n\n\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nThe recent seven-day visit of Xia Baolong, Beijing\u2019s top official in charge of the SARs, was no ordinary \u201cinspection\u201d.\n\n\n\n It was the second tour of its kind in one year, mirroring Xia\u2019s visits to the neighbouring Hong Kong SAR. And for Macau it carried a different tone, substance and context compared to the one in May 2023. A key takeaway was the focus on \u201cpolishing the golden business card of Macau as an international metropolis\u201d. While those less enthusiastic might suggest this sounds like \u201cold wine in new bottles\u201d, we believe that Xia\u2019s message, with such emphasis at this juncture, carries special significance.\n\n\n\nIt brings to light unfinished tasks and serves as a mobilising and encouraging factor in the drive to meet targets and swiftly implement policies. Government and key economic and social actors are required to rise to the challenge. We need to get this right. The city\u2019s \u201cinternationalisation\u201d bar has just been raised by the central authorities \u2013 a much-welcome development.\n\n\n\nAs suggested by the Director of the Hong Kong and Macau Affairs Office, leveraging the SAR\u2019s advantages is of paramount importance. These advantages are closely intertwined with Macau\u2019s distinctive features, which can be turned into a maximised competitive edge. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact.\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas. At the risk of sounding like a “broken record\u201d, we reiterate: bold measures are more advisable than a piecemeal approach.\n\n\n\nAs suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact\n\n\n\nA polished international metropolis implies stronger efforts in welcoming more highly skilled professionals from around the world. That metropolis should have the ambition to compete with peer hubs such as Singapore, Hong Kong and Dubai in attracting top-notch talent in designated areas. The talent attraction scheme, launched last year, was presented as the missing tool to level up the city\u2019s attractiveness. It was certainly a key step, but is it yielding results quickly and broadly enough given the intense competition from metropolises in Greater China and the Asia-Pacific region? The case for recalibrating and expanding this mechanism is growing stronger.\n\n\n\nOn the visitation front, while tourism recovery gains steam, there remains a gap between the pace of recovery of overall visitors and that of foreign arrivals. As we move forward, one expects that gap to gradually close, hopefully as a result of the intense promotional roadshows recently held in Southeast and Northeast Asia. Additional moves are expected in this respect. Here, the expansion of multilingual customer service surfaces as a key direction, which also implies further opening the imported labour door, in addition to better equipping the local workforce.\n\n\n\nIt\u2019s all about making up for lost time, speeding up and improving ongoing initiatives, and stopping the dragging of feet in key areas \n\n\n\nAn issue \u2013 a rather embarrassing one \u2013 that has been plaguing visitor experience and annoying locals is the same old taxi woes. Old habits die hard, right? The long-awaited additional 500 licences to be awarded may be a step forward, but it\u2019s likely to be too little, too late. Tackling the taxi lobby\u2019s vested interests head-on is a must, as is implementing thoughtful arrangements allowing ride-sharing services and platforms, which are tested and well-functioning elsewhere (starting in the neighbouring Greater Bay Area cities).\n\n\n\nAll this can leverage the important \u201ctourism+\u201d strategy, which emerges as a key pillar in polishing Macau\u2019s international allure. This is reflected in the “City of Performing Arts” and “City of Sports Events” directions. While there has been much focus on developing the city\u2019s concert economy \u2013 more international acts are highly desirable in this respect \u2013 sports events are also a key direction, as elaborated in this issue\u2019s special report. As we are one year away from being one of the host cities of the National Games, this is, as we point out, \u201can opportunity that cannot be missed\u201d for Macau, nearly two decades after the SAR was home to the East Asian Games, the first of three multisport international events held between 2005 and 2007.\n\n\n\nAll in all, with the bar raised and higher stakes, it\u2019s time to jump higher and shift gears.", "date_published": "June 02, 2024", "date_modified": "June 02, 2024 - 15:37", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/06/shifting-gear-2.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "As suggested by Xia Baolong leveraging the SAR\u2019s advantages is key. These advantages are closely intertwined with Macau\u2019s distinctive features. This may sound self-evident, but some in the local elite need to be constantly reminded of the fact" }, { "id": "https://www.macaubusiness.com/editorial-who-we-are/", "url": "https://www.macaubusiness.com/editorial-who-we-are/", "title": "EDITORIAL \u2013 Who we are", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Green-drop-on-leave-who-we-are-smaller-150x150.jpg\")
\nMacau Business magazine l May 2024 l 20th anniversary edition
\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\n\n\n\n\n\n\n\n\nInverting a famous quote by Tomasi de Lampedusa, if one wants things to change, things will have to stay as they are.
\n\n\n\nOn the occasion of the 20th anniversary of this magazine and the group to which it belongs (Project Asia Corp.), we outline 20 changes this city has witnessed (we could easily have named another 20), along with features that have remained basically unchanged, in this issue\u2019s special report.
\n\n\n\nIssue Number One of Macau Business, published back in May 2004, stated it clearly: \u201cThe Time is Now\u201d, as we were \u201cstanding on the verge of an economic revolution\u201d. A few days later, in that same month of May, the opening of Sands on the Macau peninsula \u2013 the Region\u2019s first post-liberalisation casino \u2013 heralded what was to come. And yet even those expectations were surpassed in the ensuing years by a gaming-driven boom that transformed a once (somewhat derogatively labelled) \u201csleepy enclave\u201d into what then became widely branded as the thriving \u201cLas Vegas of Asia\u201d. This breakneck growth brought a windfall of revenue and robust job creation, growth and development, but it also generated side-effects which still linger today and have yet to be tackled. It was a winning streak that ran unabated until the COVID-19 pandemic struck hard, and now we see the city regaining ground under a restructured model.
Taking stock of 20 years is no easy task. Macau, in many ways, lives up to the \u201cSmoke Dragon\u201d title of Jo\u00e3o Aguiar\u2019s novel: its reality is ever-changing, and the past cannot be relived. That being said, preservation of our collective memory is essential, and journalism serves as \u201cthe first draft of history\u201d.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/MB-first-issue-May-2004.png\")
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Cover_MB_Mar2024_V3-copy-3-780x1028.jpg\")
In this magazine\u2019s 241 issues to date, we have captured the \u2018spirit of the times\u2019, expressing our voice while also serving as a platform for a wide range of perspectives, upholding editorial independence, and cherishing transparency and social responsibility. That has been our raison d\u2019\u00eatre. We believe this city needs and benefits from a diverse and pluralistic environment, one where criticism is seen as helpful and is not met with thin-skinned reaction.
\n\n\n\nIn this magazine, we\u2019ve always strived to go beyond the figures, and official rhetoric, delving deeper into issues, while bringing businesses and people\u2019s stories to the fore.
\n\n\n\nHaving weathered the pandemic storm, Macau is now racing against the clock to meet the expectations of its people, of economic actors, and of the central authorities. Our current decade is a pivotal one, and it\u2019s nearly halfway gone already.
\n\n\n\nAt Macau Business we remain highly motivated to explore what lies ahead, here in this special city, the wider Greater Bay Area and beyond, from multiple perspectives and through local and cosmopolitan lenses.
\n\n\n\nThis has been a fascinating journey, one that began 20 years ago with a\u00a0small-step-big-leap\u00a0taken by this publication\u2019s founder\u00a0\u2013 a pioneer in English-language publishing in the SAR\u00a0\u2013 and the Chairman of our group, Paulo A. Azevedo. All that has been achieved has its foundation in the essential role he has been playing, in the talent and hard work of our team members and contributors, and in the loyalty of our faithful readers and valuable partners, suppliers and customers who have joined and remained with us on this two-decade journey.
\n\n\n\nWe look forward to another 20 years and beyond: aggregating value, embracing change and staying who we are.
\n", "content_text": "Macau Business magazine l May 2024 l 20th anniversary edition \n\n\n\n\n\n\n\n\n\n\n\nBy Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nInverting a famous quote by Tomasi de Lampedusa, if one wants things to change, things will have to stay as they are.\n\n\n\nOn the occasion of the 20th anniversary of this magazine and the group to which it belongs (Project Asia Corp.), we outline 20 changes this city has witnessed (we could easily have named another 20), along with features that have remained basically unchanged, in this issue\u2019s special report.\n\n\n\nIssue Number One of Macau Business, published back in May 2004, stated it clearly: \u201cThe Time is Now\u201d, as we were \u201cstanding on the verge of an economic revolution\u201d. A few days later, in that same month of May, the opening of Sands on the Macau peninsula \u2013 the Region\u2019s first post-liberalisation casino \u2013 heralded what was to come. And yet even those expectations were surpassed in the ensuing years by a gaming-driven boom that transformed a once (somewhat derogatively labelled) \u201csleepy enclave\u201d into what then became widely branded as the thriving \u201cLas Vegas of Asia\u201d. This breakneck growth brought a windfall of revenue and robust job creation, growth and development, but it also generated side-effects which still linger today and have yet to be tackled. It was a winning streak that ran unabated until the COVID-19 pandemic struck hard, and now we see the city regaining ground under a restructured model.\n\n\n\nTaking stock of 20 years is no easy task. Macau, in many ways, lives up to the \u201cSmoke Dragon\u201d title of Jo\u00e3o Aguiar\u2019s novel: its reality is ever-changing, and the past cannot be relived. That being said, preservation of our collective memory is essential, and journalism serves as \u201cthe first draft of history\u201d. \n\n\n\n\n\n\n\nIn this magazine\u2019s 241 issues to date, we have captured the \u2018spirit of the times\u2019, expressing our voice while also serving as a platform for a wide range of perspectives, upholding editorial independence, and cherishing transparency and social responsibility. That has been our raison d\u2019\u00eatre. We believe this city needs and benefits from a diverse and pluralistic environment, one where criticism is seen as helpful and is not met with thin-skinned reaction. \n\n\n\nIn this magazine, we\u2019ve always strived to go beyond the figures, and official rhetoric, delving deeper into issues, while bringing businesses and people\u2019s stories to the fore.\n\n\n\nHaving weathered the pandemic storm, Macau is now racing against the clock to meet the expectations of its people, of economic actors, and of the central authorities. Our current decade is a pivotal one, and it\u2019s nearly halfway gone already. \n\n\n\nAt Macau Business we remain highly motivated to explore what lies ahead, here in this special city, the wider Greater Bay Area and beyond, from multiple perspectives and through local and cosmopolitan lenses.\n\n\n\nThis has been a fascinating journey, one that began 20 years ago with a\u00a0small-step-big-leap\u00a0taken by this publication\u2019s founder\u00a0\u2013 a pioneer in English-language publishing in the SAR\u00a0\u2013 and the Chairman of our group, Paulo A. Azevedo. All that has been achieved has its foundation in the essential role he has been playing, in the talent and hard work of our team members and contributors, and in the loyalty of our faithful readers and valuable partners, suppliers and customers who have joined and remained with us on this two-decade journey.\n\n\n\nWe look forward to another 20 years and beyond: aggregating value, embracing change and staying who we are.", "date_published": "May 10, 2024", "date_modified": "May 18, 2024 - 20:56", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/05/Green-drop-on-leave-who-we-are-smaller.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": "We look forward to another 20 years and beyond: aggregating value, embracing change and staying who we are." }, { "id": "https://www.macaubusiness.com/editorial-sink-or-swim/", "url": "https://www.macaubusiness.com/editorial-sink-or-swim/", "title": "EDITORIAL \u2013 Sink or swim?", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/04/Sink-or-swim-150x150.jpg\")
\nMacau Business Editorial |April 2024 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nAn uneven recovery pattern has emerged in Macau with ever-widening disparity among the fates of many local small businesses. It\u2019s something this publication has already addressed, and it is now a pressing concern. Shops in residential areas such as the Northern district are struggling, while those in the city\u2019s tourist spots thrive.
\n\n\n\nThe Easter holidays only heightened the trend\u2019s stark contrasts, with hordes of residents eschewing local options and crossing the border to enjoy the mainland\u2019s wide range of shopping and dining options with better value for money. Shop owners and analysts alike point to the Northbound Travel for Macau Vehicles scheme as a significant contributor to this phenomenon, and a similar pattern has been observed in neighbouring Hong Kong.
\n\n\n\nRepresentatives from the Industry and Commerce Association of the Macau Northern District and the Macau Catering Industry Association have expressed serious concerns over the impact this trend is having on local small enterprise, citing a wave of business closures with numbers exceeding those during the pandemic in some areas. The predicament is easily understood as the result of an increase in commercial rents plus a decline in custom, particularly during weekends and holiday periods. But who can blame those northbound travellers? And what can be done to tackle the woes of the small, local shops serving residential zones? The first question may be rhetorical, but the second warrants serious thought and a nuanced approach.
\n\n\n\nThe Northbound Travel for Macau Vehicles programme could have been rolled out more gradually, but now there\u2019s no going back, despite the double-edged sword it presents to local residents and businesses. The government appears to be aware of the problem, having launched important initiatives aimed at boosting the attractiveness of residential areas and of consumption there, which include revitalisation projects undertaken in tandem with gaming operators in order to break the monopolisation of tourists\u2019 time by the integrated resorts and major tourist zones. These initiatives may not yield immediate sound results, however. Effective outcomes may only materialise in a future that may be too late for the number of small shops already running on borrowed time.
\n\n\n\nThe Government should provide additional tools, even life jackets, if needed, for those fighting hard to keep heads above choppy water
A pure, supply-and-demand, free-market approach requires local shops to adapt or perish, to adjust and innovate or fade into obsolescence. And while it\u2019s true that market rules will prevail and these businesses must strategize, the fact remains that for a number of them it will be a challenge in some ways tougher than the pandemic. They simply won\u2019t make it unless \u201cshopping small\u201d in Macau is afforded an adequate level of support and protection.
\n\n\n\nWhen Ho Iat Seng returns for a Legislative Assembly Q & A later this month, these issues will likely be foremost among the legislators\u2019 and community representatives\u2019 concerns. One hopes the Chief Executive won\u2019t downplay these worries but will instead provide additional tools, even life jackets, if needed, for those fighting to keep heads above choppy water. That sinking feeling is a recipe for disengagement.
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/share-of-voice-kun-iam-150x150.jpg\")
\nMacau Business Editorial |March 2024| By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nMacau ushered in the Year of the Dragon in style and with a bang. Tourist arrivals came close to equalling pre-pandemic levels, and gaming revenue remained solid in February, even if slightly down on January\u2019s number. The city\u2019s macroeconomic figures continue to shine, with gross domestic product jumping 80.5 per cent year-on-year in 2023. Projections show another double-digit increase in the cards for 2024 (a per cent in the low teens), one that will bring the city\u2019s economic output to 90 percent of pre-pandemic 2019 levels.
\n\n\n\nYet we mustn\u2019t let the torrent of good news wash away those hard-earned miles we put between us and the \u2018good-old-heyday-when-the-sky-was-the-limit\u2019 way of thinking. Not to dampen the upbeat atmosphere, but it\u2019s easily to see not all is well in paradise. There has been a lot of recent focus on \u201ctelling the good stories\u201d, but the storytelling from the news media and journalism is not fairy tales; we should strive for fair, balanced reporting ever in pursuit of accuracy, public interest, and editorial independence. In an increasingly global polarised environment, we seem to find ourselves being forced to take sides \u2013 to choose between gloom and doom and everlasting sunshine and rainbows. Reality is far more nuanced than that.
\n\n\n\nWhile last year\u2019s results bode well for Macau\u2019s economic recovery, geopolitical and nationwide uncertainties remain key factors. The mainland\u2019s post-pandemic rebound has fallen short of expectations. And beyond the official figures, goings-on at street level, too, are cause for concern. Central authorities acknowledged this fact just prior to the opening on March 4 of this year\u2019s \u201cTwo Sessions\u201d \u2013 meetings of the country\u2019s top legislative body (NPC) and advisory body (CPPCC). While sceptics foresee China struggling to escape the so-called \u201cmiddle-income trap\u201d, others put things in perspective, comparing the Chinese economy to major powerhouses around the world and indicating that the mainland’s property market and youth unemployment woes are being addressed, with a new economic model emerging grounded in high-quality development.
\n\n\n\nOur city can navigate that course, aligned with national and regional development strategies, without losing its own voice \u2013 one of diversity, one that speaks for both citizens and businesses.
Should these challenges be tackled through demand-side economics or a supply-side approach? What might the right mix be?
\n\n\n\nRecent months have seen the Central Bank roll measures out including cutting the reserve requirement ratio for commercial banks, an adjustment aimed at boosting lending and injecting liquidity into the market. Some observers, however, make the case for bold, rather than piecemeal, moves, citing the need to massively spur consumption and prevent potential deflationary spirals. While it\u2019s not yet known if or when a massive stimulus package will come to fruition, Beijing has named reversing capital outflows and attracting a fresh influx of foreign direct investment as fundamental tasks. The new visa scheme designed to facilitate foreign tourism and business visitation is certainly a welcome measure, alongside other (re)opening-up policies. But does all of this go far enough?
\n\n\n\nAnd can Macau remain insulated from it all? Hardly. An increasingly robust economic recovery in the mainland, one that must remain sound, is key. It\u2019s true that Macau has been enjoying a windfall of visitation and spending from across the border, but the city\u2019s property market continues to stagnate, and concerns over current and future disposable income have not been put to rest. Against this backdrop, the impossibility of harnessing externalities notwithstanding, the right domestic public policies could make a difference in our city. While continuous support from the Central Government is an absolutely necessary condition, will it be enough, if the local government and bureaucratic and business elites fail to live up to the highly demanding tasks facing the SAR in years to come? The course is set, measures are being adopted, but of paramount importance is actually going beyond slogans and injecting more substance into the buzzwords.
\n\n\n\nOur city can navigate that course, aligned with national and regional development strategies, without losing its own voice \u2013 one of diversity, one that speaks for both citizens and businesses. That share of voice will certainly be heard, and it will be heeded \u2013up North and right here, down-to-earth.
\n", "content_text": "Macau Business Editorial |March 2024| By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nMacau ushered in the Year of the Dragon in style and with a bang. Tourist arrivals came close to equalling pre-pandemic levels, and gaming revenue remained solid in February, even if slightly down on January\u2019s number. The city\u2019s macroeconomic figures continue to shine, with gross domestic product jumping 80.5 per cent year-on-year in 2023. Projections show another double-digit increase in the cards for 2024 (a per cent in the low teens), one that will bring the city\u2019s economic output to 90 percent of pre-pandemic 2019 levels. \n\n\n\n\n\n\n\nYet we mustn\u2019t let the torrent of good news wash away those hard-earned miles we put between us and the \u2018good-old-heyday-when-the-sky-was-the-limit\u2019 way of thinking. Not to dampen the upbeat atmosphere, but it\u2019s easily to see not all is well in paradise. There has been a lot of recent focus on \u201ctelling the good stories\u201d, but the storytelling from the news media and journalism is not fairy tales; we should strive for fair, balanced reporting ever in pursuit of accuracy, public interest, and editorial independence. In an increasingly global polarised environment, we seem to find ourselves being forced to take sides \u2013 to choose between gloom and doom and everlasting sunshine and rainbows. Reality is far more nuanced than that.\n\n\n\nWhile last year\u2019s results bode well for Macau\u2019s economic recovery, geopolitical and nationwide uncertainties remain key factors. The mainland\u2019s post-pandemic rebound has fallen short of expectations. And beyond the official figures, goings-on at street level, too, are cause for concern. Central authorities acknowledged this fact just prior to the opening on March 4 of this year\u2019s \u201cTwo Sessions\u201d \u2013 meetings of the country\u2019s top legislative body (NPC) and advisory body (CPPCC). While sceptics foresee China struggling to escape the so-called \u201cmiddle-income trap\u201d, others put things in perspective, comparing the Chinese economy to major powerhouses around the world and indicating that the mainland’s property market and youth unemployment woes are being addressed, with a new economic model emerging grounded in high-quality development.\n\n\n\nOur city can navigate that course, aligned with national and regional development strategies, without losing its own voice \u2013 one of diversity, one that speaks for both citizens and businesses.\n\n\n\nShould these challenges be tackled through demand-side economics or a supply-side approach? What might the right mix be? \n\n\n\nRecent months have seen the Central Bank roll measures out including cutting the reserve requirement ratio for commercial banks, an adjustment aimed at boosting lending and injecting liquidity into the market. Some observers, however, make the case for bold, rather than piecemeal, moves, citing the need to massively spur consumption and prevent potential deflationary spirals. While it\u2019s not yet known if or when a massive stimulus package will come to fruition, Beijing has named reversing capital outflows and attracting a fresh influx of foreign direct investment as fundamental tasks. The new visa scheme designed to facilitate foreign tourism and business visitation is certainly a welcome measure, alongside other (re)opening-up policies. But does all of this go far enough? \n\n\n\nAnd can Macau remain insulated from it all? Hardly. An increasingly robust economic recovery in the mainland, one that must remain sound, is key. It\u2019s true that Macau has been enjoying a windfall of visitation and spending from across the border, but the city\u2019s property market continues to stagnate, and concerns over current and future disposable income have not been put to rest. Against this backdrop, the impossibility of harnessing externalities notwithstanding, the right domestic public policies could make a difference in our city. While continuous support from the Central Government is an absolutely necessary condition, will it be enough, if the local government and bureaucratic and business elites fail to live up to the highly demanding tasks facing the SAR in years to come? The course is set, measures are being adopted, but of paramount importance is actually going beyond slogans and injecting more substance into the buzzwords.\n\n\n\nOur city can navigate that course, aligned with national and regional development strategies, without losing its own voice \u2013 one of diversity, one that speaks for both citizens and businesses. That share of voice will certainly be heard, and it will be heeded \u2013up North and right here, down-to-earth.", "date_published": "March 08, 2024", "date_modified": "March 08, 2024 - 23:34", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/03/share-of-voice-kun-iam.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "Our city can navigate that course, aligned with national and regional development strategies, without losing its own voice \u2013 one of diversity, one that speaks for both citizens and businesses." }, { "id": "https://www.macaubusiness.com/editorial-holding-the-horses-releasing-the-dragons/", "url": "https://www.macaubusiness.com/editorial-holding-the-horses-releasing-the-dragons/", "title": "EDITORIAL \u2013 Holding the horses, releasing the dragons", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/Dragons-and-horses-150x150.png\")
\nMacau Business Editorial | February 2024| By Jos\u00e9 Carlos Matias \u2013 Director
The last time it was the Year of the Dragon (2012), Macau\u2019s Jockey Club (MJC) generated MOP356 million in gross gaming revenue (GGR). That was already half what it was in 2005, but it\u2019s nine times the meagre figure (MOP40 million) reported last year. To put things in perspective, while the take at the track in 2005 was just 1.38 per cent the amount of casino GGR, by 2023 that had been decimated to just 0.021 per cent. For the MJC\u2019s operator you could say the writing was on the wall and plain to see. It’s noteworthy to highlight that back in 2018 when its operating concession was renewed for an eyebrow-raising 24-year term, revenue had already dwindled to MOP101 million.
\n\n\n\nThe termination of the MJC\u2019s concession contract sees the city bid farewell to yet another gambling activity, six years after the closure of the Canidrome spelled the end for dog racing (a wise move and long-overdue in the case of the greyhounds). Remaining forms of gambling such as lotteries and sports betting are dwarved by the overwhelming hegemony of casino games of fortune. Within the gaming activities sector, diversification is a figment.
\n\n\n\nBeyond gaming, the MJC saga invites present discussion of the contract extension that was granted in the past and what use will be made of the site\u2019s precious land in the future. Both are addressed in this issue of Macau Business and will most likely see relevant developments in the not-so-distant future.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/02/MBFev24_Cover_final-780x1028.jpg\")
Also taking centre stage this month are the city\u2019s birth rate, fertility and overall demographic trends. Macau\u2019s famous \u201cdragon babies\u201d, born in an auspicious 2012 with 7,315 live births, will celebrate their 12th birthdays this year. It\u2019s a figure that has seen a steady decline, down year-on-year with the exception of 2014, with births in 2022 at just 60 per cent of the 2012 Dragon Year\u2019s total. This issue\u2019s special report delves into the multifaceted repercussions of a declining birth rate \u2013 a problem shared by a number of highly developed economies and one that is becoming an increasingly persistent challenge both here and over the border. The matter is now ensconced on the city\u2019s agenda, as evidenced by exchanges between legislators and the government, but so far any response has been piecemeal. While there\u2019s no magic elixir, due attention could be paid and an integrated package of measures and long-term policies adopted \u2013 not just to boost the birth rate but also to better address the city\u2019s ageing population, with Macau (thankfully) ranking second in the world for life expectancy (just behind Hong Kong).
\n\n\n\nIn his New Year Message for the Year of the Water Dragon, 2012, then Chief Executive Chui Sai On pledged to \u201ctake the necessary initiatives to realise the \u2018world centre of tourism and leisure\u2019 project, committing to consolidating existing advantages and promoting the appropriate diversification of the economy\u201d.
\n\n\n\nA similar, more emphatic message was conveyed by the current SAR leader, Ho Iat Seng, in his address for this year.
\n\n\n\nIn this Year of the Wood Dragon, 2024, will we hold our horses \u2013 or release the dragons?
\n\n\n\n\u9f8d\u99ac\u7cbe\u795e! \u00b7 Happy Chinese New Year of the Dragon! \u00b7 Kung Hei Fat Choi!
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/01/CKK_4674-696x464-150x150.jpg\")
\nMacau Business Editorial | January 2024 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\n“Has gaming in Macau become ‘that which must not be named?'”, someone asked at a conference elsewhere in the Asia-Pacific region last year.
\n\n\n\nWhile it might be overstating things to give it taboo status just yet, the question does reflect a perception around the broader issue of the 2022 gaming public tender\u2019s non-gaming focus and the magnitude of the operators\u2019 commitments on non-gaming investments under the new gaming concessions.
\n\n\n\nAt some point, a couple of years ago, some voices even speculated about whether the authorities\u2019 endgame might involve phasing out casino gaming in the mid-to-long term. After all, how could the industry continue to shine with the near extinction of junkets (and the significant funds they brought in) and the screw-tightening from new gaming-related regulations and measures being implemented locally and across the border?
\n\n\n\nOne year into the gaming industry\u2019s ‘new era’ has shown us those concerns \u2013 though understandable at the time \u2013are thankfully not holding water. Macau\u2019s resilience combined with its persistent allure, especially for those hailing from mainland China and Hong Kong, resulted in sound recovery for gross gaming revenue (GGR) in 2023 (MOP183 billion), which despite being just 62 per cent of pre-pandemic levels is way beyond the most optimistic guesses hazarded a year ago. More importantly, year-end GGR figures (December) recovered to 81 per cent of 2019 levels.
\n\n\n\nSome analysts are already belittling the Government\u2019s MOP216 billion GGR forecast for 2024 as \u201ceasily surpassed\u201d. As our readers will know, we are not in the habit of jumping on the crystal ball bandwagon: we neither bought into astronomic sky\u2019s-the-limit predictions during the last decade\u2019s heyday nor foretold of the \u201ccoming collapse\u201d at the low-ebb of COVID-19, particularly in 2022. What is crystal clear, though, is that the pace of recovery bodes well not only for Macau\u2019s economy but for the new gaming revenue structure that emerged in the post-pandemic part of last year. The much-anticipated rise to supremacy of mass-market GGR is now a reality (with late 2023 levels outpacing 2019 levels), and VIP-generated revenue has taken a back seat. Nevertheless, as we explore in this issue\u2019s special report, the junket sector\u2019s near-demise was not an extinction event for high rollers. Far from it. Experts in our special report reveal they can still be found in company-direct VIP rooms and on gaming floors \u2013 as premium-mass customers.
\n\n\n\nWhat this suggests is that post-COVID pent-up demand and management by authorities on both sides (SAR and mainland) have been key factors, the latter reflecting an essential political dimension that warrants deeper analysis. Add to that the operators\u2019 ability to adjust to an evolving and more sophisticated clientele, and this is where we find an integrated, organic intertwining of gaming and non-gaming: namely through providing new experiences for visitors in terms of shows, performing arts, entertainment, sports events, dining, retail, and so on. Indeed, \u201cdiversification\u201d is no longer just a buzzword; it\u2019s now also the keyword. And we\u2019re already seeing results. Yet it\u2019s only early stage in the 10-year concession period, and there is still a long way to go to reach the ambitious targets set by both government and operators.
\n\n\n\nIt would be a disappointment to see the city resign itself to its massive Greater China market comfort zone, failing to live up to the World Tourism and Leisure Centre mantra. Yet with the tourism authorities showing themselves increasingly proactive in promoting the SAR abroad, alongside the \u201cBig Six\u201d and other players, it\u2019s within reason to hope for a much-needed boost in international visitation this year. To that end, more flights, easier mobility and skilled multilingual professionals will be key.
\n\n\n\nMeanwhile, the laudable focus on Macau\u2019s urban revitalisation and its \u201cCity of Performing Arts\u201d and \u201cCity of Sports\u201d ambitions is being delivered in a de facto \u201cpublic-private partnership\u201d between the government and gaming concessionaires. But therein lies an important duty to fine-tune those arrangements and keep an eye out for dysfunctions.
\n\n\n\nRather than ‘that which must not be named’, the history of Macau has shown gaming to be the ‘Chosen One’. And while addressing its side effects, a focus on maximising the gaming industry\u2019s contribution for the greater public good while fostering diversified, inclusive, and sustainable economic development stands as the quintessential undertaking for the SAR in this decade. What awaits us further down the road hinges on getting this leg of the journey right.
\n", "content_text": "Macau Business Editorial | January 2024 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\n“Has gaming in Macau become ‘that which must not be named?'”, someone asked at a conference elsewhere in the Asia-Pacific region last year. \n\n\n\nWhile it might be overstating things to give it taboo status just yet, the question does reflect a perception around the broader issue of the 2022 gaming public tender\u2019s non-gaming focus and the magnitude of the operators\u2019 commitments on non-gaming investments under the new gaming concessions. \n\n\n\n\n\n\n\nAt some point, a couple of years ago, some voices even speculated about whether the authorities\u2019 endgame might involve phasing out casino gaming in the mid-to-long term. After all, how could the industry continue to shine with the near extinction of junkets (and the significant funds they brought in) and the screw-tightening from new gaming-related regulations and measures being implemented locally and across the border?\n\n\n\nOne year into the gaming industry\u2019s ‘new era’ has shown us those concerns \u2013 though understandable at the time \u2013are thankfully not holding water. Macau\u2019s resilience combined with its persistent allure, especially for those hailing from mainland China and Hong Kong, resulted in sound recovery for gross gaming revenue (GGR) in 2023 (MOP183 billion), which despite being just 62 per cent of pre-pandemic levels is way beyond the most optimistic guesses hazarded a year ago. More importantly, year-end GGR figures (December) recovered to 81 per cent of 2019 levels.\n\n\n\nSome analysts are already belittling the Government\u2019s MOP216 billion GGR forecast for 2024 as \u201ceasily surpassed\u201d. As our readers will know, we are not in the habit of jumping on the crystal ball bandwagon: we neither bought into astronomic sky\u2019s-the-limit predictions during the last decade\u2019s heyday nor foretold of the \u201ccoming collapse\u201d at the low-ebb of COVID-19, particularly in 2022. What is crystal clear, though, is that the pace of recovery bodes well not only for Macau\u2019s economy but for the new gaming revenue structure that emerged in the post-pandemic part of last year. The much-anticipated rise to supremacy of mass-market GGR is now a reality (with late 2023 levels outpacing 2019 levels), and VIP-generated revenue has taken a back seat. Nevertheless, as we explore in this issue\u2019s special report, the junket sector\u2019s near-demise was not an extinction event for high rollers. Far from it. Experts in our special report reveal they can still be found in company-direct VIP rooms and on gaming floors \u2013 as premium-mass customers.\n\n\n\nWhat this suggests is that post-COVID pent-up demand and management by authorities on both sides (SAR and mainland) have been key factors, the latter reflecting an essential political dimension that warrants deeper analysis. Add to that the operators\u2019 ability to adjust to an evolving and more sophisticated clientele, and this is where we find an integrated, organic intertwining of gaming and non-gaming: namely through providing new experiences for visitors in terms of shows, performing arts, entertainment, sports events, dining, retail, and so on. Indeed, \u201cdiversification\u201d is no longer just a buzzword; it\u2019s now also the keyword. And we\u2019re already seeing results. Yet it\u2019s only early stage in the 10-year concession period, and there is still a long way to go to reach the ambitious targets set by both government and operators.\n\n\n\nIt would be a disappointment to see the city resign itself to its massive Greater China market comfort zone, failing to live up to the World Tourism and Leisure Centre mantra. Yet with the tourism authorities showing themselves increasingly proactive in promoting the SAR abroad, alongside the \u201cBig Six\u201d and other players, it\u2019s within reason to hope for a much-needed boost in international visitation this year. To that end, more flights, easier mobility and skilled multilingual professionals will be key.\n\n\n\nMeanwhile, the laudable focus on Macau\u2019s urban revitalisation and its \u201cCity of Performing Arts\u201d and \u201cCity of Sports\u201d ambitions is being delivered in a de facto \u201cpublic-private partnership\u201d between the government and gaming concessionaires. But therein lies an important duty to fine-tune those arrangements and keep an eye out for dysfunctions.\n\n\n\nRather than ‘that which must not be named’, the history of Macau has shown gaming to be the ‘Chosen One’. And while addressing its side effects, a focus on maximising the gaming industry\u2019s contribution for the greater public good while fostering diversified, inclusive, and sustainable economic development stands as the quintessential undertaking for the SAR in this decade. What awaits us further down the road hinges on getting this leg of the journey right.", "date_published": "January 07, 2024", "date_modified": "January 08, 2024 - 23:24", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2024/01/CKK_4674-696x464.jpg", "tags": [ "Editorial", "Gaming", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "A focus on maximising the gaming industry\u2019s contribution for the greater public good while fostering diversified, inclusive, and sustainable economic development stands as the quintessential undertaking for the SAR in this decade. What awaits us further down the road hinges on getting this leg of the journey right." }, { "id": "https://www.macaubusiness.com/editorial-the-blink-of-an-eye/", "url": "https://www.macaubusiness.com/editorial-the-blink-of-an-eye/", "title": "EDITORIAL \u2013 The blink of an eye", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/12/eye-blink2-150x150.jpg\")
\nMacau Business Editorial |December 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWhat a difference a year makes. Last year, just as we were finally glimpsing the light at the end of the ‘zero-COVID’ tunnel, there was a sudden \u2013 somewhat unexpected but absolutely necessary and overdue \u2013 departure from pandemic restrictions. We all tend to somehow bury that three-year period in our memory \u2013 suspended as a sort of alternative timeline \u2013 and then bridge from late 2019 straight to early 2023.
\n\n\n\nBut we all know it’s not that simple. Unsurprisingly, we were never going to emerge from those years unscathed, coinciding as they did with heightened geopolitical tensions globally and transformations in the SARs internally.
\n\n\n\nNevertheless, as those who refused to hear the mantra of ‘the end is nigh’ stressed, ‘We will always have Macau,’ and whoever is long on Macau reaps benefits. Despite lingering problems, what we have witnessed in 2023 conspicuously validates that sentiment.
\n\n\n\nStill, no matter how unique this place is, we do not live in a bubble. The SAR is undoubtedly impacted by domestic, national and global developments.
\n\n\n\nThe fourth quarter of the year has brought an important reminder that global interdependence mandates a return to a managed (cooperation and rivalry) model that ‘sets the floor’ for relations between the two top powerhouses of our era \u2013 China and the United States \u2013 as indicated when the leaders of both countries met in mid-November. A few days earlier, the visit by Australia\u2019s Prime Minister to China embodied a much-welcomed change of tone and substance in relations between Canberra and Beijing.
\n\n\n\nWhile thorny issues remain, the prospect of a ‘stabilizer’ is prerequisite to finding a way forward. Still, we all know that risks loom large, and in that respect, the world in 2024 is poised for pivotal political events, among them January\u2019s elections in Taiwan, the European Parliament elections in June and the US presidential vote in November. All of this will take place against the backdrop of ongoing armed conflicts in Ukraine and the Middle East, with the engines of growth in the international economy struggling to gain steam. According to the International Monetary Fund (IMF), the average growth rate of advanced economies is forecast to slow to 1.4 per cent in 2024.
\n\n\n\nMacau, with its idiosyncratic economic structure, is set to continue its stellar expansion of gross domestic product (GDP): from 74.4 per cent estimated for this year to 27.2 per cent in 2024. It’s worth noting, however, that if the IMF\u2019s prediction is met, the city will still only have recovered to 88 per cent of pre-pandemic (2019) levels by next year.
\n\n\n\nAs we are aware, the lion\u2019s share of the SAR\u2019s GDP is related to exports of services: gaming and tourism. In this respect, the recovery trend seems sound, though one should keep an eye on the pace of economic growth in the region\u2019s major source market of visitors, mainland China, and how disposable income will expand alongside the approach to capital (out)flows. The impact of the recent stimulus measures adopted by the Central Government and the prospect of additional, perhaps bolder, moves in early 2024 will determine not only China\u2019s growth rate but also how it will contribute to offsetting the sluggish performance of advanced economies. Macau would obviously benefit from the spillover effect of a larger-scale stimulus package, as seen in the aftermath of the 2008 financial crisis. In any case, the spectre of a mammoth hot money bundle like the one we saw back then understandably haunts policymakers.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/12/MB236_Dec2023_Cover-781x1028.jpg\"){kind=spacer}
With the local economy in sound recovery mode, the case for a more expansionary budget may seem counterintuitive, but we would call it necessary. In that respect, while it was wise and key to continue key social welfare policies and resume others, including a salary hike for civil servants, maintaining the pandemic-era cuts to public service expenditure is questionable and out of sync. One mustn\u2019t forget that procurement of goods and services by the Administration can be critical for local SMEs, which deserve to be stimulated alongside an integrated \u2013 not piecemeal \u2013 set of measures. It would be wrong and a mistake to sweep these woes under the rug.
\n\n\n\nBeing the last year of Ho Iat Seng\u2019s first term and a year filled with momentous milestones, namely the Chief Executive election, the appointment of high-ranking officials for a new term, the 25th anniversary of the establishment of the Macau SAR, and the sixth Forum Macau ministerial conference, effective management of time and allocation of resources in 2024 will be key to making up for the lost time during the pandemic and meeting important development targets in the SAR and in Hengqin\u2019s In-depth Cooperation Zone, which is set to take a more centre stage position in the concrete steps and results. Hopefully, all in time for the anticipated visit of President Xi Jinping, expected to be held around December 19/20.
\n\n\n\nA year can make a difference, but time flies in the blink of an eye.
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/Pudding-150x150.png\")
\nMacau Business Editorial |November 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
“A goal without a plan is just a wish,” Antoine de Saint-Exup\u00e9ry tells us in The Little Prince.
\n\n\n\nThankfully, Macau has no shortage of plans charting paths towards its multiple goals. Just the last two years have brought us the General Plan for building a Guangdong-Macau In-depth Cooperation Zone in Hengqin [September 2021], the Second Five-Year Plan for Economic and Social Development (2021\u20132025) [December 2021], and the Development Plan for Adequate Economic Diversification of the Macau SAR (2024\u20132028) [just launched].
\n\n\n\nThese blueprints converge on a pivotal a direction: towards a more diversified and sustainable economic structure that is less reliant on gaming, articulation and coordination with the development of Hengqin and the wider Greater Bay Area, and integration of the city into the national development processes.
\n\n\n\nA formula has been emerging, one that now takes centre stage in the newly announced diversification blueprint: “1+4”. This sum represents integrated Tourism & Leisure being supplemented by the four \u201cemerging\u201d industries of Big Health (with a focus on Traditional Chinese Medicine), Modern Finance, High & New Technology, and the Conventions & Exhibitions, Sports and Commercial & Trade Industries. A closer look at two primary, overall goals \u2013 namely decreasing gaming\u2019s share of the overall economy and lessening the government’s reliance on taxes from gaming in the total tax revenue mix \u2013 reveals two different measurements of attainment. While the Plan aims to bring the proportion of gaming\u2019s gross added value down to about 40 per cent by 2028 (from 51 per cent in 2019) \u2013 an ambitious goal \u2013 its target for the reduction of dependence on gaming revenue amounts to merely “attaining a lower level than in 2019\u201d. How do we make sense of this? Is there something to unpack in this apparent disparity?
\n\n\n\nAchieving a level of tax revenue reliance on gaming simply lower than the 84.8 per cent rate recorded in 2019 is a goal that is not just vague but easy to reach. It goes without saying that 2019 saw the city\u2019s peak reliance on gaming taxes for the recent period (at least since 2014, judging from the detailed information available at the Financial Services Bureau website). This indicates a sparing approach on the part of authorities when quantifying this goal.
\n\n\n\nAnd that may well be understandable, given that taxation on gaming is entirely different from that levied on other industries. However, it suggests there is low confidence in a significant reduction of the SAR\u2019s reliance on gaming for current revenue.
\n\n\n\nOn the other hand, increasing non-gaming\u2019s economic share from 49 per cent (in pre-Covid 2019) to around 60 per cent (by 2028) seems a more daring aim. Is it achievable? While t will certainly depend on a number of factors, it may not be a bridge too far. In 2016, for instance, non-gaming reached 53.6 per cent.
\n\n\n\nOne should underline here the relevance of listing 81 priority projects within the “1+4” framework. Nevertheless, the Blueprint tends to be somewhat vague concerning more specific and quantifiable targets for the “emerging” industries, opting for the phrase “improvement from previous levels.” While this qualitative assessment allows for goals to be achieved, for anyone anticipating a plan with a comprehensive set of concrete objectives, it falls short of the mark.
\n\n\n\nStill, there are notable exceptions in the Blueprint indicating less guarded optimism, such as the heightened numbers for tertiary education programs, MICE events in general and internationally accredited and professionals involved in the convention and exhibition sector. Other encouraging targets concern high technology, with the Government pledging a substantial MOP 5 billion in accumulated investment in research and development. The focus on enhancing overseas ties and attracting startups and innovation companies from abroad, namely from Portugal and Brazil, is a forward-looking policy that can solidify the city\u2019s Sino-Lusophone platform and bring new value to both Macau and Hengqin.
\n\n\n\nIn the background, everyone will understand that support from the Central Government is absolutely crucial, and that recovery of the gaming industry to steady healthy levels \u2013 like those seen in the latest figures \u2013 is a key pre-requisite to all these financial resources and investments being able to move forward.
\n\n\n\nIt has been said before \u2013 and local officials have mentioned it too, to a degree \u2013 but let us reiterate: pragmatism, realism, flexibility, wise public policies and government guidance, and perhaps most importantly a market-oriented attitude will be crucial to converting wishes into tangible goals. To this recipe we add: avoidance of both wishful thinking and the temptations of hubris.
\n\n\n\nIn the end, beyond the visionary plans and quantitative and qualitative goals, the proof is in the pudding.
\n\n\n\nAll aboard? The \u201cadequate\u201d diversification train is departing, destination 2028.
\n\n\n\nBest wishes!
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/11/MB235_Nov2023_Cover1-781x1028.jpg\"){kind=spacer}
Beyond the specific \u201c1+4\u201d box, a more ambitious approach to attracting foreign direct investment in general could well be embraced. An improvement of investment laws and regulations, coupled with an upgrade of the status of imported top executives and skilled professionals (beyond that set out in the newly established talent attraction scheme), would be highly beneficial.
\n\n\n\nIn this respect, the proposals put forth at the latest seminar held by the Portugal-China Chamber of Commerce and industry for Macau to become a hub where multinationals can set up their Asia headquarters deserve attention.
\n\n\n\nThe first time I had the chance to take a closer look at Li Keqiang was in October 2007, when I was in Beijing as a reporter covering the 17th Congress of the Communist Party of China (CPC) in Beijing. Back then, all eyes were on two leading figures of the fifth generation, as it was then known, who were promoted to the Standing Committee of the Politburo of the CPC: Xi Jinping and Li Keqiang. Shortly thereafter, Li would become Vice Premier and then in 2013 Premier of the State Council, a position he held for 10 years until March of this year.
\n\n\n\nThe second time was in Macau, in 2016, when Li presided over the opening of the Ministerial Conference of the Forum Macau. Li\u2019s three-day visit to the SAR was filled with announcements of measures to support the city\u2019s economy and its function as a Sino-Lusophone hub, along with visits to tourist spots where he was warmly greeted. The role of the mild-mannered premier, who was trained as a legal expert first and then went on to earn a PhD in economics, was highlighted in the official obituary. Among other achievements and contributions, he “consistently advanced the reforms to develop the socialist market economy and struck a proper balance between the government and the market\u201d.
\n\n\n\nIn his later years, one of his signature quotes was “The Yellow River and Yangtze River will not flow backward”, indicating that “China’s reform and opening-up will continue to move forward\u201d.
\n\n\n\nHis sudden passing at the age of 68 in late October came as a shock. Li Keqiang’s legacy of public service to the nation and contributions to global development will endure.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/10/Confidence-150x150.jpeg\")
\nMacau Business Editorial |October 2023| By Jos\u00e9 Carlos Matias \u2013 Director
Confidence is a quintessential yet somewhat elusive concept and factor in economics. One thing is certain: \u201cconfidence is a self-fulfilling prophecy\u201d. In other words, if consumers and businesses lose confidence in the future, they are less likely to spend and invest, and that ultimately leads to the economic stagnation they feared in the first place. Conversely, when consumers and investors are confident about the economy, they tend to increase consumption and investment based on an assumption those investments will yield real returns. Thus, confidence and expectations are intrinsically linked.
\n\n\n\nWhat we are witnessing in Macau is indeed encouraging: a robust economic recovery with major indicators showing clear improvement, led by the city\u2019s core industries (tourism and gaming) which naturally serve as \u201chead of the dragon\u201d. However, the trickle-down effect for some of the region\u2019s other business activities has not been immediate, and a conspicuously uneven recovery pattern has emerged.
\n\n\n\nOn the small enterprise front, while those operating in tourist spots have reaped the benefits of the impressive resurgencein visitation other businesses in residential areas are faced with a much less optimistic picture. Many small shops are still struggling to regain their footing.
\n\n\n\nThe impact of the double-edged sword that is the Northbound Travel for Macau Vehicles policy is certainly being felt by many of these small businesses.
\n\n\n\nLooking ahead, the authorities\u2019 emphasis on community tourism is wise and is set to yield positive results as the revitalization projects for old neighbourhoods \u2013 conducted jointly between the Government and the six gaming operators \u2013 begin to take shape.
\n\n\n\nIn terms of investment, overall business investor confidence and investment in real estate are closely intertwined, making the result of a land auction for two parcels in Taipa of considerable concern: just one company came forward to bid on the two plots. Considering this is the first land auction to be held in the SAR since 2008, this undoubtedly represents an undesirable development. Persistent nationwide property-sector woes combined with global economic uncertainty and a high interest-rate cycle to make the environment far from conducive for a successful tender.
\n\n\n\nThe Chief Executive acknowledged this, stating the Government would give the private property sector time to recover before the next land auction. It would be unfortunate indeed to witness another missed opportunity at instilling investor confidence.
\n\n\n\nAhead of the 2024 Policy Address and Budget, Ho Iat Seng also announced that existing social welfare measures will stay in place and that civil servants will see a salary increase. These are important moves towards ensuring social stability and consumer confidence, which should be accompanied by bold and innovative measures to support SMEs. Indeed, improving people\u2019s livelihood was identified as one of four key priorities for elevating the city\u2019s development highlighted by Chief Executive Ho Iat Seng at the reception commemorating the National Day of the People\u2019s Republic of China, alongside a focus on safeguarding national security, expediting \u201cappropriate economic diversification\u201d and promoting the development of Hengqin island.
\n\n\n\nIn addition to the upcoming Policy Address, all eyes will be on the soon-to-be-announced economic diversification blueprint expected to outline concrete steps towards appropriate (we assume pragmatic and market-oriented) diversification.
\n\n\n\nThis process is closely intertwined with development of and integration with the Guangdong-Macau In-depth Cooperation Zone in Hengqin.
\n\n\n\nThe forthcoming new customs management model, to operate under a \u201cfirst-line, second-line\u201d system designed to streamline the movement of goods across the border, is a key step along with various other important measures, as detailed by Hengin\u2019s Economic Development Bureau Director Ant\u00f3nio Lei in an interview for this issue of Macau Business.
\n\n\n\nThe way forward: expedite these steps to bring results closer to expectations. Doing so will eliminate the need for a leap of faith, instead providing the confidence to partake in that promised (is)land lying just a stone\u2019s throw away.
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/09/window-150x150.jpg\")
\nMacau Business Editorial |September 2023| By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThere is a famous quote from Deng Xiaoping, late leader and visionary architect of China’s remarkable era of opening up and reform: \u201cIf you open the window for fresh air, you have to expect some flies to blow in\u201d. And, while flies are a natural part of our environment that mustn\u2019t be eradicated, too many flies indoors can be a nuisance to say the least. Does that mean we ought to swiftly close the window again? Absolutely not. Our current leaders are hopefully aware of the grave mistake in making such a move.
\n\n\n\nNonetheless, the three-year closure brought on by the pandemic has provided a setback to openness. And despite repeated commitments and moves to embracing an effective return to normalcy, substantial results have yet to materialise in some ways. On a macro level, not only do the oft-heard \u201cde-coupling\u201d and \u201cself-reliance\u201d mantras offer no viable solutions for a more balanced international political economy, they entail a multitude of risks.
\n\n\n\nIn our city, the current Zeitgeist (spirit of our times) is palpable, even as we undo the pandemic\u2019s closures and endeavour to reverse their effects. As a small and open economy, Macau is susceptible to a wide array of exogenous factors that make forecasting and planning a formidable challenge. Nevertheless, there is a perplexing apparent contradiction between the wisdom and vision of the five-year plans and long-term blueprints handed down, and the often short-term, reactive approaches adopted by the local authorities to some matters.
\n\n\n\nTangible results will require bold strategies, not a piecemeal approach, and the sooner, the better. Though Macau has indeed experienced a remarkable post-pandemic recovery surpassing even the most optimistic of expectations, business as usual without innovation is simply not a viable option for the longer term. It\u2019s a sentiment that has been made explicit or at least implied by the government on multiple occasions.
\n\n\n\nIf we are to move beyond merely paying lip service to lofty slogans, there must be true commitment manifested in concrete actions. When it comes to the new talent-attraction scheme, ensuring mobility between Macau and Hengqin and addressing the needs of local SMEs and Macau\u2019s youth, there is little room for failure.
\n\n\n\nHo Iat Seng\u2019s next Policy Address is therefore of paramount importance, as it will be the first delivered from steady, post-pandemic ground and the one that will encompass the last year of his first five-year term.
\n\n\n\nOn the human resources front, we would do well to note the more ambitious line pursued by Hong Kong authorities. The difference in size of the two SARs\u2019 economies notwithstanding, their official figures are impressive: as of last May \u2013 already six months into Hong Kong\u2019s new Top Talent Pass Scheme \u2013 authorities had already approved 49 thousand applications out of the 84 thousand received. Why doesn\u2019t our city take bolder, more assertive steps to ensure its attractiveness to top talent on a global scale?
\n\n\n\nDon\u2019t get me wrong; Macau is a pearl, a unique place where many non-locals can have a fruitful and unforgettable life experience. But there is still a huge cache of untapped potential to exploit, if the city can get this right. The truth, no matter how self-evident, remains: it\u2019s all about striking a balance between local and imported labour, between economic growth and sustainable development, between security and openness and innovation.
\n\n\n\nSo throw the windows open and don\u2019t panic about the flies; we need that big breath of fresh air.
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/08/san-ma-lo-1392x924-150x150.jpeg\")
\nMacau Business Editorial | August 2023| By Jos\u00e9 Carlos Matias \u2013 Director\u00a0
Now, more than half a year since Macau\u2019s reopening, the outlines of a \u201cnew normal\u201d are coming into focus. Gross gaming revenue has been hovering around MOP 15\u201316 billion per month since May, with July recording the city\u2019s best post-pandemic performance yet at MOP 16.6 billion.
\n\n\n\nAssuming that such monthly average does persist through the remainder of the year, not only will it comfortably exceed the government’s full-year MOP 130 billion forecast, it may also mean authorities can stop dipping into the city’s rainy-day fund. What a difference a year makes, considering last summer’s uphill battle under strict zero-COVID restrictions.
\n\n\n\nQuarterly results indicate operators now mostly find themselves on steady positive EBITDA ground or even returning to profit. It\u2019s a sunny recovery to bask in, having endured three challenging years of massive losses. Now these concessionaires are facing a new kind of challenge related to drafting and getting the government\u2019s green light for their blueprints for economic diversification in line with the terms of their new 10-year concession contracts.
\n\n\n\nWhat we\u2019re witnessing is in fact a new dynamic in the government\u2013operator relationship, one that sees concessionaires required to perform tasks formerly in the domain of government departments. Yet this has not been as smooth as public statements would have us believe. Even if this \u201ctall order\u201d was already in the cards given the extensive non-gaming requirements outlined in the recent public tender, filling it successfully \u2013 as plans turn to implementation \u2013 will require a flexible approach that avoids casting too wide a net.
\n\n\n\nTherein lies the heart of the issue: the roles of the government and gaming operators in the drive for moderate economic diversification.
\n\n\n\nMoving forward from the visionary, top-down design of the \u201c1+4\u201d formula, a realistic, pragmatic, adaptable approach will be key to avoiding the disappointment of a capability\u2013expectations gap.
\n\n\n\nWhat might we reasonably expect in terms of outcomes in the short, medium and long term?
\n\n\n\nThe newly launched consultation paper on the much-expected blueprint \u201cDevelopment Plan for Appropriate Economic Diversification of the Macau Special Administrative Region (2024-2028)\u201d elaborates on the existing strategy and sets a number of key targets for the upcoming five-year period.\u00a0
\n\n\n\nA realistic, pragmatic, adaptable approach will be key to avoiding the disappointment of a capability\u2013expectations gap
Experts have pointed out that we must first focus on the start of the formula \u2013 the “1+” stands for “Tourism+” \u2013 and capitalize fully on this strategy\u2019s potential. This approach is already taking shape and is expected to yield sound results in the short term. Integrating the other \u201c4\u201d components into the existing infrastructure and human capital will follow on from these efforts.
\n\n\n\n\u201cVertical\u201d diversification within city’s core industries (gaming/tourism) has been a recurring topic over the years. Now, the long-awaited momentum needed to achieve that reform at the highest level is finally building. As we\u2019ve emphasized before, human resources, customer service and infrastructure have critical parts to play. On the transportation front, the authorities\u2019 failure to address the city’s taxi woes in recent months is regrettable, especially with the SAR welcoming the return of mass tourism. Swift action is needed, but how exactly might the issues be resolved? Through a rapid and significant increase in the number of taxi licences, the introduction of Uber-like (or Didi-like) ride-sharing platforms, and enhanced oversight. There are abundant possibilities for improvement, provided these concerns do not continue to fall on deaf ears.
\n\n\n\nFor \u201chorizontal\u201d diversification in sectors other than tourism, attracting fresh foreign direct investment in the designated areas of high-tech, modern finance and big health is the way forward and certainly also the authorities\u2019 aim. That entails ambitious efforts to lure world-class players in these fields and then retain them with a compelling business environment case. Would Macau be punching above its weight? One can argue it\u2019s an ambition that is simply essential to making any strides, and that the effective upgrade of the city’s economic structure hinges on it. Meanwhile it pays to bear in mind that the \u201chorizontal\u201d approach to diversification is more of a long-term endeavour.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/08/MB-August-2023-784x1028.png\")
Transparency
\n\n\n\nThe controversy over the MOP 42-million plan to build a new Chinese deity statue in Coloane reminds us that expectations of transparency might still be a bridge too far in some cases. The government’s decision to halt the controversial project in response to resident opposition was the right move, as well as the explanations eventually provided by authorities and commitment to heed citizens’ views. However, questions linger over why the whole MOP 1.4-billion multi-functional youth activity compound plan was introduced in July without a public consultation.
\n\n\n\nUnderstandably, this case has struck a chord with local citizens, who rightly expect both transparency and accountability. One hopes a valuable lesson was learned.
\n\n\n\n\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/07/Editorial-photo-Macau-tourist2-150x150.jpg\")
\nMacau Business Editorial |July 2023| By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nIn 2022, a report by the United Nations Development Program warned of global disparity in post-pandemic economic recovery threatening to widen inequalities across Asia and the Pacific. More recently, in February 2023, the UN Commission for Social Development again highlighted \u201cwidening inequality gaps and crises in the labour market exacerbated by the COVID-19 pandemic.\u201d
\n\n\n\nThe view from here, in July 2023, shows Macau in undoubtedly a much better place, as the city enjoys a robust recovery fuelled by unflagging pent-up demand. Even earlier, during the pandemic, the SAR’s affluent reserves shielded it from certain dire social circumstances experienced by many other countries and regions around the world.
\n\n\n\nThe restoration of cross-border mobility and the revival of tourism have been a boon for the city’s economy across the board. Measures such as the recent Northbound Travel for Macau Vehicles policy have opened doors to unprecedented connectivity. This has sparked enthusiasm among many residents who eagerly spend their weekends and their money in the mainland, relishing the amenities and shopping and dining options available in the neighbouring province. This is a welcome move that provides local residents with first-hand knowledge and a better understanding of the remarkable developmental strides that have been achieved in the Greater Bay Area.
\n\n\n\nIn spite of these positive developments, however, the recovery map has begun to reveal disparities, showing this measure to be something of a double-edged sword. While integrated resorts and shops located in tourist spots reap abundant benefits from increased visitation, small businesses in specific sectors such as retail or food service operating in residential districts face a different reality, with sudden loss of income, as depicted in two features published in this issue of Macau Business. One can argue this is an expected outcome of increased mobility and competition and that small businesses must adapt and innovate.
\n\n\n\nWhile that is true, there is also a case to be made for assisting and protecting the local SME fabric. It’s important to ensure a win-win and not a zero-sum game. How could that be achieved? Perhaps, through a mixed package that combines direct and indirect stimuli targeted at local consumption with an assistance plan to equip these businesses with value-added tools, such as savvy usage of mainland social media platforms. Bolder moves to redirect visitor flows within the city from highly congested areas to some of the other, older neighbourhoods and residential zones would be critical, as well. The government, society and the business community need to acknowledge these uneven recovery patterns and together seek ways to ensure a balanced business environment alongside employment security and stability.
\n\n\n\nThe roll of the MICE
\n\n\n\nThe city’s economic recovery is evident not only in the influx of visitors, but also in the resurgence of robust MICE (Meetings, Incentives, Conferences and Exhibitions) activities, set to flourish even more in the second half of the year. The return of international trade shows like G2E Asia, taking place this month in a mixed format alongside the newly launched Asian IR Expo, and the magnitude of this year’s Macau International Travel (Industry) Expo and International Infrastructure Investment and Construction Forum, both held in June, bode well for numerous additional international events.
\n\n\n\nIn all of this, the ever-expanding people-to-people links, enhanced by deeper involvement from the gaming concessionaires, networks and exchanges, bring added value with anticipated long-term ripple effects. After all, within the \u201c1+4\u201d diversification strategy, MICE serves as a pivotal pillar offering the city greater opportunities to make immediate, tangible leaps forward.
\n", "content_text": "Macau Business Editorial |July 2023| By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nIn 2022, a report by the United Nations Development Program warned of global disparity in post-pandemic economic recovery threatening to widen inequalities across Asia and the Pacific. More recently, in February 2023, the UN Commission for Social Development again highlighted \u201cwidening inequality gaps and crises in the labour market exacerbated by the COVID-19 pandemic.\u201d\n\n\n\n\n\n\n\nThe view from here, in July 2023, shows Macau in undoubtedly a much better place, as the city enjoys a robust recovery fuelled by unflagging pent-up demand. Even earlier, during the pandemic, the SAR’s affluent reserves shielded it from certain dire social circumstances experienced by many other countries and regions around the world.\n\n\n\nThe restoration of cross-border mobility and the revival of tourism have been a boon for the city’s economy across the board. Measures such as the recent Northbound Travel for Macau Vehicles policy have opened doors to unprecedented connectivity. This has sparked enthusiasm among many residents who eagerly spend their weekends and their money in the mainland, relishing the amenities and shopping and dining options available in the neighbouring province. This is a welcome move that provides local residents with first-hand knowledge and a better understanding of the remarkable developmental strides that have been achieved in the Greater Bay Area. \n\n\n\nIn spite of these positive developments, however, the recovery map has begun to reveal disparities, showing this measure to be something of a double-edged sword. While integrated resorts and shops located in tourist spots reap abundant benefits from increased visitation, small businesses in specific sectors such as retail or food service operating in residential districts face a different reality, with sudden loss of income, as depicted in two features published in this issue of Macau Business. One can argue this is an expected outcome of increased mobility and competition and that small businesses must adapt and innovate. \n\n\n\nWhile that is true, there is also a case to be made for assisting and protecting the local SME fabric. It’s important to ensure a win-win and not a zero-sum game. How could that be achieved? Perhaps, through a mixed package that combines direct and indirect stimuli targeted at local consumption with an assistance plan to equip these businesses with value-added tools, such as savvy usage of mainland social media platforms. Bolder moves to redirect visitor flows within the city from highly congested areas to some of the other, older neighbourhoods and residential zones would be critical, as well. The government, society and the business community need to acknowledge these uneven recovery patterns and together seek ways to ensure a balanced business environment alongside employment security and stability.\n\n\n\nThe roll of the MICE\n\n\n\nThe city’s economic recovery is evident not only in the influx of visitors, but also in the resurgence of robust MICE (Meetings, Incentives, Conferences and Exhibitions) activities, set to flourish even more in the second half of the year. The return of international trade shows like G2E Asia, taking place this month in a mixed format alongside the newly launched Asian IR Expo, and the magnitude of this year’s Macau International Travel (Industry) Expo and International Infrastructure Investment and Construction Forum, both held in June, bode well for numerous additional international events.\n\n\n\nIn all of this, the ever-expanding people-to-people links, enhanced by deeper involvement from the gaming concessionaires, networks and exchanges, bring added value with anticipated long-term ripple effects. After all, within the \u201c1+4\u201d diversification strategy, MICE serves as a pivotal pillar offering the city greater opportunities to make immediate, tangible leaps forward.", "date_published": "July 12, 2023", "date_modified": "July 14, 2023 - 20:01", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/07/Editorial-photo-Macau-tourist2.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": " Government, society and the business community need to acknowledge these uneven recovery patterns and together seek ways to ensure a balanced business environment" }, { "id": "https://www.macaubusiness.com/editorial-old-bottle-new-wine-new-bottle-old-wine/", "url": "https://www.macaubusiness.com/editorial-old-bottle-new-wine-new-bottle-old-wine/", "title": "EDITORIAL \u2013 Old Bottle, New Wine; New Bottle, Old Wine", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/06/Screenshot-2023-06-08-at-2.42.03-AM-150x150.png\")
\nMacau Business Editorial | June 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe choice between new wine in an old bottle or old wine in a new bottle is as much about substance as it is style. Ideally, you want the best of both worlds, but there is much more to navigating this dilemma and striking that balance than meets the eye.
\n\n\n\nWhile we explore the wine list, let’s take a deep dive into what\u2019s lending Macau\u2019s recovery some momentum, and into what might come next. The process of reopening post-COVID provides a fresh opportunity to upgrade the city\u2019s visitor experience and shape perceptions. The roadshows currently being held in Southeast Asia, with more planned for East Asia, which \u2013 along with the resumption of Macau Weeks on the mainland \u2013 are key to projecting a renewed city image in core domestic and foreign markets. These efforts are being driven by the tourism authorities but also have the support of some important private stakeholders: the six gaming/integrated resort operators, whose mission is now more closely aligned with the government’s broader strategies and the Region’s development over all. With these boats now sailing in the same direction, more substance can be injected into the concept of Macau as a World Centre of Tourism and Leisure (WCTL).
\n\n\n\nAt the core of this WCTL concept lies the “Tourism+” approach, which situates tourism in tandem with MICE (Meetings, Incentives, Conferences, and Exhibitions), sports, e-commerce and culture & creativity, in a cross-sector dynamic that has seen development, particularly in the last couple of years, and is now visible to international audiences. This strategy and the momentum continuing to drive Macau\u2019s reopening bode well for the SAR.
\n\n\n\nIn this context, improved infrastructure, international connectivity and human resources have key roles to play in bringing about a more diversified, cosmopolitan and sophisticated visitor experience. And all these fronts require swift action on the city\u2019s part to make up for the protracted period of pandemic restrictions and face up to the fierce competition emerging on all sides: both in tourism & entertainment hubs overseas and across the border on the mainland.
\n\n\n\nIn terms of connectivity, what\u2019s required is a rapid proliferation of airline routes (existing operators are speeding up plans), while opportunity knocks in a few months\u2019 time with an end to the exclusivity of Air Macau\u2019s local air services franchise and the chance to make the most of much-needed liberalisation. All eyes await the bill, to be unveiled soon, that might pave the way to a process one hopes will translate into more routes and better service.
\n\n\n\nNevertheless, bringing more people from more distant and more diverse source markets is not the be-all and end-all. When those visitors do arrive, the city’s transportation service must be ready to deliver as pleasant an experience as possible \u2013 an aim that today is not always achieved, particularly when it comes to the taxi industry. The return of mass tourism has also revived the regrettable practices of certain rogue cabbies who give the city a bad name. Even if old habits die hard, we must find a way to stamp the bad ones out, once and for all.
\n\n\n\nThis decade will likely be make-or-break in the city\u2019s ambitions for better connectivity, smart tech development and overall competitiveness outside its core \u201cgolden egg\u201d resources.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/06/MB-June-2023-cover-780x1028.png\")
As the liberalisation of the gaming industry revealed two decades ago, when a place has a business case with a compelling competitive advantage it can attract top-tier international investment. Now, the six gaming concessionaires\u2019 new multi-billion non-gaming projects, mostly in line with the Government\u2019s \u201cTourism+\u201d strategy, represent an upgrade one hopes will only make Macau stronger, as predicted by American Gaming Association head Bill Miller in his interview in this issue of Macau Business. Additional, fresh flagship investments from abroad (both mainland China and overseas) would certainly also help animate the market\u2019s \u201canimal spirits\u201d. Allocation of land is key; the dozens of long-idle plots held by the government must at last be put to good use: for much-needed social infrastructure and added-value private investment.
\n\n\n\nAnd there\u2019s a pretty strong case, by the way, for a significant expansion of hotel-room capacity.
\n\n\n\nThen, there are the people. The importance of nurturing local talent and the local workforce with not just jobs but opportunities to gain skills and climb the corporate ladder cannot be understated. The same goes for establishing a new, more open and less bureaucratic approach to imported labour, something we have called for repeatedly in this publication. In terms of attracting highly skilled professionals, a litmus test will come with the long-awaited New Legal Regime for Recruiting Qualified Staff, which comes into effect in July.
\n\n\n\nForming the background to this conversation is adherence to a cherished goal, one ranking high on the Central Government’s nationwide economic agenda and stressed even more since the last Two Sessions held in Beijing: high-quality development. Realising such an aim certainly requires loyalty, but that alone is not a sufficient condition. The set of necessary conditions for successfully achieving these plans also includes skill, competence, and vision.
\n\n\n\nHaving perused the list in the course of this discussion, the dilemma remains the same: old, new, substance, style. It’s all about striking the right balance. So, without further ado, in the words of Tang Dynasty poet Li Bai let me \u201cBring in the Wine\u201d (\u5c07\u9032\u9152).
\n", "content_text": "Macau Business Editorial | June 2023 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nThe choice between new wine in an old bottle or old wine in a new bottle is as much about substance as it is style. Ideally, you want the best of both worlds, but there is much more to navigating this dilemma and striking that balance than meets the eye.\n\n\n\n\n\n\n\nWhile we explore the wine list, let’s take a deep dive into what\u2019s lending Macau\u2019s recovery some momentum, and into what might come next. The process of reopening post-COVID provides a fresh opportunity to upgrade the city\u2019s visitor experience and shape perceptions. The roadshows currently being held in Southeast Asia, with more planned for East Asia, which \u2013 along with the resumption of Macau Weeks on the mainland \u2013 are key to projecting a renewed city image in core domestic and foreign markets. These efforts are being driven by the tourism authorities but also have the support of some important private stakeholders: the six gaming/integrated resort operators, whose mission is now more closely aligned with the government’s broader strategies and the Region’s development over all. With these boats now sailing in the same direction, more substance can be injected into the concept of Macau as a World Centre of Tourism and Leisure (WCTL).\n\n\n\nAt the core of this WCTL concept lies the “Tourism+” approach, which situates tourism in tandem with MICE (Meetings, Incentives, Conferences, and Exhibitions), sports, e-commerce and culture & creativity, in a cross-sector dynamic that has seen development, particularly in the last couple of years, and is now visible to international audiences. This strategy and the momentum continuing to drive Macau\u2019s reopening bode well for the SAR.\n\n\n\nIn this context, improved infrastructure, international connectivity and human resources have key roles to play in bringing about a more diversified, cosmopolitan and sophisticated visitor experience. And all these fronts require swift action on the city\u2019s part to make up for the protracted period of pandemic restrictions and face up to the fierce competition emerging on all sides: both in tourism & entertainment hubs overseas and across the border on the mainland.\n\n\n\nIn terms of connectivity, what\u2019s required is a rapid proliferation of airline routes (existing operators are speeding up plans), while opportunity knocks in a few months\u2019 time with an end to the exclusivity of Air Macau\u2019s local air services franchise and the chance to make the most of much-needed liberalisation. All eyes await the bill, to be unveiled soon, that might pave the way to a process one hopes will translate into more routes and better service.\n\n\n\nNevertheless, bringing more people from more distant and more diverse source markets is not the be-all and end-all. When those visitors do arrive, the city’s transportation service must be ready to deliver as pleasant an experience as possible \u2013 an aim that today is not always achieved, particularly when it comes to the taxi industry. The return of mass tourism has also revived the regrettable practices of certain rogue cabbies who give the city a bad name. Even if old habits die hard, we must find a way to stamp the bad ones out, once and for all.\n\n\n\nThis decade will likely be make-or-break in the city\u2019s ambitions for better connectivity, smart tech development and overall competitiveness outside its core \u201cgolden egg\u201d resources.\n\n\n\n\n\n\n\nAs the liberalisation of the gaming industry revealed two decades ago, when a place has a business case with a compelling competitive advantage it can attract top-tier international investment. Now, the six gaming concessionaires\u2019 new multi-billion non-gaming projects, mostly in line with the Government\u2019s \u201cTourism+\u201d strategy, represent an upgrade one hopes will only make Macau stronger, as predicted by American Gaming Association head Bill Miller in his interview in this issue of Macau Business. Additional, fresh flagship investments from abroad (both mainland China and overseas) would certainly also help animate the market\u2019s \u201canimal spirits\u201d. Allocation of land is key; the dozens of long-idle plots held by the government must at last be put to good use: for much-needed social infrastructure and added-value private investment.\n\n\n\nAnd there\u2019s a pretty strong case, by the way, for a significant expansion of hotel-room capacity.\n\n\n\nThen, there are the people. The importance of nurturing local talent and the local workforce with not just jobs but opportunities to gain skills and climb the corporate ladder cannot be understated. The same goes for establishing a new, more open and less bureaucratic approach to imported labour, something we have called for repeatedly in this publication. In terms of attracting highly skilled professionals, a litmus test will come with the long-awaited New Legal Regime for Recruiting Qualified Staff, which comes into effect in July.\n\n\n\nForming the background to this conversation is adherence to a cherished goal, one ranking high on the Central Government’s nationwide economic agenda and stressed even more since the last Two Sessions held in Beijing: high-quality development. Realising such an aim certainly requires loyalty, but that alone is not a sufficient condition. The set of necessary conditions for successfully achieving these plans also includes skill, competence, and vision.\n\n\n\nHaving perused the list in the course of this discussion, the dilemma remains the same: old, new, substance, style. It’s all about striking the right balance. So, without further ado, in the words of Tang Dynasty poet Li Bai let me \u201cBring in the Wine\u201d (\u5c07\u9032\u9152).", "date_published": "June 08, 2023", "date_modified": "June 09, 2023 - 01:28", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/06/Screenshot-2023-06-08-at-2.42.03-AM.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "This decade will likely be make-or-break in the city\u2019s ambitions for better connectivity, smart tech development and overall competitiveness outside its core \u201cgolden egg\u201d resources." }, { "id": "https://www.macaubusiness.com/editorial-hitting-the-nail-on-the-head/", "url": "https://www.macaubusiness.com/editorial-hitting-the-nail-on-the-head/", "title": "EDITORIAL \u2013 Hitting the nail on the head", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/hitting-the-nail-on-the-head-150x150.jpeg\")
\nMacau Business Editorial | May 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nMacau’s core industry is bouncing back quicker than most anticipated, with gross gaming revenue (GGR) in April hitting 60 percent of the last full pre-COVID month on the heels of returning mass tourism.
\n\n\n\nThe SAR came late to the post-pandemic party but swiftly stole the limelight, with much-touted pent-up demand \u2013 primarily from the mainland and Hong Kong \u2013 able to slingshot the city\u2019s GGR past not just the Las Vegas Strip but the whole state of Nevada for the first quarter of 2023.
\n\n\n\nAnd, make no mistake, all this was achieved with little contribution – perhaps one tenth – from the fat cat junkets that, at one point in 2013, made up some two thirds of total gaming revenue.
\n\n\n\nShould this trend continue, the government’s full-year MOP130 billion gaming revenue target will be not only met but comfortably surpassed. We could even attain a level (between MOP15 and 16 billion average monthly GGR) at which dipping into the fiscal reserves to balance the government’s 2023 budget would no longer be needed. Nevertheless at this stage, the sudden injection of bullish sentiment notwithstanding, we\u2019d be wise not to count our chickens before they hatch.
\n\n\n\nThe pandemic winter has been followed by a Phoenix-like spring, and we\u2019ve been given another chance to hit the nail on the head
While it is heartwarming to watch our “comeback kid” welcome the new mass influx of visitors, we mustn\u2019t merely stand by, mesmerised \u2013 a call-to-action is due. Here, we reiterate that to really get it right, Macau 3.0 requires a fresh approach to importation of labour, transportation and social infrastructure. Addressing these issues might sound like Groundhog Day \u2013 again \u2013 but getting Back to the Future, allow me to stress that our pandemic winter has been followed by a Phoenix-like spring, and we\u2019ve been given another chance to hit the nail on the head. How? I\u2019m not talking about pulling a rabbit from a hat, but in some aspects at least one might humbly venture: it doesn’t take a rocket scientist.
\n\n\n\nIt would be most regrettable to witness the deterioration in customer service provided to visitors that a labour crunch scenario might engender
On the labour front, as detailed in this month’s issue of Macau Business, industry insiders caution that the city needs to tackle red tape and the sluggish approval process for hiring non-resident workers. Well-coordinated efforts with mainland authorities are seen as key to helping close the supply-demand gap amid this fast-paced economic recovery, particularly in hospitality and the tourism-related sectors.
\n\n\n\nAuthorities have an understandable balancing act with respect to prioritising locals, but there’s a common-sense limit to protectionism. A destination\u2019s reputation relies heavily on word-of-mouth, so it would be most regrettable to witness the deterioration in customer service provided to visitors that a labour crunch scenario might engender.
\n\n\n\nFlexibility, adaptability and openness are crucial in this regard, as the government should be aware. It’s a matter of nailing it.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/05/Screenshot-2023-05-08-at-11.56.12-AM-772x1028.png\")
Our Macau Business magazine and publishing house De Fic\u00e7\u00e3o \u2013 Multimedia Projects celebrate their 19th anniversary this month against a fortunate background of sound economic recovery. We couldn’t be more pleased to see reality proving the doomsayers wrong, as the pandemic-induced protracted period is behind us, and the city is sailing towards a brighter shore.
\n\n\n\nWe would like to wholeheartedly thank the talented, hardworking team members, our faithful readers, and the valuable partners, suppliers, and customers who have joined us on this journey.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/gba4-150x150.jpeg\")
\nMacau Business Editorial | April 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
So often, politics and the economy \u2013 not to mention life in general \u2013 present us with a capability\u2013expectations gap: that shortfall between what actually is or can be accomplished and what is proclaimed and consequently hoped for. As we thankfully swiftly emerge from the Covidian era on a road to rapid economic recovery, a challenge of another sort arises \u2013 though it\u2019s one we\u2019ll gladly face compared to being stuck in a hopeless 2022.
\n\n\n\nWorries that the city might have lost its allure have been laid to rest with visitor arrivals climbing steadily and the one-day tourist count set to hover around 100,000, if the past weeks\u2019 trend holds true. In light of these recent developments, high hopes for the upcoming Cheng Ming/Easter holidays and even higher hopes for the May Day Golden Week are certainly justifiable.
\n\n\n\nA quick look at the latest statistical details lets us single out interesting trends and extrapolate where the city’s visitor tally might be headed. In February alone Macau saw around 1.59 million tourist arrivals, a figure just over half that of the last full month pre-Covid, December 2019 (though the comparison is obviously partly skewed by difference of season and length of month). Interestingly, the proportion of mainland visitors dropped from 67% to 62%, whereas numbers from Hong Kong jumped from 21% in December 2019 to 32% in February 2023. (Now, visitation from the neighbouring SAR has already reached 80% of pre-Covid levels.) This is telling, given what industry insiders were predicting last year: that reopening to Hong Kong would be a game-changer. With mainland visitation still with plenty of room to grow, international visitation is also set to surge, fuelled by the re-establishment of flight connections and the expected impact of promotional activities conducted by both the local tourism authorities and the integrated resorts.
\n\n\n\nFaced with ongoing pent-up demand, the question then rests on the host\u2019s ability to provide the expected quality of service, and that puts manpower squarely at the crux of the matter. While it’s reasonable for authorities to insist that employers prioritize jobs for local residents, a fine balance needs to be struck, ensuring that as we edge closer to ‘technical’ full employment a more open, flexible arrangement takes shape. This is something essential to ensuring hospitality and tourism operators can rise to meet tourists’ expectations. With so much talk and focus devoted to quality in tourism and the swift return of visitors, it would be a pity if the city were to fail to live up to the expectations of those who seek meaningful experiences here. Again, we echo calls for an overhaul of Macau\u2019s labour importation policies in order to cut red tape, ensure our city’s competitiveness and avoid a ‘labour crunch’ situation.
\n\n\n\nWe have been here before. We must prevent inflexible policies and greedy practices from jeopardizing the road to a robust recovery. In an increasingly competitive environment where tourist destinations vie for talent and quality tourism, we must never lower our guard or take our eye off the ball. We stand at a critical juncture: poised to return our city to its heyday, yet this time embracing a higher-quality, more sustainable model. We mustn\u2019t waste time but instead seize this ‘golden’ window of opportunity.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/04/MB228_April2023_Cover-1-780x1028.jpg\")
Ho Iat Seng’s visit to Portugal this month is especially meaningful. Not only is it the Chief Executive\u2019s first post-pandemic visit abroad; it follows precedent set by his predecessors, who also chose Portugal for their first overseas trips. As Macau emerges soundly from the three-year pandemic and the corresponding hiatus in international relations, this visit provides an opportunity for the city to maximise its yet-to-be-fully developed potential for bilateral cooperation with Portugal, both in terms of reopening the door to skilled professionals and enhancing the across-the-board cooperation that is allowed under the Macau\u2013Portugal framework agreement.
\n\n\n\nWith both the 20th anniversary of the Forum Macau and the expected ministerial conference set to be held in Macau in the fourth quarter of 2023, it\u2019s high time to further elevate Macau’s profile, not just symbolically, but also with a stronger focus on a pragmatic, hands-on and business-oriented approach, one that effectively follows up and follows through on the agreements, official discourse and Memoranda of Understanding.
\n\n\n\nAt the end of the day, it’s all about bridging the capability\u2013expectations gap.
\n", "content_text": "Macau Business Editorial | April 2023 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nSo often, politics and the economy \u2013 not to mention life in general \u2013 present us with a capability\u2013expectations gap: that shortfall between what actually is or can be accomplished and what is proclaimed and consequently hoped for. As we thankfully swiftly emerge from the Covidian era on a road to rapid economic recovery, a challenge of another sort arises \u2013 though it\u2019s one we\u2019ll gladly face compared to being stuck in a hopeless 2022.\n\n\n\nWorries that the city might have lost its allure have been laid to rest with visitor arrivals climbing steadily and the one-day tourist count set to hover around 100,000, if the past weeks\u2019 trend holds true. In light of these recent developments, high hopes for the upcoming Cheng Ming/Easter holidays and even higher hopes for the May Day Golden Week are certainly justifiable.\n\n\n\nA quick look at the latest statistical details lets us single out interesting trends and extrapolate where the city’s visitor tally might be headed. In February alone Macau saw around 1.59 million tourist arrivals, a figure just over half that of the last full month pre-Covid, December 2019 (though the comparison is obviously partly skewed by difference of season and length of month). Interestingly, the proportion of mainland visitors dropped from 67% to 62%, whereas numbers from Hong Kong jumped from 21% in December 2019 to 32% in February 2023. (Now, visitation from the neighbouring SAR has already reached 80% of pre-Covid levels.) This is telling, given what industry insiders were predicting last year: that reopening to Hong Kong would be a game-changer. With mainland visitation still with plenty of room to grow, international visitation is also set to surge, fuelled by the re-establishment of flight connections and the expected impact of promotional activities conducted by both the local tourism authorities and the integrated resorts.\n\n\n\nFaced with ongoing pent-up demand, the question then rests on the host\u2019s ability to provide the expected quality of service, and that puts manpower squarely at the crux of the matter. While it’s reasonable for authorities to insist that employers prioritize jobs for local residents, a fine balance needs to be struck, ensuring that as we edge closer to ‘technical’ full employment a more open, flexible arrangement takes shape. This is something essential to ensuring hospitality and tourism operators can rise to meet tourists’ expectations. With so much talk and focus devoted to quality in tourism and the swift return of visitors, it would be a pity if the city were to fail to live up to the expectations of those who seek meaningful experiences here. Again, we echo calls for an overhaul of Macau\u2019s labour importation policies in order to cut red tape, ensure our city’s competitiveness and avoid a ‘labour crunch’ situation.\n\n\n\nWe have been here before. We must prevent inflexible policies and greedy practices from jeopardizing the road to a robust recovery. In an increasingly competitive environment where tourist destinations vie for talent and quality tourism, we must never lower our guard or take our eye off the ball. We stand at a critical juncture: poised to return our city to its heyday, yet this time embracing a higher-quality, more sustainable model. We mustn\u2019t waste time but instead seize this ‘golden’ window of opportunity.\n\n\n\n\n\n\n\nLeap outwards \n\n\n\nHo Iat Seng’s visit to Portugal this month is especially meaningful. Not only is it the Chief Executive\u2019s first post-pandemic visit abroad; it follows precedent set by his predecessors, who also chose Portugal for their first overseas trips. As Macau emerges soundly from the three-year pandemic and the corresponding hiatus in international relations, this visit provides an opportunity for the city to maximise its yet-to-be-fully developed potential for bilateral cooperation with Portugal, both in terms of reopening the door to skilled professionals and enhancing the across-the-board cooperation that is allowed under the Macau\u2013Portugal framework agreement. \n\n\n\nWith both the 20th anniversary of the Forum Macau and the expected ministerial conference set to be held in Macau in the fourth quarter of 2023, it\u2019s high time to further elevate Macau’s profile, not just symbolically, but also with a stronger focus on a pragmatic, hands-on and business-oriented approach, one that effectively follows up and follows through on the agreements, official discourse and Memoranda of Understanding.\n\n\n\nAt the end of the day, it’s all about bridging the capability\u2013expectations gap.", "date_published": "April 06, 2023", "date_modified": "April 06, 2023 - 14:33", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/gba4.jpeg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured" ] }, { "id": "https://www.macaubusiness.com/editorial-walking-the-talk/", "url": "https://www.macaubusiness.com/editorial-walking-the-talk/", "title": "EDITORIAL \u2013 Walking the talk", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/03/Screen-Shot-2023-03-04-at-6.20.36-PM-150x150.png\")
\nMacau Business Editorial | March 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWhen in December 2015 the Central Government authorised Macau to manage 85 square kilometres of territorial waters around the SAR, the local Government pledged to \u201cmanage, utilise and develop the waters well.”
In the words of then Chief Executive Chui Sai On: Beijing\u2019s decision provided \u201cnew conditions and opportunities for Macau to thrive from the sea.\u201d It was high time to envision the development of maritime tourism and a blue economy, putting those valuable water resources to use in support of the city\u2019s sustainable development. Yet, more than seven years on, progress has been all but a drop in the ocean.
\n\n\n\nLet\u2019s take a deep dive into these surrounding waters \u2013 sink or swim. The time has come to finally start making the most of this natural asset across the board. So, what exactly has the Coordinating Commission for the Management and Development of Maritime Jurisdiction Areas, established in 2017, been doing to that end? The last meeting, held in mid-2022, indicated that authorities would carry out public consultations on a law to govern the use of maritime areas and the zoning of surrounding waters, creating a blueprint for development of the 85-square-kilometre territory.
The Policy Address for 2023 reiterated that such a task would be carried out as soon as possible. But how soon is that? It\u2019s evident that the previous administration dragged its feet on this front, and the current one has yet to embrace this agenda.
\n\n\n\nWhile in the midst of the pandemic emergency, that these matters were kept on the back burner is understandable, but now that all that\u2019s behind us it would be a mistake for the government to continue to side-line the project as an afterthought.
\n\n\n\nAt the end of the day, one doesn’t need to walk on water to deliver results
Development of maritime tourism was enshrined as one of several non-gaming focus areas in the recent tender for the gaming concessionaires\u2019 new 10-year term. One can hope this might incentivise real results, but there are obstacles to be addressed and lessons to be learned. Take the failure of the Zhongshan\u2013Macau Free Yacht Scheme for example. Successfully developing the maritime tourism industry could potentially make waves in the local economy.
\n\n\n\nThe city\u2019s territorial waters could also be exploited for renewable energy, as proposed by experts in this issue\u2019s Special Report. Furthermore, from an urban planning perspective the city\u2019s coastal zones remain to a great extent underutilised considering their potential. The SAR\u2019s Master Plan comprises a \u201cHistorical Touristic Coastal Area Belt\u201d and points to the need to develop coastal zones to maximise leisure space and green space while protecting the local ecosystem. It is imperative that these principles are not merely lip service but translate into concrete actions.
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/03/Screen-Shot-2023-03-04-at-5.26.13-PM-783x1028.png\")
Any talk of developing Macau\u2019s maritime assets presupposes fluent collaboration between us and our neighbours in Zhuhai and Hengqin and Guangdong authorities as a whole. After all, the shared Guangdong-Macau In-depth Cooperation Zone is never more than a skipping stone\u2019s throw from the water\u2019s edge. Recent weeks post-pandemic have seen plenty of activity aimed at accelerating the Zone\u2019s development, with newly-announced important measures including a financial stimulus package incentivising Macau businesses to set up shop in the neighbouring island and financial connectivity arrangements promoting integration. Other steps that would facilitate mobility are said to be in the pipeline, as well.
\n\n\n\nIt’s high time to put Hengqin’s development back on track and take a more market-driven, pragmatic approach
Of undeniable importance are moves towards seamless connectivity and hassle-free border crossing and towards adopting an inclusive approach aimed at attracting Macau-based talent of all sorts (locals, non-locals, foreigners) to join the process and contribute to and benefit from Hengqin\u2019s development. But beyond that, an improved legal framework, assured capital mobility and flagship foreign investments would boost confidence and could create a much-needed virtuous circle. With the pandemic behind us, it\u2019s high time to put Hengqin\u2019s development back on track and take a more market-driven, pragmatic approach to meeting the targets set by authorities.
\n\n\n\nAt the end of the day, no one needs to walk on water to deliver results. The talk has been talked; now it\u2019s just about walking the walk.
\n\n\n\n\n", "content_text": "Macau Business Editorial | March 2023 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nWhen in December 2015 the Central Government authorised Macau to manage 85 square kilometres of territorial waters around the SAR, the local Government pledged to \u201cmanage, utilise and develop the waters well.”\n\n\n\n\n\n\n\nIn the words of then Chief Executive Chui Sai On: Beijing\u2019s decision provided \u201cnew conditions and opportunities for Macau to thrive from the sea.\u201d It was high time to envision the development of maritime tourism and a blue economy, putting those valuable water resources to use in support of the city\u2019s sustainable development. Yet, more than seven years on, progress has been all but a drop in the ocean.\n\n\n\nLet\u2019s take a deep dive into these surrounding waters \u2013 sink or swim. The time has come to finally start making the most of this natural asset across the board. So, what exactly has the Coordinating Commission for the Management and Development of Maritime Jurisdiction Areas, established in 2017, been doing to that end? The last meeting, held in mid-2022, indicated that authorities would carry out public consultations on a law to govern the use of maritime areas and the zoning of surrounding waters, creating a blueprint for development of the 85-square-kilometre territory. \n\n\n\nThe Policy Address for 2023 reiterated that such a task would be carried out as soon as possible. But how soon is that? It\u2019s evident that the previous administration dragged its feet on this front, and the current one has yet to embrace this agenda.\n\n\n\nWhile in the midst of the pandemic emergency, that these matters were kept on the back burner is understandable, but now that all that\u2019s behind us it would be a mistake for the government to continue to side-line the project as an afterthought.\n\n\n\nAt the end of the day, one doesn’t need to walk on water to deliver results\n\n\n\nDevelopment of maritime tourism was enshrined as one of several non-gaming focus areas in the recent tender for the gaming concessionaires\u2019 new 10-year term. One can hope this might incentivise real results, but there are obstacles to be addressed and lessons to be learned. Take the failure of the Zhongshan\u2013Macau Free Yacht Scheme for example. Successfully developing the maritime tourism industry could potentially make waves in the local economy.\n\n\n\nThe city\u2019s territorial waters could also be exploited for renewable energy, as proposed by experts in this issue\u2019s Special Report. Furthermore, from an urban planning perspective the city\u2019s coastal zones remain to a great extent underutilised considering their potential. The SAR\u2019s Master Plan comprises a \u201cHistorical Touristic Coastal Area Belt\u201d and points to the need to develop coastal zones to maximise leisure space and green space while protecting the local ecosystem. It is imperative that these principles are not merely lip service but translate into concrete actions.\n\n\n\n\n\n\n\nAny talk of developing Macau\u2019s maritime assets presupposes fluent collaboration between us and our neighbours in Zhuhai and Hengqin and Guangdong authorities as a whole. After all, the shared Guangdong-Macau In-depth Cooperation Zone is never more than a skipping stone\u2019s throw from the water\u2019s edge. Recent weeks post-pandemic have seen plenty of activity aimed at accelerating the Zone\u2019s development, with newly-announced important measures including a financial stimulus package incentivising Macau businesses to set up shop in the neighbouring island and financial connectivity arrangements promoting integration. Other steps that would facilitate mobility are said to be in the pipeline, as well.\n\n\n\nIt’s high time to put Hengqin’s development back on track and take a more market-driven, pragmatic approach\n\n\n\n\n\n\n\nOf undeniable importance are moves towards seamless connectivity and hassle-free border crossing and towards adopting an inclusive approach aimed at attracting Macau-based talent of all sorts (locals, non-locals, foreigners) to join the process and contribute to and benefit from Hengqin\u2019s development. But beyond that, an improved legal framework, assured capital mobility and flagship foreign investments would boost confidence and could create a much-needed virtuous circle. With the pandemic behind us, it\u2019s high time to put Hengqin\u2019s development back on track and take a more market-driven, pragmatic approach to meeting the targets set by authorities.\n\n\n\nAt the end of the day, no one needs to walk on water to deliver results. The talk has been talked; now it\u2019s just about walking the walk.", "date_published": "March 05, 2023", "date_modified": "March 06, 2023 - 20:37", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/03/Screen-Shot-2023-03-04-at-6.20.36-PM.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "Seven years on, progress on developing the city's surrounding waters has been a mere drop in the ocean. One doesn't need to walk on water to deliver results" }, { "id": "https://www.macaubusiness.com/editorial-spreading-the-wings/", "url": "https://www.macaubusiness.com/editorial-spreading-the-wings/", "title": "EDITORIAL \u2013 Spreading the wings", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/02/Chinese-Phoenix2-150x150.jpg\")
\nMacau Business Editorial | February 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nAmong the most intriguing and inspiring creatures in the menagerie of myth is the Phoenix. A bird of fire for the ancient Greeks, able to rise reborn from its own ashes, it represented renewal, resurrection. In Chinese traditional culture, the Phoenix is typically portrayed as a majestic bird with the body of a deer, the tail of a peacock and the head of a pheasant. This F\u00e8nghu\u00e1ng is seen as a symbol of good luck, prosperity, renewal and virtue.
\n\n\n\nAs Macau \u201cemerges\nfrom the pandemic fog\u201d, to borrow Chief Executive Ho Iat Seng\u2019s turn of phrase,\nthe city has demonstrated Phoenix-worthy signs of revival. This\nwas particularly evident during the Chinese New Year holiday period and has\ncontinued in days hence.
\n\n\n\nWith cross-border mobility\nrestored, a tide of hundreds of thousands of visitors from the mainland entered\nMacau joined by the long-awaited return of tourists from Hong Kong, constituting\na recovery to about 40 per cent of the visitation volume recorded for 2019\u2019s\nLunar New Year Golden Week, before the pandemic. This\npresages even rosier tourist arrival numbers once mainland package tours resume\nand the city effectively restores its international flight links.
\n\n\n\nOn the gaming\nrevenue front, January 2023 showed a proportionally higher recovery than did\nvisitor foot traffic, with MOP11.58 billion (US$1.4 billion) amounting to 45\nper cent of February 2019\u2019s takings (the last Chinese New Year month before COVID-19).\nIt should be noted that this figure was achieved even after the near demise of\nthe SAR’s junket sector and its attendant VIP segment. While we mustn\u2019t\ncelebrate too soon \u2013the new post-pandemic, second-term-concession\nmarket still warrants observation \u2013 these figures\ndo give cause for hope and confidence.
\n\n\n\nThis new impetus\ncomes as well with a need to rise to new challenges. Here, as elsewhere, a\nswift, post-restriction revival has been met with apparent labour shortages for\nkey roles, notably in the hospitality industry.
\n\n\n\nThe new phase we find ourselves in will require an agile, flexible approach on the part of labour authorities \u2013 unlike in the past \u2013 to prevent a bottleneck in human resources, as we brace for a rapid absorption of available local manpower.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/02/Cover_MB226_Feb2023-781x1028.jpg\"){kind=spacer}
The \u201cTourism+\u201d concept \u2013 leveraging synergies\nbetween the tourism industry and MICE, culture, e-commerce and sports \u2013 is a\nkey strategy and one likely to yield significant results. To retain Macau\u2019s allure\nin a competitive market it\u2019s important to continuously innovate and upgrade\nvisitor experiences. Hats off, therefore, to the\npedestrianization pilot project for San Ma Lo, the city\u2019s prime downtown thoroughfare,\na definite step in the right direction enthusiastically received by both residents\nand tourists. It\u2019s worth mentioning here the strong-as-ever case for a\nlong-overdue revitalization of the Inner Harbour area. The overall ambition\nshould be an integrated plan to unlock the city centre\u2019s immense potential for\nnew tourism concepts, street performances and art.
\n\n\n\nWith visitor figures from mainland\nChina and Hong Kong already encouraging, the next step \u2013 one to take sooner\nrather than later \u2013 is to increase international visitation. Before the\npandemic, overseas tourists accounted for 8\u201310 per cent of total visitor\nvolume. The goal could be to increase this share to 20 per cent in the mid-term,\nbut achieving that requires enhanced expansion of the Macau International\nAirport \u2013 which is already in the works- and conditions conducive to airlines\u2019\nestablishing regional hubs there. To that end, liberalization\nof Macau\u2019s passenger airline concession system is a must.
\n\n\n\nAt this juncture the city\u2019s main stakeholders \u2013 feet still on the ground \u2013 should aim to spread their wings and soar.
\n", "content_text": "Macau Business Editorial | February 2023 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nAmong the most intriguing and inspiring creatures in the menagerie of myth is the Phoenix. A bird of fire for the ancient Greeks, able to rise reborn from its own ashes, it represented renewal, resurrection. In Chinese traditional culture, the Phoenix is typically portrayed as a majestic bird with the body of a deer, the tail of a peacock and the head of a pheasant. This F\u00e8nghu\u00e1ng is seen as a symbol of good luck, prosperity, renewal and virtue.\n\n\n\n\n\n\n\nAs Macau \u201cemerges\nfrom the pandemic fog\u201d, to borrow Chief Executive Ho Iat Seng\u2019s turn of phrase,\nthe city has demonstrated Phoenix-worthy signs of revival. This\nwas particularly evident during the Chinese New Year holiday period and has\ncontinued in days hence.\n\n\n\nWith cross-border mobility\nrestored, a tide of hundreds of thousands of visitors from the mainland entered\nMacau joined by the long-awaited return of tourists from Hong Kong, constituting\na recovery to about 40 per cent of the visitation volume recorded for 2019\u2019s\nLunar New Year Golden Week, before the pandemic. This\npresages even rosier tourist arrival numbers once mainland package tours resume\nand the city effectively restores its international flight links.\n\n\n\nOn the gaming\nrevenue front, January 2023 showed a proportionally higher recovery than did\nvisitor foot traffic, with MOP11.58 billion (US$1.4 billion) amounting to 45\nper cent of February 2019\u2019s takings (the last Chinese New Year month before COVID-19).\nIt should be noted that this figure was achieved even after the near demise of\nthe SAR’s junket sector and its attendant VIP segment. While we mustn\u2019t\ncelebrate too soon \u2013the new post-pandemic, second-term-concession\nmarket still warrants observation \u2013 these figures\ndo give cause for hope and confidence.\n\n\n\nThis new impetus\ncomes as well with a need to rise to new challenges. Here, as elsewhere, a\nswift, post-restriction revival has been met with apparent labour shortages for\nkey roles, notably in the hospitality industry. \n\n\n\nThe new phase we find ourselves in will require an agile, flexible approach on the part of labour authorities \u2013 unlike in the past \u2013 to prevent a bottleneck in human resources, as we brace for a rapid absorption of available local manpower.\n\n\n\n\n\n\n\nThe \u201cTourism+\u201d concept \u2013 leveraging synergies\nbetween the tourism industry and MICE, culture, e-commerce and sports \u2013 is a\nkey strategy and one likely to yield significant results. To retain Macau\u2019s allure\nin a competitive market it\u2019s important to continuously innovate and upgrade\nvisitor experiences. Hats off, therefore, to the\npedestrianization pilot project for San Ma Lo, the city\u2019s prime downtown thoroughfare,\na definite step in the right direction enthusiastically received by both residents\nand tourists. It\u2019s worth mentioning here the strong-as-ever case for a\nlong-overdue revitalization of the Inner Harbour area. The overall ambition\nshould be an integrated plan to unlock the city centre\u2019s immense potential for\nnew tourism concepts, street performances and art.\n\n\n\nWith visitor figures from mainland\nChina and Hong Kong already encouraging, the next step \u2013 one to take sooner\nrather than later \u2013 is to increase international visitation. Before the\npandemic, overseas tourists accounted for 8\u201310 per cent of total visitor\nvolume. The goal could be to increase this share to 20 per cent in the mid-term,\nbut achieving that requires enhanced expansion of the Macau International\nAirport \u2013 which is already in the works- and conditions conducive to airlines\u2019\nestablishing regional hubs there. To that end, liberalization\nof Macau\u2019s passenger airline concession system is a must.\n\n\n\nAt this juncture the city\u2019s main stakeholders \u2013 feet still on the ground \u2013 should aim to spread their wings and soar.", "date_published": "February 04, 2023", "date_modified": "February 04, 2023 - 15:22", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/02/Chinese-Phoenix2.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "As Macau \u201cemerges from the pandemic fog\u201d, the city has demonstrated Phoenix-worthy signs of revival. At this juncture the city\u2019s main stakeholders \u2013 feet still on the ground \u2013 should aim to spread their wings and soar." }, { "id": "https://www.macaubusiness.com/editorial-rolling-up-the-sleeves/", "url": "https://www.macaubusiness.com/editorial-rolling-up-the-sleeves/", "title": "EDITORIAL \u2013 Rolling up the sleeves", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/01/Screenshot-2023-01-09-at-1.20.17-PM-150x150.png\")
\nMacau Business Editorial | January 2023 | By Jos\u00e9 Carlos Matias \u2013 Director
The auspicious date of January 8 saw the dismantling of basically all the travel restrictions and other control measures that remained in Macau from nigh on three years of strict pandemic management. This heartily welcomed policy shift finally clears the path to much-needed economic recovery. At last, there is a way forward, one of hope, mobility and development.
\n\n\n\nThe pages of this magazine in the past year, namely in recent months, have borne repeated suggestions for a departure from the severity of the zero-COVID policy, pointing to what might be learned from the reopening of other countries and economies the world over, our neighbours in particular. What most of us never anticipated, though, was the suddenness and the sharpness of the turn in both policy and narrative. Don\u2019t get me wrong: the case for swift reopening truly is strong. We\u2019ve been reiterating just how urgent it was to move in this direction.
\n\n\n\nBut the problem lies in what has appeared in the last few weeks to be a lack of preparedness or a well-thought-out plan on the part of the authorities. This has caught many of us by surprise \u2013 yours truly included \u2013 and has come as a disappointment following the health authorities\u2019 track record over the past couple of years, highly regarded across many segments of society.
\n\n\n\nThe city was neither expecting nor prepared to face the shortage of medication in pharmacies, the overwhelming of hospital facilities or the human cost, among other predicaments, despite measures adopted by health authorities. And yet persevering through it all, the tireless effort of the health professionals, civil servants, social workers, volunteers and many other sectors \u2013 spanning the full three years but unflagging during the past weeks\u2019 mass infections \u2013 deserves our deepest admiration and gratitude. The same goes for the countless people and businesses that have endured hardship during this period.
\n\n\n\nAt this stage, a number of questions loom large. Did it really need to be like this? Were local authorities caught off-guard by the policy shift? Couldn\u2019t and shouldn\u2019t this have been done last summer? What was the rationale behind continuing to adhere to all those harsh restrictions and lockdowns, when other countries around the world including neighbours in the region had moved past? Was there a scientific justification? Shouldn\u2019t there have been a more open environment for sensible and well-informed views to be effectively considered allowing for a policy shift at an earlier stage? What about all the financial resources allocated to mass testing, to the management of strict pandemic controls, isolation and lockdowns \u2013 certainly important and necessary early on, of course, but in many ways highly questionable over the past year?
\n\n\n\nThese and other questions remain in many people\u2019s minds. And while they won\u2019t stop us gladly moving forward post-pandemic, they are issues that deserve consideration, and lessons should be learned.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2023/01/Cover_MB224_Jan2023_V1-780x1028.jpg\")
Now that the reopening has been set irreversibly in motion, confidence is returning and the road to recovery lies ahead. Though it won\u2019t be without some bumps along the way, as business representatives predict in this issue of Macau Business.
\n\n\n\nThe return of mass tourism from mainland China is essential for reviving the economy. Other supportive measures from Central Government are in the pipeline, and the SAR is set to ride a nation-wide wave of reopening. This is already coming to fruition.
\n\n\n\nOn the other hand, Macau\u2019s reopening to overseas destinations will take more time to yield results, given that international air routes can\u2019t be expected to reconfigure and relaunch overnight. Devising an effective strategy for attracting international visitation will also be key. Local tourism authorities will play a pivotal role in this respect, having indicated as early as last November that overseas promotion is on their agenda for 2023.
\n\n\n\nReopening is not just about the return of quarantine-free travel (though that is an absolutely necessary condition). It must be embraced as an attitude, at the heart of public policy and by private players: reopening to visitors who, if welcomed and treated to quality service, will be our best word-of-mouth ambassadors with the message \u201cMacau is back\u201d; reopening to the investment and the professionals from abroad, lost by the city during COVID; reopening and attracting new talent. In sum, reopening in a holistic way.
\n\n\n\nIt\u2019s an endeavour that can benefit greatly from the gaming firms that ushered in their new ten-year concessions along with the New Year. The operators\u2019 new strategies and plans, announced in line with government guidelines and new gaming tender terms, bode well for the SAR\u2019s development. In the right conditions and a suitable environment \u2013 predicated on a sustained bounce back of casino revenue\u2013 the deep involvement of gaming and integrated resort companies in a combined MOP108.7 billion in investments in MICE, business tourism and entertainment, in the promotion of Macau to international customers overseas, in gastronomy, culture and support for SMEs and innovation, among other fields, can pave the way for an effective upgrade and the promised transformation of the city into a world tourism and leisure hub.
\n\n\n\nWishful thinking? Time will tell, but we have seen Macau bounce back from crises and shine, time and again. We look forward to witnessing that once more.
\n\n\n\nIn rising to this challenge, at this juncture, there is little, if any, room to fail. It\u2019s time to roll up the sleeves and get this right.
\n\n\n\nHappy New Year (2023). Happy Chinese New Year of the Rabbit!
![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/12/woods-150x150.jpg\")
\nMacau Business Editorial | December 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe last couple of weeks proved to be an accelerator of history, as authorities finally moved to gradually wind the hitherto strict Zero-COVID approach and pave the way towards an effective reopening. The new situation now requires the undertaking of additional tasks and a sound transition plan for the city\u2019s re-emergence on the international travel map.
\n\n\n\nFor sure, a number of preventive and monitoring measures will remain in place for the time being, but it\u2019s finally clear now: the train has left the station, bound for last stop “0 + 0” and an economy hopefully destined to bounce back fuelled by the pent-up demand waiting over the border and the return of international visitors. The local economy\u2019s reanimation hinges on this quintessential condition.
\n\n\n\nThe current situation puts the Government to another litmus test; it must now abandon a rather strict, bureaucratic modus operandi in favour of adaptability and flexibility. Now that the light at the end of the tunnel is no longer just wishful thinking, the government, society and businesses can all sail in the same direction, hopefully buoyed by the right policies, towards reopening. But make no mistake. We have an uphill climb before us. And this slope is just one feature in a new landscape where Macau will face fierce competition both from regional and international jurisdictions that have edged ahead in terms of luring gaming business and tourist visitations, and from mainland cities competing for top talent.
\n\n\n\nAs was pointed out in the latest MBtv Debates series on “Modern Finance and Talent Development”, to push for added-value industries the city needs, on the one hand, to retain human capital and prevent any further deterioration due to brain drain and, on the other hand, to become attractive\u00a0\u2013 much more attractive\u00a0\u2013 to first-class national and international talent. Labour import policies\u2019 lack of flexibility, particularly when it comes to bringing highly skilled professionals to the city, poses a major obstacle and must be addressed. There are numerous stories of companies hitting a brick wall as they see their requests rejected, even when seeking to fill positions for which Macau currently has virtually no available manpower. On a separate note, the recent news that former Hong Kong Stock Exchange chief Charles Li won approval to set up a financial assets exchange in Macau for the micro enterprises financing platform he co-founded is most welcome and could well spark a virtuous cycle for modern finance development.
\n\n\n\nWill the SAR be late in the game? Perhaps, but the city can catch up quickly if it gets this right. Does it mean “lying flat”? Not at all, as Andrew Phua of the Singapore Tourism Board recently explained. It\u2019s about learning how to live with the virus (namely the weaker Omicron variant) and maintaining a minimal number of serious cases and fatalities, without, as health experts indicate, lowering our guard against the possible resurgence of a troubling new variant.
\n\n\n\nYou could say that Macau \u2013 despite having lost ground to those who took first mover\u2019s advantage \u2013 has had the opportunity to observe and learn from the experiments in practice of countries and jurisdictions around the world.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/12/Cover_MB224_Dec2022-1-780x1028.jpg\")
Additionally, local authorities have been developing a promising concept that may yield sound results in a diversified economic landscape: the “Tourism +” strategy. This translated, means a cross-sector project integrating “Tourism + MICE”, “Tourism + Cultural and Creative”, “Tourism + E-Commerce” and “Tourism + Sports”. The potential is there. And on the culinary front, for instance, the efforts taken in the five years since Macau became a UNESCO-designated Creative City of Gastronomy deserve kudos and further development, as highlighted in this issue\u2019s Special Report.
\n\n\n\nThat the renewed\ngaming concessionaires must align themselves with this overall direction was\nmade clear in the requirements for the new tender, and in the non-gaming\ninvestment pledges the incumbent operators reportedly made to win it. While\nthat may sound good on paper, the reality is that gaming will still need to be\nthe revenue propeller that drives those projects, which in turn also need to\nhave a viable business case, as much as possible. If you build it, they will\ncome? That worked following the liberalization of the gaming industry as the\nfloodgates opened and mainland tourists and gamblers flocked. But we all know\nthere’s no going back to 2004. We\u2019re faced instead with a simple math problem.\nIn order to meet the MOP130 billon gross gaming revenue (GGR) estimate inscribed\nin the Government\u2019s budget for next year, the average monthly GGR required will\nbe MOP10.8 billion, and that\u2019s three times the 2022 average. Will just reopening\nbe enough, or will the city need a Midas touch to multiply its golden eggs?
\n\n\n\nHow\non earth?
\n\n\n\nThe sacrosanct presumption of innocence notwithstanding, based on what transpired in the Public Prosecution\u2019s indictment and on what has so far surfaced in court during high-profile trials of erstwhile all-powerful junket bosses and former Public Works Bureau heads alongside prominent developers \u2013 as reported in some of this issue\u2019s in-depth features \u2013 two simple (some would say naive) questions come to mind: How on earth could that have gone \u201cunnoticed\u201d for so long? Were the authorities and watchdogs at the time sleepwalking?
\n", "content_text": "Macau Business Editorial | December 2022 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nThe last couple of weeks proved to be an accelerator of history, as authorities finally moved to gradually wind the hitherto strict Zero-COVID approach and pave the way towards an effective reopening. The new situation now requires the undertaking of additional tasks and a sound transition plan for the city\u2019s re-emergence on the international travel map. \n\n\n\n\n\n\n\nFor sure, a number of preventive and monitoring measures will remain in place for the time being, but it\u2019s finally clear now: the train has left the station, bound for last stop “0 + 0” and an economy hopefully destined to bounce back fuelled by the pent-up demand waiting over the border and the return of international visitors. The local economy\u2019s reanimation hinges on this quintessential condition.\n\n\n\nThe current situation puts the Government to another litmus test; it must now abandon a rather strict, bureaucratic modus operandi in favour of adaptability and flexibility. Now that the light at the end of the tunnel is no longer just wishful thinking, the government, society and businesses can all sail in the same direction, hopefully buoyed by the right policies, towards reopening. But make no mistake. We have an uphill climb before us. And this slope is just one feature in a new landscape where Macau will face fierce competition both from regional and international jurisdictions that have edged ahead in terms of luring gaming business and tourist visitations, and from mainland cities competing for top talent. \n\n\n\nAs was pointed out in the latest MBtv Debates series on “Modern Finance and Talent Development”, to push for added-value industries the city needs, on the one hand, to retain human capital and prevent any further deterioration due to brain drain and, on the other hand, to become attractive\u00a0\u2013 much more attractive\u00a0\u2013 to first-class national and international talent. Labour import policies\u2019 lack of flexibility, particularly when it comes to bringing highly skilled professionals to the city, poses a major obstacle and must be addressed. There are numerous stories of companies hitting a brick wall as they see their requests rejected, even when seeking to fill positions for which Macau currently has virtually no available manpower. On a separate note, the recent news that former Hong Kong Stock Exchange chief Charles Li won approval to set up a financial assets exchange in Macau for the micro enterprises financing platform he co-founded is most welcome and could well spark a virtuous cycle for modern finance development.\n\n\n\nWill the SAR be late in the game? Perhaps, but the city can catch up quickly if it gets this right. Does it mean “lying flat”? Not at all, as Andrew Phua of the Singapore Tourism Board recently explained. It\u2019s about learning how to live with the virus (namely the weaker Omicron variant) and maintaining a minimal number of serious cases and fatalities, without, as health experts indicate, lowering our guard against the possible resurgence of a troubling new variant.\n\n\n\nYou could say that Macau \u2013 despite having lost ground to those who took first mover\u2019s advantage \u2013 has had the opportunity to observe and learn from the experiments in practice of countries and jurisdictions around the world.\n\n\n\n\n\n\n\nAdditionally, local authorities have been developing a promising concept that may yield sound results in a diversified economic landscape: the “Tourism +” strategy. This translated, means a cross-sector project integrating “Tourism + MICE”, “Tourism + Cultural and Creative”, “Tourism + E-Commerce” and “Tourism + Sports”. The potential is there. And on the culinary front, for instance, the efforts taken in the five years since Macau became a UNESCO-designated Creative City of Gastronomy deserve kudos and further development, as highlighted in this issue\u2019s Special Report.\n\n\n\nThat the renewed\ngaming concessionaires must align themselves with this overall direction was\nmade clear in the requirements for the new tender, and in the non-gaming\ninvestment pledges the incumbent operators reportedly made to win it. While\nthat may sound good on paper, the reality is that gaming will still need to be\nthe revenue propeller that drives those projects, which in turn also need to\nhave a viable business case, as much as possible. If you build it, they will\ncome? That worked following the liberalization of the gaming industry as the\nfloodgates opened and mainland tourists and gamblers flocked. But we all know\nthere’s no going back to 2004. We\u2019re faced instead with a simple math problem.\nIn order to meet the MOP130 billon gross gaming revenue (GGR) estimate inscribed\nin the Government\u2019s budget for next year, the average monthly GGR required will\nbe MOP10.8 billion, and that\u2019s three times the 2022 average. Will just reopening\nbe enough, or will the city need a Midas touch to multiply its golden eggs?\n\n\n\nHow\non earth? \n\n\n\nThe sacrosanct presumption of innocence notwithstanding, based on what transpired in the Public Prosecution\u2019s indictment and on what has so far surfaced in court during high-profile trials of erstwhile all-powerful junket bosses and former Public Works Bureau heads alongside prominent developers \u2013 as reported in some of this issue\u2019s in-depth features \u2013 two simple (some would say naive) questions come to mind: How on earth could that have gone \u201cunnoticed\u201d for so long? Were the authorities and watchdogs at the time sleepwalking?", "date_published": "December 08, 2022", "date_modified": "December 09, 2022 - 01:10", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/12/woods.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "Opinion" ] }, { "id": "https://www.macaubusiness.com/editorial-rekindling-the-animal-spirits/", "url": "https://www.macaubusiness.com/editorial-rekindling-the-animal-spirits/", "title": "EDITORIAL \u2013 Rekindling the \u2018animal spirits\u2019", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/11/Screen-Shot-2022-11-04-at-7.26.30-PM-150x150.png\")
\nMacau Business Editorial | November 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nOur neighbouring cities are rolling up their sleeves, with ambitious plans to lure back talent and attract investment as fuel for a much-needed rebound. Despite being impacted still by a number of COVID-19-related restrictions, Guangdong and Hong Kong are ratcheting up their game.
\n\n\n\nHong Kong\u2019s Chief Executive John Lee directed a message at the world\u2019s top-level global banking and finance leaders, making the case for Hong Kong being back in business with a maiden Policy Address that included a number of incentives for industry players.
\n\n\n\nIn Guangdong, Provincial authorities\nadopted the \u201cRegulations on the Protection of the Rights and Interests of\nForeign Investment in Guangdong Province\u201d. Attracting fresh, private foreign\ndirect investment is a must, and along with that comes providing for senior\nmanagers and highly-skilled professionals. Guangdong\u2019s Department of Commerce\nannounced key measures for Encouraging Multinational Companies to Establish Regional\nHeadquarters in the Province. These include adding eligible senior management and\nother talent employed at a regional headquarters, along with their spouses and\nchildren, onto the Guangdong Superior Talent Card System, granting them the\nright to \u201cthe same treatment as local residents.\u201d
\n\n\n\nAre the Macau authorities taking note of\nwhat our neighbours are developing?
\n\n\n\nWe can see that despite its merits, the dynamic Zero-COVID policy creates a bottleneck situation for government and businesses. But we can\u2019t just sit on our hands and channel virtually all our public policy-making impetus into pandemic-related relief measures \u2013 of paramount importance though they are. The key here is to rapidly equip the city to play the post-pandemic, new-normal game. While hoping for a swift and safe end to existing pandemic restrictions (should wisdom prevail in central authorities\u2019 strategizing an exit from the current situation), one must also devise a plan of action, taking best practices as a reference (the ones next-door may be quite useful) and making the most of the city\u2019s free-port status. In an interview published in the previous issue of Macau Business, the CEO of BNU, Carlos Cid \u00c1lvares, set forth an ambitious and truly interesting aim: to attract multinational companies to set up their regional headquarters in the city and to roll out a solid scheme to lure skilled manpower that will drive economic modernisation and diversification.
\n\n\n\nTo that end, one needs to focus on\nmaximising the SAR\u2019s advantages. The One Country Two Systems policy \u2013 which importantly\nwas emphasised by President Xi Jinping in the 20th Communist Party Congress as\na \u201cpolicy that must be adhered to over the long term\u201d \u2013 is a quintessential element\nto be leveraged and perfected in a new package of sustainable, business-friendly\nmeasures. As we\u2019ve said here before, it\u2019s within the local communities,\nchambers of commerce and professionals that the Government can find ideas,\nproposals and a reservoir of energy with which to resuscitate the city\u2019s\neconomy and gradually build \u2013 not just top-down, but bottom-up and\ncollaboratively \u2013 the sorely needed restructured economic model. And it must be\na model that does not alienate the talent and investment already accumulated\nover the past couple of decades.
\n\n\n\nThere is risk that an increasingly inward-looking bureaucratic mindset will end up stifling innovation and entrepreneurship. That is surely not what best serves the SAR\u2019s and the nation\u2019s interests. With the Policy Address for 2023 just around the corner, a new opportunity surfaces for the introduction of a reinvigorated strategy to lead us out of the current crisis. It will be neither easy nor quick, but we badly need to grow the pie again and let what economist John Maynard Keynes called the market\u2019s \u201canimal spirits\u201d rejuvenate the economy.
\n\n\n\nJorge Neto Valente will bid farewell to the\npresidency of the Macau Lawyers Association (AAM) after over 20 years at the\nhelm of this pivotal institution. Over the past couple of decades, Neto Valente\nplayed a crucial role in the defence and promotion of the SAR\u2019s distinctive\nlegal system and community. He has actively and constructively stood up for the\ncore values of a system that has faced a number of challenges.
\n\n\n\nHe gave us wise and meaningful words in his last address, at the opening of the SAR\u2019s new Judicial Year. Our city “needs people with talent and courage, to discuss, criticise and come up with solutions; and not only applaud what has been done and impose their ideas on others while silencing disagreeing voices and disregarding others\u2019 ideas,” he said, hitting the nail on the head.
\n\n\n\nIt would be highly detrimental for the city\u2019s development to find itself in a \u2018one-voice chamber\u2019.
\n\n\n\n\n", "content_text": "Macau Business Editorial | November 2022 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nOur neighbouring cities are rolling up their sleeves, with ambitious plans to lure back talent and attract investment as fuel for a much-needed rebound. Despite being impacted still by a number of COVID-19-related restrictions, Guangdong and Hong Kong are ratcheting up their game.\n\n\n\nHong Kong\u2019s Chief Executive John Lee directed a message at the world\u2019s top-level global banking and finance leaders, making the case for Hong Kong being back in business with a maiden Policy Address that included a number of incentives for industry players.\n\n\n\n\n\n\n\nIn Guangdong, Provincial authorities\nadopted the \u201cRegulations on the Protection of the Rights and Interests of\nForeign Investment in Guangdong Province\u201d. Attracting fresh, private foreign\ndirect investment is a must, and along with that comes providing for senior\nmanagers and highly-skilled professionals. Guangdong\u2019s Department of Commerce\nannounced key measures for Encouraging Multinational Companies to Establish Regional\nHeadquarters in the Province. These include adding eligible senior management and\nother talent employed at a regional headquarters, along with their spouses and\nchildren, onto the Guangdong Superior Talent Card System, granting them the\nright to \u201cthe same treatment as local residents.\u201d\n\n\n\nAre the Macau authorities taking note of\nwhat our neighbours are developing? \n\n\n\nWe can see that despite its merits, the dynamic Zero-COVID policy creates a bottleneck situation for government and businesses. But we can\u2019t just sit on our hands and channel virtually all our public policy-making impetus into pandemic-related relief measures \u2013 of paramount importance though they are. The key here is to rapidly equip the city to play the post-pandemic, new-normal game. While hoping for a swift and safe end to existing pandemic restrictions (should wisdom prevail in central authorities\u2019 strategizing an exit from the current situation), one must also devise a plan of action, taking best practices as a reference (the ones next-door may be quite useful) and making the most of the city\u2019s free-port status. In an interview published in the previous issue of Macau Business, the CEO of BNU, Carlos Cid \u00c1lvares, set forth an ambitious and truly interesting aim: to attract multinational companies to set up their regional headquarters in the city and to roll out a solid scheme to lure skilled manpower that will drive economic modernisation and diversification. \n\n\n\nTo that end, one needs to focus on\nmaximising the SAR\u2019s advantages. The One Country Two Systems policy \u2013 which importantly\nwas emphasised by President Xi Jinping in the 20th Communist Party Congress as\na \u201cpolicy that must be adhered to over the long term\u201d \u2013 is a quintessential element\nto be leveraged and perfected in a new package of sustainable, business-friendly\nmeasures. As we\u2019ve said here before, it\u2019s within the local communities,\nchambers of commerce and professionals that the Government can find ideas,\nproposals and a reservoir of energy with which to resuscitate the city\u2019s\neconomy and gradually build \u2013 not just top-down, but bottom-up and\ncollaboratively \u2013 the sorely needed restructured economic model. And it must be\na model that does not alienate the talent and investment already accumulated\nover the past couple of decades. \n\n\n\nThere is risk that an increasingly inward-looking bureaucratic mindset will end up stifling innovation and entrepreneurship. That is surely not what best serves the SAR\u2019s and the nation\u2019s interests. With the Policy Address for 2023 just around the corner, a new opportunity surfaces for the introduction of a reinvigorated strategy to lead us out of the current crisis. It will be neither easy nor quick, but we badly need to grow the pie again and let what economist John Maynard Keynes called the market\u2019s \u201canimal spirits\u201d rejuvenate the economy.\n\n\n\nVoice(s)\n\n\n\nJorge Neto Valente will bid farewell to the\npresidency of the Macau Lawyers Association (AAM) after over 20 years at the\nhelm of this pivotal institution. Over the past couple of decades, Neto Valente\nplayed a crucial role in the defence and promotion of the SAR\u2019s distinctive\nlegal system and community. He has actively and constructively stood up for the\ncore values of a system that has faced a number of challenges.\n\n\n\nHe gave us wise and meaningful words in his last address, at the opening of the SAR\u2019s new Judicial Year. Our city “needs people with talent and courage, to discuss, criticise and come up with solutions; and not only applaud what has been done and impose their ideas on others while silencing disagreeing voices and disregarding others\u2019 ideas,” he said, hitting the nail on the head.\n\n\n\nIt would be highly detrimental for the city\u2019s development to find itself in a \u2018one-voice chamber\u2019.", "date_published": "November 04, 2022", "date_modified": "November 04, 2022 - 19:59", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/11/Screen-Shot-2022-11-04-at-7.26.30-PM.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured" ], "summary": "There is risk that an increasingly inward-looking bureaucratic mindset will end up stifling innovation and entrepreneurship. We badly need to grow the pie again and let the market\u2019s \u201canimal spirits\u201d rejuvenate the economy." }, { "id": "https://www.macaubusiness.com/editorial-spillover/", "url": "https://www.macaubusiness.com/editorial-spillover/", "title": "EDITORIAL \u2013 Spillover", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Tourism-Macau-August-3-150x150.jpg\")
\nMacau Business Editorial | October 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nIn the past two years, amid the pandemic, the MBtv/FRC Debates Series has become something of a household name for those seeking a free flow of views on the city\u2019s economy and current affairs. It is something we\u2019re particularly proud of, and it\u2019s especially meaningful given its success during a period of relative contraction of the city\u2019s public sphere. We therefore express our deepest gratitude to the guest speakers and to our partner in the project, the Rui Cunha Foundation.
\n\n\n\nThe latest installment in the MBtv Debates\nSeries was not only an interesting exchange on the way forward for the SAR\u2019s\neconomy; it also served as a constructive contribution to a much-needed path\ntowards recovery. In a nutshell, three words sum it up: reopening, reopening,\nreopening. Reopening borders \u2013 quarantine-free \u2013 with the world, safely but as\nsoon as possible; reopening attractors to fresh foreign direct investment; and\nreopening the city to top-notch international talent who can then transfer\ntheir expertise to local society and economy and revive the city\u2019s cosmopolitan\nfabric. One mustn\u2019t downplay how far Macau is lagging behind other developed\njurisdictions in the post-pandemic race to attract investment and lure\nprofessionals. Of course, none of this should be done at the expense of local labour,\nsorely in need of a recovered economy for job and wage security. With the right\npolicies in place, the fallacious notion of a zero-sum game between local and\nimported skilled labour must be put to rest. The only attractive zero sum here\nis the hoped-for \u201c0+0\u201d quarantine-free arrangement as early as possible in 2023.
\n\n\n\nSpeaking of the coming year, preparing the budget for 2023 will be no easy endeavour \u2013 for the SAR Government or any private company, for that matter. The crux of the matter is, unsurprisingly, the gaming revenue estimate. For the past two years the Government has fallen well short of its MOP130 billion forecast. So far this year \u2013 counting the first nine months of 2022 \u2013 gaming revenue stands at just MOP31.8 billion.
\n\n\n\nThe only attractive zero sum here is the hoped-for \u201c0+0\u201d quarantine-free arrangement
A clearer picture of a path towards \u201cnew normal\u201d\nfor the city\u2019s core industry may surface in November, with the announced return\nof mainland package tours and electronic visas. It\u2019s a measure that has\ninjected some (mild) optimism into the market \u2013 a much needed sign as we enter\nthe crucial phase of the tender to award the six new gaming concessions, with\nnewcomer Genting-backed GMM throwing its hat in the ring and joining the six\nincumbent firms. It\u2019s high time for authorities to vigorously revert the\nindustry\u2019s downward spiral, considering the many challenges the industry is\nfacing, as addressed in another important panel discussion, also featured in\nthese pages, jointly held by the France Macau Chamber of Commerce and Macau\nBusiness in September.
\n\n\n\nIn terms of a revenue stream, land auctions will\nreturn after a 14-year hiatus. The Government\u2019s dozens of idle land plots do\nconstitute a reserve that could be used to secure fresh income, given the\nstructural deficit (covered only by the fiscal reserve) that the SAR must\ncontinue to endure in the near-term and possibly beyond. One hopes these\nauctions will not only bring in the earnings the city needs but will also lay\nfoundations for added-value investments. Resorting to land auctions, however,\nhas its limitations.
\n\n\n\nSo at this stage, the only realistic way to\neffectively ensure employment and socio-economic stability, as well as\nsustainable public finances, is to prop up the gaming (and tourism) industry\nand allow other economic activities to benefit from the spillover effect.
\n", "content_text": "Macau Business Editorial | October 2022 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nIn the past two years, amid the pandemic, the MBtv/FRC Debates Series has become something of a household name for those seeking a free flow of views on the city\u2019s economy and current affairs. It is something we\u2019re particularly proud of, and it\u2019s especially meaningful given its success during a period of relative contraction of the city\u2019s public sphere. We therefore express our deepest gratitude to the guest speakers and to our partner in the project, the Rui Cunha Foundation. \n\n\n\n\n\n\n\nThe latest installment in the MBtv Debates\nSeries was not only an interesting exchange on the way forward for the SAR\u2019s\neconomy; it also served as a constructive contribution to a much-needed path\ntowards recovery. In a nutshell, three words sum it up: reopening, reopening,\nreopening. Reopening borders \u2013 quarantine-free \u2013 with the world, safely but as\nsoon as possible; reopening attractors to fresh foreign direct investment; and\nreopening the city to top-notch international talent who can then transfer\ntheir expertise to local society and economy and revive the city\u2019s cosmopolitan\nfabric. One mustn\u2019t downplay how far Macau is lagging behind other developed\njurisdictions in the post-pandemic race to attract investment and lure\nprofessionals. Of course, none of this should be done at the expense of local labour,\nsorely in need of a recovered economy for job and wage security. With the right\npolicies in place, the fallacious notion of a zero-sum game between local and\nimported skilled labour must be put to rest. The only attractive zero sum here\nis the hoped-for \u201c0+0\u201d quarantine-free arrangement as early as possible in 2023.\n\n\n\nSpeaking of the coming year, preparing the budget for 2023 will be no easy endeavour \u2013 for the SAR Government or any private company, for that matter. The crux of the matter is, unsurprisingly, the gaming revenue estimate. For the past two years the Government has fallen well short of its MOP130 billion forecast. So far this year \u2013 counting the first nine months of 2022 \u2013 gaming revenue stands at just MOP31.8 billion.\n\n\n\nThe only attractive zero sum here is the hoped-for \u201c0+0\u201d quarantine-free arrangement\n\n\n\nA clearer picture of a path towards \u201cnew normal\u201d\nfor the city\u2019s core industry may surface in November, with the announced return\nof mainland package tours and electronic visas. It\u2019s a measure that has\ninjected some (mild) optimism into the market \u2013 a much needed sign as we enter\nthe crucial phase of the tender to award the six new gaming concessions, with\nnewcomer Genting-backed GMM throwing its hat in the ring and joining the six\nincumbent firms. It\u2019s high time for authorities to vigorously revert the\nindustry\u2019s downward spiral, considering the many challenges the industry is\nfacing, as addressed in another important panel discussion, also featured in\nthese pages, jointly held by the France Macau Chamber of Commerce and Macau\nBusiness in September.\n\n\n\nIn terms of a revenue stream, land auctions will\nreturn after a 14-year hiatus. The Government\u2019s dozens of idle land plots do\nconstitute a reserve that could be used to secure fresh income, given the\nstructural deficit (covered only by the fiscal reserve) that the SAR must\ncontinue to endure in the near-term and possibly beyond. One hopes these\nauctions will not only bring in the earnings the city needs but will also lay\nfoundations for added-value investments. Resorting to land auctions, however,\nhas its limitations.\n\n\n\nSo at this stage, the only realistic way to\neffectively ensure employment and socio-economic stability, as well as\nsustainable public finances, is to prop up the gaming (and tourism) industry\nand allow other economic activities to benefit from the spillover effect.", "date_published": "October 07, 2022", "date_modified": "October 09, 2022 - 20:00", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Tourism-Macau-August-3.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "The only attractive zero sum here is the hoped-for \u201c0+0\u201d quarantine-free arrangement" }, { "id": "https://www.macaubusiness.com/editorial-reopening-up/", "url": "https://www.macaubusiness.com/editorial-reopening-up/", "title": "EDITORIAL \u2013 (Re)Opening up", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Opening-Door-150x150.jpg\")
\nMacau Business Editorial | September 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nLate August brought us two encouraging signs. The first is entry without prior authorization for foreigners visiting Macau from 41 countries, arriving from Hong Kong, Taiwan and overseas. It\u2019s a key step that paves the way to gradually bringing back international tourists, though the \u201c7+3\u201dquarantine and \u201cself-health management\u201d requirements persist for now. As long as the quarantine remains in place this move will most likely favour a segment of business travellers and not so much tourists.
\n\n\n\nShould we see this as a glass half-full or half-empty? The former, if it\u2019s followed through in the short-term with a further reduction of mandatory medical observation to \u201c3+4\u201d (as in Hong Kong) and \u201c0+7\u201d, with the ultimate goal (the sooner the better) of safely attaining an entirely quarantine-free arrangement.
\n\n\n\nThe\nabsence on the list of 41 countries of some Southeast Asian nations and some\nPortuguese-speaking countries (with only Portugal and Brazil included) has\nraised a few eyebrows. One expects a rapid expansion of the list to include\nthose countries absent from the list with which the city has strong social,\neconomic and historic ties.
\n\n\n\nThis\nis expected to unfold in the coming months as a gradual reopening with a\nhealthy flow of visitors (from the mainland and overseas) allowed through the\nborders, provided there is an evolution in the dynamic zero-COVID policy.
\n\n\n\nIn the meantime, the resumption of quarantine-free mobility between Macau and Hong Kong would be the much-needed game changer for local businesses. In an interview in this issue of Macau Business, Hong Kong\u2019s Convenor of the Executive Council, Regina Ip, hints at the formula: once our neighbouring SAR has established a suitable border-crossing model with Shenzhen, we can expect Macau to follow suit. The ways Macau and Hong Kong have handled the COVID-19 pandemic indeed make for A tale of two SARs, with the city across the estuary adopting its own way of fighting the pandemic. To be expected, surely, given how widely the SARs\u2019 features differ \u2013not least their economic structures and levels of reliance on the Mainland market. Still, local communities and businesses badly need the authorities in both SARs and the Mainland to find that model quickly. To that end, the newly proposed Hong Kong\u2013Shenzhen \u201creverse quarantine\u201d arrangement might just be the first of several steps needed to swiftly restore long-sought resumption of full mobility across the whole of the Greater Bay Area. (Note that Hong Kong visitation accounted for 18 per cent of Macau\u2019s pre-COVID arrivals.).
\n\n\n\nMobility is really the key word here, and our second of late August\u2019s two encouraging signs has to do with Macau\u2013Hengqin mobility for the SAR\u2019s non-Chinese residents. The Commissioner of the Ministry of Foreign Affairs of the PRC in the Macau SAR, Liu Xianfa, announced that, as of September 1, foreign nationals holding a Macau permanent resident identity card are eligible for 5-year, multi-entry visas for the neighbouring Guangdong-Macau In-depth Cooperation Zone in Hengqin, with non-permanent residents also eligible for a multi-entry permit, valid for the same term as their ID card. This crucial, most welcome move signals an attitude of inclusivity towards the thousands of non-Chinese Macau SAR residents who can play an important role in contributing to the future development of Hengqin. As we mark the first anniversary of the Zone\u2019s establishment and the announcement of the master plan for the joint development of the neighbouring island, local and international business communities are also looking forward, beyond the end of pandemic-related restrictions, to additional favourable measures and policies that will inject confidence through increased mobility of capital and an improved legal framework.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Cover_MB221_Sep2022_Web-781x1028.jpg\"){kind=spacer}
A missed opportunity
\n\n\n\nThe\nMacau Chamber of Commerce (ACM) \u2013 the city\u2019s leading and most influential\nbusiness group \u2013 issued a valuable document presenting relevant suggestions for\nlending businesses and citizens struggling to make ends meet a helping hand. In\nit, the ACM suggested the Government to approve a new round of cash handouts for residents, along with\nconsumption vouchers of MOP3,000 each for non-residents, as part of a second, much-needed\nMOP10-billion COVID-19 pandemic relief package. The Chamber of Commerce also recommended\nthat individuals and entities that had not been covered by one-off subsidies in\nthe first MOP10-billion package should receive grants under this new round of\nrelief.
\n\n\n\nThe proposal to include the SAR\u2019s 158,000-strong non-resident workforce (blue card holders) in the relief package, by way of an e-consumption voucher, was not only sensible, humane and fair, it was also pragmatic. Unfortunately, shortly after the ACM\u2019s proposal was made public, we saw voices within the local community \u2013lawmakers included \u2013 opposing the measure, citing the alleged \u201csocial tensions\u201d it would engender. These views flirt with populism and protectionism and do not serve the city well. More disappointing was seeing the Chief Executive eventually rule the ACM\u2019s proposal out.
\n\n\n\nNon-resident workers live and labour side-by-side\nwith those holding resident status and contribute every single day to the\ncity\u2019s development. Many of them are in vulnerable situations. The measure put\nforth by the ACM had no potential to neglect residents\u2019 needs; on the contrary,\nit was a wise, well-thought-out and mutually beneficial proposal that\nprioritized locals while at the same time signalling inclusivity of migrant\nworkers, one that lived up to the city\u2019s history and social fabric of our\nsociety. What\u2019s more, the approximately MOP474 million needed for the MOP3,000\ne-consumption voucher for blue card holders would have accounted for less than\n5 per cent of the overall MOP10-billion package and was money that would have been\ninjected directly into the local economy (mostly local SMEs).
\n\n\n\nLet\u2019s hope, next time, the Government won\u2019t\nmiss an opportunity like this to get it right.
\n", "content_text": "Macau Business Editorial | September 2022 | By Jos\u00e9 Carlos Matias \u2013 Director \n\n\n\nLate August brought us two encouraging signs. The first is entry without prior authorization for foreigners visiting Macau from 41 countries, arriving from Hong Kong, Taiwan and overseas. It\u2019s a key step that paves the way to gradually bringing back international tourists, though the \u201c7+3\u201dquarantine and \u201cself-health management\u201d requirements persist for now. As long as the quarantine remains in place this move will most likely favour a segment of business travellers and not so much tourists. \n\n\n\n\n\n\n\nShould we see this as a glass half-full or half-empty? The former, if it\u2019s followed through in the short-term with a further reduction of mandatory medical observation to \u201c3+4\u201d (as in Hong Kong) and \u201c0+7\u201d, with the ultimate goal (the sooner the better) of safely attaining an entirely quarantine-free arrangement. \n\n\n\nThe\nabsence on the list of 41 countries of some Southeast Asian nations and some\nPortuguese-speaking countries (with only Portugal and Brazil included) has\nraised a few eyebrows. One expects a rapid expansion of the list to include\nthose countries absent from the list with which the city has strong social,\neconomic and historic ties.\n\n\n\nThis\nis expected to unfold in the coming months as a gradual reopening with a\nhealthy flow of visitors (from the mainland and overseas) allowed through the\nborders, provided there is an evolution in the dynamic zero-COVID policy. \n\n\n\nIn the meantime, the resumption of quarantine-free mobility between Macau and Hong Kong would be the much-needed game changer for local businesses. In an interview in this issue of Macau Business, Hong Kong\u2019s Convenor of the Executive Council, Regina Ip, hints at the formula: once our neighbouring SAR has established a suitable border-crossing model with Shenzhen, we can expect Macau to follow suit. The ways Macau and Hong Kong have handled the COVID-19 pandemic indeed make for A tale of two SARs, with the city across the estuary adopting its own way of fighting the pandemic. To be expected, surely, given how widely the SARs\u2019 features differ \u2013not least their economic structures and levels of reliance on the Mainland market. Still, local communities and businesses badly need the authorities in both SARs and the Mainland to find that model quickly. To that end, the newly proposed Hong Kong\u2013Shenzhen \u201creverse quarantine\u201d arrangement might just be the first of several steps needed to swiftly restore long-sought resumption of full mobility across the whole of the Greater Bay Area. (Note that Hong Kong visitation accounted for 18 per cent of Macau\u2019s pre-COVID arrivals.).\n\n\n\nMobility is really the key word here, and our second of late August\u2019s two encouraging signs has to do with Macau\u2013Hengqin mobility for the SAR\u2019s non-Chinese residents. The Commissioner of the Ministry of Foreign Affairs of the PRC in the Macau SAR, Liu Xianfa, announced that, as of September 1, foreign nationals holding a Macau permanent resident identity card are eligible for 5-year, multi-entry visas for the neighbouring Guangdong-Macau In-depth Cooperation Zone in Hengqin, with non-permanent residents also eligible for a multi-entry permit, valid for the same term as their ID card. This crucial, most welcome move signals an attitude of inclusivity towards the thousands of non-Chinese Macau SAR residents who can play an important role in contributing to the future development of Hengqin. As we mark the first anniversary of the Zone\u2019s establishment and the announcement of the master plan for the joint development of the neighbouring island, local and international business communities are also looking forward, beyond the end of pandemic-related restrictions, to additional favourable measures and policies that will inject confidence through increased mobility of capital and an improved legal framework.\n\n\n\n\n\n\n\nA missed opportunity \n\n\n\nThe\nMacau Chamber of Commerce (ACM) \u2013 the city\u2019s leading and most influential\nbusiness group \u2013 issued a valuable document presenting relevant suggestions for\nlending businesses and citizens struggling to make ends meet a helping hand. In\nit, the ACM suggested the Government to approve a new round of cash handouts for residents, along with\nconsumption vouchers of MOP3,000 each for non-residents, as part of a second, much-needed\nMOP10-billion COVID-19 pandemic relief package. The Chamber of Commerce also recommended\nthat individuals and entities that had not been covered by one-off subsidies in\nthe first MOP10-billion package should receive grants under this new round of\nrelief.\n\n\n\nThe proposal to include the SAR\u2019s 158,000-strong non-resident workforce (blue card holders) in the relief package, by way of an e-consumption voucher, was not only sensible, humane and fair, it was also pragmatic. Unfortunately, shortly after the ACM\u2019s proposal was made public, we saw voices within the local community \u2013lawmakers included \u2013 opposing the measure, citing the alleged \u201csocial tensions\u201d it would engender. These views flirt with populism and protectionism and do not serve the city well. More disappointing was seeing the Chief Executive eventually rule the ACM\u2019s proposal out. \n\n\n\nNon-resident workers live and labour side-by-side\nwith those holding resident status and contribute every single day to the\ncity\u2019s development. Many of them are in vulnerable situations. The measure put\nforth by the ACM had no potential to neglect residents\u2019 needs; on the contrary,\nit was a wise, well-thought-out and mutually beneficial proposal that\nprioritized locals while at the same time signalling inclusivity of migrant\nworkers, one that lived up to the city\u2019s history and social fabric of our\nsociety. What\u2019s more, the approximately MOP474 million needed for the MOP3,000\ne-consumption voucher for blue card holders would have accounted for less than\n5 per cent of the overall MOP10-billion package and was money that would have been\ninjected directly into the local economy (mostly local SMEs).\n\n\n\nLet\u2019s hope, next time, the Government won\u2019t\nmiss an opportunity like this to get it right.", "date_published": "September 06, 2022", "date_modified": "September 12, 2022 - 19:05", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/09/Opening-Door.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "Mobility is really the key word here" }, { "id": "https://www.macaubusiness.com/editorial-a-will-and-a-way/", "url": "https://www.macaubusiness.com/editorial-a-will-and-a-way/", "title": "EDITORIAL \u2013 A will and a way", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/3C7C10FC-493E-4918-8619-870AA9FF20AB-150x150.png\")
\nMacau Business Editorial | August 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
Looking out on Macau, in this summer of \u201922, you\u2019d be forgiven for thinking the city\u2019s emblematic, neon-realist, \u201csky\u2019s the limit\u201d fairy tale belonged to some galaxy far, far away. In fact, it was real, and it was right here, just a few years ago. Macau was poised to overtake Qatar as the wealthiest economy on earth (in terms of GDP per capita). And back then, the notion that all that abundance could be built on sand was already well entrenched. There were those more down-to-earth, realist voices at the time who were not so convinced \u2013 but as the hustle and hype of our \u201cLas Vegas of Asia\u201d enjoyed the spotlight, was anyone going to take these canaries in the coalmine and their two cents of scepticism seriously?
\n\n\n\nIt\u2019s human nature to ride the high. At the peak of an economic cycle \u201cexperts\u201d hold onto assumed perpetual prosperity, advancing rosy forecasts grounded mostly on wishful thinking. Though no one on earth could have specifically anticipated the devastating impact a pandemic like COVID-19 and ensuing restrictions would have, our recent two-year trek has nevertheless led us crashing and careening all the way from boom to doom. And the last few weeks have dragged the whole economy and society along with it into terra incognita. Quo vadis Macau? Where do we go from here? Does it all add up to the perfect storm we\u2019ve all been fearing?
\n\n\n\nAt this juncture it\u2019s crucial to come to terms with reality, though without indulging in cynicism or nihilism.
\n\n\n\nReality bites hard, and the city is now well into a multi-layered socio-economic crisis for which the extent of contraction in demand and value creation is yet to be properly assessed. Added predicaments such as those affecting mental health and wellbeing, while less quantifiable, must not be swept under the rug. Swift action is needed.
\n\n\n\nAs the city wakes from 45 days of partial lockdown and pandemic-related restrictions, many are wondering how they\u2019ll manage should they be asked to stomach yet another dose of the same bitter medicine. At time of printing, the SAR has maintained a hard-won tally of zero cases, and the quarantine requirement for crossing the border with Zhuhai has been lifted. The gradual relaxation that is now planned should wind us back to the situation pre-June 18 and allow for partial resumption of a certain level of business activity along with activation of the first of two MOP10 billion financial aid packages, the second slated for just weeks later. These are important, necessary steps, but they\u2019re not sufficient considering the longer-term view.
\n\n\n\nThe fact of the matter is that the local economy risks living on borrowed time indefinitely, should the city keep having to dig into its rainy-day fund with no end in sight.
\n\n\n\nA roadmap, therefore, is essential. It\u2019s ill-advised to keep kicking the can down the road when it comes to answering key questions on the business environment one can expect in the coming few years. Even if uncertainty has become the new normal, with support from mainland China and articulation with its entities, the SAR should be able to find a path through this, one that allows it to straddle inner circulation within China\u2019s economy and outer circulation between it and the rest of the world \u2013 with both feet on the ground. The approach can be incremental but should be swift and decisive.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/MBAugust_cover_M-781x1028.jpg\"){kind=spacer}
The blueprints and masterplans that have been devised, wisely, for the city\u2019s involvement in grand regional and national development projects only make sense against a backdrop of openness and modernization.
\n\n\n\nIt\u2019s true that COVID-19 is not going away any time soon and we are not yet quite ready to perform a\u00a0post mortemon this pandemic, but much has been learned about the virus and from the way various other countries have safely managed their transitions away from severe restrictions. Rekindling the economy versus protecting public health should not be seen as a zero-sum game.\u00a0
\n\n\n\nThere\u2019s a need for reconnection between the stated policy aims and actual measures on the ground.
\n\n\n\nFor instance, the Government\u2019s having made it a priority to attract international visitors in its newly launched public tender for gaming concessionaires is laudable, indeed, but such a target only makes sense in tandem with a clear roadmap to reopening the city to foreign tourists and a bold promotional strategy signalling Macau\u2019s readiness to welcome them. Concrete measures to tout the city\u2019s international visitor-friendliness and a smart and effective way to broadcast that message overseas should be put in the pipeline as soon as possible. In doing so the city can mobilize both ideas and resources and reopen its talent pool to fresh blood. Macau does in fact have the financial tools not only to alleviate current economic and social pains but also to invest in value creation and reap the benefits in future.
\n\n\n\nCan it be done? Where there\u2019s a will, there\u2019s a way, and it seems the stakes have never been so high. One expects both local and central Governments will find a way forward and be able to shed light on the future.
\n\n\n\nSome might say it sounds like what\u2019s needed here is a leap of faith, but history has shown it\u2019s a mistake to write Macau off.
\n\n\n\nAs Mark Twain would have said: reports of Macau\u2019s demise are greatly exaggerated.
\n", "content_text": "Macau Business Editorial | August 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nLooking out on Macau, in this summer of \u201922, you\u2019d be forgiven for thinking the city\u2019s emblematic, neon-realist, \u201csky\u2019s the limit\u201d fairy tale belonged to some galaxy far, far away. In fact, it was real, and it was right here, just a few years ago. Macau was poised to overtake Qatar as the wealthiest economy on earth (in terms of GDP per capita). And back then, the notion that all that abundance could be built on sand was already well entrenched. There were those more down-to-earth, realist voices at the time who were not so convinced \u2013 but as the hustle and hype of our \u201cLas Vegas of Asia\u201d enjoyed the spotlight, was anyone going to take these canaries in the coalmine and their two cents of scepticism seriously?\n\n\n\n\n\n\n\nIt\u2019s human nature to ride the high. At the peak of an economic cycle \u201cexperts\u201d hold onto assumed perpetual prosperity, advancing rosy forecasts grounded mostly on wishful thinking. Though no one on earth could have specifically anticipated the devastating impact a pandemic like COVID-19 and ensuing restrictions would have, our recent two-year trek has nevertheless led us crashing and careening all the way from boom to doom. And the last few weeks have dragged the whole economy and society along with it into terra incognita. Quo vadis Macau? Where do we go from here? Does it all add up to the perfect storm we\u2019ve all been fearing?\n\n\n\nAt this juncture it\u2019s crucial to come to terms with reality, though without indulging in cynicism or nihilism.\n\n\n\nReality bites hard, and the city is now well into a multi-layered socio-economic crisis for which the extent of contraction in demand and value creation is yet to be properly assessed. Added predicaments such as those affecting mental health and wellbeing, while less quantifiable, must not be swept under the rug. Swift action is needed.\n\n\n\nAs the city wakes from 45 days of partial lockdown and pandemic-related restrictions, many are wondering how they\u2019ll manage should they be asked to stomach yet another dose of the same bitter medicine. At time of printing, the SAR has maintained a hard-won tally of zero cases, and the quarantine requirement for crossing the border with Zhuhai has been lifted. The gradual relaxation that is now planned should wind us back to the situation pre-June 18 and allow for partial resumption of a certain level of business activity along with activation of the first of two MOP10 billion financial aid packages, the second slated for just weeks later. These are important, necessary steps, but they\u2019re not sufficient considering the longer-term view.\n\n\n\nThe fact of the matter is that the local economy risks living on borrowed time indefinitely, should the city keep having to dig into its rainy-day fund with no end in sight.\n\n\n\nA roadmap, therefore, is essential. It\u2019s ill-advised to keep kicking the can down the road when it comes to answering key questions on the business environment one can expect in the coming few years. Even if uncertainty has become the new normal, with support from mainland China and articulation with its entities, the SAR should be able to find a path through this, one that allows it to straddle inner circulation within China\u2019s economy and outer circulation between it and the rest of the world \u2013 with both feet on the ground. The approach can be incremental but should be swift and decisive.\n\n\n\n\n\n\n\nThe blueprints and masterplans that have been devised, wisely, for the city\u2019s involvement in grand regional and national development projects only make sense against a backdrop of openness and modernization. \n\n\n\nIt\u2019s true that COVID-19 is not going away any time soon and we are not yet quite ready to perform a\u00a0post mortemon this pandemic, but much has been learned about the virus and from the way various other countries have safely managed their transitions away from severe restrictions. Rekindling the economy versus protecting public health should not be seen as a zero-sum game.\u00a0\n\n\n\nThere\u2019s a need for reconnection between the stated policy aims and actual measures on the ground.\n\n\n\nFor instance, the Government\u2019s having made it a priority to attract international visitors in its newly launched public tender for gaming concessionaires is laudable, indeed, but such a target only makes sense in tandem with a clear roadmap to reopening the city to foreign tourists and a bold promotional strategy signalling Macau\u2019s readiness to welcome them. Concrete measures to tout the city\u2019s international visitor-friendliness and a smart and effective way to broadcast that message overseas should be put in the pipeline as soon as possible. In doing so the city can mobilize both ideas and resources and reopen its talent pool to fresh blood. Macau does in fact have the financial tools not only to alleviate current economic and social pains but also to invest in value creation and reap the benefits in future.\n\n\n\nCan it be done? Where there\u2019s a will, there\u2019s a way, and it seems the stakes have never been so high. One expects both local and central Governments will find a way forward and be able to shed light on the future.\n\n\n\nSome might say it sounds like what\u2019s needed here is a leap of faith, but history has shown it\u2019s a mistake to write Macau off.\n\n\n\n As Mark Twain would have said: reports of Macau\u2019s demise are greatly exaggerated.", "date_published": "August 05, 2022", "date_modified": "August 14, 2022 - 19:24", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/08/3C7C10FC-493E-4918-8619-870AA9FF20AB.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "Swift action is needed. Where there\u2019s a will, there\u2019s a way, and it seems the stakes have never been so high." }, { "id": "https://www.macaubusiness.com/editorial-walking-on-two-legs/", "url": "https://www.macaubusiness.com/editorial-walking-on-two-legs/", "title": "EDITORIAL \u2013 Walking on two legs", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/07/D9644F7E-9E62-406B-8E89-C8E48C6295F7-150x150.png\")
\nMacau Business Editorial | July 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe last couple of weeks have seen Macau in an unprecedented situation, one that was perhaps inevitable, even telegraphed considering the outbreaks elsewhere of the now predominant Omicron variant of COVID-19, particularly in Shanghai and Hong Kong. As this issue of Macau Business was going to press, the number of confirmed cases in the community outbreak that erupted on June 19 had already passed 1,000 and showed signs of further increase.
\n\n\n\nThese weeks have witnessed, once again, our health professionals, civil protection teams, volunteers, reporters and many others working tirelessly, round the clock, fulfilling their invaluable roles to the best of their ability. Government, society and businesses are in the same boat, making sacrifices as the city preserves its enviable near zero-fatality record.
\n\n\n\nGiven the ongoing \u201cDynamic Zero-COVID\u201d strategy, we could still need to endure a weeks-long period of restrictions. Chief Executive Ho Iat Seng made it crystal clear the priority is fulfilling the requirements for reopening borders with mainland China, an approach is easily understood taking into account Macau\u2019s across-the-board cross-border reliance.
\n\n\n\nImplementing this strategy, however, has obvious, broad, severe social and economic implications, the cost of which has yet to be truly measured. They need to be taken at face value, nonetheless, and swiftly addressed. At this juncture, one can say the city finds itself between a rock and a hard place.
\n\n\n\nAgainst this undeniably challenging backdrop, it is only normal that fatigue, frustration and hopelessness take hold. These must not become despair.
\n\n\n\nIn the immediate term, bringing this outbreak effectively under control and drastically cutting the number of infections is a must. Maintaining zero new infections thereafter remains the stated goal, but is that a realistic, feasible target in light of the other examples abroad of how Omicron spreads?
\n\n\n\nWhere do we go from here? While the newly announced MOP10.3 billion relief package for workers, professionals and firms is welcome and will bring some respite, further action will likely be needed soon to inject more money into the economy. Looking further ahead, a fresh and sustainable balance between pandemic-control strategies and the resuscitation of business activity will need to be struck.
\n\n\n\nThe prospect of the city reopening to the world would shed a beam of hope; a roadmap to that end is sorely needed.
\n\n\n\nUnder the current framework there seems to be no magic bullet, and crossing the river by feeling the stones is a sensible move. Still, we mustn\u2019t forget that, to move forward, one needs to walk on two legs.
\n", "content_text": "Macau Business Editorial | July 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nThe last couple of weeks have seen Macau in an unprecedented situation, one that was perhaps inevitable, even telegraphed considering the outbreaks elsewhere of the now predominant Omicron variant of COVID-19, particularly in Shanghai and Hong Kong. As this issue of Macau Business was going to press, the number of confirmed cases in the community outbreak that erupted on June 19 had already passed 1,000 and showed signs of further increase. \n\n\n\n\n\n\n\nThese weeks have witnessed, once again, our health professionals, civil protection teams, volunteers, reporters and many others working tirelessly, round the clock, fulfilling their invaluable roles to the best of their ability. Government, society and businesses are in the same boat, making sacrifices as the city preserves its enviable near zero-fatality record. \n\n\n\nGiven the ongoing \u201cDynamic Zero-COVID\u201d strategy, we could still need to endure a weeks-long period of restrictions. Chief Executive Ho Iat Seng made it crystal clear the priority is fulfilling the requirements for reopening borders with mainland China, an approach is easily understood taking into account Macau\u2019s across-the-board cross-border reliance. \n\n\n\nImplementing this strategy, however, has obvious, broad, severe social and economic implications, the cost of which has yet to be truly measured. They need to be taken at face value, nonetheless, and swiftly addressed. At this juncture, one can say the city finds itself between a rock and a hard place. \n\n\n\nAgainst this undeniably challenging backdrop, it is only normal that fatigue, frustration and hopelessness take hold. These must not become despair.\n\n\n\nIn the immediate term, bringing this outbreak effectively under control and drastically cutting the number of infections is a must. Maintaining zero new infections thereafter remains the stated goal, but is that a realistic, feasible target in light of the other examples abroad of how Omicron spreads?\n\n\n\nWhere do we go from here? While the newly announced MOP10.3 billion relief package for workers, professionals and firms is welcome and will bring some respite, further action will likely be needed soon to inject more money into the economy. Looking further ahead, a fresh and sustainable balance between pandemic-control strategies and the resuscitation of business activity will need to be struck. \n\n\n\nThe prospect of the city reopening to the world would shed a beam of hope; a roadmap to that end is sorely needed.\n\n\n\nUnder the current framework there seems to be no magic bullet, and crossing the river by feeling the stones is a sensible move. Still, we mustn\u2019t forget that, to move forward, one needs to walk on two legs.", "date_published": "July 08, 2022", "date_modified": "July 11, 2022 - 01:29", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/07/D9644F7E-9E62-406B-8E89-C8E48C6295F7.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "Under the current framework there seems to be no magic bullet, and crossing the river by feeling the stones is a sensible move. Still, we mustn\u2019t forget that, to move forward, one needs to walk on two legs." }, { "id": "https://www.macaubusiness.com/editorial-coming-to-terms/", "url": "https://www.macaubusiness.com/editorial-coming-to-terms/", "title": "EDITORIAL \u2013 Coming to terms", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/06/F3343843-8772-45AA-BCCB-227FFD52886E-150x150.png\")
\nMacau Business Editorial | June 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\u201cLong run is a misleading guide to current affairs. In the long run we are all dead,\u201d wrote John Maynard Keynes, one of the most influential economists of the 20thcentury, in his 1923 book A Tract on Monetary Reform. The famous quote should not be mistaken, however, for shortsightedness or short-termism. Rather, it\u2019s a call to action, highlighting the need for timely government intervention to kick start the economy, instead of relying on long-term equilibrium models.
\n\n\n\nGiven that here, in Macau, as we are still in the midst of a contraction \u2013 as reflected in the first quarter\u2019s 8.9 per cent year-on-year decline in Gross Domestic Product \u2013 the case for bolder intervention on both the supply side and the demand side is pretty strong.
\n\n\n\nNotwithstanding the important and laudable measures adopted recently by the Government to boost consumption and incentivize the employment of jobless citizens, one has to bear in mind the fundamentals. There seems to be no quick fix for the city\u2019s macroeconomic and social woes, and a lasting remedy will depend primarily on a mix of an evolution of the pandemic situation and the national policies on the economy, improved local public policies, and finding the path towards gradually and safely, but effectively, reopening the borders to foreign visitors. How long that will take, and how much longer the city\u2019s main employers can continue to dig deep into their own pockets, is anyone\u2019s guess. There have been other relevant steps taken in recent weeks that are worthy of note, from the entry scheme for domestic helpers to the borders being opened to non-resident Portuguese nationals (a meaningful measure). The gradual expansion to other nationalities and to other professional fields \u2013 as has already begun for teachers \u2013 is not only most welcome but sorely needed and certainly the way ahead.
\n\n\n\nWhat is critical here is to avoid getting carried away by fixating on a top-down, rigid approach and to instead embrace dynamism, flexibility and adaptability
Likewise, the recent relaxation of the nucleic acid test requirement for Guangdong arrivals (from 72 hours to seven days) \u2013 provided it’s not reversed due to another outbreak \u2013 will hopefully lead to an influx of much-needed visitors from the mainland.
We\u2019ll need time to monitor how the whole situation plays out: how China\u2019s dynamic clearing policy evolves, what the effectiveness of the newly launched national-level stimulus package will be and at what pace quarantine requirements and border restrictions are relaxed.
Time is a rather scarce commodity, though, for the number of big, medium and small-sized companies and merchants \u201cburning money\u201d every single day. As authorities prioritize stability, the looming social and economic risks must not be underestimated.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/06/1611E385-AB11-407C-BC27-560F1AC486C8-781x1028.jpeg\"){kind=spacer}
What is critical here is to avoid getting carried away by fixating on a top-down, rigid approach and to instead embrace dynamism, flexibility and adaptability. Diversification is a judicious and much-needed long-term project, but dealing a deadly blow to satellite casinos, for instance, was perhaps not the best strategy at this juncture (as now seemingly recognized in the Government\u2019s partial U-turn on the matter). The immediate priority must be to ensure that the local employment situation does not deteriorate further (and improves) and that those sectors that contribute the lion\u2019s share of government revenue \u2013 gaming and tourism \u2013 get back on their feet. Businesses and people from all walks of life will benefit from a more pragmatic, flexible and adaptive approach to public policies.
\n\n\n\nSeeking the truth from facts and coming to terms with reality \u2013 with an open mind \u2013 may not be sufficient conditions in themselves, but they are absolutely necessary.
\n", "content_text": "Macau Business Editorial | June 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\u201cLong run is a misleading guide to current affairs. In the long run we are all dead,\u201d wrote John Maynard Keynes, one of the most influential economists of the 20thcentury, in his 1923 book A Tract on Monetary Reform. The famous quote should not be mistaken, however, for shortsightedness or short-termism. Rather, it\u2019s a call to action, highlighting the need for timely government intervention to kick start the economy, instead of relying on long-term equilibrium models.\n\n\n\n\n\n\n\nGiven that here, in Macau, as we are still in the midst of a contraction \u2013 as reflected in the first quarter\u2019s 8.9 per cent year-on-year decline in Gross Domestic Product \u2013 the case for bolder intervention on both the supply side and the demand side is pretty strong.\n\n\n\nNotwithstanding the important and laudable measures adopted recently by the Government to boost consumption and incentivize the employment of jobless citizens, one has to bear in mind the fundamentals. There seems to be no quick fix for the city\u2019s macroeconomic and social woes, and a lasting remedy will depend primarily on a mix of an evolution of the pandemic situation and the national policies on the economy, improved local public policies, and finding the path towards gradually and safely, but effectively, reopening the borders to foreign visitors. How long that will take, and how much longer the city\u2019s main employers can continue to dig deep into their own pockets, is anyone\u2019s guess. There have been other relevant steps taken in recent weeks that are worthy of note, from the entry scheme for domestic helpers to the borders being opened to non-resident Portuguese nationals (a meaningful measure). The gradual expansion to other nationalities and to other professional fields \u2013 as has already begun for teachers \u2013 is not only most welcome but sorely needed and certainly the way ahead.\n\n\n\nWhat is critical here is to avoid getting carried away by fixating on a top-down, rigid approach and to instead embrace dynamism, flexibility and adaptability\n\n\n\nLikewise, the recent relaxation of the nucleic acid test requirement for Guangdong arrivals (from 72 hours to seven days) \u2013 provided it’s not reversed due to another outbreak \u2013 will hopefully lead to an influx of much-needed visitors from the mainland.We\u2019ll need time to monitor how the whole situation plays out: how China\u2019s dynamic clearing policy evolves, what the effectiveness of the newly launched national-level stimulus package will be and at what pace quarantine requirements and border restrictions are relaxed.\n\n\n\nTime is a rather scarce commodity, though, for the number of big, medium and small-sized companies and merchants \u201cburning money\u201d every single day. As authorities prioritize stability, the looming social and economic risks must not be underestimated.\n\n\n\n\n\n\n\nWhat is critical here is to avoid getting carried away by fixating on a top-down, rigid approach and to instead embrace dynamism, flexibility and adaptability. Diversification is a judicious and much-needed long-term project, but dealing a deadly blow to satellite casinos, for instance, was perhaps not the best strategy at this juncture (as now seemingly recognized in the Government\u2019s partial U-turn on the matter). The immediate priority must be to ensure that the local employment situation does not deteriorate further (and improves) and that those sectors that contribute the lion\u2019s share of government revenue \u2013 gaming and tourism \u2013 get back on their feet. Businesses and people from all walks of life will benefit from a more pragmatic, flexible and adaptive approach to public policies.\n\n\n\nSeeking the truth from facts and coming to terms with reality \u2013 with an open mind \u2013 may not be sufficient conditions in themselves, but they are absolutely necessary. ", "date_published": "June 05, 2022", "date_modified": "June 05, 2022 - 23:27", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/06/F3343843-8772-45AA-BCCB-227FFD52886E.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "What is critical here is to avoid getting carried away by fixating on a top-down, rigid approach and to instead embrace dynamism, flexibility and adaptability" }, { "id": "https://www.macaubusiness.com/editorial-invest-in-may/", "url": "https://www.macaubusiness.com/editorial-invest-in-may/", "title": "EDITORIAL \u2013 Invest in May", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/05/DFDAD190-EB6E-43ED-958A-FCE55D06E9D6-150x150.png\")
\nMacau Business Editorial | May 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe famous adage \u201csell in May and go away\u201d is informed by the typical underperformance of stocks in the six months May to October. According to conventional wisdom, investors should cash in and divest in late spring, then re-invest in November.
\n\n\n\nThat aside, in these atypical times shaped instead by the pandemic and geopolitical factors, the markets remain cowed by that b\u00eate noir of all investors: uncertainty. Yet notwithstanding the prevailing doom and gloom \u2013 admittedly a reflection of the real economy \u2013 financial markets have yet to take a nosedive like they did during the US-originated Global Financial Crisis. In recent months the Hang Seng Index reached a six-year low, but that is nevertheless a far cry from the collapse of 13 years ago.
\n\n\n\nA main driver of recovery after 2008/09 was the 4-trillion-yuan Chinese economic stimulus plan, whose impact was global. It was crucial to the uplift of growth worldwide, while carrying with it hot-money side effects. That was the trade-off back then. We now sit at a fundamentally different juncture marred by relentless pandemic woes aggravated by the war in Ukraine, a heating up of existing global trade frictions, inflation and an interest rate hike cycle.
\n\n\n\nFor China, trying to meet this year\u2019s 5.5 per cent GDP growth target is of paramount importance. The most recent COVID-19 lockdowns had an impact on supply chains, and central authorities have launched a number of key measures aimed at finding a way forward in terms of demand as well as supply. The State Council and Politburo meetings held in April both pointed to the need to boost consumption.
\n\n\n\nHere in Macau, the Government launched a new round of consumer e-voucher cards valued at MOP 8,000 per resident, injecting some MOP$5.88 billion into the local economy between June and December. Welcome as that is, the move doesn\u2019t go far enough according to business representatives featured in this issue of Macau Business, who propose additional measures such as employment and rental subsidies for SMEs struggling with overhead. The authorities might do well to emulate some of the best pandemic practices adopted elsewhere \u2013 overseas and right next door in the mainland and Hong Kong, such as the latter\u2019s Employment Support Scheme, which provides wage subsidies to employers to help them retain their staff (subject to suitable and fair criteria) through particularly harsh months.
\n\n\n\nReturning to the demand side of the equation, consumption stimulus could go beyond handouts to residents. While those are important and have greatly helped both consumers and businesses through the past couple of years, why not include non-resident workers in the package or roll out a new type of consumption scheme for tourists? That would inject additional money into the economy, and through visitors it could boost recovery of the city\u2019s bread-and-butter sector: tourism. Alongside private consumption, public procurement of goods and services could be boosted as a way to extend a helping hand to SMEs.
\n\n\n\nThere are surely other concrete, impactful measures that can be considered by the authorities for possible adoption within the scope of the SAR Government\u2019s public policies to help the city navigate the coming months\u2019 uncertain waters and likely ongoing unfavourable external factors. Recently announced moves indicate the authorities are, at least partially, receptive to societal concerns. The pilot scheme to allow the importation of domestic workers from the Philippines and the plan to allow foreign professionals in specific, underrepresented fields to enter the local work force are steps in the right direction in response to human resource woes. We will no doubt need more in that vein in the form of great strides forward, and on many fronts, lest we neglect the needs of the most vulnerable groups and the looming mental health challenges.
\n\n\n\nFaced with our real economy, the Government could turn the old saying on its head and find a new rhyme for the times: \u201cInvest in May to keep the crisis at bay\u201d.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/05/Cover_MB_May2022-781x1028.jpg\"){kind=spacer}
Macau Business turns 18 this month with a sense of pride, fulfilment, gratitude and duty.
\n\n\n\nNone of this could have been achieved in these 18 years without our talented, hardworking team members, our faithful readers and the valuable partners, suppliers and customers who have joined us on this journey.
What started out in May 2004 as the SAR\u2019s first English-language news publication, launched and developed by our founder Paulo A. Azevedo, has evolved into the multimedia group Project Asia Corp., which has kept on aggregating value, from the launch of our Chinese-language sister publication, \u5546\u8a0a(Business Intelligence),and our lifestyle outlet, Essential Macau, Business Daily, the MB.tvvideo platform and our round-the-clock online news hub, Macau News Agency\u2013 not to mention a number of other creative endeavours and events.
\n\n\n\nNone of this could have been achieved in these 18 years without our talented, hardworking team members, our faithful readers and the valuable partners, suppliers and customers who have joined us on this journey. It is because of you and all of them that we continue to tell the fascinating Macau story and communicate relevant regional, national and international developments, ever striving to uphold the publications\u2019 hallmarks: quality journalism, editorial independence and our focus on transparency and social responsibility.
\n\n\n\nDespite the recent challenging times we all live in, we have been able to move forward, unflinching, by forging even stronger ties with our readers and partners. With this silver lining in mind and confidence in the future, we sail on and express to you all our deepest thanks.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/04/Groundhog-1-150x150.jpg\")
\nMacau Business Editorial | April 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
Lately sometimes it feels like we\u2019re stuck in Groundhog Day, the 1993 US film that sees a weatherman (Bill Murray) relive the same day over and over, waking up to find he\u2019s right back where he started the previous morning.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/Screen-Shot-2022-03-04-at-10.45.12-AM.png\")
More than two years have passed since the unprecedented global COVID-19 pandemic emerged, sending shockwaves across the globe and putting the resilience of governments and societies through a tremendous stress test.
\n\n\n\nThe national-level \u201cdynamic zero-Covid\u201d strategy has produced remarkable results in terms of swiftly and successfully bringing outbreaks under control and thus avoiding a death toll like those registered elsewhere in the world. However, as the highly contagious yet milder Omicron variant continues its rapid spread and vaccination rollout expands, the case for adjusting that strategy grows stronger. Macau has fortunately not faced a wave of infections like those in Hong Kong or Shanghai, but that\u2019s no reason to lower our guard: it\u2019s likely more a matter of when (and on what scale) than if. Local health authorities have been ramping up their efforts to prepare for such a scenario. The coming months will be critical in this respect, not only in terms of people\u2019s health and the city\u2019s health infrastructure, but also in terms of people\u2019s livelihoods and the city\u2019s economy. A stroll through the city centre is enough for the naked eye to perceive the hardship faced by small businesses, who bear the brunt of this prolonged crisis due to associated tourism blues.
\n\n\n\n\n\n\n\nIn addition to prioritizing the local population\u2019s well being, authorities should also address the pandemic-fuelled brain drain of foreign skilled professionals
Recent gaming revenue figures (MOP 3.6 billion in March, the lowest since September 2020) offer a cautionary tale, showing what the city must steel itself for in the short-term: a climate demanding swift, sound measures to prevent the onset of an even deeper crisis resulting from more business closures and higher unemployment. What is desirable is a multi-track, coordinated approach comprising short- and mid-term measures coupled with both inward and outward dynamics.
\n\n\n\nThe case for immediate relief is unassailable. Secretary for Economy and Finance Lei Wai Nong has revealed a new round of consumer e-voucher cards in the pipeline: a welcome move that one hopes will be followed up with a bold, integrated package, in line with the ones rolled out by the Government over the past couple of years, but more substantial this time.
\n\n\n\nChief Executive Ho Iat Seng\u2019s scheduled attendance at a Legislative Assembly Q&A this month should provide the right opportunity for announcing measures and expressing a vision for the coming months. Amendments to the 2022 budget are likely needed, with government revenue thus far falling well short of the forecast. Take the first three months of the year for example: gaming revenue stood at MOP17.7 billion, yielding a monthly average (MOP 5.9 billion) that is just 54 per cent of the monthly average (10.8 billion) for the Government\u2019s MOP130 billion full-year estimate. Another dip into the city\u2019s MOP600+ billion rainy-day fund appears inevitable.\u00a0
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/04/ECB1FF8B-48F9-4B5F-AC0B-001799BAC1F5-756x1028.jpeg\")
Even if the SAR is blessed with abundant financial reserves, businesses and society need to glimpse a light at the end of the tunnel. It would be fair to expect a gradual and partial re-opening of the city in a few months, provided the situation ahead allows for a safe and steady relaxing of the \u201cdynamic zero-Covid\u201d approach. Nevertheless, one simply cannot overestimate the broader impact of restriction fatigue.
\n\n\n\nAlong those lines, in addition to looking after the local population\u2019s well-being (the priority), authorities should also address the pandemic-fuelled brain drain featured in this issue of Macau Business, lest there be an insurmountable deficit of the skilled foreign workers who play such an important role in Macau\u2019s social and economic development and who under current travel and labour importation restrictions cannot be replaced.
\n\n\n\nThe loss of such human capital risks damage to the city\u2019s competitiveness in the mid-to-long term, such that it would behove the Government to consider further alleviating quarantine requirements whenever possible (without jeopardising public health, of course) and look at implementing a fast-track talent importation scheme for sectors with particularly pressing skill voids, such as Education and those key industries the SAR hopes will drive future economic development and diversification. New \u201cbusiness-visa\u201d channels could also be opened to maintain foreign investor interest in the SAR. There are more judicious and innovative solutions that could be found in coordination with the mainland authorities and taking into account the views and needs of businesses and people from all walks of life.
\n\n\n\nThe time to act is now \u2013 so tomorrow won\u2019t be another Groundhog Day.
\n", "content_text": "Macau Business Editorial | April 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nLately sometimes it feels like we\u2019re stuck in Groundhog Day, the 1993 US film that sees a weatherman (Bill Murray) relive the same day over and over, waking up to find he\u2019s right back where he started the previous morning. \n\n\n\n\n\n\n\nMore than two years have passed since the unprecedented global COVID-19 pandemic emerged, sending shockwaves across the globe and putting the resilience of governments and societies through a tremendous stress test. \n\n\n\nThe national-level \u201cdynamic zero-Covid\u201d strategy has produced remarkable results in terms of swiftly and successfully bringing outbreaks under control and thus avoiding a death toll like those registered elsewhere in the world. However, as the highly contagious yet milder Omicron variant continues its rapid spread and vaccination rollout expands, the case for adjusting that strategy grows stronger. Macau has fortunately not faced a wave of infections like those in Hong Kong or Shanghai, but that\u2019s no reason to lower our guard: it\u2019s likely more a matter of when (and on what scale) than if. Local health authorities have been ramping up their efforts to prepare for such a scenario. The coming months will be critical in this respect, not only in terms of people\u2019s health and the city\u2019s health infrastructure, but also in terms of people\u2019s livelihoods and the city\u2019s economy. A stroll through the city centre is enough for the naked eye to perceive the hardship faced by small businesses, who bear the brunt of this prolonged crisis due to associated tourism blues.\n\n\n\n\n\n\n\nIn addition to prioritizing the local population\u2019s well being, authorities should also address the pandemic-fuelled brain drain of foreign skilled professionals\n\n\n\n\n\n\n\nRecent gaming revenue figures (MOP 3.6 billion in March, the lowest since September 2020) offer a cautionary tale, showing what the city must steel itself for in the short-term: a climate demanding swift, sound measures to prevent the onset of an even deeper crisis resulting from more business closures and higher unemployment. What is desirable is a multi-track, coordinated approach comprising short- and mid-term measures coupled with both inward and outward dynamics.\n\n\n\nThe case for immediate relief is unassailable. Secretary for Economy and Finance Lei Wai Nong has revealed a new round of consumer e-voucher cards in the pipeline: a welcome move that one hopes will be followed up with a bold, integrated package, in line with the ones rolled out by the Government over the past couple of years, but more substantial this time.\n\n\n\nChief Executive Ho Iat Seng\u2019s scheduled attendance at a Legislative Assembly Q&A this month should provide the right opportunity for announcing measures and expressing a vision for the coming months. Amendments to the 2022 budget are likely needed, with government revenue thus far falling well short of the forecast. Take the first three months of the year for example: gaming revenue stood at MOP17.7 billion, yielding a monthly average (MOP 5.9 billion) that is just 54 per cent of the monthly average (10.8 billion) for the Government\u2019s MOP130 billion full-year estimate. Another dip into the city\u2019s MOP600+ billion rainy-day fund appears inevitable.\u00a0\n\n\n\n\n\n\n\nEven if the SAR is blessed with abundant financial reserves, businesses and society need to glimpse a light at the end of the tunnel. It would be fair to expect a gradual and partial re-opening of the city in a few months, provided the situation ahead allows for a safe and steady relaxing of the \u201cdynamic zero-Covid\u201d approach. Nevertheless, one simply cannot overestimate the broader impact of restriction fatigue. \n\n\n\nAlong those lines, in addition to looking after the local population\u2019s well-being (the priority), authorities should also address the pandemic-fuelled brain drain featured in this issue of Macau Business, lest there be an insurmountable deficit of the skilled foreign workers who play such an important role in Macau\u2019s social and economic development and who under current travel and labour importation restrictions cannot be replaced. \n\n\n\nThe loss of such human capital risks damage to the city\u2019s competitiveness in the mid-to-long term, such that it would behove the Government to consider further alleviating quarantine requirements whenever possible (without jeopardising public health, of course) and look at implementing a fast-track talent importation scheme for sectors with particularly pressing skill voids, such as Education and those key industries the SAR hopes will drive future economic development and diversification. New \u201cbusiness-visa\u201d channels could also be opened to maintain foreign investor interest in the SAR. There are more judicious and innovative solutions that could be found in coordination with the mainland authorities and taking into account the views and needs of businesses and people from all walks of life. \n\n\n\nThe time to act is now \u2013 so tomorrow won\u2019t be another Groundhog Day. ", "date_published": "April 05, 2022", "date_modified": "April 05, 2022 - 15:58", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/04/Groundhog-1.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ] }, { "id": "https://www.macaubusiness.com/editorial-upping-the-game/", "url": "https://www.macaubusiness.com/editorial-upping-the-game/", "title": "EDITORIAL \u2013 Upping the game", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/10/Blog-Images-The-Chinese-Greater-Bay-Area_rgb-150x150.jpg\")
\nMacau Business Editorial | March 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
Early March marks the fifth anniversary of Premier Li Keqiang\u2019s landmark report, delivered at the opening of the National People\u2019s Congress plenary session in Beijing, in which the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) featured prominently. It was heralded as a regional development project that would allow the nation to \u201cgive full play to the distinctive strengths of Hong Kong and Macau and elevate their positions in China\u2019s economic development and opening up\u201d.
\n\n\n\nThe outline development plan, released in February 2019, detailed ambitious immediate (by 2022) and long-term (before 2035) goals: as of this year, \u201ca city cluster with a reasonable division of labour, complementary functions and coordinated development should basically be established\u201d, while 2035 should see a \u201chighly connected area, with very effective and efficient flow of various resources and factors of production\u201d. The ultimate end: that \u201can international first-class bay area for living, working and travelling should be fully developed\u201d. One should note that the GBA\u2019s economy is already similar to the Gross Domestic Product (GDP) of countries such as South Korea and Canada.
\n\n\n\nFive years on, with the special report published in this month’s issue of Macau Business we take stock of the achievements, the possibilities and the challenges inherent in this crucial regional and national endeavour.
\n\n\n\nMacau\u2019s function, to be One Centre (for global tourism and leisure), One Platform (for trade cooperation between China and the Portuguese-speaking countries), One Base (for cultural exchange), heralds a promising role for the SAR, one to be cherished. While a number of steps have been taken in that direction, looking beyond the project\u2019s wise top-down design reveals obstacles on the ground that have hindered the development pace spelled out in the blueprint. The COVID-19 pandemic has not helped with moving closer to some objectives, while other challenges stemming from institutional discrepancies between the Bay Area\u2019s constituencies and mobility impediments will need to be sagely addressed in order to give full play to each side\u2019s strengths while maintaining and highlighting their distinctive features.
\n\n\n\n“We mustn\u2019t lose sight of the goals with respect to the GBA and Hengqin, and more needs to be done by authorities and economic actors to ready Macau for the greater GBA game in the mid to long-term”
Of the GBA\u2019s eleven cities, Macau is one of the four core cities– alongside Guangzhou, Shenzhen and Hong Kong – and the one with the highest GDP per capita (pre-pandemic). However it is also the smallest and the most reliant on a single type of industry (gaming/tourism). This is both a strength (gambling monopoly and tourism appeal) and a vulnerability (exposure to adverse conditions affecting its core industry, such as those imposed by the pandemic). The Guangdong-Macau In-depth Cooperation Zone in Henqgin, launched in September 2021, is therefore a key asset in the SAR\u2019s ability to fulfil its function.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/03/cover_March2022_web.jpg\")
Against the current economic backdrop \u2013 even with all the potential a project like the GBA holds for the city \u2013 the local population can\u2019t really be faulted for having a narrow, day-to-day preoccupation with the city\u2019s uncertain economic outlook as opposed to a proactive, forward-looking approach to opportunities that are waiting to be seized just next-door. The fact of the matter, however, is that we mustn\u2019t lose sight of the goals set by the Central Government with respect to the GBA and Hengqin, and more needs to be done by authorities and economic actors to ready Macau for the greater GBA game in the mid to long-term.
\n\n\n\nFor instance, an ambitious and feasible strategy to attract (both mainland and foreign) investment and professionals \u2013 in key areas that support Macau\u2019s One Centre, One Platform, One Base function, as well as key areas for the city\u2019s economic diversification \u2013 is pivotal. In the meantime, the pandemic-fuelled brain drain of highly skilled expats should be addressed. There are practical obstacles that can be removed by considering suggestions put forth by professionals, firms and chambers of commerce.
\n\n\n\nConnecting wealth
\n\n\n\nAlso noteworthy is the fact that over the past five years, a number of initiatives and incentives that have been rolled out are yielding results. There are new mechanisms and programmes for cooperation designed to assist local entrepreneurs with venturing out into neighbouring Guangdong cities.
\n\n\n\nA concrete example in the realm of financial services is the recently launched cross-border Wealth Management Connect (WMC) pilot scheme. As reported in this issue, it\u2019s an arrangement that is attracting an increasing number of participants \u2013 customers and banks \u2013 in Guangdong, Macau and Hong Kong. The scheme\u2019s first phase has exhibited a stronger uptake in Northbound business, with RMB-denominated financial products holding great appeal for those in the SARs. Unsurprisingly, Hong Kong\u2019s products are leading in the Southbound market.
\n\n\n\nFor local banks this poses both an opportunity \u2013 to tap into an extensive network and customer base \u2013 and a challenge \u2013 to differentiate themselves within a crowded field. It is high time for Macau\u2019s banking and financial sector to up its game.
\n", "content_text": "Macau Business Editorial | March 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nEarly March marks the fifth anniversary of Premier Li Keqiang\u2019s landmark report, delivered at the opening of the National People\u2019s Congress plenary session in Beijing, in which the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) featured prominently. It was heralded as a regional development project that would allow the nation to \u201cgive full play to the distinctive strengths of Hong Kong and Macau and elevate their positions in China\u2019s economic development and opening up\u201d.\n\n\n\n The outline development plan, released in February 2019, detailed ambitious immediate (by 2022) and long-term (before 2035) goals: as of this year, \u201ca city cluster with a reasonable division of labour, complementary functions and coordinated development should basically be established\u201d, while 2035 should see a \u201chighly connected area, with very effective and efficient flow of various resources and factors of production\u201d. The ultimate end: that \u201can international first-class bay area for living, working and travelling should be fully developed\u201d. One should note that the GBA\u2019s economy is already similar to the Gross Domestic Product (GDP) of countries such as South Korea and Canada. \n\n\n\nFive years on, with the special report published in this month’s issue of Macau Business we take stock of the achievements, the possibilities and the challenges inherent in this crucial regional and national endeavour.\n\n\n\nMacau\u2019s function, to be One Centre (for global tourism and leisure), One Platform (for trade cooperation between China and the Portuguese-speaking countries), One Base (for cultural exchange), heralds a promising role for the SAR, one to be cherished. While a number of steps have been taken in that direction, looking beyond the project\u2019s wise top-down design reveals obstacles on the ground that have hindered the development pace spelled out in the blueprint. The COVID-19 pandemic has not helped with moving closer to some objectives, while other challenges stemming from institutional discrepancies between the Bay Area\u2019s constituencies and mobility impediments will need to be sagely addressed in order to give full play to each side\u2019s strengths while maintaining and highlighting their distinctive features.\n\n\n\n“We mustn\u2019t lose sight of the goals with respect to the GBA and Hengqin, and more needs to be done by authorities and economic actors to ready Macau for the greater GBA game in the mid to long-term”\n\n\n\nOf the GBA\u2019s eleven cities, Macau is one of the four core cities– alongside Guangzhou, Shenzhen and Hong Kong – and the one with the highest GDP per capita (pre-pandemic). However it is also the smallest and the most reliant on a single type of industry (gaming/tourism). This is both a strength (gambling monopoly and tourism appeal) and a vulnerability (exposure to adverse conditions affecting its core industry, such as those imposed by the pandemic). The Guangdong-Macau In-depth Cooperation Zone in Henqgin, launched in September 2021, is therefore a key asset in the SAR\u2019s ability to fulfil its function.\n\n\n\n\n\n\n\nAgainst the current economic backdrop \u2013 even with all the potential a project like the GBA holds for the city \u2013 the local population can\u2019t really be faulted for having a narrow, day-to-day preoccupation with the city\u2019s uncertain economic outlook as opposed to a proactive, forward-looking approach to opportunities that are waiting to be seized just next-door. The fact of the matter, however, is that we mustn\u2019t lose sight of the goals set by the Central Government with respect to the GBA and Hengqin, and more needs to be done by authorities and economic actors to ready Macau for the greater GBA game in the mid to long-term. \n\n\n\nFor instance, an ambitious and feasible strategy to attract (both mainland and foreign) investment and professionals \u2013 in key areas that support Macau\u2019s One Centre, One Platform, One Base function, as well as key areas for the city\u2019s economic diversification \u2013 is pivotal. In the meantime, the pandemic-fuelled brain drain of highly skilled expats should be addressed. There are practical obstacles that can be removed by considering suggestions put forth by professionals, firms and chambers of commerce. \n\n\n\nConnecting wealth \n\n\n\nAlso noteworthy is the fact that over the past five years, a number of initiatives and incentives that have been rolled out are yielding results. There are new mechanisms and programmes for cooperation designed to assist local entrepreneurs with venturing out into neighbouring Guangdong cities.\n\n\n\nA concrete example in the realm of financial services is the recently launched cross-border Wealth Management Connect (WMC) pilot scheme. As reported in this issue, it\u2019s an arrangement that is attracting an increasing number of participants \u2013 customers and banks \u2013 in Guangdong, Macau and Hong Kong. The scheme\u2019s first phase has exhibited a stronger uptake in Northbound business, with RMB-denominated financial products holding great appeal for those in the SARs. Unsurprisingly, Hong Kong\u2019s products are leading in the Southbound market.\n\n\n\nFor local banks this poses both an opportunity \u2013 to tap into an extensive network and customer base \u2013 and a challenge \u2013 to differentiate themselves within a crowded field. It is high time for Macau\u2019s banking and financial sector to up its game.", "date_published": "March 04, 2022", "date_modified": "March 05, 2022 - 00:32", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2019/10/Blog-Images-The-Chinese-Greater-Bay-Area_rgb.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ] }, { "id": "https://www.macaubusiness.com/editorial-eye-of-the-tiger/", "url": "https://www.macaubusiness.com/editorial-eye-of-the-tiger/", "title": "EDITORIAL \u2013 Eye of the Tiger", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/02/Screenshot-2022-02-04-at-9.35.30-AM-150x150.png\")
\nMacau Business Editorial | February 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWhen the COVID-19 pandemic erupted two years ago many thought it would be over in a matter of six to nine months, as happened back in 2003 with SARS \u2013 also a coronavirus. But now, on entering year three of the \u201cCovidian Era\u201d, a number of lessons have been learned and the path towards the post-COVID new normal is gradually taking shape, still with hiccups, across most of the globe.
\n\n\n\nHere in Macau, as we usher in the Year of the Tiger in an enviable COVID-free environment, the economy is still facing headwinds that \u2013 while not a \u2018perfect storm\u2019 (we hope) \u2013 are blowing in from all around the compass rose. On the horizon are transformations, brought on by the situation but whose ultimate cause may to some extent be structural. The COVID-19 pandemic\u2019s sustained impact on the local economy will remain a key feature this year despite the prospect of a gradual recovery through 2022 forecast by experts in the form of double-digit economic growth. A Greater Bay Area travel bubble to include Hong Kong is still months out, and resumption of international travel in the Year of the Tiger \u2013 with safe, quarantine-free arrivals for foreign tourists \u2013 is hard to see taking place from where we currently stand.
\n\n\n\nMacau\u2019s economy will surely rise again, phoenix-like, in the future. The question today is whether we\u2019ll see it come roaring back this Year of the Tiger
In tandem with the pandemic\u2019s impact on businesses and employment, the city\u2019s core industry, gaming, has undergone watershed developments in the past few months. The near-demise of VIP gaming promoters \u2013 from the arrest of top junket heads on suspicion of illegal cross-border gambling activities, organized crime and money laundering to the closure of most VIP rooms in casinos \u2013 and the transformational impact of the gaming bill, approved at first reading, are paving the way to a new regulatory landscape, one the local authorities stress will both foster the industry\u2019s healthy and sustainable development and spur economic diversification.
\n\n\n\nUnsurprisingly this new era will mean a number of new strings attached to operators, imposing tighter supervision and enhanced social responsibility.
\n\n\n\nThe bill was welcomed by the gaming concessionaires and several of the proposed changes were greeted by some social groups; others, not so much, instead raising eyebrows and concerns. It must be said the Government listened during the consultation period, heeding opinions and dropping certain measures that were met with particular scepticism, such as the introduction of Government delegates to the concessionaires or authorization requirements for dividend distribution. Other matters, however, remain to be clarified and fine-tuned, an outcome, one would hope, of the article-by-article review currently underway in the Legislative Assembly.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/02/Cover_MBFeb2022_M-1028x1028.jpeg\")
The Year of the Tiger should therefore be one of building, on foundations laid in the latter months of the Year of the Ox, with respect not just to gaming legislation reform but also to concrete measures for speeding up construction of the Guandgong-Macau In-depth Cooperation Zone in Hengqin. Launched in September 2021, the Zone has emerged as an unmissable opportunity for the SAR, one that pandemic woes have thus far prevented from truly taking centre stage. While making leapfrog advancements in the short-term might not be easy, programmes like the proposed financial support measures for Macau residents and companies working and operating on the neighbouring island might just do the trick.
\n\n\n\nIn his Chinese New Year Message, Chief Executive Ho Iat Seng pledged that the SAR would not lower its guard, continuing to ensure epidemic prevention and control, promoting economic recovery and diversification, focusing on safeguarding people\u2019s livelihoods, deepening public administration reform, giving impetus to the Hengqin project and enhancing the city\u2019s role in national development. All that may sound like a tall order, but it’s an order that can be filled with the right policies to tackle employment and SME woes, the wise allocation of resources, open-mindedness, a proactive approach to an ever-changing pandemic situation, effective coordination with mainland authorities and a favourable external environment.
\n\n\n\nMacau\u2019s economy will surely rise again, phoenix-like, in the future. The question today is whether we\u2019ll see it come roaring back this Year of the Tiger. While that might not be a sure bet, perhaps at least some of what we\u2019ve witnessed of late will prove a blessing in disguise with hindsight. All of this requires vision \u2013 the eye of the tiger.
\n\n\n\nHappy Chinese New Year! Kung Hei Fat Choi!
\n", "content_text": "Macau Business Editorial | February 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nWhen the COVID-19 pandemic erupted two years ago many thought it would be over in a matter of six to nine months, as happened back in 2003 with SARS \u2013 also a coronavirus. But now, on entering year three of the \u201cCovidian Era\u201d, a number of lessons have been learned and the path towards the post-COVID new normal is gradually taking shape, still with hiccups, across most of the globe.\n\n\n\nHere in Macau, as we usher in the Year of the Tiger in an enviable COVID-free environment, the economy is still facing headwinds that \u2013 while not a \u2018perfect storm\u2019 (we hope) \u2013 are blowing in from all around the compass rose. On the horizon are transformations, brought on by the situation but whose ultimate cause may to some extent be structural. The COVID-19 pandemic\u2019s sustained impact on the local economy will remain a key feature this year despite the prospect of a gradual recovery through 2022 forecast by experts in the form of double-digit economic growth. A Greater Bay Area travel bubble to include Hong Kong is still months out, and resumption of international travel in the Year of the Tiger \u2013 with safe, quarantine-free arrivals for foreign tourists \u2013 is hard to see taking place from where we currently stand.\n\n\n\nMacau\u2019s economy will surely rise again, phoenix-like, in the future. The question today is whether we\u2019ll see it come roaring back this Year of the Tiger\n\n\n\nIn tandem with the pandemic\u2019s impact on businesses and employment, the city\u2019s core industry, gaming, has undergone watershed developments in the past few months. The near-demise of VIP gaming promoters \u2013 from the arrest of top junket heads on suspicion of illegal cross-border gambling activities, organized crime and money laundering to the closure of most VIP rooms in casinos \u2013 and the transformational impact of the gaming bill, approved at first reading, are paving the way to a new regulatory landscape, one the local authorities stress will both foster the industry\u2019s healthy and sustainable development and spur economic diversification. \n\n\n\nUnsurprisingly this new era will mean a number of new strings attached to operators, imposing tighter supervision and enhanced social responsibility. \n\n\n\nThe bill was welcomed by the gaming concessionaires and several of the proposed changes were greeted by some social groups; others, not so much, instead raising eyebrows and concerns. It must be said the Government listened during the consultation period, heeding opinions and dropping certain measures that were met with particular scepticism, such as the introduction of Government delegates to the concessionaires or authorization requirements for dividend distribution. Other matters, however, remain to be clarified and fine-tuned, an outcome, one would hope, of the article-by-article review currently underway in the Legislative Assembly. \n\n\n\n\n\n\n\nThe Year of the Tiger should therefore be one of building, on foundations laid in the latter months of the Year of the Ox, with respect not just to gaming legislation reform but also to concrete measures for speeding up construction of the Guandgong-Macau In-depth Cooperation Zone in Hengqin. Launched in September 2021, the Zone has emerged as an unmissable opportunity for the SAR, one that pandemic woes have thus far prevented from truly taking centre stage. While making leapfrog advancements in the short-term might not be easy, programmes like the proposed financial support measures for Macau residents and companies working and operating on the neighbouring island might just do the trick. \n\n\n\nIn his Chinese New Year Message, Chief Executive Ho Iat Seng pledged that the SAR would not lower its guard, continuing to ensure epidemic prevention and control, promoting economic recovery and diversification, focusing on safeguarding people\u2019s livelihoods, deepening public administration reform, giving impetus to the Hengqin project and enhancing the city\u2019s role in national development. All that may sound like a tall order, but it’s an order that can be filled with the right policies to tackle employment and SME woes, the wise allocation of resources, open-mindedness, a proactive approach to an ever-changing pandemic situation, effective coordination with mainland authorities and a favourable external environment.\n\n\n\nMacau\u2019s economy will surely rise again, phoenix-like, in the future. The question today is whether we\u2019ll see it come roaring back this Year of the Tiger. While that might not be a sure bet, perhaps at least some of what we\u2019ve witnessed of late will prove a blessing in disguise with hindsight. All of this requires vision \u2013 the eye of the tiger.\n\n\n\nHappy Chinese New Year! Kung Hei Fat Choi!", "date_published": "February 07, 2022", "date_modified": "February 08, 2022 - 15:22", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2022/02/Screenshot-2022-02-04-at-9.35.30-AM.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MNA", "Opinion" ], "summary": "Macau\u2019s economy will surely rise again, phoenix-like, in the future. The question today is whether we\u2019ll see it come roaring back this Year of the Tiger" }, { "id": "https://www.macaubusiness.com/editorial-rebalancing/", "url": "https://www.macaubusiness.com/editorial-rebalancing/", "title": "EDITORIAL \u2013 Rebalancing", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/Macau-skyline-new-150x150.png\")
\nMacau Business Editorial | January 2022 | By Jos\u00e9 Carlos Matias \u2013 Director
Macau\u2019s recently issued Second Five-year Plan on Economic and Social Development (2021\u20132025) is a worth reading 100-page (in its Portuguese version) blueprint that signals the city\u2019s overall direction. As expected, it elaborates on the paramount importance of developing adequate tools to bring about Macau\u2019s long-sought and much-touted economic diversification and its further integration and participation in broader regional, national and global strategies \u2013 namely the joint development of Hengqin, the realization of the Greater Bay Area, and Macau\u2019s supporting roles in the Portuguese-Speaking Countries platform and Belt and Road Initiative.
\n\n\n\nOn the domestic front, the plan also maps out improvements to livelihoods, well-being and public governance. Together, the points raised, the aims it sets out and the vision it reveals indicate steady progress on a clear path and deserve constructive and proactive social engagement.
\n\n\n\nLess conspicuous, perhaps, but certainly noteworthy is a line in the chapter on improving the system of governance based on the rule of law, in which the Government pledges, in accordance with the law, to guarantee freedom of the press, freedom of edition and freedom of expression, enhancing the public opinion\u2019s capacity for criticism, suggestion and monitoring. Interestingly, there was no such reference in the previous (the SAR\u2019s First) Five-year Plan.
\n\n\n\nWelcome as this reiteration of the Government\u2019s commitment to these highly cherished values is, one can\u2019t help but notice the recent shrinking of the public sphere and a narrowing of the effective practice of some of the above-mentioned freedoms, rights and guarantees, particularly over the past year. This is a trend not exclusive to Macau \u2013 it is unfortunately rather a global phenomenon \u2013 and surely both pandemic and external factors are at play. However, a reasonable number of people \u2013 many of whom tend to stay away from publicly expressing their views \u2013 are struck by the disproportionality of this trend here and worried about the resulting situations.
\n\n\n\nThis problem should not be underestimated, or cast aside through indulgence in\u00a0whataboutism. Atrophy of the public sphere \u2013 in the face of real and perceived constraints \u2013 has an adverse, knock-on effect not just on individual rights but also on overall governance and on sound conditions for a creative and innovative ecosystem. This city\u2019s tolerance, inclusivity and plurality are points of pride for many locals. Nurturing those assets is key. Hopefully, the Government\u2019s commitment can be taken at face value. Why else would the reiteration of such a pledge be added to the new Five-year Plan?
\n\n\n\nIn the chips
\n\n\n\nAmong the key aims singled out in the new Five-year Plan is development of a robust high-tech scene, and though we\u2019re arguably still at an early stage in that journey, it\u2019s important to recognize successes along the way and share inspiring stories.
\n\n\n\nIt has gone relatively unnoticed but merits resounding applause: Macau is home to world-class expertise in the field of microelectronics thanks to a decades-long nurturing of talents, driven primarily by the University of Macau. As recounted in this edition of Macau Business, a local semiconductor design firmisnow dedicated to assisting China in the production of its own microchips. It\u2019s one of a growing number of tech start-ups rising to the challenge, adding value and making the most of the mutually beneficial Macau\u2013Hengqin dynamic.
\n", "content_text": "Macau Business Editorial | January 2022 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nMacau\u2019s recently issued Second Five-year Plan on Economic and Social Development (2021\u20132025) is a worth reading 100-page (in its Portuguese version) blueprint that signals the city\u2019s overall direction. As expected, it elaborates on the paramount importance of developing adequate tools to bring about Macau\u2019s long-sought and much-touted economic diversification and its further integration and participation in broader regional, national and global strategies \u2013 namely the joint development of Hengqin, the realization of the Greater Bay Area, and Macau\u2019s supporting roles in the Portuguese-Speaking Countries platform and Belt and Road Initiative. \n\n\n\n\n\n\n\nOn the domestic front, the plan also maps out improvements to livelihoods, well-being and public governance. Together, the points raised, the aims it sets out and the vision it reveals indicate steady progress on a clear path and deserve constructive and proactive social engagement.\n\n\n\nLess conspicuous, perhaps, but certainly noteworthy is a line in the chapter on improving the system of governance based on the rule of law, in which the Government pledges, in accordance with the law, to guarantee freedom of the press, freedom of edition and freedom of expression, enhancing the public opinion\u2019s capacity for criticism, suggestion and monitoring. Interestingly, there was no such reference in the previous (the SAR\u2019s First) Five-year Plan.\n\n\n\nWelcome as this reiteration of the Government\u2019s commitment to these highly cherished values is, one can\u2019t help but notice the recent shrinking of the public sphere and a narrowing of the effective practice of some of the above-mentioned freedoms, rights and guarantees, particularly over the past year. This is a trend not exclusive to Macau \u2013 it is unfortunately rather a global phenomenon \u2013 and surely both pandemic and external factors are at play. However, a reasonable number of people \u2013 many of whom tend to stay away from publicly expressing their views \u2013 are struck by the disproportionality of this trend here and worried about the resulting situations.\n\n\n\nThis problem should not be underestimated, or cast aside through indulgence in\u00a0whataboutism. Atrophy of the public sphere \u2013 in the face of real and perceived constraints \u2013 has an adverse, knock-on effect not just on individual rights but also on overall governance and on sound conditions for a creative and innovative ecosystem. This city\u2019s tolerance, inclusivity and plurality are points of pride for many locals. Nurturing those assets is key. Hopefully, the Government\u2019s commitment can be taken at face value. Why else would the reiteration of such a pledge be added to the new Five-year Plan?\n\n\n\nIn the chips\n\n\n\nAmong the key aims singled out in the new Five-year Plan is development of a robust high-tech scene, and though we\u2019re arguably still at an early stage in that journey, it\u2019s important to recognize successes along the way and share inspiring stories.\n\n\n\nIt has gone relatively unnoticed but merits resounding applause: Macau is home to world-class expertise in the field of microelectronics thanks to a decades-long nurturing of talents, driven primarily by the University of Macau. As recounted in this edition of Macau Business, a local semiconductor design firmisnow dedicated to assisting China in the production of its own microchips. It\u2019s one of a growing number of tech start-ups rising to the challenge, adding value and making the most of the mutually beneficial Macau\u2013Hengqin dynamic.", "date_published": "January 05, 2022", "date_modified": "January 11, 2022 - 21:47", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/Macau-skyline-new.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "Opinion" ], "summary": "Macau\u2019s recently issued Second Five-year Plan on Economic and Social Development (2021\u20132025) is a worth reading 100-page (in its Portuguese version) blueprint that signals the city\u2019s overall direction." }, { "id": "https://www.macaubusiness.com/editorial-change/", "url": "https://www.macaubusiness.com/editorial-change/", "title": "EDITORIAL \u2013 Change", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/12/WhatsApp-Image-2021-12-04-at-5.15.09-PM-150x150.jpeg\")
\nMacau Business Editorial | December 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\n\u201cIf we want things to stay as they are, things will have to change\u201d. The famous quote from Giuseppe Tomasi di Lampedusa\u2019s novel Il Gattopardo has been widely used to refer to situations where the best recipe for maintaining the status quo is embracing managed change.
\n\n\n\nThat being said, these days in Macau the status quo \u2013 business as usual \u2013 is seemingly no longer the endgame in many ways, and the gaming industry is a case in point. Recent developments \u2013 detention of the head of the SAR\u2019s top junket and the key final verdict in the Dore case \u2013 are likely to result in substantial changes along with the external, mid-to-long-term impact of a still unpredictable COVID-19.
\n\n\n\nThose with the upper hand may identify in this critical juncture a window of opportunity for what is seen as a much-needed and long-overdue restructuring and remediation. In the same thread, this may be the moment to make Macau less of the \u201cEnfer du jeu (gambling hell)\u201d of Jean Delannoy\u2019s 1939 film and more of the family-friendly Entertainment Heaven (and why not haven?) set out in the One Centre(World Centre of Tourism and Leisure) component of the master plan for the city and region.
\n\n\n\nSince, as we all know, attaining such a desirable goal will take time, perhaps this crossroads can be turned into the birthplace of an Accelerator of History? On the other hand, what if \u2013 perish the thought \u2013 things get out of hand?
\n\n\n\nOne should bear in mind that the post-handover Pax– social contract – has been to a great extent grounded on sound prosperity and stability.
\n\n\n\nHow much of what we are experiencing is transitory, and how much will be translated into permanent fixtures?
\n\n\n\nUncertainty reigns at this stage \u2013 pretty much across the board and all around the world. These are not the best of times for people in the crystal ball business. While authorities will need to keep their options open, holding their cards too close to their chest for a prolonged period of time might not be the best option. The Chief Executive has hinted at the possibility of extending the current concessions and sub-concessions, should there be insufficient time to complete the gaming law revision and prepare a public tender on time ahead of the June 2022 expiration of the casino concessions. For the key players, anything that unclouds the horizon would be most welcome.
\n\n\n\nIn the meantime, of paramount importance is addressing the critical issues arising from a tougher job market, higher underemployment, the collapsing of small businesses and shrinking household incomes, among other social woes.
\n\n\n\nThe Policy Address for 2022 does include a number of key supportive measures, but the Chief Executive has acknowledged the likely need for additional moves given the current background and the example of the last two years, not to mention the longer-term structural challenges looming ahead.
\n\n\n\nAnd though the city\u2019s rainy-day fund, combined with the support and long-term vision provided by Beijing and the local population\u2019s own deeply ingrained pragmatism, will offer protection against the headwinds, these strengths alone, while indispensable, may not necessarily be sufficient to weather the storm.
\n\n\n\nWhile we badly need the city\u2019s winning streak to return, governing the SAR these days requires a great deal of both perspiration and inspiration. Ho Iat Seng and his cabinet surely know this all too well.
\n\n\n\nMeanwhile, one could invert Tomasi\u2019s quote: \u201cIf we want things to change, a number of things things will have to stay as they are (were)\u201d.
\n", "content_text": "Macau Business Editorial | December 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\u201cIf we want things to stay as they are, things will have to change\u201d. The famous quote from Giuseppe Tomasi di Lampedusa\u2019s novel Il Gattopardo has been widely used to refer to situations where the best recipe for maintaining the status quo is embracing managed change. \n\n\n\nThat being said, these days in Macau the status quo \u2013 business as usual \u2013 is seemingly no longer the endgame in many ways, and the gaming industry is a case in point. Recent developments \u2013 detention of the head of the SAR\u2019s top junket and the key final verdict in the Dore case \u2013 are likely to result in substantial changes along with the external, mid-to-long-term impact of a still unpredictable COVID-19. \n\n\n\nThose with the upper hand may identify in this critical juncture a window of opportunity for what is seen as a much-needed and long-overdue restructuring and remediation. In the same thread, this may be the moment to make Macau less of the \u201cEnfer du jeu (gambling hell)\u201d of Jean Delannoy\u2019s 1939 film and more of the family-friendly Entertainment Heaven (and why not haven?) set out in the One Centre(World Centre of Tourism and Leisure) component of the master plan for the city and region.\n\n\n\nSince, as we all know, attaining such a desirable goal will take time, perhaps this crossroads can be turned into the birthplace of an Accelerator of History? On the other hand, what if \u2013 perish the thought \u2013 things get out of hand? \n\n\n\nOne should bear in mind that the post-handover Pax– social contract – has been to a great extent grounded on sound prosperity and stability.\n\n\n\nHow much of what we are experiencing is transitory, and how much will be translated into permanent fixtures?\n\n\n\nUncertainty reigns at this stage \u2013 pretty much across the board and all around the world. These are not the best of times for people in the crystal ball business. While authorities will need to keep their options open, holding their cards too close to their chest for a prolonged period of time might not be the best option. The Chief Executive has hinted at the possibility of extending the current concessions and sub-concessions, should there be insufficient time to complete the gaming law revision and prepare a public tender on time ahead of the June 2022 expiration of the casino concessions. For the key players, anything that unclouds the horizon would be most welcome.\n\n\n\nIn the meantime, of paramount importance is addressing the critical issues arising from a tougher job market, higher underemployment, the collapsing of small businesses and shrinking household incomes, among other social woes.\n\n\n\nThe Policy Address for 2022 does include a number of key supportive measures, but the Chief Executive has acknowledged the likely need for additional moves given the current background and the example of the last two years, not to mention the longer-term structural challenges looming ahead.\n\n\n\nAnd though the city\u2019s rainy-day fund, combined with the support and long-term vision provided by Beijing and the local population\u2019s own deeply ingrained pragmatism, will offer protection against the headwinds, these strengths alone, while indispensable, may not necessarily be sufficient to weather the storm.\n\n\n\nWhile we badly need the city\u2019s winning streak to return, governing the SAR these days requires a great deal of both perspiration and inspiration. Ho Iat Seng and his cabinet surely know this all too well. \n\n\n\nMeanwhile, one could invert Tomasi\u2019s quote: \u201cIf we want things to change, a number of things things will have to stay as they are (were)\u201d.", "date_published": "December 05, 2021", "date_modified": "December 05, 2021 - 02:05", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/12/WhatsApp-Image-2021-12-04-at-5.15.09-PM.jpeg", "tags": [ "Editorial", "Macau", "MAG", "MAG Featured", "Opinion" ], "summary": "How much of what we are experiencing is transitory, and how much will be translated into permanent fixtures?" }, { "id": "https://www.macaubusiness.com/editorial-the-forest-for-the-trees/", "url": "https://www.macaubusiness.com/editorial-the-forest-for-the-trees/", "title": "EDITORIAL \u2013 The forest for the trees", "content_html": "![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/forest-trees-150x150.jpg\")
\nMacau Business Editorial | November 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
At the end of October, Macau hosted two worthy events which shone a spotlight on innovation and youth entrepreneurship and rekindled Macau\u2019s key Sino-Lusophone link. At the \u201c928 Challenge\u201d \u2013 the first competition for university start-ups to be held among the Portuguese-speaking countries and China \u2013 and the \u201cInnovation and Entrepreneurship Competition (Macao) for Technology Enterprises from Brazil and Portugal\u201d a whiff of hope, inspiration and return to normalcy hung in the air. Young startuppers and students trotted out solutions and business models that put the environment, public health and sustainability centre stage.
\n\n\n\nAgainst the background of prevailing low spirits arising from the COVID-19 conundrum we find ourselves in, events like these serve as a reminder we must look beyond the present need to extinguish the pandemic-induced economic fire. The point: Macau should aim to develop an ecosystem truly attractive to start-ups. The 2016 Startup Macau Forum was a step in the right direction, as were the Macao Young Entrepreneur Incubation Centre, the Macau Envision Accelerator, 10 Fantasia – A Creative Industries Incubator, the Macau Start-up Club and the Macao-Hengqin Youth Entrepreneurship Valley (Inno Valley HQ), alongside other initiatives. Still more must be done.
\n\n\n\nMacau cannot afford to be left behind, found wanting in terms of the skilled manpower required to fuel the new economy. Remember: cosmopolitan, creative cities are destined to succeed.
A bolder, more sustained and open-minded strategy, one with real consequences, will need to be embraced if we are to nurture a vibrant start-up hub in the city and make the most of future ties with the newly launched Guangdong-Macao In-depth Cooperation Zone in Hengqin, as well as the Greater Bay Area regional market. The overall direction is rightly and wisely addressed in both the Hengqin Master Plan and the SAR\u2019s new Five-Year Plan, which is under consultation. Concrete policies along with market conditions \u2013 domestically and externally \u2013 will determine the success of an innovation-driven dynamic. The ability to attract top talent and events is requisite to creating a virtuous cycle of modernization and establishing a startup ecosystem.
\n\n\n\n![\"\"](\"https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/WhatsApp-Image-2021-11-06-at-1.40.19-AM-2-781x1028.jpeg\"){kind=spacer}
Competitions, startup weekends and tech fairs will keep momentum going. Next month\u2019s inaugural edition of Macau\u2019s BEYONDInternational Innovation Expo could pave the way for a new generation of innovation and tech-themed events. In addition to government support, private venture capital and angel investors play a key role in the success of a startup ecosystem.
\n\n\n\nThere are a number of obstacles, however, impeding the city\u2019s climb up the innovation ladder, from ineffective public policies to the short-sighted, rent-seeking mindset still prevalent among local traditional elites. Moving forward, this should give way to a more free-thinking, inclusive and less risk-averse critical mass. An open and welcoming spirit is indeed the key.
\n\n\n\nWhile addressing the dire needs of the local economy and society at this critical juncture, we mustn\u2019t downplay the importance of building and retaining human capital and broadcasting a sense of hope and vision for the future.
\n\n\n\nOver the last couple of years, many highly skilled imported professionals have left the city. The human landscape is changing and \u2013 while other countries and regions stay a step ahead with preparations for the post-Covid world economy \u2013 Macau cannot afford to be left behind, found wanting in terms of the skilled manpower required to fuel the new economy. Remember: cosmopolitan, creative cities are destined to succeed.
\n\n\n\nIf we remain stuck in this challenging pandemic loop, we risk failing to see the forest for the trees. Shall we take a step back and take the longer view?
\n", "content_text": "Macau Business Editorial | November 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\nAt the end of October, Macau hosted two worthy events which shone a spotlight on innovation and youth entrepreneurship and rekindled Macau\u2019s key Sino-Lusophone link. At the \u201c928 Challenge\u201d \u2013 the first competition for university start-ups to be held among the Portuguese-speaking countries and China \u2013 and the \u201cInnovation and Entrepreneurship Competition (Macao) for Technology Enterprises from Brazil and Portugal\u201d a whiff of hope, inspiration and return to normalcy hung in the air. Young startuppers and students trotted out solutions and business models that put the environment, public health and sustainability centre stage.\n\n\n\nAgainst the background of prevailing low spirits arising from the COVID-19 conundrum we find ourselves in, events like these serve as a reminder we must look beyond the present need to extinguish the pandemic-induced economic fire. The point: Macau should aim to develop an ecosystem truly attractive to start-ups. The 2016 Startup Macau Forum was a step in the right direction, as were the Macao Young Entrepreneur Incubation Centre, the Macau Envision Accelerator, 10 Fantasia – A Creative Industries Incubator, the Macau Start-up Club and the Macao-Hengqin Youth Entrepreneurship Valley (Inno Valley HQ), alongside other initiatives. Still more must be done.\n\n\n\nMacau cannot afford to be left behind, found wanting in terms of the skilled manpower required to fuel the new economy. Remember: cosmopolitan, creative cities are destined to succeed. \n\n\n\nA bolder, more sustained and open-minded strategy, one with real consequences, will need to be embraced if we are to nurture a vibrant start-up hub in the city and make the most of future ties with the newly launched Guangdong-Macao In-depth Cooperation Zone in Hengqin, as well as the Greater Bay Area regional market. The overall direction is rightly and wisely addressed in both the Hengqin Master Plan and the SAR\u2019s new Five-Year Plan, which is under consultation. Concrete policies along with market conditions \u2013 domestically and externally \u2013 will determine the success of an innovation-driven dynamic. The ability to attract top talent and events is requisite to creating a virtuous cycle of modernization and establishing a startup ecosystem. \n\n\n\n\n\n\n\nCompetitions, startup weekends and tech fairs will keep momentum going. Next month\u2019s inaugural edition of Macau\u2019s BEYONDInternational Innovation Expo could pave the way for a new generation of innovation and tech-themed events. In addition to government support, private venture capital and angel investors play a key role in the success of a startup ecosystem.\n\n\n\nThere are a number of obstacles, however, impeding the city\u2019s climb up the innovation ladder, from ineffective public policies to the short-sighted, rent-seeking mindset still prevalent among local traditional elites. Moving forward, this should give way to a more free-thinking, inclusive and less risk-averse critical mass. An open and welcoming spirit is indeed the key. \n\n\n\nWhile addressing the dire needs of the local economy and society at this critical juncture, we mustn\u2019t downplay the importance of building and retaining human capital and broadcasting a sense of hope and vision for the future. \n\n\n\nOver the last couple of years, many highly skilled imported professionals have left the city. The human landscape is changing and \u2013 while other countries and regions stay a step ahead with preparations for the post-Covid world economy \u2013 Macau cannot afford to be left behind, found wanting in terms of the skilled manpower required to fuel the new economy. Remember: cosmopolitan, creative cities are destined to succeed. \n\n\n\nIf we remain stuck in this challenging pandemic loop, we risk failing to see the forest for the trees. Shall we take a step back and take the longer view?", "date_published": "November 06, 2021", "date_modified": "November 06, 2021 - 18:01", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://hogo.sgp1.digitaloceanspaces.com/macaubusiness/wp-content/uploads/2021/11/forest-trees.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MNA", "Opinion" ], "summary": " Macau cannot afford to be left behind, found wanting in terms of the skilled manpower required to fuel the new economy. Remember: cosmopolitan, creative cities are destined to succeed. " }, { "id": "https://www.macaubusiness.com/editorial-golden-eggs/", "url": "https://www.macaubusiness.com/editorial-golden-eggs/", "title": "EDITORIAL \u2013 Golden eggs", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/10/Golden-eggs-Hengqin-Macaupng-150x150.png\")
\nMacau Business Editorial | October 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nThe conversation on diversifying Macau\u2019s economy away from gambling is almost as old as the casino industry itself in the city. Through the decades a number of attempts to push for effective economic diversification failed to yield results. Most of them relied on launching industrial parks, which never truly attained their promised potential.
\n\n\n\nThe liberalization of the gaming industry that occurred two decades ago was aimed at a particular approach to diversification: the new integrated resort (IR) model, making casino gambling part of a larger package including non-gaming elements such as retail, fine dining, F&B, MICE and entertainment. The post-liberalization operators did deliver that new IR model (some more so than others), and in doing so changed the city\u2019s landscape beyond recognition, heralding an unprecedented era of economic growth and job creation. What was intended to be basically the \u201chead of the dragon\u201d multiplied severalfold on the heels of seemingly limitless demand from mainland China together with a massive increase in supply thanks to supportive measures from Beijing. And the rest, as they say, is history.
\n\n\n\nWhen Xi Jinping visited Macau in early 2009, then as Vice President, he brought with him two key messages that, despite not being entirely new, did carry special weight, as he was by then already regarded by many as the nation\u2019s leader-in-waiting. Xi insisted the SAR had to diversify its economy, and that the development of Hengqin would provide the necessary room. Over the following decade Macau grew even more dependent on the gaming industry, and calls for diversification intensified. The mammoth stimulus package to assist China\u2019s recovery from the 2008/9 US financial crisis was highly effective at lifting the country\u2019s economy clear of any hint of recession \u2013 with the added spillover effect of cheap money flooding into not just the overheated property market but also, indirectly, the city\u2019s gaming industry.
\n\n\n\nMass market expanded impressively, but VIP gaming reigned supreme in those years, and jaw-dropping growth figures attained levels that would have to be reined in. The city\u2019s casino industry, specifically the high-roller segment, could not be shielded from the knock-on effect of the anti-corruption campaign and the efforts across the board to curb massive capital outflows. Beginning in 2013/14 a number of corrections to the model were made to bring it in line with more sustainable levels.
\n\n\n\nIn Macau all of us \u2013 the government, industry players, society \u2013 knew those \u201csky\u2019s the limit\u201d days could not go on indefinitely and that the risks of putting all our eggs in one basket remained high. Still, the fiscal reserve was pilling up thanks to year after year of robust surpluses, and the Government\u2019s welfaristpolicies \u2013 doling out part of that surfeit in the form subsidies, one-off grants and other instruments \u2013 forged a social contract that held sway through the years, ensuring a satisfactory level of prosperity and stability. You could say that, back then, while plenty of lip service was given to the importance of economic diversification, the city was in fact resting on its laurels, failing to tackle that mission \u2013 to diversify \u2013 head on.
\n\n\n\nIt was just three years ago, remember, that Macau was tipped to overtake Qatar in 2020 as the world\u2019s richest jurisdiction (in terms of GDP per capita).
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/10/MB-October-2021-cover-780x1028.jpg\")
Then reality bit. COVID-19 emerged like a black swan soaring over the grey rhinos that had already charged into view. And while the last twenty months have been overwhelming for the whole world, the last few months here have felt like a Sisyphean loop, our recovery continually derailed by successive waves of COVID-19 cases \u2013 in neighbouring provinces and, more recently, in town. Local authorities excelled in the first year of the pandemic, making our city a \u201cposter child\u201d for disease control, but the same unfortunately cannot be said about the last couple of months, namely when it comes to vaccination. With mass inoculation finally gaining steam in a number of countries around the world, Macau\u2019s vaccine rollout remains embarrassingly slow, and it\u2019s taking a heavy toll on the economy.
\n\n\n\nOn the back of the Zhuhai authorities\u2019 vaccination requirements for crossing the border bolder measures should be adopted locally to finally do the trick, so that our city quickly catches up with the overall national rate and finds itself on a path towards a gradual opening and lifting of restrictions. Meanwhile, a new round of financial support will be inevitable, and formulating budget and policy guidelines for 2022 against the backdrop of so much uncertainty represents a formidable challenge for the Government.
\n\n\n\nOne of the authorities\u2019 key tasks for the coming year is managing the revision of the gaming law, now in progress following the presentation of the consultation paper in September. It is certainly no coincidence that the document was announced just ten days after the Master Plan for the Development of the Guangdong\u2013Macao In-depth Cooperation Zone was issued. \u201cRemember, remember the month of September (2021)\u201d, historians may one day chant when contemplating these watershed moments.
\n\n\n\nAt this stage it\u2019s still not easy to see the forest for the trees. And we come full circle to Xi Jinping\u2019s 2009 words, which he repeated on subsequent visits, as President, in 2014 and 2019: the Two Ds \u2013 Diversify and Develop (Hengqin). The question was \u2013 and remains, to some extent \u2013 how and when. We now have a partial answer, mirrored in the two key documents announced last month. Our Destination: 2035, with Macau\u2013Hengqin integrated and the SAR\u2019s \u201cadequate economic diversification basically realized\u201d.
\n\n\n\nAs the In-depth Cooperation Zone is established on a model of co-governance, with seats on management and executive committees for Macau\u2019s top officials alongside their counterparts from Guangdong and Zhuhai, it will take wisdom and competence to live up to the high expectations. Openness and farsightedness will be key, as will detailed policies able to boost confidence among local businesses and the youth, particularly with respect to investment, mobility and the legal framework.
\n\n\n\nThis is indeed a golden opportunity that must not be missed. All sides will need to rise to the challenge. New blood will be required, but the contribution of those who deeply cherish Macau and have shown commitment to the city\u2019s development in the past should be honoured, as well, including of those who were not born here. Along with the visionary and comprehensive top-down design for regional development, bottom-up contributions will be highly beneficial.
\n\n\n\nIn moving forward and kick-starting a new era in the region\u2019s development, a delicate balance must be struck to avoid throwing the baby out with the bathwater. It would serve no one\u2019s interest to kill the goose that lays the golden eggs. Hopefully we might finally put those eggs in more than one basket and in the meantime nurture new gooses. We have to get this right.
\n", "content_text": "Macau Business Editorial | October 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nThe conversation on diversifying Macau\u2019s economy away from gambling is almost as old as the casino industry itself in the city. Through the decades a number of attempts to push for effective economic diversification failed to yield results. Most of them relied on launching industrial parks, which never truly attained their promised potential.\n\n\n\nThe liberalization of the gaming industry that occurred two decades ago was aimed at a particular approach to diversification: the new integrated resort (IR) model, making casino gambling part of a larger package including non-gaming elements such as retail, fine dining, F&B, MICE and entertainment. The post-liberalization operators did deliver that new IR model (some more so than others), and in doing so changed the city\u2019s landscape beyond recognition, heralding an unprecedented era of economic growth and job creation. What was intended to be basically the \u201chead of the dragon\u201d multiplied severalfold on the heels of seemingly limitless demand from mainland China together with a massive increase in supply thanks to supportive measures from Beijing. And the rest, as they say, is history.\n\n\n\nWhen Xi Jinping visited Macau in early 2009, then as Vice President, he brought with him two key messages that, despite not being entirely new, did carry special weight, as he was by then already regarded by many as the nation\u2019s leader-in-waiting. Xi insisted the SAR had to diversify its economy, and that the development of Hengqin would provide the necessary room. Over the following decade Macau grew even more dependent on the gaming industry, and calls for diversification intensified. The mammoth stimulus package to assist China\u2019s recovery from the 2008/9 US financial crisis was highly effective at lifting the country\u2019s economy clear of any hint of recession \u2013 with the added spillover effect of cheap money flooding into not just the overheated property market but also, indirectly, the city\u2019s gaming industry.\n\n\n\nMass market expanded impressively, but VIP gaming reigned supreme in those years, and jaw-dropping growth figures attained levels that would have to be reined in. The city\u2019s casino industry, specifically the high-roller segment, could not be shielded from the knock-on effect of the anti-corruption campaign and the efforts across the board to curb massive capital outflows. Beginning in 2013/14 a number of corrections to the model were made to bring it in line with more sustainable levels.\n\n\n\n In Macau all of us \u2013 the government, industry players, society \u2013 knew those \u201csky\u2019s the limit\u201d days could not go on indefinitely and that the risks of putting all our eggs in one basket remained high. Still, the fiscal reserve was pilling up thanks to year after year of robust surpluses, and the Government\u2019s welfaristpolicies \u2013 doling out part of that surfeit in the form subsidies, one-off grants and other instruments \u2013 forged a social contract that held sway through the years, ensuring a satisfactory level of prosperity and stability. You could say that, back then, while plenty of lip service was given to the importance of economic diversification, the city was in fact resting on its laurels, failing to tackle that mission \u2013 to diversify \u2013 head on.\n\n\n\nIt was just three years ago, remember, that Macau was tipped to overtake Qatar in 2020 as the world\u2019s richest jurisdiction (in terms of GDP per capita).\n\n\n\n\n\n\n\nThen reality bit. COVID-19 emerged like a black swan soaring over the grey rhinos that had already charged into view. And while the last twenty months have been overwhelming for the whole world, the last few months here have felt like a Sisyphean loop, our recovery continually derailed by successive waves of COVID-19 cases \u2013 in neighbouring provinces and, more recently, in town. Local authorities excelled in the first year of the pandemic, making our city a \u201cposter child\u201d for disease control, but the same unfortunately cannot be said about the last couple of months, namely when it comes to vaccination. With mass inoculation finally gaining steam in a number of countries around the world, Macau\u2019s vaccine rollout remains embarrassingly slow, and it\u2019s taking a heavy toll on the economy. \n\n\n\nOn the back of the Zhuhai authorities\u2019 vaccination requirements for crossing the border bolder measures should be adopted locally to finally do the trick, so that our city quickly catches up with the overall national rate and finds itself on a path towards a gradual opening and lifting of restrictions. Meanwhile, a new round of financial support will be inevitable, and formulating budget and policy guidelines for 2022 against the backdrop of so much uncertainty represents a formidable challenge for the Government.\n\n\n\nNew game \n\n\n\nOne of the authorities\u2019 key tasks for the coming year is managing the revision of the gaming law, now in progress following the presentation of the consultation paper in September. It is certainly no coincidence that the document was announced just ten days after the Master Plan for the Development of the Guangdong\u2013Macao In-depth Cooperation Zone was issued. \u201cRemember, remember the month of September (2021)\u201d, historians may one day chant when contemplating these watershed moments. \n\n\n\nAt this stage it\u2019s still not easy to see the forest for the trees. And we come full circle to Xi Jinping\u2019s 2009 words, which he repeated on subsequent visits, as President, in 2014 and 2019: the Two Ds \u2013 Diversify and Develop (Hengqin). The question was \u2013 and remains, to some extent \u2013 how and when. We now have a partial answer, mirrored in the two key documents announced last month. Our Destination: 2035, with Macau\u2013Hengqin integrated and the SAR\u2019s \u201cadequate economic diversification basically realized\u201d.\n\n\n\nAs the In-depth Cooperation Zone is established on a model of co-governance, with seats on management and executive committees for Macau\u2019s top officials alongside their counterparts from Guangdong and Zhuhai, it will take wisdom and competence to live up to the high expectations. Openness and farsightedness will be key, as will detailed policies able to boost confidence among local businesses and the youth, particularly with respect to investment, mobility and the legal framework. \n\n\n\nBalancing act\n\n\n\nThis is indeed a golden opportunity that must not be missed. All sides will need to rise to the challenge. New blood will be required, but the contribution of those who deeply cherish Macau and have shown commitment to the city\u2019s development in the past should be honoured, as well, including of those who were not born here. Along with the visionary and comprehensive top-down design for regional development, bottom-up contributions will be highly beneficial.\n\n\n\nIn moving forward and kick-starting a new era in the region\u2019s development, a delicate balance must be struck to avoid throwing the baby out with the bathwater. It would serve no one\u2019s interest to kill the goose that lays the golden eggs. Hopefully we might finally put those eggs in more than one basket and in the meantime nurture new gooses. We have to get this right.", "date_published": "October 05, 2021", "date_modified": "October 06, 2021 - 01:22", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/10/Golden-eggs-Hengqin-Macaupng.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "The conversation on diversifying Macau\u2019s economy away from gambling is almost as old as the casino industry itself in the city. Hopefully we might finally put those eggs in more than one basket and in the meantime nurture new gooses. We have to get this right." }, { "id": "https://www.macaubusiness.com/editorial-green-wake-up-call/", "url": "https://www.macaubusiness.com/editorial-green-wake-up-call/", "title": "EDITORIAL \u2013 Green wake-up call", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/09/Green-Wake-up-call-150x150.png\")
\nMacau Business Editorial | September 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
A recent report from the Intergovernmental Panel on Climate Change (IPCC) speaks volumes: the effects of human-induced climate change are spreading like wildfire across the globe, with some trends set in motion now irreversible. Extreme climate events are already visible to the naked eye. It\u2019s time to brace for impact.
\n\n\n\nIt\u2019s not yet time, though, to give up hope. The clock is ticking, but there\u2019s still the opportunity to limit global warming and mitigate the devastating impact of climate change, so long as swift, coordinated, global action is taken to reduce carbon emissions.
\n\n\n\nThis is a shared responsibility, and without doubt the major economic powerhouses play an absolutely critical role. China has set ambitious targets, with President Xi Jinping announcing the nation would strive to achieve peak CO2 emissions before 2030 and carbon neutrality before 2060. Meanwhile the nation is making great strides in the widespread use of electric vehicles, rapid expansion of solar and wind energy, tackling pollution and taking the lead in the development of green technologies. Some of these world-class best practices can be found right next door, just over the border, in the Mainland.
\n\n\n\nWe\u2019ve had the necessary financial resources but have lacked the resolve and the effective measures necessary to hit the nail on the head and deliver those much-needed, bold \u201cgreen\u201d policies
So where does Macau fit in all of this? It would be unfair not to acknowledge the steps taken in recent years by local authorities, but frankly speaking these have been too little \u2013 hopefully not too late. With environmental awareness on the increase particularly in the younger generation, and with the leapfrog progress being made in the Mainland, it is hard to understand why the SAR should be lagging behind \u2013 in some cases way behind, as this issue\u2019s special report shows. We\u2019ve had the necessary financial resources but have lacked the resolve and the effective measures necessary to hit the nail on the head and deliver those much-needed, bold \u201cgreen\u201d policies.
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/09/Macau-Business-cover.jpg\")
Take public transportation as an example. While Shenzhen converted its whole public bus fleet to electric vehicles some three years ago, here e-buses are virtually nowhere to be seen. We\u2019re moving too slowly in the private car market, too. At the end of July there were just 1,938 electric vehicles in Macau, a mere fraction (0.8 per cent) of the 244,000 motor vehicles registered in the city. Compare that with the 2 per cent figure in neighbouring Hong Kong, for instance.
\n\n\n\nThe gradual elimination of plastic bags and straws is another worthy target. The one-pataca levy on plastic bags adopted a couple of years ago was an important move in the right direction, as is the imminent ban on the import and trade of plastic straws announced in late August and due to come into effect from 1 January 2022. Still, in the absence of follow-through from a whole suite of vigorous measures, these will be seen in future as little more than \u201cbaby steps\u201d.
\n\n\n\nIt\u2019s time, indeed, for our special city to bid farewell to complacency and inefficiency, become truly green and wholeheartedly embrace the concept of Ecological Civilization.
The way forward? Specific timelines and targets for the phasing out of new purchases of fossil fuel-powered cars and the elimination of single-use plastics are just a few of the sensible measures that must come alongside tackling solid waste management, embracing high energy efficiency standards for buildings and infrastructure and emulating global and national best practices, as well as the laudable steps already taken by local eco-friendly hotels.
\n\n\n\nIt\u2019s time, indeed, for our special city \u2013 whose SAR flag is a deep shade of green \u2013 to bid farewell to complacency and inefficiency, become truly green and wholeheartedly embrace the concept of Ecological Civilization.
\n", "content_text": "Macau Business Editorial | September 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nA recent report from the Intergovernmental Panel on Climate Change (IPCC) speaks volumes: the effects of human-induced climate change are spreading like wildfire across the globe, with some trends set in motion now irreversible. Extreme climate events are already visible to the naked eye. It\u2019s time to brace for impact. \n\n\n\nIt\u2019s not yet time, though, to give up hope. The clock is ticking, but there\u2019s still the opportunity to limit global warming and mitigate the devastating impact of climate change, so long as swift, coordinated, global action is taken to reduce carbon emissions.\n\n\n\nThis is a shared responsibility, and without doubt the major economic powerhouses play an absolutely critical role. China has set ambitious targets, with President Xi Jinping announcing the nation would strive to achieve peak CO2 emissions before 2030 and carbon neutrality before 2060. Meanwhile the nation is making great strides in the widespread use of electric vehicles, rapid expansion of solar and wind energy, tackling pollution and taking the lead in the development of green technologies. Some of these world-class best practices can be found right next door, just over the border, in the Mainland.\n\n\n\nWe\u2019ve had the necessary financial resources but have lacked the resolve and the effective measures necessary to hit the nail on the head and deliver those much-needed, bold \u201cgreen\u201d policies\n\n\n\nSo where does Macau fit in all of this? It would be unfair not to acknowledge the steps taken in recent years by local authorities, but frankly speaking these have been too little \u2013 hopefully not too late. With environmental awareness on the increase particularly in the younger generation, and with the leapfrog progress being made in the Mainland, it is hard to understand why the SAR should be lagging behind \u2013 in some cases way behind, as this issue\u2019s special report shows. We\u2019ve had the necessary financial resources but have lacked the resolve and the effective measures necessary to hit the nail on the head and deliver those much-needed, bold \u201cgreen\u201d policies.\n\n\n\n\n\n\n\nTake public transportation as an example. While Shenzhen converted its whole public bus fleet to electric vehicles some three years ago, here e-buses are virtually nowhere to be seen. We\u2019re moving too slowly in the private car market, too. At the end of July there were just 1,938 electric vehicles in Macau, a mere fraction (0.8 per cent) of the 244,000 motor vehicles registered in the city. Compare that with the 2 per cent figure in neighbouring Hong Kong, for instance.\n\n\n\nThe gradual elimination of plastic bags and straws is another worthy target. The one-pataca levy on plastic bags adopted a couple of years ago was an important move in the right direction, as is the imminent ban on the import and trade of plastic straws announced in late August and due to come into effect from 1 January 2022. Still, in the absence of follow-through from a whole suite of vigorous measures, these will be seen in future as little more than \u201cbaby steps\u201d.\n\n\n\nIt\u2019s time, indeed, for our special city to bid farewell to complacency and inefficiency, become truly green and wholeheartedly embrace the concept of Ecological Civilization. \n\n\n\n\n\n\n\nThe way forward? Specific timelines and targets for the phasing out of new purchases of fossil fuel-powered cars and the elimination of single-use plastics are just a few of the sensible measures that must come alongside tackling solid waste management, embracing high energy efficiency standards for buildings and infrastructure and emulating global and national best practices, as well as the laudable steps already taken by local eco-friendly hotels.\n\n\n\nIt\u2019s time, indeed, for our special city \u2013 whose SAR flag is a deep shade of green \u2013 to bid farewell to complacency and inefficiency, become truly green and wholeheartedly embrace the concept of Ecological Civilization. ", "date_published": "September 03, 2021", "date_modified": "September 06, 2021 - 01:39", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/09/Green-Wake-up-call.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MNA", "Opinion" ], "summary": "It\u2019s time, indeed, for our special city to bid farewell to complacency and inefficiency, become truly green and wholeheartedly embrace the concept of Ecological Civilization. " }, { "id": "https://www.macaubusiness.com/editorial-every-cloud-has-a-silver-lining/", "url": "https://www.macaubusiness.com/editorial-every-cloud-has-a-silver-lining/", "title": "EDITORIAL \u2013 Every cloud has a silver lining", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/08/6144287455_e4f79e8051_k-150x150.jpg\")
\nMacau Business Editorial | August 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
It\u2019s been like this since the beginning of the year. Just when recovery seems right around the corner, a sudden COVID-19-related development derails the prospect for a sound economic bounce-back. It happened in March, in late May to June, and again more recently with a surge in the highly infectious Delta variant of the novel coronavirus beginning in the second half of July. Are we doomed to this Sisyphean cycle? Such a gloomy assertion might be uncalled for, but one could hardly be blamed for entertaining the thought.
\n\n\n\nNow, Macau itself risks being dragged into the swirling pandemic maelstrom. As this edition of Macau Business was going to print, a citywide testing drive was being launched as new cases of the Delta variant had just been detected within the city, raising the alarm over a possible community outbreak.
\n\n\n\nIt\u2019s still too early to assess what the real impact of this development will be, but one mustn\u2019t underestimate it. The same sense of civic duty, awareness and solidarity that surfaced locally in the early stages of the pandemic will again be crucial.
\n\n\n\nMainland authorities have proved remarkably efficient at bringing their outbreaks under control in a matter of a couple of weeks. Nevertheless, as has been shown across the globe, this new Delta variant poses a greater risk, with many countries forced to backtrack on their \u201cback to normal\u201d summer plans.
\n\n\n\nMass inoculation in Macau is underway, but the vaccine rollout is still failing to meet expectations. And while getting the jab is absolutely necessary, it may not be sufficient to keep the virus at bay. A number of preventive measures must therefore remain in place. Against this backdrop, there\u2019s a need for flexible, agile, determined public policies capable of swiftly responding to this ever-changing situation. That\u2019s no easy feat, and local authorities have thus far risen to the challenge.
\n\n\n\nThe same sense of civic duty, awareness and solidarity that surfaced locally in the early stages of the pandemic will again be crucial
The health of Macau\u2019s economy and its public finances basically still all boils down to economic activity and the revenue generated by gaming and tourism.
\n\n\n\nFigures released by the Financial Services Bureau on budget execution data for the first semester show revenue collected by the government in the first half of 2021 currently standing at 41 per cent of the full-year budget. The simple answer being that gaming revenue \u2013 more correctly direct taxes on gross gaming revenue \u2013 had reached just 39 per cent of the full-year estimate.
\n\n\n\nPreparing a budget in such uncharted waters is a daunting task given all the unknowns and unpredictable variables of these atypical circumstances. Having said that, the local authorities\u2019 MOP 130 billion forecast for the SAR\u2019s gaming revenue this year did seem too optimistic back in late 2020, and it sounds even more far-fetched now. Considering where accumulated gaming revenue through July stands (MOP 57 billion), casinos would need to go on to rake in a monthly average of MOP 14.5 billion for the rest of this year. That\u2019s a big ask: a 77 per cent jump on the monthly average over these last seven months. Highly improbable, which means a new budget amendment is likely inevitable, translating into further recourse to the city\u2019s abundant fiscal reserves to balance accounts.
\n\n\n\nSooner or later additional measures, or even a whole new package may be necessary \u2013 on top of the welcome moves made earlier this year \u2013 to ensure the stability of SMEs and a steady hand at the helm in the form of subsidies and incentives to help businesses and society navigate the choppy waters stretching away to the year-end horizon.
\n\n\n\nThe global and regional situation remains fluid, and in this Covidian world the crystal balls are all cloudy. Still, every cloud has a silver lining.
\n", "content_text": "Macau Business Editorial | August 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nIt\u2019s been like this since the beginning of the year. Just when recovery seems right around the corner, a sudden COVID-19-related development derails the prospect for a sound economic bounce-back. It happened in March, in late May to June, and again more recently with a surge in the highly infectious Delta variant of the novel coronavirus beginning in the second half of July. Are we doomed to this Sisyphean cycle? Such a gloomy assertion might be uncalled for, but one could hardly be blamed for entertaining the thought.\n\n\n\nNow, Macau itself risks being dragged into the swirling pandemic maelstrom. As this edition of Macau Business was going to print, a citywide testing drive was being launched as new cases of the Delta variant had just been detected within the city, raising the alarm over a possible community outbreak. \n\n\n\nIt\u2019s still too early to assess what the real impact of this development will be, but one mustn\u2019t underestimate it. The same sense of civic duty, awareness and solidarity that surfaced locally in the early stages of the pandemic will again be crucial. \n\n\n\nMainland authorities have proved remarkably efficient at bringing their outbreaks under control in a matter of a couple of weeks. Nevertheless, as has been shown across the globe, this new Delta variant poses a greater risk, with many countries forced to backtrack on their \u201cback to normal\u201d summer plans.\n\n\n\nMass inoculation in Macau is underway, but the vaccine rollout is still failing to meet expectations. And while getting the jab is absolutely necessary, it may not be sufficient to keep the virus at bay. A number of preventive measures must therefore remain in place. Against this backdrop, there\u2019s a need for flexible, agile, determined public policies capable of swiftly responding to this ever-changing situation. That\u2019s no easy feat, and local authorities have thus far risen to the challenge.\n\n\n\nThe same sense of civic duty, awareness and solidarity that surfaced locally in the early stages of the pandemic will again be crucial\n\n\n\nThe health of Macau\u2019s economy and its public finances basically still all boils down to economic activity and the revenue generated by gaming and tourism. \n\n\n\nFigures released by the Financial Services Bureau on budget execution data for the first semester show revenue collected by the government in the first half of 2021 currently standing at 41 per cent of the full-year budget. The simple answer being that gaming revenue \u2013 more correctly direct taxes on gross gaming revenue \u2013 had reached just 39 per cent of the full-year estimate.\n\n\n\nPreparing a budget in such uncharted waters is a daunting task given all the unknowns and unpredictable variables of these atypical circumstances. Having said that, the local authorities\u2019 MOP 130 billion forecast for the SAR\u2019s gaming revenue this year did seem too optimistic back in late 2020, and it sounds even more far-fetched now. Considering where accumulated gaming revenue through July stands (MOP 57 billion), casinos would need to go on to rake in a monthly average of MOP 14.5 billion for the rest of this year. That\u2019s a big ask: a 77 per cent jump on the monthly average over these last seven months. Highly improbable, which means a new budget amendment is likely inevitable, translating into further recourse to the city\u2019s abundant fiscal reserves to balance accounts. \n\n\n\nSooner or later additional measures, or even a whole new package may be necessary \u2013 on top of the welcome moves made earlier this year \u2013 to ensure the stability of SMEs and a steady hand at the helm in the form of subsidies and incentives to help businesses and society navigate the choppy waters stretching away to the year-end horizon.\n\n\n\nThe global and regional situation remains fluid, and in this Covidian world the crystal balls are all cloudy. Still, every cloud has a silver lining.", "date_published": "August 05, 2021", "date_modified": "August 10, 2021 - 18:04", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/08/6144287455_e4f79e8051_k.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "MNA", "Opinion" ], "summary": "The same sense of civic duty, awareness and solidarity that surfaced locally in the early stages of the pandemic will again be crucial. " }, { "id": "https://www.macaubusiness.com/editorial-resources/", "url": "https://www.macaubusiness.com/editorial-resources/", "title": "EDITORIAL- Resources", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/01/view-macau-nam-van-casinos02-150x150.jpg\")
\nMacau Business Editorial | July 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
Every year thousands of non-local students (the lion\u2019s share from the Mainland) graduate from local universities. Macau allocates resources to training these youngsters, and many of them develop a strong sense of attachment to their academic home. They graduate with valuable skills that could be put at the SAR\u2019s disposal and contribute to the city\u2019s development, yet they run into a brick wall upon completing their studies when it comes to entering the local job market. This is indeed unfortunate. The need for robust protection of native talent is understandable, but the current system, which is obstructive to non-local fresh graduates, could be adjusted to allow the SAR to retain some of these fresh leavers at the top of key fields in which local expertise is scarce. The system would need to be carefully tuned, of course, to ensure absorption by the market of local graduates, however that shouldn\u2019t prevent the Government from taking the long view and preparing the city for the transformed growth and development model expected in a (hopefully) more diversified post-pandemic scenario. The enhancement of human capital possible with open-minded policies is a necessity that will no doubt benefit everyone in the long term.
\n\n\n\nAlongside adjusting human resource policies is an equally pivotal need to improve management of the resources allocated to infrastructure development. The long-awaited public hospital for the islands and complete Light Rapid Transit (LRT) system are prime examples of projects plagued by budget overruns and constant delays over the past decade.
\n\n\n\nThe Islands District Medical Complex \u2013 a much-needed key social infrastructure project \u2013 should have been mostly up and running by now, but even the first phase, consisting of the complex\u2019s main buildings, may only be effectively operational by 2024. In this edition\u2019s special report we take stock of the islands\u2019 hospital development and of the future of the city\u2019s healthcare industry as a whole. While acknowledging the important achievements and progress over the years, the case for an upgrade \u2013 of both hardware and software \u2013 cannot be understated. To that end, the success of the Health Bureau\u2019s management of the COVID-19 pandemic can be expanded upon through the rest of this decade to take the city\u2019s healthcare services to a higher level.
\n\n\n\nThe imbroglio that is the LRT also calls for farsighted action. Faced with high operational costs and low passenger volume \u2013 exacerbated recently by meagre visitor figures due to COVID-19 \u2013 the LRT needs to expedite its planned expansion to the Macau Peninsula: first stop, Barra station. The existing system also lacks updating to lock step with the e-payment tools already widely in use elsewhere across the city.
\n\n\n\nIn the mid to long run, articulation with Guangdong\u2019s rapid railway system is the way forward, namely via Hengqin\u2019s future transportation infrastructure. We will most likely have what, in many ways, will be a \u201cthrough-train\u201d arrangement between Macau and Hengqin.
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2020/12/staff-packaging-quality-covid19-coronavirus-vaccine-beijing-china-xinhua-150x150.jpg\")
\nMacau Business Editorial | June 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
The recent new wave of COVID-19 cases in neighbouring Guangdong Province should serve as a kind of cautionary tale, for both local authorities and society at large. The Macau SAR\u2019s enviable performance \u2013 of its government, companies and citizens \u2013 with respect to pandemic control must not be jeopardized now by complacency and a failure to rise to the next challenge posed by more virulent variants of this novel coronavirus. Over the past year, Mainland authorities have shown how effective they are at rapidly bringing small-scale outbreaks under control, but Macau also needs to redouble its efforts. The same social determination and mobilization that kept the city free of locally transmitted cases for almost an entire year can now be channelled into taking the obvious step towards herd immunity: mass inoculation. Vaccine reluctance is not exclusive to Macau, but this is our city so we must recognize the importance of raising awareness here of the urgent need to attain a vaccination rate of 60 to 70 per cent as soon as possible.
\n\n\n\nThe city\u2019s rather embarrassing low uptake – and in light of the new cases over the border – has been a wake up call for a number of players in town. Fortunately large-scale companies \u2013 such as gaming operators, banks and other firms \u2013chambers of commerce and universities, among other entities, are showing a laudable sense of social responsibility, rolling out events, incentives and initiatives to promote vaccination among their staff. That is indeed the way forward and will now hopefully be emulated by additional sectors including local associations and other entities, but the all-out effort has to be led by the Government which should embrace more decisive, innovative action for the promotion of mass immunization.
\n\n\n\nThese are unprecedented times, and Macau has remained a safe haven amid the health crisis brought on by the global pandemic. The indicators from the last couple of months hint at a gradual but encouraging recovery reflected in the number of mainland visitors, a reviving retail industry and increased gaming revenue. Is this just a short-lived \u201cdead cat bounce\u201d or a bona fide silver lining lighting the way to rosier times? While surely expecting the latter, one should also prepare for the former.
\n\n\n\n(The case for) a farsighted approach
\n\n\n\nWhile the worst may be behind us, a reinvigorated, multipronged strategy is necessary to cope with the uncertain times we live in.
\n\n\n\nAs stated above, while all stakeholders have a role to play, the Government\u2019s public policies are of paramount importance. The latest consumption package, which came into effect in May, is a welcome move; citizens and many small businesses are certainly benefitting from it. Still missing, though, is a deeper set of measures capable of meeting the needs and assisting with the changes faced by the many Small and Medium-sized Enterprises (SMEs) that fall outside the scope of the consumption incentives. Certain sectors \u2013 the creative industries, liberal professions and service providers, among others \u2013 remain pretty much empty-handed under the trickle-down policies implemented so far.
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/05/aerial-panoramic-photo-hkzm-bridge-hong-kong-zhuhai-macau-macao-bridge-china-gba-greater-bay-area.jpg\")
That being said, there is a good example of something warranting further expansion: The recent \u201cSubsidy Scheme for Encouraging Enterprise Upgrading and Development\u201d launched by the Economic and Technological Development Bureau. This is a step in the right direction: helping local companies be better equipped for a more competitive and demanding future environment. As China\u2019s dual circulation economics whirl faster, the need is there for local firms to add value to their business. A new trend among mainland visitors is emerging: they are younger and more sophisticated and demand better quality and value for money.
\n\n\n\nShowing the hand
\n\n\n\nAmong uncertainties brought on by the pandemic, the future of the city\u2019s gaming industry is one that ruffles some feathers. That\u2019s understandable. After all, we\u2019re talking about the city\u2019s core business. Yet though we are basically 12 months out from expiry of the current concessions and subconcessions, authorities insist on keeping their cards close to their chest. The consultation on the gaming law will be held in the second half of the year, and most observers predict concessions will be extended anywhere from one to five years, as provided for by law. Whatever the case, there is a need for a sensible move that would shed light on the future.
\n", "content_text": "Macau Business Editorial | June 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\n The recent new wave of COVID-19 cases in neighbouring Guangdong Province should serve as a kind of cautionary tale, for both local authorities and society at large. The Macau SAR\u2019s enviable performance \u2013 of its government, companies and citizens \u2013 with respect to pandemic control must not be jeopardized now by complacency and a failure to rise to the next challenge posed by more virulent variants of this novel coronavirus. Over the past year, Mainland authorities have shown how effective they are at rapidly bringing small-scale outbreaks under control, but Macau also needs to redouble its efforts. The same social determination and mobilization that kept the city free of locally transmitted cases for almost an entire year can now be channelled into taking the obvious step towards herd immunity: mass inoculation. Vaccine reluctance is not exclusive to Macau, but this is our city so we must recognize the importance of raising awareness here of the urgent need to attain a vaccination rate of 60 to 70 per cent as soon as possible. \n\n\n\nThe city\u2019s rather embarrassing low uptake – and in light of the new cases over the border – has been a wake up call for a number of players in town. Fortunately large-scale companies \u2013 such as gaming operators, banks and other firms \u2013chambers of commerce and universities, among other entities, are showing a laudable sense of social responsibility, rolling out events, incentives and initiatives to promote vaccination among their staff. That is indeed the way forward and will now hopefully be emulated by additional sectors including local associations and other entities, but the all-out effort has to be led by the Government which should embrace more decisive, innovative action for the promotion of mass immunization.\n\n\n\nThese are unprecedented times, and Macau has remained a safe haven amid the health crisis brought on by the global pandemic. The indicators from the last couple of months hint at a gradual but encouraging recovery reflected in the number of mainland visitors, a reviving retail industry and increased gaming revenue. Is this just a short-lived \u201cdead cat bounce\u201d or a bona fide silver lining lighting the way to rosier times? While surely expecting the latter, one should also prepare for the former.\n\n\n\n(The case for) a farsighted approach\n\n\n\nWhile the worst may be behind us, a reinvigorated, multipronged strategy is necessary to cope with the uncertain times we live in.\n\n\n\nAs stated above, while all stakeholders have a role to play, the Government\u2019s public policies are of paramount importance. The latest consumption package, which came into effect in May, is a welcome move; citizens and many small businesses are certainly benefitting from it. Still missing, though, is a deeper set of measures capable of meeting the needs and assisting with the changes faced by the many Small and Medium-sized Enterprises (SMEs) that fall outside the scope of the consumption incentives. Certain sectors \u2013 the creative industries, liberal professions and service providers, among others \u2013 remain pretty much empty-handed under the trickle-down policies implemented so far. \n\n\n\nAerial panoramic photo taken on Sept. 12, 2020 shows the Hong Kong-Zhuhai-Macao Bridge in south China. (Xinhua/Chen Yehua)\n\n\n\nThat being said, there is a good example of something warranting further expansion: The recent \u201cSubsidy Scheme for Encouraging Enterprise Upgrading and Development\u201d launched by the Economic and Technological Development Bureau. This is a step in the right direction: helping local companies be better equipped for a more competitive and demanding future environment. As China\u2019s dual circulation economics whirl faster, the need is there for local firms to add value to their business. A new trend among mainland visitors is emerging: they are younger and more sophisticated and demand better quality and value for money.\n\n\n\nShowing the hand\n\n\n\nAmong uncertainties brought on by the pandemic, the future of the city\u2019s gaming industry is one that ruffles some feathers. That\u2019s understandable. After all, we\u2019re talking about the city\u2019s core business. Yet though we are basically 12 months out from expiry of the current concessions and subconcessions, authorities insist on keeping their cards close to their chest. The consultation on the gaming law will be held in the second half of the year, and most observers predict concessions will be extended anywhere from one to five years, as provided for by law. Whatever the case, there is a need for a sensible move that would shed light on the future.", "date_published": "June 05, 2021", "date_modified": "June 06, 2021 - 02:46", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2020/12/staff-packaging-quality-covid19-coronavirus-vaccine-beijing-china-xinhua.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": " The recent new wave of COVID-19 cases in neighbouring Guangdong Province should serve as a kind of cautionary tale, for both local authorities and society at large." }, { "id": "https://www.macaubusiness.com/editorial-may-stream/", "url": "https://www.macaubusiness.com/editorial-may-stream/", "title": "EDITORIAL \u2013 May Stream", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/05/tourists-senado-square-china-macau-macao-ckk-may-day-holiday-coronavirus-mask-pandemic-xinhua-150x150.jpg\")
\nMacau Business Editorial | May 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
Macau ushered in the 1st of May with the highest number of tourist arrivals since the beginning of the pandemic. That 44 thousand mark bodes well for a gradual recovery, one that can already be felt on the streets. It\u2019s still one quarter of the pre-pandemic era tally \u2013 180 thousand on the 1st of May 2019 \u2013 but we should bear in mind the incremental trend witnessed in recent weeks and take into account the fact that Macau can now only receive tourists from the mainland.
\n\n\n\nNevertheless, there\u2019s still a significant gap between Macau\u2019s performance and the pace of recovery of domestic tourism in Mainland China, which reached about 95 per cent of the pre-pandemic level during the recent Qingming festival holiday in early April. Crossing the border, there\u2019s a palpable, encouraging \u201cnear-back-to-normal\u201d feeling in the air.
\n\n\n\nThough important efforts have been made to promote Macau as a safe destination in mainland cities, one mustn\u2019t forget the speed of the SAR\u2019s vaccination rate lags behind that of the mainland. This is an impediment to quickly building the herd immunity that would allow for further relaxing of the remaining entry and exit restrictions, first with the mainland and eventually with other countries and regions with whom the city will need to establish \u201ctravel bubbles\u201d. Authorities will surely step up efforts in a citywide campaign to inoculate people of all walks of life as soon as possible. The stance of many locals \u2013 that there\u2019s no need to speed up the process \u2013 is misplaced, as the whole of the society and the economy will benefit from comprehensive mass inoculation. Groundless scepticism should have no place here.
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/05/tourists-senado-square-china-macao-macau-may-day-holiday-xinhua-pandemic-coronavirus-mask-travel.jpg\")
The right(s) side
\n\n\n\nThis year\u2019s 1st of May, like last year\u2019s, saw no street rally to commemorate the Labour Day holiday or express labour-related demands. With respect to this year, it could have been different. In a city that has thankfully been COVID-free (of domestic cases) for several months, with appropriate measures in place it would surely have been feasible to hold a small-scale, orderly, rally that observed social distancing and other procedures. The same goes for the other assemblies, rallies, parades and outdoor events that have been cancelled or not permitted to go forward.
\n\n\n\nIt\u2019s time for a sensible relaxation of those restrictions, obviously without compromising public health.
\n\n\n\nCould this have been the last May Day in Macau without a trade union law? That\u2019s surely the hope of the city\u2019s workers associations and labour unions, not to mention large swathes of society. Chief Executive Ho Iat Seng has rightly pledged to move forward with the legislation, yet the matter has been dragging on. Some business interests are surely making the case for yet another postponement of the much-awaited act against the backdrop of the ongoing economic downturn. However, a sine die adjournment would be a regrettable and unwise move. As Ho Iat Seng himself once noted: Macau is the only place in the whole of the People\u2019s Republic of China without a trade union act. A sensible and well-drafted piece of legislation is needed, and as soon as possible, fulfilling what is enshrined in the Basic Law.
\n\n\n\nWhat\u2019s more, the SAR\u2019s labour regime is in need of additional adjustments to bring about an improved and more balanced formula able to meet the rights and needs of both employees and employers. Amid the pandemic and all the travel restrictions, there is little sense in not moving ahead with a temporary mechanism to allow the hiring of imported manpower, tapping into the human resource currently available and out-of-job but unable to leave the city due to outbound travel difficulties. The disparity between supply and demand with respect to domestic helpers is an exemplary case in point. This is something Government and lawmakers should address.
\n\n\n\n\n\n\n\n17×17
\n\n\n\nMay also marks the anniversary of our Macau Business magazine. Launched 17 years ago by founder and publisher Paulo A. Azevedo, this publication has been committed to adding value to the city\u2019s media scene and social and economic development, always with an eye on the present and on future movers and shakers. In celebration of our 17th anniversary, we shine a spotlight on 17 young local talents aged 35 and under who are already having an impact on city\u2019s development and are set to play a prominent and key role in its future. Many others are blossoming and growing to meet the challenge. They are all part of an endless stream (\u5ddd\u6d41\u4e0d\u606f): our hope for a better future.
\n", "content_text": "Macau Business Editorial | May 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nMacau ushered in the 1st of May with the highest number of tourist arrivals since the beginning of the pandemic. That 44 thousand mark bodes well for a gradual recovery, one that can already be felt on the streets. It\u2019s still one quarter of the pre-pandemic era tally \u2013 180 thousand on the 1st of May 2019 \u2013 but we should bear in mind the incremental trend witnessed in recent weeks and take into account the fact that Macau can now only receive tourists from the mainland. \n\n\n\nNevertheless, there\u2019s still a significant gap between Macau\u2019s performance and the pace of recovery of domestic tourism in Mainland China, which reached about 95 per cent of the pre-pandemic level during the recent Qingming festival holiday in early April. Crossing the border, there\u2019s a palpable, encouraging \u201cnear-back-to-normal\u201d feeling in the air. \n\n\n\nThough important efforts have been made to promote Macau as a safe destination in mainland cities, one mustn\u2019t forget the speed of the SAR\u2019s vaccination rate lags behind that of the mainland. This is an impediment to quickly building the herd immunity that would allow for further relaxing of the remaining entry and exit restrictions, first with the mainland and eventually with other countries and regions with whom the city will need to establish \u201ctravel bubbles\u201d. Authorities will surely step up efforts in a citywide campaign to inoculate people of all walks of life as soon as possible. The stance of many locals \u2013 that there\u2019s no need to speed up the process \u2013 is misplaced, as the whole of the society and the economy will benefit from comprehensive mass inoculation. Groundless scepticism should have no place here.\n\n\n\nTourists visit the Senado Square in south China’s Macao, on May 3, 2021, the third day of China’s five-day May Day holiday. (Xinhua/Cheong Kam Ka)\n\n\n\nThe right(s) side \n\n\n\nThis year\u2019s 1st of May, like last year\u2019s, saw no street rally to commemorate the Labour Day holiday or express labour-related demands. With respect to this year, it could have been different. In a city that has thankfully been COVID-free (of domestic cases) for several months, with appropriate measures in place it would surely have been feasible to hold a small-scale, orderly, rally that observed social distancing and other procedures. The same goes for the other assemblies, rallies, parades and outdoor events that have been cancelled or not permitted to go forward.\n\n\n\nIt\u2019s time for a sensible relaxation of those restrictions, obviously without compromising public health. \n\n\n\nCould this have been the last May Day in Macau without a trade union law? That\u2019s surely the hope of the city\u2019s workers associations and labour unions, not to mention large swathes of society. Chief Executive Ho Iat Seng has rightly pledged to move forward with the legislation, yet the matter has been dragging on. Some business interests are surely making the case for yet another postponement of the much-awaited act against the backdrop of the ongoing economic downturn. However, a sine die adjournment would be a regrettable and unwise move. As Ho Iat Seng himself once noted: Macau is the only place in the whole of the People\u2019s Republic of China without a trade union act. A sensible and well-drafted piece of legislation is needed, and as soon as possible, fulfilling what is enshrined in the Basic Law.\n\n\n\nWhat\u2019s more, the SAR\u2019s labour regime is in need of additional adjustments to bring about an improved and more balanced formula able to meet the rights and needs of both employees and employers. Amid the pandemic and all the travel restrictions, there is little sense in not moving ahead with a temporary mechanism to allow the hiring of imported manpower, tapping into the human resource currently available and out-of-job but unable to leave the city due to outbound travel difficulties. The disparity between supply and demand with respect to domestic helpers is an exemplary case in point. This is something Government and lawmakers should address.\n\n\n\nhttps://issuu.com/macaubusiness/docs/mb205_may2021\n\n\n\n17×17 \n\n\n\nMay also marks the anniversary of our Macau Business magazine. Launched 17 years ago by founder and publisher Paulo A. Azevedo, this publication has been committed to adding value to the city\u2019s media scene and social and economic development, always with an eye on the present and on future movers and shakers. In celebration of our 17th anniversary, we shine a spotlight on 17 young local talents aged 35 and under who are already having an impact on city\u2019s development and are set to play a prominent and key role in its future. Many others are blossoming and growing to meet the challenge. They are all part of an endless stream (\u5ddd\u6d41\u4e0d\u606f): our hope for a better future.", "date_published": "May 05, 2021", "date_modified": "May 10, 2021 - 12:44", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/05/tourists-senado-square-china-macau-macao-ckk-may-day-holiday-coronavirus-mask-pandemic-xinhua.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": "Macau ushered in the 1st of May with the highest number of tourist arrivals since the beginning of the pandemic. That 44 thousand mark bodes well for a gradual recovery, one that can already be felt on the streets. " }, { "id": "https://www.macaubusiness.com/editorial-unfinished-business/", "url": "https://www.macaubusiness.com/editorial-unfinished-business/", "title": "EDITORIAL \u2013 Unfinished business", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/04/light-decor-new-year-macau-macao-china-xinhua-ckk-tourism-visitors-150x150.jpg\")
\nMacau Business Editorial | April 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
Just after nightfall, downtown Macau gradually empties of people. The scarcity of visitors due to COVID-19 has been a key factor for the past year, but even before the advent of the pandemic there was a hollowness to be felt strolling around the city centre after dark, except during certain festive seasons.
\n\n\n\nThe neon lights of the pawnshops and casinos can\u2019t mask the absence of a bustling nocturnal economy such as one might find in a number of cities just across the border, where bars, night markets and performances breathe life into central business districts and waterfront promenades. But there\u2019s more to it. Why can\u2019t Macau have museum \u201clates\u201d, bookstores with extended hours, night boat tours and year-round street performances highlighting the city\u2019s rich and diverse culture? The time for a paradigm shift is now, as visitors gradually return. They needn\u2019t be solely funnelled into large-scale resorts. In an increasingly regional competitive environment, visitors are bound to grow more sophisticated in their demand for a meaningful experience while enjoying their time here.
\n\n\n\nIn a place surrounded by water and with plenty of lakeside and riverside zones, it\u2019s hard to understand how those areas could be so underdeveloped in terms of amenities and leisure.
\n\n\n\nThe Cultural Affairs Bureau announced last September that Taipa\u2019s abandoned Iec Long Firecracker Factory and Coloane\u2019s Lai Chi Vun shipyards would finally be repurposed and partially reopened as cultural and leisure areas. One can only hope these projects will not remain on the backburner, as have a number of other public endeavours over the years.
\n\n\n\nReclaiming quality
\n\n\n\nIn this edition of Macau Business we delve into the dozens of land parcels that have been reclaimed by the Government but left idle and without specific development plans. The development of those parcels, while articulating with the city\u2019s urban master plan, should be regarded as an opportunity to increase public housing supply, insisting on a higher-quality model well integrated into the surrounding environment rather than indulging apparently substandard builds of massive, less-than-liveable blocks, as was the case with some projects in the past.
\n\n\n\n![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/08/shenzhen-talent-park-china-guangdong-science-technology-xinhua-greater-bay-area.jpg\")
Opportunity knocking next door
\n\n\n\nAs the city\u2019s job market challenges increase, local fresh graduates \u2013 and youngsters in general \u2013 are now confronted with a reality vastly different to what they would have envisioned four to five years ago when beginning their undergraduate studies. As seen in these pages, this environment is making the case for seeking new opportunities further afield in the Greater Bay Area ever stronger, as a growing amount of local talent joins the bandwagon. The trend is likely to deepen, with additional incentives for cross-border labour mobility set to be rolled out.
\n\n\n\nThis may well prove a boon to Macau, especially if in the future the city can benefit from a reverse migration trend on the heels of a more diversified economic structure.
\n", "content_text": "Macau Business Editorial | April 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nJust after nightfall, downtown Macau gradually empties of people. The scarcity of visitors due to COVID-19 has been a key factor for the past year, but even before the advent of the pandemic there was a hollowness to be felt strolling around the city centre after dark, except during certain festive seasons. \n\n\n\nThe neon lights of the pawnshops and casinos can\u2019t mask the absence of a bustling nocturnal economy such as one might find in a number of cities just across the border, where bars, night markets and performances breathe life into central business districts and waterfront promenades. But there\u2019s more to it. Why can\u2019t Macau have museum \u201clates\u201d, bookstores with extended hours, night boat tours and year-round street performances highlighting the city\u2019s rich and diverse culture? The time for a paradigm shift is now, as visitors gradually return. They needn\u2019t be solely funnelled into large-scale resorts. In an increasingly regional competitive environment, visitors are bound to grow more sophisticated in their demand for a meaningful experience while enjoying their time here. \n\n\n\nIn a place surrounded by water and with plenty of lakeside and riverside zones, it\u2019s hard to understand how those areas could be so underdeveloped in terms of amenities and leisure.\n\n\n\nThe Cultural Affairs Bureau announced last September that Taipa\u2019s abandoned Iec Long Firecracker Factory and Coloane\u2019s Lai Chi Vun shipyards would finally be repurposed and partially reopened as cultural and leisure areas. One can only hope these projects will not remain on the backburner, as have a number of other public endeavours over the years.\n\n\n\nReclaiming quality \n\n\n\nIn this edition of Macau Business we delve into the dozens of land parcels that have been reclaimed by the Government but left idle and without specific development plans. The development of those parcels, while articulating with the city\u2019s urban master plan, should be regarded as an opportunity to increase public housing supply, insisting on a higher-quality model well integrated into the surrounding environment rather than indulging apparently substandard builds of massive, less-than-liveable blocks, as was the case with some projects in the past.\n\n\n\n(Xinhua/Mao Siqian)\n\n\n\nOpportunity knocking next door \n\n\n\nAs the city\u2019s job market challenges increase, local fresh graduates \u2013 and youngsters in general \u2013 are now confronted with a reality vastly different to what they would have envisioned four to five years ago when beginning their undergraduate studies. As seen in these pages, this environment is making the case for seeking new opportunities further afield in the Greater Bay Area ever stronger, as a growing amount of local talent joins the bandwagon. The trend is likely to deepen, with additional incentives for cross-border labour mobility set to be rolled out.\n\n\n\nThis may well prove a boon to Macau, especially if in the future the city can benefit from a reverse migration trend on the heels of a more diversified economic structure.", "date_published": "April 05, 2021", "date_modified": "April 20, 2021 - 20:20", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/04/light-decor-new-year-macau-macao-china-xinhua-ckk-tourism-visitors.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "MNA", "Opinion" ], "summary": "Just after nightfall, downtown Macau gradually empties of people. The scarcity of visitors due to COVID-19 has been a key factor for the past year, but even before the advent of the pandemic there was a hollowness to be felt strolling around the city centre after dark, except during certain festive seasons. " }, { "id": "https://www.macaubusiness.com/all-rivers-run-to-the-sea/", "url": "https://www.macaubusiness.com/all-rivers-run-to-the-sea/", "title": "EDITORIAL \u2013 All rivers run to the sea", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/11/Grater-Bay-foto-1-150x150.jpg\")
\nMacau Business Editorial | March 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nWe don\u2019t have a \u201cMacau\u2019s Got Talent\u201d TV franchise or a local version of \u201cThe Apprentice\u201d, and to be honest, having been left out of that reality TV bonanza is nothing to cry over. That being said, there is plenty of talk about the need to nurture local talent and encourage entrepreneurship among the youth.
But when these noble and much-touted aims are raised, one can\u2019t help wondering whether we\u2019re hearing wholehearted commitment or mere lip service. Whatever the case, it would be unfair to downplay efforts made over the years by local authorities to cultivate talent. Former Chief Executive Chui Sai On launched the Talents Development Committee in 2014 with laudable objectives and taskforces devoted to planning and evaluation, encouraging talents to return to Macau, and training.
\n\n\n\nMore recently, the Greater Bay Area blueprint indicated what the SAR\u2019s function would be in the grand plan for regional integration. To remain relevant and play a concrete role, Macau must embrace the One Centre, One Platform, One Base formula and actively participate in the national development strategies. The crux of the matter is in making the best out of what makes this city unique, distinct and distinctive and not sleepwalking into becoming of little relevance or even simply being diluted in the mid-to-long run \u2013 something that is in neither the city\u2019s nor the central authorities\u2019 interest. Quite the contrary.
\n\n\n\nWe do have capital, but we are somehow short on land and people. Don\u2019t get me wrong \u2013 human capital has developed greatly in Macau since the 1980s, more so since the establishment of the SAR. What seems clear though is that we do not have yet sufficient skilled human resources needed to be up to the ambitious and visionary tasks set by the mainland authorities and hopefully embraced by the local Government, society and business elites.
\n\n\n\nWe are indeed at a crossroads in this respect. Chief Executive Ho Iat Seng included the nurturing of talents to promote the prosperity of Macau as one of ten key governance bullet points in his 2021 Policy Address, and he has rightly brought this topic into the spotlight.
\n\n\n\n![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/01/8_support-1028x771.jpg\")
A formidable challenge looms in the background: economic diversification. It will take years, perhaps decades. We all know. And it should combine top-down design with bottom-up dynamics, alongside the right approach to regional integration and cooperation.
\n\n\n\nSuccessfully managing the pandemic is surely of paramount importance. Stability, security and safety are hard won achievements to be cherished. Nevertheless, they are not mutually exclusive with ensuring a stronger focus on modernization, innovation and openness.
\n\n\n\nWe need to preserve and encourage tolerance and diversity in the nurturing of talents, while focusing on merit and expertise.
\n\n\n\nAs we claw ourselves back from the Covid-induced crisis, we must maintain a Janus-faced view from the bridge: gazing at once up the Pearl River Delta and out to the vast blue ocean.
\n\n\n\nAs the Chinese saying goes, all rivers run to the sea (\u6d77\u7eb3\u767e\u5ddd).
\n", "content_text": "Macau Business Editorial | March 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nWe don\u2019t have a \u201cMacau\u2019s Got Talent\u201d TV franchise or a local version of \u201cThe Apprentice\u201d, and to be honest, having been left out of that reality TV bonanza is nothing to cry over. That being said, there is plenty of talk about the need to nurture local talent and encourage entrepreneurship among the youth. \n\n\n\nBut when these noble and much-touted aims are raised, one can\u2019t help wondering whether we\u2019re hearing wholehearted commitment or mere lip service. Whatever the case, it would be unfair to downplay efforts made over the years by local authorities to cultivate talent. Former Chief Executive Chui Sai On launched the Talents Development Committee in 2014 with laudable objectives and taskforces devoted to planning and evaluation, encouraging talents to return to Macau, and training.\n\n\n\nMore recently, the Greater Bay Area blueprint indicated what the SAR\u2019s function would be in the grand plan for regional integration. To remain relevant and play a concrete role, Macau must embrace the One Centre, One Platform, One Base formula and actively participate in the national development strategies. The crux of the matter is in making the best out of what makes this city unique, distinct and distinctive and not sleepwalking into becoming of little relevance or even simply being diluted in the mid-to-long run \u2013 something that is in neither the city\u2019s nor the central authorities\u2019 interest. Quite the contrary.\n\n\n\nWe do have capital, but we are somehow short on land and people. Don\u2019t get me wrong \u2013 human capital has developed greatly in Macau since the 1980s, more so since the establishment of the SAR. What seems clear though is that we do not have yet sufficient skilled human resources needed to be up to the ambitious and visionary tasks set by the mainland authorities and hopefully embraced by the local Government, society and business elites.\n\n\n\nWe are indeed at a crossroads in this respect. Chief Executive Ho Iat Seng included the nurturing of talents to promote the prosperity of Macau as one of ten key governance bullet points in his 2021 Policy Address, and he has rightly brought this topic into the spotlight. \n\n\n\n\n\n\n\nA formidable challenge looms in the background: economic diversification. It will take years, perhaps decades. We all know. And it should combine top-down design with bottom-up dynamics, alongside the right approach to regional integration and cooperation. \n\n\n\nSuccessfully managing the pandemic is surely of paramount importance. Stability, security and safety are hard won achievements to be cherished. Nevertheless, they are not mutually exclusive with ensuring a stronger focus on modernization, innovation and openness. \n\n\n\nWe need to preserve and encourage tolerance and diversity in the nurturing of talents, while focusing on merit and expertise.\n\n\n\nAs we claw ourselves back from the Covid-induced crisis, we must maintain a Janus-faced view from the bridge: gazing at once up the Pearl River Delta and out to the vast blue ocean.\n\n\n\nAs the Chinese saying goes, all rivers run to the sea (\u6d77\u7eb3\u767e\u5ddd).", "date_published": "March 08, 2021", "date_modified": "March 13, 2021 - 15:45", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2020/11/Grater-Bay-foto-1.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MAG Featured", "MB", "MB Featured", "Opinion" ], "summary": "We don\u2019t have a \u201cMacau\u2019s Got Talent\u201d TV franchise or a local version of \u201cThe Apprentice\u201d, and to be honest, having been left out of that reality TV bonanza is nothing to cry over. That being said, there is plenty of talk about the need to nurture local talent and encourage entrepreneurship among the youth. " }, { "id": "https://www.macaubusiness.com/mbtv-video-editorial-february-2021/", "url": "https://www.macaubusiness.com/mbtv-video-editorial-february-2021/", "title": "MBtv: Video Editorial \u2013 February 2021", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/02/sddefault-1-150x150.jpg\")
\nMacau Business magazine Editorial | February 2021 | Jos\u00e9 Carlos Matias \u2013 Director
\n", "content_text": "EDITORIAL \u2013 Responsibility\n\n\n\nMacau Business magazine Editorial | February 2021 | Jos\u00e9 Carlos Matias \u2013 Director", "date_published": "February 16, 2021", "date_modified": "February 16, 2021 - 21:06", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/02/sddefault-1.jpg", "tags": [ "Editorial", "Macau", "MB.tv", "MB.tv Featured", "MNA", "Opinion" ] }, { "id": "https://www.macaubusiness.com/editorial-responsibility/", "url": "https://www.macaubusiness.com/editorial-responsibility/", "title": "EDITORIAL \u2013 Responsibility", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/01/plane-air-macau-150x150.jpg\")
\nSocial responsibility has taken centre stage in the 12 months since the outbreak of the COVID-19 pandemic. The much-touted concept seemed to be for several companies more of a public relations sideshow than a wholehearted commitment in the past. Then the unprecedented public health crisis breathed an entirely new meaning into the words.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2020/05/matias-opinion-screenshot-director-MB.jpg\")
Macau Business Editorial | February 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
\n\n\n\nIt is incumbent upon virtually all stakeholders in our society, but it is first and foremost the Government\u2019s responsibility towards its citizens. And though it\u2019s been stated repeatedly, as we mark the first anniversary of the first COVID-19 cases in the city we should laud the Government\u2019s successful management of the crisis, which put Macau in an enviable league of its own compared with countries and jurisdictions around the world.
\n\n\n\nThat responsibility includes a duty to protect residents, those who remained here, without neglecting those who for whatever reason left and now want to return home. International travel these days is a daunting experience, and the authorities\u2019 remarkable effort to bring more than 100 residents stranded overseas back to Macau deserves kudos. Risks were minimized, so that arguments against the initiative from skeptics and critics never held water. Testing positive on arrival was a single passenger who posed no threat of contagion to the community. A crisis of this magnitude surely brings out the best in us, but it can also feed fears, expressed in views or measures that are less than rational or compassionate. Memory of the public outcry last March over the evacuation of Macau residents from Wuhan, then the epicenter of the pandemic, is still fresh. Fortunately, we saw the Government do the right thing, and they were successfully brought home.
\n\n\n\nWhile mass inoculation is gaining traction around the world, it seems clear that the vaccine is not necessarily a panacea that will solve this mammoth crisis in the short term. Here in Macau, due to the (rather small-scale) recent outbreaks in the mainland, Chinese New Year will not bring the much-needed surge in the visitors the City\u2019s tourism and retail industries are so desperate to welcome. Many SMEs are in agony and may close their doors for good this month; that\u2019s on top of the thousands of firms that filed for bankruptcy last year. Though the Government seems to be taking a wait-and-see approach before the launch of any new stimulus package, that may well be the only option left to it that will ensure social stability and the relative well-being of residents and small businesses, in the short term at least. It couldn\u2019t come too soon.
\n\n\n\nMeanwhile, against daunting odds and surely as a result of ongoing social and political factors, gaming operators have announced they will be giving staff a most welcome annual bonus in a move signalling a truly meaningful sense of corporate social responsibility after a year of historic losses.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2021/02/Live-streaming-e-commerce.png\")
Trade New World
\n\n\n\nMeanwhile a number of private businesses are rolling up their sleeves and embracing an innovative and burgeoning new trend, one featured in this edition of Macau Business: live-streaming e-commerce. Targeted primarily at mainland consumers, this is a market experiencing explosive growth. Virtual shopping malls are thriving in mainland China, and local firms need to grasp the opportunity and vie for their own piece of the pie, not just in streamed retail but also streamed services and hybrid online/offline meetings and events. In the time it takes international mobility to return to pre-pandemic levels, Macau should find creative ways to ride this wave.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2021/01/adelson-1028x693.jpg\")
Adelson
\n\n\n\nThe early 2000s were a once-in-a-lifetime experience for those who resided or spent time in Macau, particularly for a young frontline reporter like me who\u2019d just arrived from Portugal and was eager to be immersed in this unique and intriguing city. I was fortunate enough back then to cover gaming-related press conferences and the big announcements of new projects enabled by the liberalization of the gaming industry. At the time, one tycoon stood out from the rest: the late US mogul Sheldon Adelson, who passed away last month. When he unveiled his gargantuan-scale plans for Cotai many wondered: \u201cHow on earth will there be demand for such a massive increase in supply?\u201d \u201cThis is a supply-driven model\u201d, he used to say out loud. And that it was. The attractive first-class Integrated Resorts model coupled with the Individual Visit Scheme for mainland tourists did the trick. And the rest is history. An unprecedented, transformative two decades for Macau, during which Sheldon Adelson\u2019s investments played an unquestionably crucial role.
\n", "content_text": "Social responsibility has taken centre stage in the 12 months since the outbreak of the COVID-19 pandemic. The much-touted concept seemed to be for several companies more of a public relations sideshow than a wholehearted commitment in the past. Then the unprecedented public health crisis breathed an entirely new meaning into the words.\n\n\n\n\n\n\n\nMacau Business Editorial | February 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nIt is incumbent upon virtually all stakeholders in our society, but it is first and foremost the Government\u2019s responsibility towards its citizens. And though it\u2019s been stated repeatedly, as we mark the first anniversary of the first COVID-19 cases in the city we should laud the Government\u2019s successful management of the crisis, which put Macau in an enviable league of its own compared with countries and jurisdictions around the world.\n\n\n\nThat responsibility includes a duty to protect residents, those who remained here, without neglecting those who for whatever reason left and now want to return home. International travel these days is a daunting experience, and the authorities\u2019 remarkable effort to bring more than 100 residents stranded overseas back to Macau deserves kudos. Risks were minimized, so that arguments against the initiative from skeptics and critics never held water. Testing positive on arrival was a single passenger who posed no threat of contagion to the community. A crisis of this magnitude surely brings out the best in us, but it can also feed fears, expressed in views or measures that are less than rational or compassionate. Memory of the public outcry last March over the evacuation of Macau residents from Wuhan, then the epicenter of the pandemic, is still fresh. Fortunately, we saw the Government do the right thing, and they were successfully brought home.\n\n\n\nWhile mass inoculation is gaining traction around the world, it seems clear that the vaccine is not necessarily a panacea that will solve this mammoth crisis in the short term. Here in Macau, due to the (rather small-scale) recent outbreaks in the mainland, Chinese New Year will not bring the much-needed surge in the visitors the City\u2019s tourism and retail industries are so desperate to welcome. Many SMEs are in agony and may close their doors for good this month; that\u2019s on top of the thousands of firms that filed for bankruptcy last year. Though the Government seems to be taking a wait-and-see approach before the launch of any new stimulus package, that may well be the only option left to it that will ensure social stability and the relative well-being of residents and small businesses, in the short term at least. It couldn\u2019t come too soon.\n\n\n\nMeanwhile, against daunting odds and surely as a result of ongoing social and political factors, gaming operators have announced they will be giving staff a most welcome annual bonus in a move signalling a truly meaningful sense of corporate social responsibility after a year of historic losses.\n\n\n\n\n\n\n\nTrade New World\n\n\n\nMeanwhile a number of private businesses are rolling up their sleeves and embracing an innovative and burgeoning new trend, one featured in this edition of Macau Business: live-streaming e-commerce. Targeted primarily at mainland consumers, this is a market experiencing explosive growth. Virtual shopping malls are thriving in mainland China, and local firms need to grasp the opportunity and vie for their own piece of the pie, not just in streamed retail but also streamed services and hybrid online/offline meetings and events. In the time it takes international mobility to return to pre-pandemic levels, Macau should find creative ways to ride this wave.\n\n\n\n\n\n\n\nAdelson\n\n\n\nThe early 2000s were a once-in-a-lifetime experience for those who resided or spent time in Macau, particularly for a young frontline reporter like me who\u2019d just arrived from Portugal and was eager to be immersed in this unique and intriguing city. I was fortunate enough back then to cover gaming-related press conferences and the big announcements of new projects enabled by the liberalization of the gaming industry. At the time, one tycoon stood out from the rest: the late US mogul Sheldon Adelson, who passed away last month. When he unveiled his gargantuan-scale plans for Cotai many wondered: \u201cHow on earth will there be demand for such a massive increase in supply?\u201d \u201cThis is a supply-driven model\u201d, he used to say out loud. And that it was. The attractive first-class Integrated Resorts model coupled with the Individual Visit Scheme for mainland tourists did the trick. And the rest is history. An unprecedented, transformative two decades for Macau, during which Sheldon Adelson\u2019s investments played an unquestionably crucial role.", "date_published": "February 04, 2021", "date_modified": "February 04, 2021 - 19:50", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/01/plane-air-macau.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "Social responsibility has taken center stage in the 12 months since the outbreak of the COVID-19 pandemic. " }, { "id": "https://www.macaubusiness.com/mbtv-video-editorial-january-2021/", "url": "https://www.macaubusiness.com/mbtv-video-editorial-january-2021/", "title": "MBtv: Video Editorial \u2013 January 2021", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/01/hqdefault-5-150x150.jpg\")
\nMacau Business magazine Editorial | January 2021 | Jos\u00e9 Carlos Matias \u2013 Director
\n", "content_text": "EDITORIAL \u2013 Critically constructive\n\n\n\nMacau Business magazine Editorial | January 2021 | Jos\u00e9 Carlos Matias \u2013 Director", "date_published": "January 19, 2021", "date_modified": "January 20, 2021 - 03:34", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2021/01/hqdefault-5.jpg", "tags": [ "Editorial", "MB.tv", "MB.tv Featured", "MNA", "Opinion" ] }, { "id": "https://www.macaubusiness.com/editorial-critically-constructive/", "url": "https://www.macaubusiness.com/editorial-critically-constructive/", "title": "EDITORIAL \u2013 Critically constructive", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2020/12/2-Students-150x150.jpg\")
\nIs critical thinking something to be encouraged? What might at first seem an obvious \u201cyes\u201d turned out to be a rather nuanced issue in the consultation document for the coming decade\u2019s Macau Youth Policy (2021\u20132030).
\n\n\n\nMacau Business Editorial | January 2021 | By Jos\u00e9 Carlos Matias \u2013 Director
While the previous blueprint (2012\u20132020) stated the importance of fostering a younger generation with \u201cindependent thinking and a critical mindset\u201d, the new proposed Policy, in its Chinese version, handles these qualities with a \u201clighter\u201d touch, having abandoned that wording in the wake of opinions collected in favour of an expression (\u5be9\u8fa8) that resonates an \u201cability to examine and distinguish\u201d.
\n\n\n\nBehind the shift is the way current education authorities regard the expression used in the previous blueprint for \u201ccritical\u201d (\u6279\u5224) \u2013 seen as primarily having a negative implication. One should note that, despite having been widely used as choice of characters to translate \u2018critical (thinking)\u2019; the expression itself has been disputed by some experts. It\u2019s not our place here to throw the hat into the \u2018linguistic discussion\u2019 ring. Nonetheless, it’s noteworthy that the rationale behind the move stems from an official view that criticism is welcome but has to be constructive.
\n\n\n\nWhat might sound, at first glance, like a \u2018storm in a tea-cup\u2019 embodies a wider question. It appears the language advocating critical thinking endorsed by local authorities a decade ago has given rise to second thoughts this time around and been redacted. Does this point to a \u201cchange of heart\u201d over the degree to which criticism ought to be cherished? Couldn\u2019t the current environment lead to a narrowing of the space in which youngsters are likely to freely express their points of view?
\n\n\n\nOne can\u2019t overstate the usefulness of independent-minded, critical thinking for correcting mistakes and improving decision-making.
\n\n\n\nA reduced scope for critical thinking has a negative knock-on effect on civic participation, pluralism and innovation. It may also be reflected in less-than-bold problem-solving skills and fewer breakthroughs in knowledge, science and entrepreneurship. This should not be underestimated in light of the much-touted need to nurture \u201clocal talent\u201d, a buzzword embodying a crucial challenge for the younger generations in the coming decade as the SAR faces a more competitive environment.
\n\n\n\nIt\u2019s important to highlight that the Youth Policy blueprint does address a number of these issues and rightly sets out key objectives, while bearing in mind that a paternalistic approach is not necessarily the best way to attain these goals.
\n\n\n\nThis is constructively critical and critically constructive.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2020/08/Hengqin1-cmyk.jpg\")
Stock options
\n\n\n\nThe idea has been floated before, but it gained new impetus when mainland media reported that a representative from the National Development and Reform Commission said authorities were indeed considering a plan to establish a Macau Stock Exchange in Hengqin. No specific details were provided, and as seen in these pages a number of questions have surfaced. Whatever the case, this signals a welcome determination of mainland authorities to assist Macau in its push for economic diversification and regional integration. Development of new financial services is the way forward. What\u2019s needed now is to hammer out the many details and build a solid legal framework, attract the necessary skilled human resource and find a competitive advantage in the division of labour between Macau and its neighbours, considering the mammoth capital market of Hong Kong and the rising star that is Shenzhen. A creative approach to the functionality of a future Macau\u2013Henqgin financial hub is needed, as is a long-term focus on developing an ecosystem that will reinvigorate the SAR\u2019s economic structure in the coming decades by making the best of the accumulated capacity of the gaming and tourism industries and the injection of new blood from the drive for financial innovation. And by learning the lessons of imbalanced financial centres that failed to be people-centred.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2020/12/E03a-photo-Juliana-Devoy-1-1024x683.jpg\")
Sister Juliana
\n\n\n\nMacau has been home to many foreigners who became truly distinguished citizens and benefactors. Sister Juliana Devoy, who passed away last month, was one of a kind. She leaves behind a priceless legacy of kindness, compassion, solidarity and humanity. She was an angel to countless women, victims of human trafficking and domestic violence. Her determination to raise awareness of the need to make domestic violence a public crime will forever be remembered as an inspirational gesture of selfless public service.
\n", "content_text": "Is critical thinking something to be encouraged? What might at first seem an obvious \u201cyes\u201d turned out to be a rather nuanced issue in the consultation document for the coming decade\u2019s Macau Youth Policy (2021\u20132030). \n\n\n\nMacau Business Editorial | January 2021 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nWhile the previous blueprint (2012\u20132020) stated the importance of fostering a younger generation with \u201cindependent thinking and a critical mindset\u201d, the new proposed Policy, in its Chinese version, handles these qualities with a \u201clighter\u201d touch, having abandoned that wording in the wake of opinions collected in favour of an expression (\u5be9\u8fa8) that resonates an \u201cability to examine and distinguish\u201d. \n\n\n\nBehind the shift is the way current education authorities regard the expression used in the previous blueprint for \u201ccritical\u201d (\u6279\u5224) \u2013 seen as primarily having a negative implication. One should note that, despite having been widely used as choice of characters to translate \u2018critical (thinking)\u2019; the expression itself has been disputed by some experts. It\u2019s not our place here to throw the hat into the \u2018linguistic discussion\u2019 ring. Nonetheless, it’s noteworthy that the rationale behind the move stems from an official view that criticism is welcome but has to be constructive. \n\n\n\nWhat might sound, at first glance, like a \u2018storm in a tea-cup\u2019 embodies a wider question. It appears the language advocating critical thinking endorsed by local authorities a decade ago has given rise to second thoughts this time around and been redacted. Does this point to a \u201cchange of heart\u201d over the degree to which criticism ought to be cherished? Couldn\u2019t the current environment lead to a narrowing of the space in which youngsters are likely to freely express their points of view?\n\n\n\nOne can\u2019t overstate the usefulness of independent-minded, critical thinking for correcting mistakes and improving decision-making. \n\n\n\nA reduced scope for critical thinking has a negative knock-on effect on civic participation, pluralism and innovation. It may also be reflected in less-than-bold problem-solving skills and fewer breakthroughs in knowledge, science and entrepreneurship. This should not be underestimated in light of the much-touted need to nurture \u201clocal talent\u201d, a buzzword embodying a crucial challenge for the younger generations in the coming decade as the SAR faces a more competitive environment. \n\n\n\nIt\u2019s important to highlight that the Youth Policy blueprint does address a number of these issues and rightly sets out key objectives, while bearing in mind that a paternalistic approach is not necessarily the best way to attain these goals. \n\n\n\nThis is constructively critical and critically constructive.\n\n\n\n\n\n\n\nStock options\n\n\n\nThe idea has been floated before, but it gained new impetus when mainland media reported that a representative from the National Development and Reform Commission said authorities were indeed considering a plan to establish a Macau Stock Exchange in Hengqin. No specific details were provided, and as seen in these pages a number of questions have surfaced. Whatever the case, this signals a welcome determination of mainland authorities to assist Macau in its push for economic diversification and regional integration. Development of new financial services is the way forward. What\u2019s needed now is to hammer out the many details and build a solid legal framework, attract the necessary skilled human resource and find a competitive advantage in the division of labour between Macau and its neighbours, considering the mammoth capital market of Hong Kong and the rising star that is Shenzhen. A creative approach to the functionality of a future Macau\u2013Henqgin financial hub is needed, as is a long-term focus on developing an ecosystem that will reinvigorate the SAR\u2019s economic structure in the coming decades by making the best of the accumulated capacity of the gaming and tourism industries and the injection of new blood from the drive for financial innovation. And by learning the lessons of imbalanced financial centres that failed to be people-centred.\n\n\n\n\n\n\n\nSister Juliana \n\n\n\nMacau has been home to many foreigners who became truly distinguished citizens and benefactors. Sister Juliana Devoy, who passed away last month, was one of a kind. She leaves behind a priceless legacy of kindness, compassion, solidarity and humanity. She was an angel to countless women, victims of human trafficking and domestic violence. Her determination to raise awareness of the need to make domestic violence a public crime will forever be remembered as an inspirational gesture of selfless public service.", "date_published": "January 09, 2021", "date_modified": "January 10, 2021 - 00:11", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2020/12/2-Students.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "Is critical thinking something to be encouraged? What might at first seem an obvious \u201cyes\u201d turned out to be a rather nuanced issue in the consultation document for the coming decade\u2019s Macau Youth Policy (2021\u20132030)." }, { "id": "https://www.macaubusiness.com/editorial-birds-eye-view/", "url": "https://www.macaubusiness.com/editorial-birds-eye-view/", "title": "EDITORIAL \u2013 Bird\u2019s eye view", "content_html": "![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2020/12/Screen-Shot-2020-12-05-at-7.56.14-PM-150x150.png\")
\n\u201cIt was the best of times. It was the worst of times.\u201d The legendary opening lines of Charles Dickens\u2019 A Tale of Two Cities recall London and Paris around the time of the French Revolution. Fast-forward to 2020, and these are most definitely not the best of times. The COVID-19 pandemic, though not exactly a revolutionary social movement, is massively disruptive, on a global scale. And while Macau is surely no Paris or London, we do have the The Parisian, and perhaps in just a couple of months we\u2019ll have The Londoner, too.
\n\n\n\nMacau Business Editorial | December 2020 | By Jos\u00e9 Carlos Matias \u2013 Director
In many ways 2020 seems to be the epitome of an annus horribilis. It has been \u201cthe worst of times\u201d for a great number of countries around the world. For Macau, not so much. The Government\u2019s successful management of the pandemic has protected the city and bolstered the legitimacy of a Chief Executive who found himself in constant crisis management mode from just weeks into his first term.
\n\n\n\nAs shown in this edition\u2019s special report, approval ratings for Ho Iat Seng\u2019s handling of the novel coronavirus emergency are considerably high, meaning his so-called \u201choneymoon period\u201d as new Chief Executive has extended far beyond the usual couple of months after taking the oath of office.
\n\n\n\nIn addition to the swift and effective public health measures and related policies that were locally adopted from the very earliest stages of the pandemic, and the notable sense of civic duty on the part of local firms and society, the city has also benefitted from China\u2019s successful and impressive control of the outbreaks and \u2013 let\u2019s face it \u2013 that lucky streak that has shielded us from turmoil, large-scale natural disasters and epidemics for centuries.
\n\n\n\nThat being said, there are a number of problems that cannot simply be swept under the rug. The city\u2019s gaming and tourism industries are making a gradual comeback on the heels of returning mainland visitors, but they have yet to gain sufficient traction. And, by the way, it is difficult to comprehend why so little about the future of the SAR\u2019s core industry is mentioned in the Policy Address for 2021.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2020/07/5W9A8440_ok.jpg\")
The prolonged plunge in demand dealt a fatal blow to a number of small businesses. Many are now closed for good, while others cling to life but remain in a precarious position. Another social problem looming large is youth unemployment. As reported in these pages, the days of the relatively easy and secure tit faahn w\u00fan (\u201ciron rice bowl\u201d) job for local young professionals are behind us.
\n\n\n\nThe Government did roll out relief packages through the year to provide short-term respite to the SAR\u2019s most vulnerable groups, to SMEs and to local residents in general. In a reality-check remark, Ho Iat Seng declared that a truly sound economic recovery will only be possible with the advent of a vaccine and subsequent mass inoculation. In the meantime, however, as we start to see the light at the end of the COVID-19 tunnel, there is a need for improved governance, for more effective and tailor-made immediate measures to aid firms and certain social groups, and for a longer-term vision followed through with consequential action \u2013 not just words \u2013 that can bring added value. In this respect the recent Policy Address still falls short of expectations.
\n\n\n\nMacau\u2019s economic future surely lies in jumping on China\u2019s \u201cdual circulation\u201d bandwagon. The city is situated at the nexus, in fact, of the nation\u2019s domestic and international economic circles. The key is to capitalize on that and avoid being bypassed on the hopefully fast-paced inner circuit to national recovery.
\n\n\n\nAs we celebrate this month in this edition both the 200th issue of this magazine and the 21st anniversary of the Macau SAR, the case for rolling up our sleeves has never been stronger. Will 2021 light the way back to \u201cthe best of times\u201d? Well, the times \u2013 to join in Bob Dylan\u2019s chorus \u2013 \u201cThe times they are a-changin\u2019\u201d. And as time flies, we get a bird\u2019s eye view.
\n", "content_text": "\u201cIt was the best of times. It was the worst of times.\u201d The legendary opening lines of Charles Dickens\u2019 A Tale of Two Cities recall London and Paris around the time of the French Revolution. Fast-forward to 2020, and these are most definitely not the best of times. The COVID-19 pandemic, though not exactly a revolutionary social movement, is massively disruptive, on a global scale. And while Macau is surely no Paris or London, we do have the The Parisian, and perhaps in just a couple of months we\u2019ll have The Londoner, too.\n\n\n\nMacau Business Editorial | December 2020 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\nIn many ways 2020 seems to be the epitome of an annus horribilis. It has been \u201cthe worst of times\u201d for a great number of countries around the world. For Macau, not so much. The Government\u2019s successful management of the pandemic has protected the city and bolstered the legitimacy of a Chief Executive who found himself in constant crisis management mode from just weeks into his first term.\n\n\n\nAs shown in this edition\u2019s special report, approval ratings for Ho Iat Seng\u2019s handling of the novel coronavirus emergency are considerably high, meaning his so-called \u201choneymoon period\u201d as new Chief Executive has extended far beyond the usual couple of months after taking the oath of office. \n\n\n\nIn addition to the swift and effective public health measures and related policies that were locally adopted from the very earliest stages of the pandemic, and the notable sense of civic duty on the part of local firms and society, the city has also benefitted from China\u2019s successful and impressive control of the outbreaks and \u2013 let\u2019s face it \u2013 that lucky streak that has shielded us from turmoil, large-scale natural disasters and epidemics for centuries.\n\n\n\nThat being said, there are a number of problems that cannot simply be swept under the rug. The city\u2019s gaming and tourism industries are making a gradual comeback on the heels of returning mainland visitors, but they have yet to gain sufficient traction. And, by the way, it is difficult to comprehend why so little about the future of the SAR\u2019s core industry is mentioned in the Policy Address for 2021.\n\n\n\n\n\n\n\nThe prolonged plunge in demand dealt a fatal blow to a number of small businesses. Many are now closed for good, while others cling to life but remain in a precarious position. Another social problem looming large is youth unemployment. As reported in these pages, the days of the relatively easy and secure tit faahn w\u00fan (\u201ciron rice bowl\u201d) job for local young professionals are behind us.\n\n\n\nThe Government did roll out relief packages through the year to provide short-term respite to the SAR\u2019s most vulnerable groups, to SMEs and to local residents in general. In a reality-check remark, Ho Iat Seng declared that a truly sound economic recovery will only be possible with the advent of a vaccine and subsequent mass inoculation. In the meantime, however, as we start to see the light at the end of the COVID-19 tunnel, there is a need for improved governance, for more effective and tailor-made immediate measures to aid firms and certain social groups, and for a longer-term vision followed through with consequential action \u2013 not just words \u2013 that can bring added value. In this respect the recent Policy Address still falls short of expectations.\n\n\n\nMacau\u2019s economic future surely lies in jumping on China\u2019s \u201cdual circulation\u201d bandwagon. The city is situated at the nexus, in fact, of the nation\u2019s domestic and international economic circles. The key is to capitalize on that and avoid being bypassed on the hopefully fast-paced inner circuit to national recovery. \n\n\n\nAs we celebrate this month in this edition both the 200th issue of this magazine and the 21st anniversary of the Macau SAR, the case for rolling up our sleeves has never been stronger. Will 2021 light the way back to \u201cthe best of times\u201d? Well, the times \u2013 to join in Bob Dylan\u2019s chorus \u2013 \u201cThe times they are a-changin\u2019\u201d. And as time flies, we get a bird\u2019s eye view.", "date_published": "December 05, 2020", "date_modified": "December 07, 2020 - 12:41", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://www.macaubusiness.com/wp-content/uploads/2020/12/Screen-Shot-2020-12-05-at-7.56.14-PM.png", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "\u201cIt was the best of times. It was the worst of times.\u201d The legendary opening lines of Charles Dickens\u2019 A Tale of Two Cities recall London and Paris around the time of the French Revolution. Fast-forward to 2020, and these are most definitely not the best of times. The COVID-19 pandemic, though not exactly a revolutionary social movement, is massively disruptive, on a global scale. And while Macau is surely no Paris or London, we do have the The Parisian, and perhaps in just a couple of months we\u2019ll have The Londoner, too." }, { "id": "https://www.macaubusiness.com/mbtv-video-editorial-bigger-fish/", "url": "https://www.macaubusiness.com/mbtv-video-editorial-bigger-fish/", "title": "MBtv: Video-Editorial \u2013 \u201cBigger Fish\u201d", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/11/maxresdefault-8-150x150.jpg\")
\n\n\n\n\nVideo-Editorial:“Bigger Fish”, Macau Business magazine, November 2020.
\n\n\n\n\n\n\n\n\n", "content_text": "Video-Editorial:“Bigger Fish”, Macau Business magazine, November 2020.", "date_published": "November 11, 2020", "date_modified": "November 11, 2020 - 20:33", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2020/11/maxresdefault-8.jpg", "tags": [ "Editorial", "Macau", "MB.tv", "MB.tv Featured", "MNA", "Opinion" ], "summary": "It is a daunting task, no doubt, but one that is absolutely necessary: to give fish, but also to teach to fish, bearing always in mind that there are even bigger fish to fry" }, { "id": "https://www.macaubusiness.com/editorial-bigger-fish/", "url": "https://www.macaubusiness.com/editorial-bigger-fish/", "title": "EDITORIAL \u2013 Bigger fish", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2019/03/Macau_view_panoramic.02-MC_rgb-150x150.jpg\")
\n\u201cGive a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.\u201d The origin of the proverb is uncertain, though it is often attributed to the ancient Chinese sage Confucius.
\n\n\n\nMacau Business Editorial | November 2020 | By Jos\u00e9 Carlos Matias \u2013 Director
Faced as we are with such a once-in-a-lifetime crisis, there\u2019s a need to do both those things in tandem, allowing the local society and economy both to find short-term respite and to walk on its own two feet in the mid-to-long term. The Government has made moves in the right direction, but with the stakes this high it must yet rise to the challenge. What we know of the Government\u2019s budget proposal for 2021 thus far is welcome \u2013 it \u201cgives a man a fish\u201d \u2013 but should be accompanied by a longer-term strategy \u2013 \u201cteaching a man to fish\u201d \u2013 no easy feat in these choppy COVID-19 waters. At this stage we\u2019re looking at two sides of the same coin: gaming revenue and the fiscal reserve. The figures for October were encouraging, with gaming revenue reaching 7.2 billion patacas, but still a far cry from the amount required to sustain public finances, more in the realm of 15 billion a month on average if taxes on gaming account for some 75 per cent of the Government\u2019s overall revenue. The authorities predict around 130 billion patacas on the year for 2021 (a monthly average of 10.8 billion), and it\u2019s hard to label that a conservative or an optimistic forecast. As we well know, the city is entirely dependent on exogenous factors, and our best hope for next year lies in the continued sound recovery of China\u2019s economy on the back of its notable, enviable progress in controlling the pandemic.
\n\n\n\nAnd so, inevitably, the SAR will need to draw on fiscal reserves again in 2021 to make ends meet. The time has come to make good use of the city\u2019s \u2018rainy day fund\u2019, amassed in recent years thanks to skyrocketing gaming revenue and support from the mainland authorities.
\n\n\n\n![\"\"](\"https://www.mbusiness.sgp1.digitaloceanspaces.com//2020/08/table.jpg\")
After a very challenging 2020, we are in for another bumpy ride next year, but one offering glimpses of the light at the end of the tunnel. For a number of small-to-medium-sized businesses, however, the protracted recovery may come too late. As a result, in addition to the crucial measures adopted throughout this year and those now in the pipeline, there needs to be a decisive move by the Government offering a new type of short-term relief for SMEs and paving the way to a sustainable model in the longer term. For the former, setting an example is a must, and in that respect, the Government\u2019s approach engenders mixed feelings. While on the one hand it deserves kudos for continuing to organize events such as the Light Festival, Lusofonia Festival, Macau International Trade & Investment Fair, International Travel Industry Expo, Grand Prix and International Film Festival, on the other hand it has imposed cost-cutting measures on promotional activities and the procurement of goods and services, all of which takes a heavy toll on SMEs.
\n\n\n\nFaced with a shortfall, choices become imperative and those the authorities make signal their priorities. Chief Executive Ho Iat Seng has thankfully pledged that the 10 per cent blanket cut in public administration expenditure will not come at the expense of social welfare measures. This is of paramount importance to assuage major concerns and ensure stability. But beyond that, a more creative, swift and far-reaching approach to supporting SMEs is essential, as their survival along with the livelihoods of the many thousands they employ is on the line.
\n\n\n\nIt is a daunting task, no doubt, but one that is absolutely necessary: to give fish, but also to teach to fish, bearing always in mind that there are even bigger fish to fry.
\n\n\n\n\n\n\n\nP.S.\u00a0The October issue of Macau Business included a 4-page section dedicated to the World Press Photo Exhibition, held in Macau for the 12th straight year, and the article mentioned the exhibit was scheduled to run through to 18 October. However just after the magazine went to print, news surfaced that the show had been prematurely shut down. It was reported that the decision to close the exhibition, which features award-winning works of photojournalism, was taken because of certain pictures that were on display. There has been no official confirmation with regards to the allegations, but several sources point in that direction. If that was indeed the case, then we will have witnessed a truly regrettable incident, one that saddens those who cherish openness, photojournalism and freedom of expression.
\n", "content_text": "\u201cGive a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.\u201d The origin of the proverb is uncertain, though it is often attributed to the ancient Chinese sage Confucius.\n\n\n\nMacau Business Editorial | November 2020 | By Jos\u00e9 Carlos Matias \u2013 Director\n\n\n\n\n\n\n\n\n\n\n\nFaced as we are with such a once-in-a-lifetime crisis, there\u2019s a need to do both those things in tandem, allowing the local society and economy both to find short-term respite and to walk on its own two feet in the mid-to-long term. The Government has made moves in the right direction, but with the stakes this high it must yet rise to the challenge. What we know of the Government\u2019s budget proposal for 2021 thus far is welcome \u2013 it \u201cgives a man a fish\u201d \u2013 but should be accompanied by a longer-term strategy \u2013 \u201cteaching a man to fish\u201d \u2013 no easy feat in these choppy COVID-19 waters. At this stage we\u2019re looking at two sides of the same coin: gaming revenue and the fiscal reserve. The figures for October were encouraging, with gaming revenue reaching 7.2 billion patacas, but still a far cry from the amount required to sustain public finances, more in the realm of 15 billion a month on average if taxes on gaming account for some 75 per cent of the Government\u2019s overall revenue. The authorities predict around 130 billion patacas on the year for 2021 (a monthly average of 10.8 billion), and it\u2019s hard to label that a conservative or an optimistic forecast. As we well know, the city is entirely dependent on exogenous factors, and our best hope for next year lies in the continued sound recovery of China\u2019s economy on the back of its notable, enviable progress in controlling the pandemic.\n\n\n\nAnd so, inevitably, the SAR will need to draw on fiscal reserves again in 2021 to make ends meet. The time has come to make good use of the city\u2019s \u2018rainy day fund\u2019, amassed in recent years thanks to skyrocketing gaming revenue and support from the mainland authorities.\n\n\n\n\n\n\n\nAfter a very challenging 2020, we are in for another bumpy ride next year, but one offering glimpses of the light at the end of the tunnel. For a number of small-to-medium-sized businesses, however, the protracted recovery may come too late. As a result, in addition to the crucial measures adopted throughout this year and those now in the pipeline, there needs to be a decisive move by the Government offering a new type of short-term relief for SMEs and paving the way to a sustainable model in the longer term. For the former, setting an example is a must, and in that respect, the Government\u2019s approach engenders mixed feelings. While on the one hand it deserves kudos for continuing to organize events such as the Light Festival, Lusofonia Festival, Macau International Trade & Investment Fair, International Travel Industry Expo, Grand Prix and International Film Festival, on the other hand it has imposed cost-cutting measures on promotional activities and the procurement of goods and services, all of which takes a heavy toll on SMEs.\n\n\n\nFaced with a shortfall, choices become imperative and those the authorities make signal their priorities. Chief Executive Ho Iat Seng has thankfully pledged that the 10 per cent blanket cut in public administration expenditure will not come at the expense of social welfare measures. This is of paramount importance to assuage major concerns and ensure stability. But beyond that, a more creative, swift and far-reaching approach to supporting SMEs is essential, as their survival along with the livelihoods of the many thousands they employ is on the line.\n\n\n\nIt is a daunting task, no doubt, but one that is absolutely necessary: to give fish, but also to teach to fish, bearing always in mind that there are even bigger fish to fry.\n\n\n\n\n\n\n\n\n\n\n\nP.S.\u00a0The October issue of Macau Business included a 4-page section dedicated to the World Press Photo Exhibition, held in Macau for the 12th straight year, and the article mentioned the exhibit was scheduled to run through to 18 October. However just after the magazine went to print, news surfaced that the show had been prematurely shut down. It was reported that the decision to close the exhibition, which features award-winning works of photojournalism, was taken because of certain pictures that were on display. There has been no official confirmation with regards to the allegations, but several sources point in that direction. If that was indeed the case, then we will have witnessed a truly regrettable incident, one that saddens those who cherish openness, photojournalism and freedom of expression.", "date_published": "November 05, 2020", "date_modified": "November 06, 2020 - 00:15", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2019/03/Macau_view_panoramic.02-MC_rgb.jpg", "tags": [ "Editorial", "Macau", "Macau Business", "MAG", "MB", "MB Featured", "Opinion" ], "summary": "\u201cGive a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.\u201d The origin of the proverb is uncertain, though it is often attributed to the ancient Chinese sage Confucius." }, { "id": "https://www.macaubusiness.com/mbtv-video-editorial-people/", "url": "https://www.macaubusiness.com/mbtv-video-editorial-people/", "title": "MBtv: Video-Editorial \u2013 \u201cPeople\u201d", "content_html": "![\"\"](\"https://mbusiness.sgp1.digitaloceanspaces.com/2020/10/maxresdefault-1-150x150.jpg\")
\nVideo-Editorial: “People”, Macau Business magazine, October 2020. By Jos\u00e9 Carlos Matias, director.
\n\n\n\n\n", "content_text": "Video-Editorial: “People”, Macau Business magazine, October 2020. By Jos\u00e9 Carlos Matias, director.", "date_published": "October 15, 2020", "date_modified": "October 15, 2020 - 12:21", "author": { "name": "Jos\u00e9 Carlos Matias", "url": "https://www.macaubusiness.com/author/josecarlos/", "avatar": "https://secure.gravatar.com/avatar/51daaf303592a21bfa00ad4e06b69f24?s=512&d=mm&r=g" }, "image": "https://mbusiness.sgp1.digitaloceanspaces.com/2020/10/maxresdefault-1.jpg", "tags": [ "Editorial", "MB.tv", "MB.tv Featured", "MNA", "Opinion" ], "summary": "Video-Editorial: \"People\", Macau Business magazine, October 2020. By Jos\u00e9 Carlos Matias, director" } ] }![\"\"](\"https://www.macaubusiness.com/wp-content/uploads/2021/05/MB205_May_cover-1028x1028.jpeg\")