Macau launches extensive new stimulus measures to kick-start economy

Macau’s Secretary for Economy and Finance, Lei Wai Nong, announced Monday a vast array of new stimulus measures including a cash-sharing scheme granting permanent residents MOP$10,000 and non-permanent residents MOP$6,000. The scheme will see the government spend MOP$7.24 billion to help invigorate Macau’s struggling tourism and retail industries.

Another MOP$5 billion will be spent on an e-coupon scheme aimed at tripling consumption. The e-coupon scheme will see MOP$600 e-coupons offered to local residents, non-resident workers and students each month between April and December and represents the first time non-residents have been included in such a scheme.

The array of stimulus packages announced Monday includes measures aimed at benefiting hotels and entertainment venues across the city, including waiving a 5% tourist tax for hotels, bars and massage parlours from May to December. Local residents will also be offered a one-off MOP$200 subsidy to use for a hotel stay or local tour.

Macau’s Labour Affairs Bureau will also provide programs for employees, including those who are working in the gaming industry and currently on unpaid leave, to upgrade their vocational skills via a MOP$5,000 subsidy upon completion of certain programs.

The Macau SAR government had previously provided two phases of stimulus schemes in 2020 aimed at boosting the economy in response to the global COVID-19 pandemic. However, with tourist numbers still depressed, the schemes achieved only limited success while the local unemployment rate has continued to rise.

According to figures released by the Statistics and Census Service (DSEC) last week, the job vacancy rate in Macau’s dominant gaming industry fell to “near zero” in 4Q20 with job vacancies plummeting from 443 in late 2019 to just 26 late last year. The number of new hires in the same period also fell from 1,294 to just 174.