TEXT Courtesy of the Macao Special Administrative Region government
What were the main messages for Macao’s people, businesses and organisations at the Policy Address for the Fiscal Year 2020? Here, the highlights of the address are explained by the Macao government team.
The Macao SAR government outlines its policy highlights for 2020, following Chief Executive Ho Iat Seng’s policy address on 20 April. Topics include fighting the pandemic, safeguarding employment, stabilising the economy, caring for people’s livelihoods, implementing reform and facilitating development. The government has set out all the information in easy-to-read table and bullet-point form so all of us know and understand the highlights from such an important policy address.
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Fight the pandemic to maintain stability and boost post-pandemic economic recovery
- The government is spending over MOP 50 billion (US$6.26 billion) in response to the coronavirus (COVID-19) pandemic.
- While continuing with the existing welfare measures, the government will implement a proactive fiscal policy and implement a series of relief measures in response to the pandemic (for details, please see the major welfare measures for 2020, overleaf). In response to the COVID-19 pandemic, the Community Support Fund – which is worth MOP 10 billion (US$1.25 billion) under the Macao Foundation – is expanding its assistance to local residents, employees and businesses, in order to help with ‘safeguarding employment, stabilising the economy and caring for people’s livelihoods’.
- Expedite approval of small and medium-sized livelihood and municipal construction projects.
- Expedite public construction projects to create job opportunities:
- Commence construction of the fourth Macao-Taipa cross-harbour route;
- Expedite construction of the Light Rapid Transit (LRT) system;
- Implement construction of public housing in the New Urban Zone Area A, while construction of Home-Ownership Scheme housing units in Lots B4, B9 and B10 is set to commence;
- Proceed with construction of replacement housing, interim housing and related infrastructure in Areia Preta Zone P;
- Begin inviting tenders for the superstructures of the Conde S Januario Hospital Public Health Specialist Building and the Customs Service Headquarters Building;
- Commence reconstruction of certain facilities of the Taipa Ferry Terminal which are integrated with the second airport passenger terminal; and
- Conduct a comprehensive study on the use of land for government offices and the future development of a business hub in Macao.
- Foster recovery of integrated tourism and leisure industry:
- Launch tourism incentive programmes once the COVID-19 pandemic is under control;
- The Macao Government Tourism Office will be transferred to the portfolio of Secretary for Economy and Finance, in order to create industry synergy;
- When appropriate, seek approval from the central government for resuming the issuance of travel permits to Macao from Mainland China; and negotiate with Guangdong province on relaxing the entry requirements for Guangdong residents visiting Macao;
- Launch tourism activities, such as ‘local tours’ and ‘tours to Hengqin and neighbouring areas’ for Macao residents, in due course; and
- Organise more festive events.
- Encourage private investments and intensify solicitation of investments:
- Intensify solicitation of foreign capital and investment;
- Support Mainland China enterprises that aim to explore international markets and establish their regional headquarters in Macao; and
- Expedite approval procedures for private investment projects and construction projects.
- Support for small and medium-sized enterprises (SMEs):
- Adjust credit guarantee schemes and support schemes for SMEs and launch schemes providing interest subsidies on bank loans for SMEs;
- Streamline application procedures for professional licences and optimise vetting procedures for enterprises seeking to employ non-resident workers;
- Consider establishing an SME risk fund to support the business sector;
- Assist SMEs with developing e-commerce, including cross-border e-commerce; and
- Support businesses that are establishing and promoting ‘Macao-branded’ products.
- The government is spending over MOP 50 billion (US$6.26 billion) in response to the coronavirus (COVID-19) pandemic.
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Press ahead with administration reforms to enhance governance
- In accordance with the ‘plan and tackle’ principle, strengthen the design at the top level of the public administration reform to rationalise the administrative authorisation structure; establish a feasible accountability system for government officials; enhance the civil servant recruitment system; enhance the effectiveness of civil servant training; and explore implementation of a horizontal transfer system for public department heads and supervisors;
- Optimise structure of public departments, rationalising firstly departments respectively responsible for economic services, tourism, education and government information;
- Strengthen and improve the inter-departmental co-operation mechanism; co-ordinate and resolve major cross-departmental issues through administration meetings between the Chief Executive and the secretaries;
- Enhance supervision to publicly funded enterprises and autonomous funds to ensure safety of public assets investment returns; and
- Improve the mechanism for implementing the Constitution and the Basic Law of Macao; improve the legislative co-ordination mechanism, strengthen legislative planning and prioritise formulating and amending laws and regulations related to the economy and people’s livelihoods.
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Relieve livelihood hardships and improve people’s well-being
- Major welfare measures for fiscal year 2020
Items
Measures and eligibility
All Macao residents
Non-mandatory individual Central Provident Fund accounts - Start-up fund of MOP 10,000 (US$1,250) (for eligible residents)
- An additional fund injection of MOP 7,000 (US$877) (for eligible residents)
Wealth Partaking Scheme - MOP 10,000 (US$1,250) (permanent residents)
- MOP 6,000 (US$750) (non-permanent residents)
- Disbursed in advance, during April
Healthcare voucher MOP 600 (US$75) per person (permanent residents) Birth allowance Increase to MOP 5,418 (US$679) (both parents may apply at the same time) Electricity bill subsidy for residential units MOP 200 (US$25) per month (each residential unit) Water tariff subsidy Ongoing (for residential and general non-residential units) Bus fare concessions for members of the public Ongoing (for the elderly, students, people with disabilities etc) Real estate tax (for all real estate) Deduction of first MOP 3,500 (US$438) of tax (Macao residents) Waiver of real estate stamp duty First MOP 3 million (US$376,000) of a residential unit’s value (Macao permanent residents purchasing residential property for the first time) Incentive for the increase of supply in the real estate rental market Reduction of the property tax rate for leased properties to eight per cent; property tax rate for non-leased properties remains at six per cent New pandemic relief measures: Consumption Subsidy Scheme A total of MOP 8,000 (US$1,000) per Macao resident, to be disbursed in two installments Special healthcare voucher An additional healthcare voucher of MOP 600 (US$75) for each permanent resident of Macao Electricity bill subsidy for residential units Waiver of all electricity bills for three months (for Macao residents) Water bill subsidy for residential units Waiver of all water bills for three months (for residential users) Real estate tax (residential) Waiver of residential property tax (for Macao residents) The elderly
Old age allowance MOP 9,000 (US$1,127) per year Pension Increase to MOP 3,740 (US$468) per month Employment incentive for the elderly Increase the basic allowance for personal income tax to MOP 198,000 (US$24,800), for employees over 65 years of age New measures: - Plan and establish a multi-service centre for the elderly and a multi-service centre for patients with dementia.
- Establish more day care centres for the elderly.
- Launch the pilot subsidy scheme for caregivers to support families with special difficulties.
- Study the design of housing for senior citizens and begin drafting a special law for the project.
Students
Non-tertiary education: Textbook allowance - Increased to MOP 3,550 (US$445) per school year (each secondary school student)
- Increased to MOP 3,000 (US$376) per school year (each primary school student)
- Increased to MOP 2,400 (US$300) per school year (each kindergarten pupil)
Tuition fee subsidies, meal allowance and stationery allowance for students from families with financial difficulties - Tuition fee subsidies
o MOP 9,000 (US$1,127) per school year (each senior secondary school student)
o MOP 6,000 (US$750) per school year (each junior secondary school student)
o MOP 4,000 (US$500) per school year (each kindergarten or pupil or primary school student)
- Meal allowance:
o Increased to MOP 3,950 (US$495) per school year
- Stationery allowance:
o Increased to MOP 3,350 (US$420) per school year (each secondary school student)
o Increased to MOP 2,600 (US$325) per school year (each kindergarten pupil or primary school student)
Tuition fee subsidies and stationery allowance for Macao students studying in Guangdong - Tuition fee subsidies:
o A maximum of MOP 6,000 (US$750) per school year (each senior and junior secondary school student)
o A maximum of MOP 8,000 (US$1,000) per school year (each kindergarten pupil)
- Stationery allowance: (new)
o MOP 1,700 (US$213) per school year (each secondary school student)
o MOP 1,450 (US$182) per school year (each primary school student)
o MOP 1,150 (US$144) per school year (each kindergarten pupil
Stationery allowance for tertiary education MOP 3,300 (US$413) (Macao residents) Disadvantaged families
Minimum subsistence index Increased to MOP 4,350 (US$545) per one-person household Financial assistance Continue disbursing 13 months of financial assistance per year (from MOP 4,350 (US$545) to MOP 20,270 (US$2,540) per month, for households of one to eight people). Special subsidy for three categories of disadvantaged families o Education subsidy: MOP 300 (US$37.50) to MOP 750 (US$94) per month o Healthcare subsidy: MOP 1,000 (US$125) to MOP 1,200 (US$150) per month
o Disability subsidy: MOP 750 (US$94) to MOP 1,000 (US$125) per month
Special living allowance under the Social Inclusion Scheme Two disbursements per year, of MOP 2,650 (US$332) to MOP 10,100 (US$1,265) each for the three categories of disadvantaged families of one to eight people (single-parent families and families with disabled members or chronically ill patients) with household income below 1.8 times the minimum subsistence index Short-term Food Assistance Programme For a maximum of 10 weeks for people with household income below 1.8 times the minimum subsistence index Public housing tenants A rent waiver of up to MOP 2,000 (US$250) per month for tenants with monthly income not exceeding the statutory cap Temporary housing subsidies for eligible families on the waiting list for public housing MOP 1,650 (US$207) per month per family of one to two people; MOP 2,500 (US$313) per month per family of three people or above for a maximum period of one year Positive Life Programme On being re-employed, any person under this programme may enjoy an exemption from deducting income from work of up to MOP 6,530 (US$818) per month in calculating household income for receiving financial assistance for a maximum waiver period of 18 months Community Employment Assistance Scheme Each participant may receive a subsidy of up to MOP 2,000 (US$250) per month, depending on their work situation New pandemic relief measures: Financial assistance (additional) Disburse two extra months of financial assistance to families under the scheme, according to the number of family members Subsidy for low-income, full-time employees Remains at up to MOP 5,000 (US$626) per month and becomes also available to non-permanent residents People with disabilities
Disability gratuity - MOP 9,000 (US$1,127) per year (ordinary)
- MOP 18,000 (US$2,255) per year (special)
Subsidy for eligible employees with disabilities Up to MOP 5,000 (US$626) per month Employers hiring people with disabilities A tax deduction of up to MOP 5,000 (US$626) on profit tax or personal income tax, per employee with disabilities Employment incentives The personal income tax allowance for eligible employees with disabilities increases to MOP 198,000 (US$24,805) Employed citizens
New pandemic relief measures: Personal income tax Increases the fixed tax deduction rate of taxable personal income tax for the year to 30 per cent Extra tax rebate A 70 per cent rebate of the personal income tax paid by each tax-paying Macao resident for 2018, subject to a ceiling increased to MOP 20,000 (US$2,505) Employee cash allowance scheme - Disburse a total of MOP 15,000 (US$1,879) of allowance to each eligible local employee, in three monthly installments (MOP 5,000 (US$626) per month)
- (Local employees receiving the maximum tax rebate of MOP 20,000 (US$2,505) from personal income tax for 2018 and civil servants are excluded from this scheme)
Paid training (skills upgrading and employment training scheme) Each unemployed local resident enrolled in the occupation-orientated training programme organised by the government will receive an allowance of MOP 6,656 (US$834) and job matching referral service upon completion of training Each employed local resident enrolled in the skills training programme organised by the government will receive an allowance of MOP 5,000 (US$626) Business owners and related persons
- Profit tax allowance remains at MOP 600,000 (US$75,167) per year;
- Continue providing waivers of all business taxes, hawker licence fees, wet market stall rents, inspection and quarantine fees for live food and stamp duty on life insurance, other insurance, bank service charges and auctions;
- Provide waivers of signboard fees for businesses and exemption from tourism tax for restaurants;
- Provide waivers of stamp duty on entrance passes and tickets for cultural and arts performances, exhibitions and entertainment programmes;
- Enterprises can enjoy a triple reduction in profit tax for the first MOP 3 million (US$376,000) of joint venture research and development expenditure and a double reduction in profit tax for the additional expenditure, subject to a ceiling of MOP 15 million (US$1.88 million);
- Provide waivers of profit tax on investment income from local bonds issued by provincial governments in Mainland China and state-owned enterprises, and exempt the stamp duty for issuing and acquiring the relevant bonds; and
- Provide profit tax waiver to Macao enterprises for income received or generated in Portuguese-speaking countries.
New pandemic relief measures: - Offer water and electricity bill subsidies to businesses for a period of three months, with a ceiling of MOP 3,000 (US$375) per month for water bills and up to MOP 10,000 (US$1,253) per month for electricity bills for each company;
- Provide a tax deduction on profit tax, up to a maximum of MOP 300,000 (US$37,583);
- A further 25 per cent deduction of property tax levied on hotels and similar establishments, offices and real estate properties for commercial and industrial purposes on top of the initial deduction of MOP 3,500 (US$438);
- A waiver of tourism tax payable by establishments such as hotels and similar establishments, gyms, saunas, massage parlours and karaoke venues for a period of six months;
- A waiver of facility inspection fees for hotels, restaurants, bars and travel agencies;
- A waiver of fees and stamp duties for licence and administrative licence issuance and renewal, including licences for real estate agents and brokers, annual registration for insurance agents, licences for travel agencies and tour guides, information notes for business premises, temporary licences and licences for commercial management of strata-title buildings;
- A waiver of the licence tax on commercial vehicles;
- A waiver of the regular vehicle inspection charges for commercial vehicles such as public buses, taxis, heavy vehicles, industrial machinery vehicles, light vehicles for professional purposes, light or heavy motorcycles for professional purposes, trailers or semi-trailers, as well as the surcharge for advance inspection;
- A waiver of the fees related to local cruises and parking fees for taxis at the Hong Kong-Zhuhai-Macao Bridge car park during designated periods;
- A waiver of radio operating expenses for traditional land mobile radio systems and trunk radio systems for non-public organisations;
- A waiver of rents for government-owned properties for three months;
- Expedite the vetting processes of the Small and Medium-sized Enterprise Assistance Programme, the SME Credit Guarantee Scheme and the SME Credit Assurance Scheme, and adjust the repayment measures of various assistance programmes;
- Extend the SME Assistance Programme to SMEs established at least a year ago;
- Launch an interest subsidy scheme on bank loans for SMEs of up to MOP 2 million (US$250,000) for a maximum of three years, involving a maximum interest rate of four per cent;
- Through an enterprise subsidy scheme, offer a one-off subsidy of MOP 15,000 (US$1,880) to MOP 200,000 (US$25,055) per shop, depending on the number of employees, to a maximum of MOP 1 million (US$125,000) for taxable companies with several outlets (recipients must return a proportion of their subsidies in the event of unreasonable dismissal of employees within six months of receiving the subsidies);
- Through subsidy schemes for freelancers:
o Offer a one-off subsidy of MOP 15,000 (US$1,880) to MOP 200,000 (US$25,055) depending on the number of employees, for Group 2 Salaries Tax Payers;
o Offer a one-off subsidy of MOP 10,000 (US$1,253) for wet market stall tenants, hawker licence holders and tricycle licence holders;
o Offer a one-off subsidy of MOP 10,000 (US$1,253) for taxi drivers who rent their taxis;
o Extend the expiry dates of taxi licences for six months and extend the mandatory vehicle examination dates for six months for taxis bearing licences that will not expire;
- Through an interest subsidy scheme on bank loans for freelancers, offer a two-year interest subsidy on bank loans totalling a maximum of MOP 100,000 (US$12,500) for Group 2 Salaries Tax Payers up to a maximum of four percentage points of the interest or no more than MOP 8,000 (US$1,000).
- Measures to enhance the people’s well-being
- Expedite construction of public housing to secure the basic living conditions of local residents:
- Implement construction of public housing in the New Urban Zone Area A while construction the Home-Ownership Scheme housing units in Lots B4, B9 and B10 is set to commence;
- Forge ahead with the public housing projects in Venceslau de Morais, Tamagnini Barbosa and Mong Ha; and commence design of the first phase of the public housing project on Wai Long Avenue;
- Develop a reasonable home owning ladder; commence special law drafting work after a public consultation on the definition of housing for the sandwich class; and study the design of housing for senior citizens; and
- Expedite amendment of the Home-Ownership Scheme Housing Law.
- Mitigate commuting problems;
- Address the issue regarding expiry of bus concession contracts and enhance management of taxi operations;
- Perfect the mass transit system with complementary LRT and bus services; and
- Develop accessible and convenient walkways to encourage walking and green commuting;
- Enhance public healthcare standards, strengthen co-operation between public hospitals and private healthcare organisations; expedite construction of the Islands District Medical Complex; and commence operation of the Praia do Manduco Health Centre in the latter half of the year;
- Establish a multi-services centre for the elderly and a multi-services centre for patients with dementia;
- Optimise social support and welfare system measures to perfect the two-tier social security system;
- Establish a multi-services centre for the elderly and a multi-services centre for patients with dementia;
- Launch the pilot subsidy scheme for caregivers;
- Strengthen protection of the rights of women and children and promote implementation of family-friendly policies;
- Lawfully protect the rights of local employees and establish harmonious relationships between workers and employers; and
- Enhance the co-ordination and optimisation of vocational training and effectively implement ‘paid training’, the ‘welfare-to-work scheme’ and ‘in-service training’.
- Expedite construction of public housing to secure the basic living conditions of local residents:
- Major welfare measures for fiscal year 2020
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Optimise talent cultivation policies and strengthen education and youth services
- Set up a high-level vetting committee for talent importation;
- Integrate education departments to optimise education development;
- Consider expanding the proportion of non-local students admitted to tertiary institutions in Macao and expedite progress towards autonomy and enhance commercial viability of tertiary institutions;
- Support teaching, scientific research and application of research results of tertiary institutions;
- Forge ahead with the construction of the Guangdong-Hong Kong-Macao Greater Bay Area tourism education and training base, the Global Centre for Tourism Education and Training, the International Portuguese Training Centre and a cradle for cultivating talented individuals who are bilingual in Chinese and Portuguese;
- Set up a patriotic education base in Macao; and
- Create favourable conditions for learning, employment, entrepreneurship and the development of young people.
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Strengthen urban planning for construction of a smart city
- Expedite formulation of the Macao urban development master plan and implement urban renewal work;
- Properly manage the integrated use of land resources;
- Build a ‘Digital Macao’ and strengthen new infrastructure such as the 5G network and data centre; and
- Improve environmentally friendly policies and promote green development.
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Foster cultural diversity and promote cultural exchanges
- Establish a multi-cultural exchange and co-operation base with an emphasis on Chinese culture;
- Enhance cultural exchanges and co-operation with Portuguese-speaking countries, spanning various areas, levels and channels;
- Strengthen promotion of world heritage in Macao and promote cultural conservation;
- Build and improve sports facilities and organise various international sports competitions and events; and
- Encourage cultural and artistic creation for the development of the cultural and creative industries.
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Strengthen anti-corruption and auditing for a corruption-free and efficient government
- Abide by probity and integrity in the civil service and implement zero-tolerance on corruption;
- Persist in combatting and preventing corruption and enhance integrity education; and
- Enhance auditing work to improve public governance.
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Sustain Macao’s stability and security
- Optimise laws and regulations, management mechanism and enforcement mechanism to safeguard national security;
- Enhance quality and law enforcement capabilities of the police force and deepen regional police co-operation and co-ordination mechanisms;
- Optimise the contingency response mechanism for public health emergencies;
- Perfect anti-terrorism mechanisms to prevent infiltration by external forces and any resulting negative impacts;
- Expedite legislation on fire prevention and safety and dangerous goods regulations; and
- Commence construction of flood prevention measures and drainage along the Outer Harbour and Inner Harbour based on sound anti-flood simulations and science.
Great ideas, greater reach
An overview of the government’s plans on how Macao can integrate into national development and foster economic diversification
- Enhance and implement the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area;
- Complete the transfer of the border crossing function of the Macao Lotus Flower checkpoint to the Hengqin checkpoint;
- Strengthen matching of the management and legal systems across the Guangdong-Hong Kong-Macao Greater Bay Area;
- Develop a high-level design to further emancipate people’s mindsets in a spirit of reform and innovation for the construction of a zone in Hengqin for comprehensive co-operation between Guangdong and Macao; and develop strategies in synergy with China’s ‘Belt and Road’ Initiative and the development of the Guangdong-Hong Kong-Macao Greater Bay Area, as well as nascent industries and business models, to integrate into the national industrial chain.
- Explore the feasibility of developing hi-tech industries;
- Fully leverage Macao’s role as a platform for co-operation between China and Portuguese-speaking countries;
- Expedite the development of Macao as a world tourism and leisure centre;
- Expedite the establishment of a multi-cultural exchange and co-operation base with an emphasis on Chinese culture;
- Develop ‘Macao-branded’ industries; and
- Establish a financial service platform for commercial and trade co-operation between China and Portuguese-speaking countries.
