Small and medium enterprises (SMEs) in Macau are feeling frustrated by the short-term prospects for their businesses as tourist numbers plunge to record lows under the impact of the COVID-19, but a local SMEs association told Inside Asian Gaming that government stimulus measures are helping redirect the strategy of SMEs from tourist to local markets.
The Macau SAR government has recently announced a series of stimulus measures in order to sustain local employment and keep local SMEs afloat. Following the first round of measures including up to MOP$2 million in interest-free loan support and the granting of a MOP$3,000 e-coupon to each resident, a second round of stimulus measures will directly subsidize qualified SMEs to the tune of MOP$50,000 to MOP$200,000 depending on the number of employees. Around 260,000 employees will also be granted MOP$15,000 cash while another MOP$5,000 e-coupon will be issued to each resident.
The Vice President of the Small and Medium Enterprises Association of Macao, Catherine Lee Wai Yan, said the government’s stimulus measures should help release some operating pressures for local SMEs.
“Not every enterprise could benefit from the first round of measures,” she said. “Some SMEs have applied for the interest-free loan and got those loans recently, but some employers might not as they still have other previous loans.
“SMEs and employees could get subsidies from the second round of measures, so many employers and employees are very excited by this.”
But Lee pointed out the subsidies do not provide strong support for medium-scale businesses as the maximum subsidy is MOP$200,000 for SMEs with 21 or more employees.
“MOP$200,000 would only cover the expense of renting accommodations for non-residents workers in Macau. For SMEs with under 10 employees, they could get MOP$100,000, it would be much more helpful as it could cover their basic expenses for one to two months.”
Far from a “city that never sleeps”, as it has become famous for becoming over the past two decades, Macau currently resembles more of a “leisure” town with popular tourist areas and shopping malls now unusually quiet.
Shops and stalls in and around the most popular tourist areas, such as St. Paulo Ruis and Rua do Cunha, are mostly closed.
Lee said the cost of renting remained the greatest pressure for SMEs with rental costs in tourist areas often as high as MOP$200,000 per month.
Restaurants and retails stores in more “local” areas such as Avenida de Horta e Costa and Areia Preta are not as expensive, although guest flow has decreased due to the need for social distancing.
Lee suggested local SMEs should look to improve their service quality during this time.
“We encourage SMEs to train their employees and improve their services and products during this special period, to redirect their strategies from tourists to locals,” she said.
“Border restrictions will not be removed before the Labour Day holiday and the Individual Visit Scheme (IVS) from the mainland won’t resume anytime soon either.
“But we have found that because residents are forced to stay in Macau, many were willing to go out and spend during the Easter holiday. Since e-coupons are able to be used from 1 May, SMEs should think of more ideas to find new markets and opportunities to attract residents in the coming months.”
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