POLICY ADDRESS: Cash handout and subsidies rise, no plan to control record-high property prices

2013-11-13

From:Macau Daily Times

The Chief Executive delivered his 2014 Policy Address yesterday at the Legislative Assembly plenary meeting, in which it became clear that for the next year residents can expect a rise in subsidies and cash handouts (MOP9,000 for permanent residents), but the government is not going to adopt direct policies to control rental prices, as many have demanded.
“We know housing rent is quite high (…) but the rental issue is a matter of demand and supply (…) we are analyzing the question of the free market, we know it is a complex matter, but we will further study it to reach solutions,” he said during a press conference at the government headquarters.
Briefing the AL lawmakers on his administration’s plans for the next year, Chui Sai On revealed that cash handouts will rise to MOP9,000 and MOP5,400 for permanent and non-permanent residents respectively.
In addition, the elderly will see their pensions increase to MOP3,000 per month, with a subsidy of MOP7,000 a year. The Chief Executive also announced that MOP37 billion will be injected into the Social Security Fund until 2016 – a measure that had been previously announced – and higher amounts of money will be given to the education sector, with merit scholarships to be increased as well.
He has also announced a 30 percent reduction on the professional tax, and a 60 percent reimbursement of the current year’s professional tax to residents that have already paid.
As Chui Sai On emphasized, this 2014 Policy Address is in line with what his administration has prioritized over the last four years.
For many Macau residents, housing is an acute problem, frequently aggravated by scarce land resources and rising rents. In his speech, the Chief Executive stressed the well-known motto “Macau land for Macau people,” hinting that the government is researching housing options and will reach a conclusion by 2014, followed by the launch of public consultations. However, it was unclear if Chui Sai On was referring to allowing some of the flats to be sold only to Macau residents.
He stated that the government is still committed to solving the housing issue in Macau, and that the project of providing 19,000 housing units will be accelerated. During yesterday’s press conference, he said that the government “has been putting an effort into solving the problem and will build 6,000 more housing units.”
Moreover, he stressed that those still waiting to get a house will be entitled to a subsidy, which can be used to rent an apartment through the external market.
When asked about policies to control rental and property prices, Chui Sai On chose to focus on promises to provide more public housing units. He stressed that the government has recovered a total of 28 blocks of land and that five further landfills will be under development in the coming years. “We will certainly reserve some parcels for the construction of more houses,” he promised.
However, he did not say what percentage of land would be used for housing, but assured the press that recovering lands and resorting to landfills are “crucial policies.”
Chui Sai On also announced that Beijing has approved Macau’s request to increase the land area of the Avenida Sun Yat Sen, with few adjustments required in the NAPE area, “without altering its total area.” This will allow the proposed Light Rail route to include this avenue.
Furthermore, Chui Sai On also clarified that his administration prioritizes investment in education and local talent. Therefore, a Committee for the Development of Talent Training will be set up. During the press conference, the Chief Executive explained that it is extremely important to provide local talent with further training so that residents can progress in their careers.
Chui Sai On also wishes to convince local students who are furthering their studies abroad to come back to Macau afterward. In addition, subsidies for local students will be increased.

Copyright@Macau Daily Times