The Secretary for Economy and Finance, Mr Leong Vai Tac, speaks to reporters.
The Secretary for Economy and Finance, Mr Leong Vai Tac, said local small- and medium-sized enterprises (SMEs) remain confident of Macao’s development prospects, as shown by the increase in bank borrowing by these companies.
In the second half of 2016, loans to SMEs approved by local banks totalled 13.6 billion patacas, an increase of 36.8 percent compared to the first half of 2016. Analysed by purpose, loans for, respectively, “business development” and “development of new projects” rose by 72.2 percent and 87.5 percent, compared to the previous six-month period.
The delinquency ratio – a ratio of delinquent loans’ outstanding balance to total SME loans outstanding – stood at 0.83 percent at the end of 2016. The delinquency ratio represented 0.07 percent of local banks’ aggregate lending, Mr Leong told reporters on Wednesday (15 February).
The delinquency ratio of SME loans might have gone up as a result of the adjustment period in the city’s gaming industry, said Mr Leong. The Macao Monetary Authority would closely monitor the situation and any other market developments.
The Secretary also commented on the Staff Report produced by the International Monetary Fund after completing the 2016 Article IV consultation discussions with the Macao SAR. Mr Leong said he was pleased to see that the report confirmed Macao’s ability to cope with economic challenges; projected growth for the city’s GDP; and expressed an optimistic view regarding efforts to diversify the city’s economy.
In addition, Mr Leong disclosed that the Government on Wednesday had completed assessing a request for gaming table allocation for Legend Palace Hotel Macau. He said the property would be authorised to operate a total of 15 new-to-market live-dealer gaming tables and a total of 91 electronic gaming machines.
Mr Leong noted that SJM Holdings Limited would allocate an additional 55 gaming tables – from other casinos – to complement the gaming offer in the mass-market floor and VIP lounges at Legend Palace Hotel Macau.
The Government had taken into consideration the following criteria when assessing SJM Holdings Limited’s application for new-to-market gaming tables for Legend Palace Hotel Macau: the offering of non-gaming elements at the property; and its contribution to the development of Macao as a world centre of tourism and leisure.
Regarding Jai Alai casino, Mr Leong said that the Government had not received any application for new-to-market gaming tables or any request to transfer gaming tables from other properties to that venue. The casino would operate under the same conditions that had been previously approved, he noted.
Mr Leong stated that – when assessing applications for gaming tables – the Government would strictly follow the principle of allowing a compound annual growth rate in new-to-market tables of no more than 3 percent over a 10-year period, from 1 January 2013.