News

The Monetary Authority of Macao (AMCM) releases today the preliminary balance of payments (BOP) of Macao SAR for the reference year 2009. The BOP is a statistical statement that summarises external transactions of an economy with the rest of the world. In 2009, Macao's overall BOP recorded a surplus of MOP16.9 billion. Among the major components, the current account registered a surplus of MOP62.5 billion. The capital account had a net inflow of MOP5.1 billion and financial non-reserve assets showed a net increase of MOP22.1 billion. The visible trade deficit narrowed slightly to MOP39.6 billion. Strong exports in travel services boosted the invisible trade surplus to MOP122.0 billion, offsetting both the deficit in merchandise trade and the net outflow of factor income. The current account surplus therefore reached MOP62.5 billion, up considerably by MOP16.3 billion from the revised surplus of MOP46.2 billion in 2008. Imports of goods, valued at f.o.b., fell by 18.4%, while exports of goods plunged by 52.2% due to the continued decline in textiles and garment exports. Deficit in the goods account narrowed from MOP41.9 billion in 2008 to MOP39.6 billion in 2009. On the other hand, surplus in the services account rose from MOP112.1 billion to MOP122.0 billion. The income account, which reflects cross-border flows of factor income, recorded a net outflow of MOP13.5 billion in 2009, down substantially from the net outflow of MOP17.4 billion in 2008. This stemmed mainly from lesser income earned by foreign direct investors in Macao as well as a decrease in factor income outflow from other investment in the low-interest-rate environment. Current transfers, which include mainly inflow and outflow of workers’ remittances as well as donations received/made by local social service organisations with respect to the rest of the world, recorded a net outflow of MOP6.4 billion, representing a decrease of MOP0.2 billion from the previous year. Net inflow in the capital account increased from MOP3.2 billion in 2008 to MOP5.1 billion in 2009 largely due to an increase in inflow of non-government capital transfers. Net financial non-reserve assets registered a net outflow of MOP22.1 billion, against a net inflow of MOP26.6 billion in 2008. Of which, net inflow of direct investment slowed from MOP25.6 billion in 2008 to MOP18.7 billion in 2009 while other investment changed from a net inflow of MOP12.4 billion to a net outflow of MOP27.3 billion. Concurrently, portfolio investment recorded a net outflow of MOP13.4 billion, up from MOP11.1 billion in 2008. Net outflow of financial derivatives amounted to MOP121.7 million, down from MOP235.0 million in 2008. The account of reserve assets in BOP records the net change in foreign currency assets (excluding the SAR Reserve Fund) held by the Monetary Authority of Macao. In 2009, reserve assets, after price, exchange rate and other adjustments, increased by MOP16.9 billion, as compared to an accumulation of MOP18.2 billion in 2008. Macao’s BOP statistics are compiled in accordance with the International Monetary Fund’s Balance of Payments Manual, Fifth Edition and Coordinated Direct Investment Survey Guide, as well as its relevant technical advice to the SAR. The current release incorporates preliminary estimates of key statistics, and a detailed report with revised data will be published in December 2010.
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The Cross-departmental Working Team checked 16 premises from 5p.m. yesterday (August 21) until 6p.m. today (August 22). Four premises suspected to provide accommodation illegally were sealed. Since the law on "Prohibition of Providing Illegal Accommodation" took effect on August 13, a total of 250 premises were checked, of which 24 were normal residences, while 30 premises suspected to provide accommodation illegally were sealed with electricity and water supply cut. Ensuing investigations on the rest of the premises have been launched. Among the checked premises, some were vacant or unoccupied. MGTO and the police will continue investigation on unanswered doors which are suspected to be used to provide accommodation illegally. When necessary, MGTO can request a judicial order to enter into the suspect premises to investigate. To date, a total of 226 occupants were detained, including five operators, four touts, three persons who manage the premises that provide accommodation illegally (management staff) and one occupant who failed to fulfill her duty of cooperation. Among the occupants, there were five overstayers and one illegal immigrant. In line with the newly implemented law, MGTO and Legal Affairs Bureau have launched various promotional and educational activities such as putting up posters at concerned districts and major checkpoints while deploying staff at Macau International Airport, Border Gate, Macau Ferry Terminal and Taipa Temporary Ferry Terminal to distribute leaflets and brochures. Public can also call 2833 3000 to report suspected premises. MGTO and Legal Affairs Bureau remind travelers that, according to the law on "Prohibition of Providing Illegal Accommodation", occupants found in premises suspected to provide accommodation illegally have the obligation to provide information or will be fined 3,000 patacas for violating the duty of cooperation. Occupants providing false information need to bear criminal responsibility. Non-residents who fail to pay the fine by due date will be denied reentry into Macau. Following the raid to premises suspected to provide accommodation illegally, MGTO began sanction proceedings on involved operators, touts and managing staff, and adopted provisional measures to cut the supply of water and electricity to the concerned premises and sealed the doors. According to the new law, operators and person who manage the premise that provide accommodation illegally (management staff) incur a penalty up to 800 000 patacas, touts can be fined up to 100 000 patacas and occupants who fail to cooperate are fined 3 000 patacas.
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Macau has returned to her Motherland for ten years, and the tourism industry, being the pillar of the local economy, is developing at a satisfactory pace. “The Outline of the Plan for the Reform and Development of the Pearl River Delta” has positioned Macau as an international tourism and leisure destination, which will attract more different kinds of visitors in the future. In ten years, the number of visitor arrivals to Macau has grown from 7.44 million in 1999 to over 21 million in 2009. The number of overnight guests in hotels also grew from over 2.2 million in 1999 to over 6.7 million in 2009. Visitor arrivals in the first two quarters of this year exceeded 12 million, a surge of nearly 18% compared to same period of last year. For the first six months of this year, the number of overnight guests in hotels exceeded 3.8 million, a 22.4% growth over the same period of last year. Travelers are attentive to the quantity, quality and room rate of hotels, and Macau boasts hotels and guesthouses of various star ratings to meet the demand of different visitors. The current legislation regulates the ratings of different accommodation premises and investors can choose to establish different types and ratings of accommodation premises in Macau accordingly. The thresholds for establishing 2-star hotels, 2-star and 3-star guesthouses as stated in the legislation are not high, provided that the buildings and locations at which the premises are situated comply with the applied use. 2-star hotels as well as 2-star and 3-star guesthouses are considered as accommodation for budget travelers in Macau. There are currently 43 such premises, offering a total of 1,377 rooms. According to the information provided by the travel trade, during the peak season of the Chinese New Year Golden Week this year, the average room rate for 2-star hotels was 636 patacas, while the average room rate for guesthouses was 347 patacas. From January to June this year, the average occupancy rate of 2-star hotels was 76.54%, while that of the guesthouses was 54.82%. Currently, among the applications submitted to the licensing entity, there are two 2-star hotels offering 208 room and three 2-star and 3-star guesthouses offering a total of 119 rooms. According to other information, among the accommodation premises planned in the next three to five years, there are eight premises belonging to the above-mentioned categories, offering a total of about 300 rooms. However, the investors have not yet submitted the related applications to the tourist office. The rating of accommodation premises in Macau is in accordance with the legislation 16/96/M of April 1, 1996. Accommodation premises are divided into four categories, of which each is subdivided into different ratings (hotels are divided into 5-star deluxe, 5-star, 4-star, 3-star and 2-star, while guesthouses are divided into 3-star and 2-star). The tourist office approves applications of accommodation premises and confers the respective ratings in accordance with the above-mentioned legislation as well as the “Rules on Hotelier and Similar Industries” (technical criteria to regulate the ratings of establishments) approved by the legislation 83/96/M of April 1, 1996. To be in line with the development of the society and in response to the demand of the tourism industry, the above-mentioned legislation is under review. Till the end of July, there are 62 2-star to 5-star deluxe hotels, 31 2-star to 3-star guesthouses in Macau, offering a total of 20,963 rooms.
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The Cross-departmental Working Team continues with its operations to raid premises suspected to provide accommodation illegally and conduct inspections in the streets. During the operation today (Aug 21), 15 premises were checked. Since the law on “Prohibition of Providing Illegal Accommodation” took effect on August 13, a total of 234 premises were checked, of which 22 were normal residences, while 26 premises suspected to provide accommodation illegally were sealed with electricity and water supply cut. Ensuing investigations on the rest of the premises have been launched. Among the checked premises, some were vacant or unoccupied. MGTO and the police will continue investigation on unanswered doors which are suspected to be used to provide accommodation illegally. When necessary, MGTO can request a judicial order to enter into the suspect premises to investigate. To date, a total of 201 occupants were detained, including five operators, three touts, three persons who manage the premises that provide accommodation illegally (management staff) and one occupant who failed to fulfill her duty of cooperation. Among the occupants, there were five overstayers and one illegal immigrant.
In line with the newly implemented law, MGTO and Legal Affairs Bureau have launched various promotional and educational activities such as putting up posters at concerned districts and major checkpoints while deploying staff at Macau International Airport, Border Gate, Macau Ferry Terminal and Taipa Temporary Ferry Terminal to distribute leaflets and brochures. Public can also call 2833 3000 to report suspected premises.
MGTO and Legal Affairs Bureau remind travelers that, according to the law on “Prohibition of Providing Illegal Accommodation”, occupants found in premises suspected to provide accommodation illegally have the obligation to provide information or will be fined 3,000 patacas for violating the duty of cooperation. Occupants providing false information need to bear criminal responsibility. Non-residents who fail to pay the fine by due date will be denied reentry into Macau. Following the raid to premises suspected to provide accommodation illegally, MGTO began sanction proceedings on involved operators, touts and managing staff, and adopted provisional measures to cut the supply of water and electricity to the concerned premises and sealed the doors. According to the new law, operators and person who manage the premise that provide accommodation illegally (management staff) incur a penalty up to 800 000 patacas, touts can be fined up to 100 000 patacas and occupants who fail to cooperate are fined 3 000 patacas.
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In the process of formulating and thoroughly implementing the currency exchange rate policy of Macao, the MSAR Government needs to safeguard the long term benefit of the general public, maintain stability of the financial system and prudently consider the benefits and woes inflicted on various economic sectors by the policy. According to the practical economic situation of Macao, the MSAR Government deems it undesirable to change existing exchange rate mechanism which has been proven effective. The Monetary Authority of Macao lately replied the written interpellation of the legislator, Mr. Au Kam San, regarding the existing monetary policy of Macao in the face of the rising RMB accompanied by prices increase. In the wake of 2010, the Macao economy started its recovery. The MSAR Government has noted the inflationary pressure triggered by the accelerated growth of the overall economy and understands the increasing worry of the general public in the face of inflation and the discussion on the currency exchange rate system arising therefrom. In scrutinizing our economic structure, there are a number of factors which cause inflation. These can be classified as external and internal. The former are price increases of imported goods, such as foodstuffs and fuels, which are affected by the exchange rate fluctuations between the local currency and currencies of exporting regions. The latter arise as under the lack of excess capacity, economic growth and strong aggregate demand drive up costs such as rises in rent, wages and service fees. According to analysis on consumer price index, inflation arising from external factors has been reflected in the prices of tradable products while the part related to internal factors has been reflected in the prices of non-tradable products. As a matter of fact, rise in prices of “non-tradable” has become the major component of inflation in Macao in the past few years. Inflation rates for 2007 and 2008 were 5.6% and 8.6% respectively, in which 1% and 3% respectively were attributed to rise in “tradable” prices. Our inflation rate fell precipitously by 1.2% in 2009 due mainly to the stable prices of “non-tradable”. Therefore, there is no obvious correlation between the exchange rate of the Pataca and inflation. The exchange rate index which gauges the strength of the Pataca has remained stable from the beginning of this year till now, while its exchange rate vis-a-vis the RMB has only slid by 1%. However, the strength of the exchange rate of a currency will have a multifaceted impact on an economic system. If foreign currencies rise against the Pataca, it will in one way or another enhance the competitiveness of the service exports of Macao. The tourism services industry is our economic pillar which has a locomotive effect on the development of the other local economic sectors which affects vastly the livelihood of our citizens. It is estimated that tourism related sectors account for over 50% of our employed population. The revenues contributed by service exports amount to over MOP140 billion every year. Furthermore if we peg the Pataca to the RMB, it may possibly trigger asset prices inflation. When international investors are generally expecting the RMB to be on a long term rising trend vis-a-vis other foreign currencies, if a mechanism is adopted to peg the Pataca to the RMB, international investors will look upon the Pataca to be a “proxy currency” for the yet to be freely convertible RMB. Huge amount of liquidity will flood the local market to take advantage of the Pataca denominated assets to be an indirect vehicle to speculate the potential appreciation of the RMB. In view of the fact that Macao at this stage is still devoid of effective financial investment channels, part of the idle funds will go into local property market. Given the size of the local property market, such new come funds will probably accelerate the overheating of the local property market and create asset bubble. High property prices will push up expenses related to dwelling, rent will be further pushed up which will be reflected in local “non-tradable” prices which will give rise to a new round of inflationary pressure. Macao has been an advocate of free trade policy for a long time. The Pataca is freely convertible in the absence of exchange control. If the Pataca is to hook up with a currency which is not freely convertible, apart from impairing the convertibility of the Pataca, it will pose grave technical problem in the management of our exchange reserves. According to international practice, exchange reserves can only be composed of assets denominated in freely convertible foreign currencies. At the same time, it is noted that Hong Kong Dollar deposits, valued at more than MOP110 billion equivalent, account for 55% of the total deposits of our residents. There is no obvious increase in the proportion of deposits denominated in other currencies. It reflects that, when comes to choice of freely convertible foreign currencies, our residents have a long term predilection for Hong Kong Dollars. Our top of that, over 60% of our bank loan portfolio is denominated in Hong Kong Dollars. All these have indicated that existing exchange rate system has been an important factor in maintaining the stability of our financial system. Based on the practical situation of Macao and objective data analysis, the MSAR Government does not deem the deviation from a policy to peg the Pataca to the Hong Kong Dollar is an indispensable measure to combat inflation. The existing policy has effectively protected the well being of the general public. On the other hand, the MSAR Government is putting the development of inflation under close surveillance, and is timely rolling out measures which will relieve pressure exerted on the livelihood of our citizens, such as the “Measures to Assist the Underprivileged to Alleviate Inflationary Pressure” administered by the Social Welfare Bureau in July this year. The scheme benefits more than 5,000 families which receive regular economic subsidy. Apart from subsidy for the month of July, they received an one-off additional sum which is equivalent to the two months’ subsidy. Moreover, three kinds of underprivileged families totalled more than 3,000 received in August an one-off payment equivalent to doubling the special subsidy under the “Special Living Subsidy Distribution Scheme Phase II”. Furthermore, there is an extension of short term food subsidy scheme. The beneficiaries are those who have not yet been eligible for comprehensive assistance of the Bureau. They include low income persons or families, unemployed, new arrivals (continuously living in Macao for less than 18 months), homeless, families which have suffered inadvertent traumas, person queuing up for economic assistance, and persons or families who are already receiving subsidies due to inadvertent suffering. They will receive short term food subsidies for up to 6 weeks, with a maximum period of up to 12 weeks in 12 months.
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The Cross-departmental Working Team checked 22 premises today (August 20). One premise suspected to provide accommodation illegally was sealed and three occupants were detained.
Since the law on “Prohibition of Providing Illegal Accommodation” took effect on August 13, a total of 216 premises were checked, of which 17 were normal residences, while 25 premises suspected to provide accommodation illegally were sealed with electricity and water supply cut. Ensuing investigations on the rest of the premises have been launched. Among the checked premises, some were vacant or unoccupied. MGTO and the police will continue investigation on unanswered doors which are suspected to be used to provide accommodation illegally. When necessary, MGTO can request a judicial order to enter into the suspect premises to investigate. To date, a total of 157 occupants were detained, including five operators, three touts, three persons who manage the premises that provide accommodation illegally (management staff) and one occupant who failed to fulfill her duty of cooperation. Among the occupants, there were five overstayers and one illegal immigrant.
In line with the newly implemented law, MGTO and Legal Affairs Bureau have launched various promotional and educational activities such as putting up posters at concerned districts and major checkpoints while deploying staff at Macau International Airport, Border Gate, Macau Ferry Terminal and Taipa Temporary Ferry Terminal to distribute leaflets and brochures. Public can also call 2833 3000 to report suspected premises.
MGTO and Legal Affairs Bureau remind travelers that, according to the law on “Prohibition of Providing Illegal Accommodation”, occupants found in premises suspected to provide accommodation illegally have the obligation to provide information or will be fined 3,000 patacas for violating the duty of cooperation. Occupants providing false information need to bear criminal responsibility. Non-residents who fail to pay the fine by due date will be denied reentry into Macau. Following the raid to premises suspected to provide accommodation illegally, MGTO began sanction proceedings on involved operators, touts and managing staff, and adopted provisional measures to cut the supply of water and electricity to the concerned premises and sealed the doors. According to the new law, operators and person who manage the premise that provide accommodation illegally (management staff) incur a penalty up to 800 000 patacas, touts can be fined up to 100 000 patacas and occupants who fail to cooperate are fined 3 000 patacas.
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Information from the Statistics and Census Service indicated that the Composite CPI (104.61) for July 2010 increased by 2.96% year-on-year, attributable to the price increase of Food & Non-Alcoholic Beverages. Analyzed by section of goods and services, Clothing & Footwear (+6.98%); Transport (+6.16%); Recreation & Culture (+6.15%); Miscellaneous Goods & Services (+6.04%); Health (+5.26%); and Food & Non-Alcoholic Beverages (+4.58%) recorded notable increases on account of dearer prices of men’s and women’s clothing, gasoline, airfare, gold jewellery, fresh fish and seafood, and vegetables, as well as higher charges for outbound package tours, medical services and meals bought away from home. As for other sections, apart from the 9.81% decrease of the price index of Education, reduced charges for mobile phone services caused the price index of Communication to decrease by 3.52%. The CPI-A (104.06) and CPI-B (104.77) for July 2010 increased by 2.35% and 3.17% year-on-year respectively. The Composite CPI for July 2010 increased by 0.21% month-to-month, with the price index of Recreation & Culture rising by 2.61%, attributable to higher charges for outbound package tours; and recreational and cultural services during Summer Holidays. However, price index of Clothing & Footwear fell by 2.08% on account of lower prices of men’s and women’s clothing. The average Composite CPI for the first seven months of 2010 increased by 2.22% year-on-year. For the 12 months ended July 2010, the average Composite CPI rose by 1.2% from the preceding period. The 2008/2009-based Composite CPI reflects the impact of price changes on the general population. The CPI-A relates to about 50% of the households, which have an average monthly expenditure of MOP6,000 to MOP18,999. The CPI-B relates to about 30% of the households, which have an average monthly expenditure of MOP19,000 to MOP34,999.
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Celebrate the Mid-Autumn Festival Together Macao Post is pleased to jointly launch the Gift Fulfillment Service in Mainland, Hong Kong and Macau - Mid-Autumn Festival Gift Series with China Post and HongKong Post during 23rd of August to 12th of September. We have specially selected 27 kinds of moon cake gift sets for your choices this year. You can convey the warmest blessing to your overseas families, friends or business partners in this Mid-Autumn Festival by making your orders on or before 12th of September. Macao Post will deliver the gift to your beloved one before 22nd of September over Macao, Hong Kong and 2000 cities of China. To place your orders, please visit Macao Post website http://www.macaupost.gov.mo, Main Post Office or Branch Post Office. For enquiry, please feel free to contact our Gift Fulfillment Service hotline at 83968813 or email to reb@macaupost.gov.mo.
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In view of reports made by media of neighbouring region recently on banks releasing customer information for revenues, this Authority has contacted the regulator there and had an initial understanding with banks operating locally. We have been given to understand that such practice has not been applied to bank customers in Macao. This Authority will continue to pay close attention to the development of the incident and take follow-up action deemed appropriate in conjunction with the Office for Personal Data Protection.
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Information from the Statistics and Census Service (DSEC) indicated that value of retail sales for the second quarter of 2010 amounted to MOP 6.84 billion, up notably by 32% year-on-year. Retail sales of Watches, Clocks & Jewellery (MOP 1.64 billion) took the largest share of 24%, Goods in Department Stores (14%), Adults' Clothing (9%), Leather Goods (9%), Motor Vehicles (8%), Goods in Supermarkets (7%), Automotive Fuels (3%), Cosmetics & Sanitary Articles (3%) and Goods in Pharmacies (3%). In comparison with the revised figure (MOP 6.92 billion) for the first quarter, value of retail sales for the second quarter dropped by 1%, with marked decrease in retail sales of Communication Equipment (-17%) and Cosmetics & Sanitary Articles (-10%). In the first half year of 2010, total value of retail sales reached MOP 13.77 billion, up significantly by 35% year-on-year. In the second quarter of 2010, about 59% of the retailers reported decrease in the sales volume from the first quarter of 2010, up by 17 percentage points from those in the previous quarter; 41% reported that the sales volume remained stable or showed increase. In terms of retail prices, about 70% reported that the prices were stable, 12% claimed that the prices increased whereas 18% stated the prices decreased. Compared with the second quarter of 2009, about 72% expressed that the stock level was normal in the second quarter of 2010, while 19% indicated that the stock level was low. Regarding the business outlook for the third quarter of 2010, about 74% anticipate that the sales volume will increase or remain stable compared with the second quarter, while 26% expect a decrease. Meanwhile, about 84% predict that the retail prices will remain stable or increase whereas 16% expect a decrease. After removing the effect of price changes, volume of retail sales for the second quarter of 2010 rose by 25% year-on-year, with remarkable increase being observed in the sales volume of Motor Vehicles (+55%), Leather Goods (+52%), Adults' Clothing (+49%) and Goods in Department Stores (+36%). However, volume of retail sales registered a quarter-to-quarter decrease of 1%, with that of Communication Equipment and Cosmetics & Sanitary Articles falling by 16% and 11% respectively, while that of Motor Vehicles surging by 34%.
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