Macau (MNA) – The Macau SAR Government has expressed concerns in regard to the low returns garnered by franchisee contracts, according to Chan Chak Mo, the head of the 2nd Standing Committee of the Legislative Assembly on Tuesday.
Chan highlighted the returns of Macau (Yat Yuen) Canidrome and Macau Jockey Club which were awarded franchisee contracts but only delivered returns of 64 per cent and 39 per cent respectively in 2017.
Both businesses are owned by the legislator and executive director of Sociedades de Jogos de Macau S.A, Angela Leong On Kei.
In addition, while looking at the numbers, the government noted that from 2010 to 2017 the expenses going toward staff spending within government departments had increased 11 per cent, to around MOP 1.6 billion (US$198.4 million) between 2010 and 2017.
In certain cases, the increase of spending on staff is justified, such as the need to spend on security and medical staff, according to Mr. Chan, although spending will be accessed on a “one-on-one basis.”
In addition, the committee has recommended that the government review the funding for some 13 government-funded enterprises.
These enterprises were not named, but four are wholly government owned, and the other nine are linked with private enterprises.
The 2017 budget report noted that the overall Gross Domestic Product (GDP) of Macau had increased by 11.6 per cent to MOPÂ 404.2 billion, with the economy having grown 9.1 per cent in real terms throughout 2017, mostly driven by the service and tourism industry.
