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ISSUE 96 - Apr 2012
 
 
What are your expectations for the gross gaming revenue growth of Macau’s gaming industry in 2012?
Decline
Growth above 20 percent
Growth from 10 to 20 percent
Stagnation
 
 

Chui times two


Posted: 11/25/2011 11:59:23 PM
Rating:     0% ( votes)
  

Legislative Assembly vice-president Ho Iat Seng says chief executive Fernando Chui Sai On should be reappointed for a second term

Chief executive Fernando Chui Sai On has won his first public supporter for a second term. The call came from a seemingly unlikely source, a man who has been linked with the job himself, Legislative Assembly vice-president Ho Iat Seng.

“In order to put into practice his concepts, a chief executive has to work at least two terms,” Mr Ho told Macau Business. That is why he “absolutely” thinks Mr Chui should be reappointed in 2014.

Seen previously as one of the front-runners to succeed Edmund Ho Hau Wah in 2009, Mr Ho was the first one to announce he was not considering running for the job. He says he has not changed his mind, adding that the work at the Legislative Assembly suits him better.

Born in 1957, Mr Ho is currently Macau’s sole representative on the Standing Committee of the National People’s Congress. Before him, only iconic figures such as Ho Yin, Ma Man Kei and Edmund Ho had successfully held down such a pivotal post.

It provides Mr Ho with a front row seat to observe Beijing politics. A reshuffle in the top hierarchy is scheduled next year, so what might that mean for Macau? “Change in the Chinese leadership will not impact Macau in any way,” says Mr Ho, adding “one country, two systems” will stay put.

Vice-president Xi Jinping is widely expected to take the post of president from Hu Jintao. Some analysts say that is positive for Macau, as the territory affairs are currently part of Mr Xi’s portfolio.

“With the continuous emergence of talents in the mainland, in the future we will see many people who are familiar with Hong Kong and Macau stepping forward” to assume top jobs, says Mr Ho.

Mr Ho ran for the Legislative Assembly in 2009 to become one of the four indirectly elected legislators representing the business sector. Still in his first term, he has surpassed several more experienced legislators to be selected as the Legislative Assembly’s vice-president.

“I did need time to get accustomed. While other members had taken their seat for several terms, as a newcomer I took up the vice-president post and I certainly felt pressure. But still I could manage it,” he says.

Greater representation

Mr Ho is not a political freshman. He has been a member of the National People’s Congress Standing Committee since 2000 and sat as a member of Edmund Ho’s Executive Council from 2004 to 2009.

“I have formulated national laws. In comparison, Macau is simpler, as it has mainly a mono-industrial structure,” he says.

Mr Ho says he agrees with a greater representation for voters in Macau but he does not elaborate much. “In line with Hong Kong’s politic reform direction, Macau should increase directly elected seats [in the Legislative Assembly] and must pursue a path towards democratic reform.”

A common criticism of the Legislative Assembly is that it is ruled by the business sector, with most legislators involved in commerce. Mr Ho is the general manager of Ho Tin Industrial, a large company which manufactures solar panels and electrical lighting.

He admits he has faced mistrust from some, but as an elected representative from the business sector he represents his constituents. “The assembly is composed of members from various sectors. Only if all members coordinate and exchange ideas can good laws be born, that in the end benefit Macau as a whole. No law is only to protect one party’s interests.”

There are areas in which the assembly’s work has yet to bear fruit. While the right to strike and form trade unions is already safeguarded by the Basic Law, Macau lacks a proper trade union law. It has been blocked by the assembly.

Mr Ho says he does not oppose a trade union law but its goals must first be spelled out clearly. There are several possible systems, from the mainland’s government-controlled All-China Federation of Trade Unions, which acts like an umbrella organisation, to Hong Kong’s model where unions have mushroomed and there is no centralisation.

Mr Ho argues that it is already possible in Macau to freely establish labour associations that act to protect workers’ interests. Local workers are already fully exercising their labour rights, even without the existence of a trade union law, he says.

Souvenir solution

Connected with the debate about the trade union law is the discussion regarding minimum wage.

The establishment of a minimum wage will eventually go ahead, especially now that Hong Kong has one, says Mr Ho, but he warns that there will be side effects.

“A minimum wage is a new factor that will affect the whole society. While income at the lowest class will be lifted, other residents will have to pay the costs,” he says.

Expect to see inflation increase, as low skilled labour is expected to become more expensive, Mr Ho says. “It’s likely that a bunch of local small and medium enterprises would not survive.”

With or without a minimum wage, many companies are struggling to survive. That is clear in the manufacturing sector, whose industrial association is led by Mr Ho. He says the sector faces increasing competition and higher labour costs, aggravated by the economic crisis in traditional export markets like Europe and the United States.

“It’s hard to reverse the trend of Macau’s fading export-oriented manufacturing industry,” Mr Ho says. “What the government can do, like offering privileges for importing workers, tax breaks and government-guaranteed bank loans, cannot help much.”

For Mr Ho, transformation is the only way to go. One of the potential untapped avenues of success is the souvenir industry, he says.

“Today, locally produced souvenirs are comparatively traditional and monotonic, while Japan, for instance, offers quite more diversified choices. Considering we have 25 million visitors a year, if the industry plays fully their creativity, there’s a huge market in Macau.”

The government could help SMEs import international designers, with the design concepts being developed and produced on Hengqin Island, Mr Ho says.

Green needs

The vice-president of the Legislative Assembly Ho Iat Seng wants more government action on environmental protection, starting with pushing ahead rules for impact assessments.

“The government policies are still very insufficient in regards to environmental impact assessments. There are no quantitative indices; relevant laws and regulations are far from being sound,” Mr Ho says.

The legislator says a firm hand is needed and points out that these issues are far better regulated in the mainland. “If a project fails the standards, the authorities won’t approve construction.”

Stressing money is not an issue for Macau, Mr Ho urges the government to lead by example and install more solar panels and use energy saving LED lights.

“The government should seriously consider how to support environmental protection with proper funding, as Macau is still a very wasteful society in terms of energy utilization,” he says.

Among the products Mr Ho’s company manufactures are low-energy LED lights and solar panels.

By Cris Jiang

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