Ms Cheng (not her real name) has been surviving with the help of the Catholic charity Caritas for the past 20 years. She struggles to put food on the table and to educate her two grandchildren. Hers is one of the usually unheard voices of the poor in Macau society.

Her son is in jail and her daughter-in-law abandoned the family, so she has no choice but to bring up her two grandchildren with her husband. It is certainly a different life from the one she was looking for when she arrived in Macau from the mainland four decades ago.

Her husband was a building site guard, working on a casual basis and receiving less than MOP2,000 (US$250) a month, before he became severely ill. After hearing about the rice distribution programme by Caritas Macau, they applied for help and since then have received a monthly amount of white rice.

Also, for the past 10 years, the family has received money from the Social Welfare Bureau. Caritas sponsors the education of their granddaughter.

Ms Cheng and her husband belong to a part of Macau’s society that is usually not seen. While the city’s gross domestic product per head has soared to record levels, putting it in the world’s top ten, and the economic boom has persisted, the have-nots have been left further and further behind.

Although several analysts have warned about a widening gap between rich and poor, no official data is available to back such assertions. Since 2008 there has been no update by the Statistics and Census Service of the Gini coefficient, which measures income equality. Political analyst Larry So Man Yum says the government has not updated the indicator, because they want to avoid showing that there is an increasingly large gap between rich and poor.

Money no object

In 2008, the Gini coefficient for Macau was estimated to be at 0.38 (on a scale from 0, indicating perfect equality of income distribution, to 1, signifying perfect inequality). According to the UN interpretation of the Gini coefficient, this meant Macau had reasonable equality of income distribution.

Since then, things seem to have gone south. For instance, the number of workers earning less than MOP2,000 per month increased by 8 percent last year to 5,400, according to data from the Labour Affairs Bureau. Overall, roughly one in six workers earned less than MOP5,000 per month.

This, coupled with rising inflation, has prompted the government to announce several increases in welfare benefits over the past two months. New forms of assistance for low-income families have also been introduced.

The monthly electricity subsidy has also increased. The government now pays up to MOP180 of every household’s electricity bill, instead of MOP150. Education subsidies will also rise, including tuition subsidies, university scholarships and textbook allowances, among other things.

The government has raised the pension for the elderly and the disabled to MOP2,000 per month from MOP1,700, and the social relief pension to MOP1,310 from MOP1,115.

Last month chief executive Fernando Chui Sai On also announced that the government would give one more cash handout this year. Each permanent resident will get an extra MOP3,000 in the second half of the year, while non-permanent residents will get MOP1,800. This is meant to help them cope with inflation. The extra cash handout is expected to cost the government MOP1.7 billion.

It will be the second cash handout this year. The government has already given MOP4,000 to each permanent resident and MOP2,400 to each non-permanent resident.

The government admits that giving out money will only increase prices. Mr Chui says it is estimated that the new cash handout will add less than 0.5 of a percentage point to the inflation rate.

The government has raised the hourly salary of employees of companies to which it has outsourced cleaning and property management services to at least MOP23. In 2007, the government started demanding that all such companies pay employees working at government facilities at least MOP21 per hour. Mr Chui has asked companies that can afford it to follow this example and increase salaries.

Cultural evolution

Ms Cheng and her husband came to Macau to escape the Cultural Revolution. She also wanted to be closer to her father, who had already fled to Hong Kong.

At the time, it was hard to adjust to the new city. “I was in a one-bedroom apartment with walls made of wood, [in a building] where 72 families lived together. We all came from different parts of the mainland and paid MOP300 per month,” Ms Cheng recalls.

After a while, she could not handle it any more and found another apartment for MOP750 per month. “It was too much for me, I couldn’t afford it.”

Eventually, someone suggested that she buy an old house and slowly pay off the mortgage. That was what Ms Cheng did, more than 20 years ago. She has already managed to pay back the bank loan, but she still owes MOP60,000 she borrowed from friends.

With two grandchildren and an ailing husband, who now lives in the mainland, Ms Cheng still faces hard times. “With inflation, it’s hard to buy food, so I go to the mainland three times a week to buy things,” she says.

Even though life is hard for Ms Cheng in her old, tiny apartment, depending on charity, she will not consider returning to the mainland. She says she has more here than the people still living in her hometown. “People there are even poorer and ask me for money, which I can’t give. I stopped going there.”

Hidden from view

There are many others like Ms Cheng, getting by only with the help of the government or charities. However, there is no figure for how many people in economic need are out there. Neither the government nor any charity has counted them.

According to the Social Welfare Institute, around 6,200 families were given some kind of subsidy last year. But this figure doesn’t include all those going through hard times.

“Some never say anything, nor ask for anything, but instead remain hidden,” admits the head of the department of family and community services at the Social Welfare Bureau, Peter Au Chi Keung.

Caritas secretary-general, Paul Pun Chi Meng, says that last year the charity helped around 9,000 people. Usually, people complain of having difficulty paying their rent, medical expenses and education costs – and about the associated emotional stress.

Last year’s figure was similar to 2009’s. “The number of people in need is not going up, because the government is also helping. In fact, there have been less people coming, because the government is giving bigger support,” Mr Pun says. However, he says this may change, in view of inflation and the rising cost of housing.

The Statistics and Census Service says the Composite Consumer Price Index was 5.46 percent higher in March than a year before.

Food prices are among those rising fastest. The government says it is trying to fight back by increasing the sources of food to help stabilise prices. It is sponsoring agreements between food importers and new suppliers in the mainland and further afield.

The government says that two months ago importers signed cooperation agreements with new food suppliers in the province of Hefei. However, officials cannot estimate how much effect this will have on prices.

Government data indicates that the retail price of some kinds of food is double or triple the wholesale price. For the have-nots, the accounting is more down-to-earth. For instance, a kilo of hairy gourd costs almost twice what it cost a year ago, while chicken is MOP2 more expensive, according to the Statistics and Census Bureau.

This is bad news indeed for those in need.

By Luciana Leitão and Luís Almoster (Photography)

Wider, not wiser

There is a growing gap between the rich and the poor, and it shows no signs of getting any narrower, analysts say.

But as the ride gains speed towards the bottom, there is almost 27 times that number taking home less than MOP3,500 per month, according to the latest official figures.

The median monthly income in the fourth quarter of last year was MOP9,000. However, estimates indicate that around half of the city’s 318,000-plus workers earned less than that.

How to better redistribute the city’s wealth is a recurring question. Economist Albano Martins says it is up to the government to find solutions. Mr Martins says the chief executive and his team must make an effort to redistribute wealth, especially among the needy, and that the cash handout scheme as it exists today will not do the trick.

“That might happen if the amount was different according to each case. Some should receive MOP10,000 while others only MOP1,000,”  Mr Martins says. Other options could be taxation or lower interest rates on mortgages for first homes, he adds.

The minimum subsistence index officially sets the income needed for a minimum standard of living. Those earning less may apply for regular government support.

In April the government increased the index by around 14 percent. For a three-member family, it was raised to MOP7,340 from MOP6,460. The government estimates that with the recent increase 780 more households are now eligible for support, raising the total to almost 6,000.

But some analysts say the increase may not be enough, especially in view of the growth of the economy. Last year gross domestic product rose 26.2 percent in real terms to MOP217.32 billion at current prices. GDP per capita in real terms jumped 25.8 percent to MOP398,071 at current prices.

Mr Martins says that raising the minimum subsistence index will not reduce inequality. “This does not diminish the gulf. It just gives out a prettier image of those poor people,” he says.

“Inflation is one of the main things responsible for the income disequilibrium,” he notes. “If the rice price increases, it increases more for those who earn less, than for those who earn more.” This is because the poor spend a greater proportion of their income on food than the rich.

Inflation burden

Last year, almost 6,200 families were regular beneficiaries of the Social Welfare Bureau’s aid schemes. Spending on these schemes amounted to MOP263 million.

To help low-income families cope with inflation, the bureau twice distributed a special subsidy to those families, and a special living allowance to three categories of particularly vulnerable families on low incomes. In all, MOP71.16 million was spent on these special measures.

Social work professor and political analyst Larry So Man Yum says it is hard to stop the income gap between the rich and the poor from widening. But some measures could slow the process.

Mr So suggests policies to help the elderly find jobs, to make them less dependent on the welfare system.

The Social Welfare Bureau already has two programmes meant to help welfare beneficiaries re-enter the employment market. “Our purpose is that people manage to be self-dependent,” says the head of the department of family and community services at the Social Welfare Bureau, Peter Au Chi Keung.

One of the programmes gives welfare beneficiaries internships.  This is meant to help them rebuild their self-confidence, regain their working abilities and eventually to become employed.

The other programme allows part of the income earned by those willing to work to be disregarded in assessing their eligibility for welfare benefits, at least for a while.  This means they may continue to receive benefits while working.

By the end of last year, over 1,000 beneficiaries had participated in these programmes, of which over one-third found jobs, according to the Social Welfare Bureau.

Mr So says the government should not only look at residents while trying to stop the income gap from widening. New arrivals also need to be cared for so that that they do not end up becoming a new underclass, he says.

Few of Macau’s almost 80,000 imported workers can make use of the city’s welfare system, and if they need help they must seek it from charities.

A shoulder to cry on

Asking for help when one is in economic distress is never easy. In a society like Chinese society, where not losing face is important, it can be even harder.

Some people prefer to ask Caritas for help, instead of the government, because it is easier and faster. Others get help from both the Social Welfare Bureau and charities, yet still have economic difficulties.

Flora Cheong, a social worker at Caritas, says most people who ask for help from the Catholic charity are having difficulty in paying their rent or medical expenses – and in managing their emotions.

Ms Cheong, who has been working with Caritas for 19 years, says problems in families are different now, tending to be more emotional than financial. “The financial support from the government is much stronger than in the past,” she explains.

Although Caritas is not usually a money lender, Ms Cheong says it may lend small sums. “It all depends on the urgency of those families. Sometimes only one visit from
us is enough.”

Caritas Macau’s secretary-general, Paul Pun Chi Meng, says it is probably the only non-government agency helping out families and individuals with financial problems in this way.

“The agency will lend money, not give money,” he stresses. “I wish there were more associations helping out with this.”

By Luciana Leitão

Bags of concern

With rice prices going up, the Macau-Thailand Chamber of Commerce decides to show that businessmen can also lend a hand.

Being aware of this, the Macau-Thailand Chamber of Commerce has decided to launch a programme to distribute rice at cost. The goal is simple: to show that businessmen can also play their part in helping people in economic distress.

“We want to convey the message that there is a need to fight inflation and help those in need,” the chamber’s president, Lino Ho Weng Cheong, told Macau Business. “We hope this programme can work as an example for others.”

Using its contacts with rice producers and exporters in Thailand, the chamber entered into an agreement to import Thai type-A rice for sale at cost price direct to members of the Federation of Trade Unions, the General Union of Neighbourhood Associations and the Women’s General Association.

The imported rice, in 5 kg and 10 kg bags, is being sold for approximately 20 percent less than the market price, as no wholesalers or retailers are involved, Mr Ho says.

The first shipment arrived in the middle of last month. It is estimated that about 13,000 members will benefit. Each eligible person will be limited to 20 kg.

The Macau-Thailand Chamber of Commerce was established in March last year. The organisation aims to act as a vehicle for economic cooperation between Thailand, Macau and the mainland.

All-inclusive

Mr Ho is a well-known local businessman, with ventures in real estate, trading, advertising, food and entertainment.

He says the chamber decided to go ahead with the rice distribution programme after seeing media reports on inflation in Macau. He says he feared that rising prices would particularly harm those on lower incomes. The monetary authority has warned that inflation will accelerate this year, mainly because of increases in food prices.

The rice programme is not meant especially for people in need, says Mr Ho. “It is an anti-inflation measure for all.”

He acknowledges that demand has been “higher than initially expected,” with many people queuing up at the distribution points. He says this is a sign that the number of people in difficulty because of inflation may be higher than first thought.

At the end of May, when the programme finishes, the chamber will look again at inflation in Macau. But Mr Ho says the chamber cannot go on distributing rice for long, for fear of undercutting importers too much.

He says that the amount of rice distributed during the course of the programme is not expected to exceed 6 percent of the amount that would normally be imported.

By Emanuel Graça