Local businesses are “loyal” and will refrain from increasing prices after stimulus package – CE

Local businesses are “loyal” and will refrain from raising prices as a new consumption stimulus programme is advanced, Chief Executive Ho Iat Seng said today (Tuesday).

“The public administration will follow the inflation rate in the city following the new consumption plan. We believe in our companies, they are all loyal and our services and the whole society will oversee this. We count on the support from residents to oversee any irregular pricing,” the CE said today while responding to questions from legislators at the Legislative Assembly (AL).

Legislator Ho Ion Sang had inquired the CE if the new stimulus plan would not lead to an increase in daily goods prices or to a spike in inflation.

Last year authorities provided about MOP5.1 billion via two consumer card rounds, with each resident receiving some MOP8,000 each, with the CE stating today that inflation only increased by 0.8 percentage points after the plan.

Macau’s consumer price inflation rate amounted to 0.81 per cent last year, down by 1.94 percentage points and one of the lowest in recent years.

After residents and associations opposed an initial previous consumer e-voucher scheme, authorities announced a stimulus plan that integrated elements from last year’s consumer card plan with the proposed discount system.

Under a revised scheme unveiled on Monday, Macau permanent and non-permanent residents of all ages will benefit from a MOP8,000 handout divided into a MOP5,000 for immediate use and MOP3,000 in discounts, amounting in total to MOP5.9 billion to be provided

Registration for the scheme will start on May 12, with the plan available until December.

“Clarification sessions will be held for the public and different associations to discuss the details of the new plan,” Ho added.