Facts on Figures July 2010

Macau economy to expand 8.6 percent this year: The Economist Macau’s economy is expected to expand 8.6 percent in 2010 and 9.2 percent in 2011, according to the June edition of the report on Macau by the Economist Intelligence Unit (EIU), of The Economist group. This growth rate will only be achieved if the stalled casino projects are re-launched and gamblers from the Mainland continue to flock to Macau, the EIU stressed, in a report quoted by Macauhub news agency. The report added that investment is expected to grow 3.2 percent this year and 8.5 percent in 2011, after two years of contraction. The inflation rate for 2010 is expected to rise to 3.1 percent and to 4.6 percent in 2011, also according to EIU. More and more public workers The number of public sector workers in Macau has increased every year since 2005, according to official data. Just in the first quarter of 2010, 230 new workers were admitted. As of the end of March 2010, Macau had 22,226 public sector workers. However, almost half of them had temporary contracts. One third of Macau’s public sector workers’ basic monthly wages range between MOP11,800-17,641. A total of 264 people earn MOP53,100 or more and 3,434 workers take home less than MOP11,800 each month. Revised budget approved Macau’s revised budget for 2010 last month got the final approval from the Legislative Assembly. According to the new version, Macau’s 2010 budget is now estimated at MOP58.87 billion (including autonomous agencies), an increase of 12.3 percent in comparison to the previous forecast. The government revised the total expected revenue for 2010 from MOP52.42 billion to MOP58.87 billion mainly due to the good performance of the gaming industry. According to the revised budget, the expected surplus for 2010 has dropped from MOP7.15 billion to MOP5.15 billion, since expenditure is expected to increase by MOP8.45 billion, to MOP53.72 billion. Unemployment rate goes down The unemployment rate for March-May 2010 was 2.9 percent, down by 0.1 percentage point over the previous period (February-April 2010), according to official data. The number of the unemployed held stable at 9,600, with 5.4 percent of these being fresh labour force entrants searching for their first job, up by 0.5 percentage points over the previous period. The underemployment rate went up by 0.1 percentage point to 2.1 percent. Total labour force was 326,000 in March-May 2010 and the labour force participation rate stood at 71.5 percent, up by 0.4 percentage points from the previous period. The employed population increased by 2,400 over the previous period to 316,000, in which employment in recreational, cultural, gaming & other services; public administration & social security; and the transport, storage & communications sectors saw increases, while that of retail trade registered a decrease. In comparison with March-May 2009, the labour force participation rate and the unemployment rate decreased by 1.1 and 0.6 percentage points respectively; however, the underemployment rate rose by 0.4 percentage points. Loans growing faster than deposits As loans grew at a faster pace than deposits in April, the loan-to-deposit ratio continued to rise, according to statistics released by the Monetary Authority of Macau. Total deposits with the banking sector rose 0.3 percent from the previous month to MOP300.8 billion. The shares of MOP and HKD in total deposits were 22.3 percent and 46.4 percent respectively. Domestic loans to the private sector expanded 1.1 percent in April to MOP106.2 billion. Meanwhile, external loans grew 1.7 percent to MOP108.0 billion. The loan-to-deposit ratio at end-April 2010 rose 0.7 percentage points month-to-month to 71.2 percent. Industrial accidents rose 20 percent in 2009 A total of 5,419 workers became victims of industrial accidents in Macau last year, an increase of 20.6 percent over 2008. Six victims died and four victims lost their long-term working abilities, according to the figures released by the Labour Affairs Bureau. Macau’s employed population reached 317,500 in 2009, resulting in an accident rate of 17.1 for every 1,000 workers, the figures indicated. Of the victims, 70.1 percent were local employees. Analyzed by the victims’ careers, 27.5 percent worked in the service industry, 26.8 percent were non-skilled workers and 18.4 percent were clerks. Forex up The Monetary Authority of Macau announced that the preliminary estimate of the territory’s foreign exchange reserves amounted to MOP158.3 billion at the end of May 2010. The reserves rose by 0.6 percent from MOP157.3 billion in the previous month. When compared with a year earlier, the reserves increased by MOP17.6 billion or 12.5 percent. Macau’s foreign exchange reserves at end-May 2010 represented 31 times the currency in circulation. Macau has the lowest corporate-tax rate in Asia-Pacific Macau’s corporate-tax is the lowest in the Asia-Pacific, according to a study by auditing firm KPMG International. The study, quoted by AsiaOne, showed that Macau’s corporate-tax rate stands at 12 percent, ahead of Hong Kong (16.5 percent) and Singapore (17 percent). Japan has the highest corporate-tax rate of the Asia Pacific, at 40.7 percent. Besides that, there is no value-added tax or goods and services tax in Macau, the report stressed. Prices rising The Composite Consumer Price Index (CPI) for May 2010 increased by 2.76 percent year-on-year, attributable to the price increases of food and non-alcoholic beverages and transport. Macau faced higher prices of unleaded gasoline, motor vehicles, gold jewellery, men’s and women’s clothing, fresh fish and seafood, and vegetables, as well as higher charges for meals bought away from home. The Composite CPI for May 2010 increased by 0.37 percent month-to-month. The average Composite CPI for the first five months of 2010 increased by 1.97 percent year-on-year. For the 12 months ended May 2010, the average Composite CPI rose by 0.83 percent from the preceding period. Commenting on the CPI rise, the Secretary for Economy and Finance, Francis Tam Pak Yuen, said such a level of increase is still acceptable. He gave an assurance that steps will be taken to tackle inflation if prices continue to rise, in a bid to ensure the quality of life, especially that of disadvantaged groups.