Macau SMEs bearing brunt of Covid crisis

June 13, 2022 Macau Earnings & Filings Industry Updates

Concern is mounting in Macau over the outsized impact the ongoing Covid crisis is having on the city’s small and medium enterprises, with at least 10 percent saying they expect to shut up shop for good in the coming months.
The government, which is strongly focused on maintaining local employment, has adopted several schemes to help the sector, including interest-free loans. It’s also rolling out another round of consumption vouchers to stimulate spending in the local economy, with total handouts worth MOP5.9 billion ($730.6 million).

But recent statistics indicate that it may not have been enough and some lawmakers are calling for more action.

Lei Leong Wong recently urged the government to consider changing the repayment terms for government support loans to aid the sector, which he said provides employment to 40 percent of the local workforce and is the cornerstone of the local economy.

“SMEs in Macau generally speaking have been dropping off consistently over the last 24 months,” said Eric Coskun, director of casino operations at IGamiX Management & Consulting. “Many medium-sized enterprises had locked themselves into exorbitant rental contracts during the good times and now find that with much lower visitation numbers, business levels have dropped off significantly.”