Inside Asian Gaming

January 2012 | INSIDE ASIAN GAMING 25 by subsidising the social status quo via its gaming industry income rather than encouraging social development through education and personal aspiration. When it does intervene, it tends to focus only on wages rather than personal development. The danger of adding more people to the taxable classes in Macau is that they may well start to clamour for more say in how their city is run. That could mean one- person-one-vote. In November, Macau’s Chief Executive urged employers to raise employee wages to allow them to catch up with Macau’s economic development. Mr Chui also announced during his annual policy address that month that permanent and non- permanent residents will receive a cash handouts of MOP7,200 and MOP4,000, respectively, this year. In addition, the government will inject MOP6,000 into each central savings system (a non-mandatory retirement scheme for Macau residents) account. When other extended benefits for the elderly and other special interest groups are included, it will take the government’s spending on welfare payments to MOP8.56 billion (US$1.07 billion) during 2012, according to figures discussed in the territory’s Legislative Assembly late last year. The population of Macau in the third quarter of 2011 was 560,100, according to data from the Statistics and Census Service. Of these, 91,241 were non- resident workers ineligible for handouts or welfare payments. That leaves 469,000 residents—perhaps as many as 75% of them non-taxpayers—eligible for government payments to the tune of around MOP18,250 per head during 2012. Susana Chou, a former Macau lawmaker who was president of the Legislative Assembly from the time of Macau’s handover by Portugal in 1999, until she retired in 2009, suggests that government subsidies for the city’s inhabitants is no substitute for coherent policy on social development. On her personal blog, she stated just before Christmas: “[There are problems] Especially with the legal lag [law infrastructure], ever-expanding civil service, judicial and administrative mismanagement, poor performance issues, accountability issues, Macau’s economic structure, and the [threat to] Macau SMEs’ survival.” Those issues can’t necessarily be solved by throwing money at them. One day the real bill—the price of social and educational stagnation—could land squarely on Macau’s doormat; unless policy changes are made now. Then the rumblings of discontent seen during Edmund Ho’s administration could look like a walk in the park. Macau Policy Jam Today SJM announces pay rises and bonuses for staff in 2012 S ociedade de Jogos de Macau (SJM), the casino operating company founded by Stanley Ho, says all its Macau employees will get a pay rise of between 5% and 10% in 2012. The company didn’t say what the wage increase means in cash terms. SJM’s net profit in 2010 was US$456.6 million, according to a filing with the Hong Kong Stock Exchange. The precise number of people entitled to receive the payments is also unclear. Twenty casinos in Macau operate under an SJM gaming licence, but only four—The Lisboa, Grand Lisboa, Jai Alai and Oceanus—are directly managed by the company with 100% SJM staff. The remainder are run by third parties but with varying degrees of involvement by SJM management and staff. The total number employed in SJM- licensed casinos in Macau is thought to be around 13,000 people. SJM also announced last month that employees will receive a bonus for 2011. Those on the lowest pay scales—MOP10,000 (US$1,247) per month or below—will be entitled to receive 150% of their normal monthly salary. Next year’s salary increases will also be weighted so that those on the lowest levels will receive the biggest percentage increase within the 5% to 10% increase on offer. The company’s announcement follows signs of labour unrest at SJM in recent months, with unions publicly calling on SJM management to improve pay. Traditionally, SJM has been known for offering lower basic salaries than the other Macau operators, but generally better perks andworking conditions. Dr Ho has in the past personally awarded five- or even six-figure sums to long-standing employees in lieu of pension when they retire. But in the increasingly corporatised Macau labour market, and with SJM now part publicly held with outside shareholders to answer to, such paternalistic practices appear to be on the wane. In addition, a rising cost of living in Macau alongside the rising standard of living means many younger employees may not have the patience to eat bread today on the promise of jam tomorrow. The empire strikes back— pay hike for SJMworkers in 2012