Inside Asian Gaming

inside asian gaming October 2014 24 In the run-up to the election, Mr Chui admitted his second—and constitutionally final—five-year termwould likely be fraught with “many problems and challenges, particularly in light of increasing demands from Macau residents who feel squeezed out by the influx of tourists and migrant workers”. The pressure will mount further with six new megaresorts scheduled to open in Cotai starting next year. Meanwhile, Beijing wants the Macau government to step up. Last month, President Xi Jinping met with Mr Chui and congratulated him on winning a second term, but noted, “The internal and external environment of Macau has witnessed great changes and that will require better work from the new administration.” ‘ALL SIDES NOW’ As of July, the number of imported workers in Macau stood at 158,234, more than double the 74,900 in December 2009 when Mr Chui began his first term. The government predicts the territory’s employed population will expand by 20,000 annually over the next few years. Imported labor accounted for 40.9% of the total employed population of 387,000 in July, compared with only 24% of the 312,000 workers in December 2009. “That could rise to nearly 190,000 by 2016, or 170,000 based on the government’s forecast, bringing the ratio of migrant to local workers to 1:1,” says Joey Lao Chi Ngai, president of the Association of Macau Economic Sciences. “We believe the ability of the city to take in more foreign labor would come with consideration on housing, transportation and any ancillary facilities and support required for a larger population. It could also bring inflationary pressure,” says gaming analyst Phoebe Tse of investment bank Barclays, who also predicted in a recent research report that the territory would require 35,000 additional migrant workers in the 2015-17 period. “The importation of workers, in one way, has facilitated economic development, but it also has direct impact on the living standards of residents,” says Andy Loi Man Keong, head of the Collective Wisdom Policy Center, a think tank of the General Union of Neighborhood Associations of Macau, one of the city’s largest pro-Beijing grass-roots associations. He points out, for example, that “They [the migrant workers] have to travel between Macau and Cotai every day and the residents have to wait for longer to get onto crowded buses during peak hours.” Demand from foreigners has also driven property prices beyond the reach of many residents, Mr Loi adds. Home prices have more than quadrupled from MOP25,631 (US$3,203.9) a square meter in the fourth quarter of 2009 to MOP111,542 in Q2 2014, whereas the median monthly salary of residents only increased about 50% to MOP15,000 over the same period. Rental prices for mid-range homes were up 12.3% year on year in the first half of this year, after increasing 20.6% and 30.3%, respectively, in 2013 and 2012, according to property agent Jones Lang LaSalle Macau. “With the new gaming facilities coming online in Cotai from next year, we expect to see a more active residential market,” says Jeff Wong, Feature “At present we have already offered housing allowances to our non-resident employees. We cannot build [the houses] in the air so where does the land come from?” Ambrose So chief executive, SJM Holdings Residents have become increasingly vocal in airing their dissatisfaction about the downsides of Macau’s economic development. In May, the city saw its largest street demonstrations since its return to Chinese sovereignty in 1999, with protestors decrying a lavish perks bill for senior officials.