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Macau widening its leads over Singapore in GDP per capita



- May become the Monaco of Asia



- Gambling industry now 7 times bigger than Las Vegas



- GDP grew 11.9% in 2013, now 65.6% richer than Singapore



- Surplus keeps getting bigger, government treasuries richer and richer





Macau's economy posted a real growth of 11.9% in 2013, driven by stellar performance in the tourism and gaming sector, the Macau Statistics and Census Bureau said on Monday. According to figures published, Gross Domestic Product (GDP) rose to 413.5 billion patacas (US$53.25 billion) while per capita GDP hit 697,500 patacas (US$89,819), putting the former Portuguese colony at 65.6% richer than its closest regional competitor, Singapore. The Singapore Department of Statistics reported a GDP growth of 4.1% in 2013, with per capita standing at S$68,541 (US$54,208).





Macau GDP grew 11.9% in 2013, per capita now 65.6% richer than Singapore



GDP for Q4 2013 fourth expanded 14.3% from the previous year in real terms, spurred by rising exports of services. It was the best quarterly performance since Q1 2012, when GDP rose 18.1%. Economists in Macau are optimistic, they believe the city's economic growth can still maintain a double digit pace this year, despite the slowdown in China.



"It is quite interesting as the result is now at the top range of our estimate for last year," said Kwan Fung, associate professor of economics at the University of Macau. "I believe it is caused by the fluctuations of gaming revenue and tourist arrivals. The growth will probably be around 10 to 11 percent this year unless there is any big change in policy that restricts the number of mainland tourists coming here."





City becomes a luxury paradise as wealth grows



The vice-president of the Macau Association of Economic Sciences, Jack Chang Chak Io, shares Mr Kwan's view, commenting, "It is definitely due to the gaming revenue which reached a record high of 36.48 billion patacas in October last year. So this propelled GDP in the fourth quarter and helped the figure reach double digits for the whole year. There may still be some fluctuations in the gaming revenue over the mainland Chinese economy but private investment will help fuel growth as several mega resorts in Cotai will only be completed by 2016."



Unlike its former colonial power Portugal, which in 2013 ran a budget deficit amounting to 5.5% of GDP and a disastrous public debt level to 124% of GDP. The tiny special administrative region of China, a peninsular of 600,000 people, has racked up robust surplus for years, and it is getting bigger. Macau also has zero debt, a scenario the Portuguese government could only dream about.





Lui Che Woo, now Asia's second richest man, is a product of the Macau's boom



For the whole of 2013, Macau pocketed 141 billion patacas from taxes, while spending 48 billion patacas on public expenditures. This resulted in a budget surplus of 93 billion patacas (US$12 billion), favorably compared to Singapore's S$3.9 billion (US$3 billion) surplus and Hong Kong's HK$12 billion (US$1.6 billion) surplus. Most other Asia recorded budget deficits.



Already, Macau's Financial Services Bureau announced this week that the government surplus was 22.44 billion patacas (US$2.8 billion) in the first two months of 2014, 14.8% more than a year earlier, that translated into US$47 million per day in surplus. Casino taxes made up 83.1% of all revenue for the government, and is expected to expand by 22% this year.





Guests attending the open ceremony of Louis XIII in Macau, the world's most luxurious casino



The unemployment rate in Macau is among the best in Asia, at 1.7%, a rate better than Singapore's 1.9% and Hong Kong's 3.1%. Income per capita GNI stood at US$5,523 a month per resident. In comparison, monthly per capita GNI of Singapore and Hong Kong were estimated at US$5,092 and US$4,421 respectively. GNI is the total income earned by residents of an economy from engaging in various economic activities within or outside the economy, corresponding to GDP plus total inflow of external factor income minus total outflow.



Macau is an example of the 21st century Asian success story. From 2001 to 2011, average GDP growth was 15% - a performance surpassing that of the four Asian tigers (Singapore, Hong Kong, Taiwan and South Korea) at their best decade in 1980-1990 (8%) or Japan in 1960-1970 (10%). The territory did not emerge as another Asian industrial powerhouse due to its tiny size and population. The islands of Singapore, for instance, is 24 times the area of Macau and 9 times more populous.





Macau transformed into the Monaco and Venice of the East in just 15 years



Within just a short span of 15 years after its reversion to China, Macau's economic transformation has been stunning. From a backwater city, the territory advanced into developed economy now with a Human Development Index (HDI) nearing that of Western Europe. Living standard rose more than 6 times since 2000, and huge surpluses enable the government to provide extensive welfare to its people, a rarity among economies with no natural resource.



In 2007, Macau overtook Las Vegas in gambling revenues. By 2013, Macau's gambling industry had become 7 times bigger than its American counterpart. Amid a booming economy, the government of Macau decided in 2008 that all residents in the city will share the fruits of its economic success, and the wealth of the territory be partly distributed to its people. Since then, Macau has been giving cash handouts to both permanent and non-permanent residents, including children and the elderly.





Macau - attracting the riches from Asia



Known as the 'Wealth Partaking Scheme', the annual cash payment began in 2008, starting with 5,000 patacas for each permanent and 3,000 for non-permanent residents. This has risen to 9,000 (US$1,159) and 5,400 patacas (US$695) in 2014. Everyone, including foreigners, who possesses a Macau Resident Identity Card, is eligible for the cash handouts. As a result, receiving cash subsidy from the government is now one of the most anticipated annual event in Macau.





Macau started its annual free cash program to residents in 2008, now reaching 9,000 patacas (US$1,159) per citizen



Other welfare expenditures include 7,000 patacas (US$901) annual subsidy for the elderly, along with 3,000 patacas (US$386) monthly pension; a yearly 600 patacas (US$77) coupon for medical services (Macau residents enjoy almost free medical care, the medical coupon is for usage in private clinics); and free education for all local children from kindergarten to senior high school, with financial assistance available for those studying in universities.





Over 29.3 million tourists reportedly visited Macau last year



There are also subventions for students. Local university students will receive 3,000 patacas (US$390) per year textbook allowances, secondary school pupils 2,800 patacas, and primary students 2,400. Children in kindergarten will get 2,000 patacas (US$260) each year. Students from families with financial difficulties will get another 3,000 patacas meal allowances, and further 2,500 (for secondary) and 2,000 patacas (for primary) in living allowances



Electricity bill subsidy is 200 patacas (US$26) per month for each residential units. For citizens who hope to set-up business, there is a start up fund of 10,000 patacas (US$1,288). In 2014, an additional 7,000 patacas (US$901) would also be deposited into resident's Central Provident Fund (CPF).





On per capita basis, Singapore is unlikely to catch up with Macau in near term



Those who earn below the minimum subsistence index (i.e. 3,450 patacas or US$444) will receive 3,450 patacas in annual aid, equivalent to one-month salary for them. If they are aged 40 or older, they will also be qualified for low-income workers subsidy, which is 4,700 patacas (US$605) per month. Disabled people will get 7,000 patacas every year for ordinary and 14,000 patacas for special cases.



For extremely disadvantaged families, there would be 10 of weeks food assistance every year. Low-income tenants of public housing will get one-year rent waivers throughout 2014. This year, 60% of personal income tax paid in 2013 will be returned to taxpayers, up to a maximum 12,000 patacas.





Entertainment allows Macau to fund extensive welfare



And it ain't limited to individuals only. For local businesses in Macau, there is a profit tax allowance of up to 300,000 patacas (US$38,631). In 2014, the government has also decided to waive all hawker license fee, wet market stalls rent, inspection and quarantine fee for live food, stamp duty on life insurance, non life insurance and bank service charge.





SOS:



http://www.macauhub.com.mo/en/2014/03/17/m...-9-pct-in-2013/



http://macaubusinessdaily.com/Economy/GDP-rolls-double-sixes



http://macaubusinessdaily.com/Economy/Govt...hes-MOP2244-bln



http://www.macaudailytimes.com.mo/macau/49...ows-13-pct.html



http://www.macaudailytimes.com.mo/macau/48...rty-prices.html



This post has been edited by rivost: Mar 19 2014, 04:12 PM

's economy posted a real growth of 11.9% in 2013, driven by stellar performance in the tourism and gaming sector, the Macau Statistics and Census Bureau said on Monday. According to figures published, Gross Domestic Product (GDP) rose to 413.5 billion patacas (US$53.25 billion) while per capita GDP hit 697,500 patacas (US$89,819), putting the former Portuguese colony at 65.6% richer than its closest regional competitor, Singapore. The Singapore Department of Statistics reported a GDP growth of 4.1% in 2013, with per capita standing at S$68,541 (US$54,208).GDP for Q4 2013 fourth expanded 14.3% from the previous year in real terms, spurred by rising exports of services. It was the best quarterly performance since Q1 2012, when GDP rose 18.1%. Economists in Macau are optimistic, they believe the city's economic growth can still maintain a double digit pace this year, despite the slowdown in China."It is quite interesting as the result is now at the top range of our estimate for last year," said Kwan Fung, associate professor of economics at the University of Macau. "I believe it is caused by the fluctuations of gaming revenue and tourist arrivals. The growth will probably be around 10 to 11 percent this year unless there is any big change in policy that restricts the number of mainland tourists coming here."The vice-president of the Macau Association of Economic Sciences, Jack Chang Chak Io, shares Mr Kwan's view, commenting, "It is definitely due to the gaming revenue which reached a record high of 36.48 billion patacas in October last year. So this propelled GDP in the fourth quarter and helped the figure reach double digits for the whole year. There may still be some fluctuations in the gaming revenue over the mainland Chinese economy but private investment will help fuel growth as several mega resorts in Cotai will only be completed by 2016."Unlike its former colonial power Portugal, which in 2013 ran a budget deficit amounting to 5.5% of GDP and a disastrous public debt level to 124% of GDP. The tiny special administrative region of China, a peninsular of 600,000 people, has racked up robust surplus for years, and it is getting bigger. Macau also has zero debt, a scenario the Portuguese government could only dream about.For the whole of 2013, Macau pocketed 141 billion patacas from taxes, while spending 48 billion patacas on public expenditures. This resulted in a budget surplus of 93 billion patacas (US$12 billion), favorably compared to Singapore's S$3.9 billion (US$3 billion) surplus and Hong Kong's HK$12 billion (US$1.6 billion) surplus. Most other Asia recorded budget deficits.Already, Macau's Financial Services Bureau announced this week that the government surplus was 22.44 billion patacas (US$2.8 billion) in the first two months of 2014, 14.8% more than a year earlier, that translated into US$47 million per day in surplus. Casino taxes made up 83.1% of all revenue for the government, and is expected to expand by 22% this year.The unemployment rate in Macau is among the best in Asia, at 1.7%, a rate better than Singapore's 1.9% and Hong Kong's 3.1%. Income per capita GNI stood at US$5,523 a month per resident. In comparison, monthly per capita GNI of Singapore and Hong Kong were estimated at US$5,092 and US$4,421 respectively. GNI is the total income earned by residents of an economy from engaging in various economic activities within or outside the economy, corresponding to GDP plus total inflow of external factor income minus total outflow.Macau is an example of the 21st century Asian success story. From 2001 to 2011, average GDP growth was 15% - a performance surpassing that of the four Asian tigers (Singapore, Hong Kong, Taiwan and South Korea) at their best decade in 1980-1990 (8%) or Japan in 1960-1970 (10%). The territory did not emerge as another Asian industrial powerhouse due to its tiny size and population. The islands of Singapore, for instance, is 24 times the area of Macau and 9 times more populous.Within just a short span of 15 years after its reversion to China, Macau's economic transformation has been stunning. From a backwater city, the territory advanced into developed economy now with a Human Development Index (HDI) nearing that of Western Europe. Living standard rose more than 6 times since 2000, and huge surpluses enable the government to provide extensive welfare to its people, a rarity among economies with no natural resource.In 2007, Macau overtook Las Vegas in gambling revenues. By 2013, Macau's gambling industry had become 7 times bigger than its American counterpart. Amid a booming economy, the government of Macau decided in 2008 that all residents in the city will share the fruits of its economic success, and the wealth of the territory be partly distributed to its people. Since then, Macau has been giving cash handouts to both permanent and non-permanent residents, including children and the elderly.Known as the 'Wealth Partaking Scheme', the annual cash payment began in 2008, starting with 5,000 patacas for each permanent and 3,000 for non-permanent residents. This has risen to 9,000 (US$1,159) and 5,400 patacas (US$695) in 2014. Everyone, including foreigners, who possesses a Macau Resident Identity Card, is eligible for the cash handouts. As a result, receiving cash subsidy from the government is now one of the most anticipated annual event in Macau.Other welfare expenditures include 7,000 patacas (US$901) annual subsidy for the elderly, along with 3,000 patacas (US$386) monthly pension; a yearly 600 patacas (US$77) coupon for medical services (Macau residents enjoy almost free medical care, the medical coupon is for usage in private clinics); and free education for all local children from kindergarten to senior high school, with financial assistance available for those studying in universities.There are also subventions for students. Local university students will receive 3,000 patacas (US$390) per year textbook allowances, secondary school pupils 2,800 patacas, and primary students 2,400. Children in kindergarten will get 2,000 patacas (US$260) each year. Students from families with financial difficulties will get another 3,000 patacas meal allowances, and further 2,500 (for secondary) and 2,000 patacas (for primary) in living allowancesElectricity bill subsidy is 200 patacas (US$26) per month for each residential units. For citizens who hope to set-up business, there is a start up fund of 10,000 patacas (US$1,288). In 2014, an additional 7,000 patacas (US$901) would also be deposited into resident's Central Provident Fund (CPF).Those who earn below the minimum subsistence index (i.e. 3,450 patacas or US$444) will receive 3,450 patacas in annual aid, equivalent to one-month salary for them. If they are aged 40 or older, they will also be qualified for low-income workers subsidy, which is 4,700 patacas (US$605) per month. Disabled people will get 7,000 patacas every year for ordinary and 14,000 patacas for special cases.For extremely disadvantaged families, there would be 10 of weeks food assistance every year. Low-income tenants of public housing will get one-year rent waivers throughout 2014. This year, 60% of personal income tax paid in 2013 will be returned to taxpayers, up to a maximum 12,000 patacas.And it ain't limited to individuals only. For local businesses in Macau, there is a profit tax allowance of up to 300,000 patacas (US$38,631). In 2014, the government has also decided to waive all hawker license fee, wet market stalls rent, inspection and quarantine fee for live food, stamp duty on life insurance, non life insurance and bank service charge.SOS: