The government is committed to creating a “soft environment” for local small- and medium-sized enterprises (LAG25)

 may25

Launched on March 24 and concluding on June 1, the “2025 Community Consumption Grand Prize” program has been drawing attention among local residents regarding the use of electronic vouchers.

Through various social media platforms and in-person interactions, many residents feel somewhat deceived by the system, as voucher redemption has proven to be less smooth than they expected.

At issue are the unexpected difficulties in redeeming the short-life vouchers earned through spending.

https://macaudailytimes.com.mo/spending-reward-voucher-redemption-raises-community-concerns.html

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The government is committed to creating a “soft environment” for local small- and medium-sized enterprises (SMEs) by optimizing the legal framework, reviewing policies, and enhancing tax incentives.

Chief Executive Sam Hou Fai referred to a “soft environment” as the non-physical or intangible aspects of the business climate that make it easier and more attractive for local SMEs to operate and thrive.

Sam stated yesterday during the Q&A session at the Legislative Assembly (AL) that an effective market and an effective government complement each other in economic development, serving as key factors in promoting balanced social and economic growth.

“Efficient markets play a crucial role in the governance of society as a whole. They involve not only the government but also the overall functioning of society, particularly within our traditional system of governance […] Fundamentally, an efficient market is a mechanism where resource allocation plays a decisive role,” said Sam.

The Chief Executive emphasized that the government would foster a favorable environment by optimizing the legal framework and reviewing policies and tax incentives to support effective market operations.

“From the government’s perspective, in the medium to long term, particularly in the context of Macau, we cannot merely borrow elements from other markets to create an effective market. Therefore, we must tailor the existing system to fit Macau’s actual situation […] From the standpoint of public services, we have a clear understanding of the investment environment and market operations,” he added.

Reaffirming that the government’s primary task is to create a business model suitable for market goods within a supportive environment, Sam noted that the government will ensure market participants can operate legally without licenses by optimizing effectiveness.
This includes conducting a comprehensive policy review on an integrated platform, refining the quasi-licensing system, and establishing a dedicated working group to amend relevant laws and regulations.

This aims to simplify the approval process and enhance market operation efficiency while maintaining effective regulation, according to him.

Concurrently, Sam stated, SME operators must also make corresponding commitments, which the government will subsequently monitor.

Sam also urged SMEs to undergo digital transformation to enhance their market competitiveness, collaboratively creating a favorable market environment to gain greater development opportunities and living conditions.

In this regard, according to Sam, the “2025 SME Digitalisation Support Services” program will be expanded to 1,500 places, and the government will continue to promote relevant support measures to ensure that policies are precise and effective, responding positively to community needs.

In addition, the government will continue its stamp duty reduction policy this year.

In the meantime, Sam highlighted that “Macau’s fiscal structure is unbalanced,” with a narrow tax base posing a challenge. He warned that if gaming tax revenue falls below 15 billion patacas per month, “there is a risk of a fiscal deficit.”

https://macaudailytimes.com.mo/sams-govt-eyes-legal-tax-reforms-to-create-business-friendly-climate.html