MOP 6.00 www.macaubusinessdaily.com
Year II
Number 371 Monday September 16, 2013
Editor-in-chief Tiago Azevedo
Deputy editor-in-chief
Vitor Quintã
Chan gets 3 seats Pan Dems pummelled
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han Meng Kam, a businessman who proposed a new casino operator owned by the community, won the largest share of the popular vote in yesterday’s direct election to the Legislative Assembly. His list’s tally of 26,385 votes earned the ticket three seats for the first time. Another first was a second seat for the respective tickets of José Pereira Coutinho and for Mak Soi Kun. Mr Coutinho’s New Hope got 13,118 votes. A mere 32 votes separated his ticket and that of SJM Holdings Ltd casino executive Angela Leong
On Kei, but the latter failed to get a second seat. She plans to appeal today. The influential General Union of Neighbourhood Associations of Macau, led by Ho Ion Sang, recovered the second seat it lost four years ago. But the Macau Federation of Trade Unions was only able to elect Kwan Tsui Hang, losing one seat. The biggest losers were the pan-democrats. Jason Chao Teng Hei got only 3,227 votes.
Pages 2 to 9
Officials clarify Hengqin capital hurdle The 100 million yuan (130 million patacas) registered capital threshold announced for businesses wanting to relocate to Hengqin’s Special Economic Zone will only apply in “exceptional cases” mainland officials now say. No obstacles now stand in the way of Macau small and medium enterprises exploring the market on Hengqin Island. Liu Yang, director of the Hengqin New Area Administrative Committee’s Bureau of Communication and Cooperation, said this requirement applies only in certain circumstances. “The 100 million yuan investment floor applies only to enterprises that purchase land. The requirement is meant to ensure these companies are financially sound and have the funds to buy and develop the land,” Mr Liu told Business Daily on Friday, on the sidelines of a conference held by Delta Bridges. The Macau SME Association said this month it was looking for opportunities to set up a retailing centre in the Nansha New Area, another special zone in Guangdong. Page 10
Voters speak: welfare, income before reform Free buses, meals to lure voters Strict rules – in theory – dull the campaign Brought to you by Zung Fu Motors (Macau) Limited
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Package arrivals up 4 pct y-o-y
Sun sets on Weidner’s Solaire casino contract
Visitor arrivals via package tours increased by 4.1 percent year-on-year in July according to the Statistics and Census Service. In July 2012, package tourists were saviours for Macau’s general tourism industry, rising 19 percent year-on-year when general tourism actually contracted by four percent. Business Daily reported last week that from next month cheap ‘zero fare’ trips combined with pressure shopping will be outlawed. Page 11
Solaire Resort & Casino, the Philippines’ newest integrated gaming resort, has terminated the management contract held Bill Weidner’s Global Gaming Asset Management Group. Bloomberry Resorts Corp – the Philippine Stock Exchange listed firm that is the majority owner of the US$1.2 billion (9.58 billion patacas) resort which opened in March – has also terminated the employment of GGAM’s senior on-site representative, Michael French, the property’s chief operating officer. Page 16
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September 16, 2013
Macau
Chan Meng Kam’s candidacy got 26,385 votes, 10,000 more than Mak Soi Kun’s second-placed ticket (Photo: Manuel Cardoso)
Chan Meng Kam rules, democrats stumble Business sector has reasons to celebrate, trade union blames corruption Stephanie Lai, Tony Lai and Vítor Quintã newsdesk@macaubusinessdaily.com
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han Meng Kam is the big winner of this year’s Legislative Assembly election, while the New Macau Association and the Macau Federation of Trade Unions were left licking their wounds. The candidacy led by Mr Chan got 26,385 votes – 10,137 more than second-placed Macau-Guangdong Union, led by Mak Soi Kun. Mr Chan’s ticket secured a third seat. Si Ka Lon, a member of the Fujianese community in Macau, replaces Mr Chan’s previous running mate, property developer Ung Choi Kun, who has retired from politics. The big surprise was the seat won by the third name on the list, Song Pek Kei. “It is really unexpected,” Mr Chan told Business Daily. “We thought we could only get two seats in the assembly at most. Now we [have] got more pressure to serve for the voters as we have more members sitting in the house,” he added. “I think this result is from
our work in the past eight years, and that we kept a close contact with the residents,” the returned legislator said. “Preparing works in advance, having abundant resources and strong mobilisation power” were the keys to Mr Chan’s success, political commentator Larry So Man Yum told Business Daily. “He set up a fan club much earlier than the beginning of the election campaign (…) and he has also set up many facilities like Chan Meng Kam’s supermarket to draw people,” said Mr So. Mr Chan, a supermarket operator and boss of Hotel Golden Dragon, a satellite casino operation of SJM Holdings Ltd, opened an outlet selling goods to low-income shoppers at discounted prices. But the businessman denied that his ticket had bought votes. “Any rumours talking about that are untrue,” he said. The business sector had other
reasons to celebrate, as it was able to secure five seats. Mr Mak parlayed his local connections and interests in Guangdong into a second seat for Zheng Anting, a VIP gaming promoter who became a Macau resident in 2001. “The election period was really intense for us, especially for the fact that people smeared our name for our acts of respect to the elderly,” Mr Mak told media. Mr Mak has been criticised for handing out gifts through the Macau Jiangmen Communal Society, which he heads. Reports in other news media say the association has given members food and 300 patacas (US$37.50) each to help them cope with inflation. “We will continue to focus on livelihood issues and push for irresponsible officials to step down,” Mr Mak said. The high turnout for Mr Chan also impacted another pro-establishment
Poll station dispute delayed counting
Voters arrested for taking ballot photos
Non-residents busted for electoral promotion
Vote counting was delayed for over an hour due to a “disturbance” caused by an electoral candidate at the government service centre in Areia Preta yesterday, Election Commission head Ip Son Sang told media. Lam Meng, the second candidate on pro-democracy grassroots ticket 3, quarrelled with the electoral staff at the poll station over the vote counting method. The head of the electoral staff eventually asked the police to escort Mr Lam out of the station. Mr Ip called Mr Lam’s actions “unreasonable”, adding that the council found the whole episode “regrettable”.
A total of 14 voters were caught taking photographs of their ballots for the Legislative Assembly election, said the Election Commission. Ip Song Sang, head of the commission, said the police arrested 13 people while another was detained to assist the police’s investigation. Mr Ip said he had expected such occurrences before the election. He said he was confident the situation would improve in the next election thanks to more education. The behaviour of voters during this year’s election was “overall satisfactory”, said the commission chief.
Some groups were using non-residents to encourage people to vote for specific tickets near ballot stations yesterday, the Commission against Corruption said. The graft watchdog said they intercepted 49 suspects of illegal gathering and electoral promotion. The commission received 434 complaints and reports during the electoral campaign, of which 46 were filed yesterday mostly about free shuttle buses and meals allegedly offered to voters. The watchdog is probing a case involving volunteers from one association paying meals to voters in a ‘dim sum’ restaurant in Toi San.
candidacy, the Macau Federation of Trade Unions’ ticket led by Kwan Tsui Hang, says Mr So.
Domino effect The association lost its second seat, which had belonged to Lee Chong Cheng, dropped over a public controversy last year over the use of government grants by an association he heads. Ms Kwan admitted the result was unexpected. “We did hope for two seats and I was surprised by the election result. But no matter what, this is the voters’ decision that we have to face,” she told Business Daily. “We will reflect on what needs to be improved in our work these years, and on the result of this election. The previous smear campaign against us did impose some impact, I think,” the veteran legislator said. Grassroots groups accused the federation of being against the government’s cash handout while rumours spread on the Internet claiming it used public money to finance its campaign. The General Union of Neighbourhood Associations’ ticket led by Ho Ion Sang also drew some voters away from Ms Kwan, academic Larry So said. It was a good day at the office for the joint ticket of the union – known as ‘Kai Fong’ in Cantonese – and the pro-Beijing Women’s General Association. Incumbent legislator Ho Ion Sang, who is also the deputy director of ‘Kai Fong’, kept his seat and will take newcomer Wong Kit Cheng, the vice-director of the Women’s General Association, under his wing. Another campaign winner was Macau Civil Servants Association president José Pereira Coutinho, who managed to get former prison guard
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Macau Leong Veng Chai, the second name in his ticket, elected. The second seat scored by Mr Coutinho’s ticket was a surprise, said Mr So, which shows the public recognises the works done by a more vocal legislator.
Democrat blues The New Macau Association’s high-risk bet on three electoral tickets, one of which was led by association president Jason Chao Teng Hei, backfired. Instead of obtaining a fourth seat, the pan-democrats lost the third seat that belonged to Paul Chan Wai Chi in the last term. The outcome did not surprise Mr So. “Chan Wai Chi has been more quiet than the other two [legislators], who have much more experience than him,” Mr So added. “Their vote distribution was not good this year, especially after splitting from two tickets to three tickets,” he said. Ng Kuok Cheong and Au Kam San will continue in the Legislative Assembly. “Splitting two into three tickets somehow also cost us one seat but
we do not regret it. We just wanted to give more choices to the public,” Mr Ng told Business Daily. But the legislator believes that reason was not enough to explain why the association got “about 4,000 votes fewer than in the previous election”. He said the alleged vote buying during the campaign was just a drop in the ocean. “The result this time shows that those who give long-term ‘benefits’ to the public are more successful,” said Mr Ng. Ms Kwan hinted at the same reasons. She said it was “interesting” that both her ticket and the pandemocrats had done poorly, “though we both focus on livelihood issues”. Asked if she thought corruption was to blame, Ms Kwan said: “As for that I will leave the official body to prove it”. “People have been saying the election atmosphere was not great and you have to have many resources to back you up and mobilise the voters,” said Larry So. “In this case they [the New Macau Association] were in a lessadvantageous position,” he added. “Perhaps, Macau is so good right now that the residents do not feel
It is really unexpected… Now we [have] got more pressure to serve for the voters as we have more members sitting in the house Chan Meng Kam, leader of the Macau Citizens United Association ticket
Ticket
the urgency to go out and vote for justice, which is also shown by the lower turnout this year,” Mr Ng said. The lower voter turnout this year could have been another important factor, Mr So agreed. In Hong Kong a lower turnout also hit the neighbouring city’s pro-democracy groups. This year about 55 percent of all registered voters, 276,034, turned up at the poll stations, down from almost 60 percent in the previous election, official data show. Many of those who decide not to vote in all likelihood would have favoured the association, Mr So said. The youthful ticket led by Mr Chao, the first openly homosexual candidate to the assembly, failed to meet expectations, which could further strain the relationship with the association veterans.
Gaming appeal Expectations were high for the candidates linked to the gaming sector but the rewards were not as good as anticipated. Melinda Chan Mei Yi, wife of David Chow Kam Fai, the head of casino operator Macau Legend Development Ltd, was the last candidate to be directly elected in 2009 but this time around she got in more comfortably. On the other hand, the ticket led by casino operator SJM Holdings Ltd executive director Angela Leong On Kei, fell just short – 17 votes short – of securing a second seat for Kent Wong Seng Hong, a consultant to Melco Crown Entertainment Ltd. But the fourth consort of gaming tycoon Stanley Ho Hung Sun is not giving up just yet. “I will definitely appeal tomorrow [today] to the Election Commission” asking for a vote recount, Ms Leong told reporters. The law allows for a recount if the vote difference between tickets is below 100, the businesswoman stressed. The election result was “not fair” she said. Ip Son Sang, head of the Election Commission, warned that the results were “only preliminary”. “The final result still needs to be confirmed and approved by the Court of Final Instance,” he added. The number of void votes reached 4,345, lower than in 2009. “But this is still a high number. And the electoral commission will study the reasons behind it,” Mr Ip said.
Votes
Seats Won
editorial
More of the same
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acau’s legislative election saw scant campaigning and little interest from residents here. The results announced early this morning showed why. From the 26 directly- and indirectly-elected legislators that won a seat after yesterday’s election, only eight are newcomers to the Legislative Assembly. The rest, as expected, got to keep their seat, even though some have done close to nothing in terms of legislative work. Among the indirectly-elected, three faces are new but in the functional constituencies the 12 legislators were chosen without a contest. Nothing about this small-circle corporatist electoral system changed substantially and there was only one list of candidates for each of the functional constituencies. Some of these assembly members don’t even bother to show up for either plenary meetings or committee meetings. That shows how relevant the assembly is for them. When it comes to directly-elected members, younger voters clearly had to choose from among traditional candidates. Yes, a record number of tickets registered for this election, and that’s praiseworthy. But few of those on the new tickets were actually seen as ‘legislator material’. It’s not difficult to shout and demand things. Candidates’ political manifestos need to offer more than broad guidelines. They should also say what and how the candidate intends to accomplish an election time promise. While it’s true that most of the legislative power lies with the government, members of the assembly can and should legislate. They can propose bills or amendments to government-backed draft laws. Unfortunately, few have done so and that’s why the city’s legislative body is widely seen as a rubberstamp assembly. Last year, the government lost a golden opportunity to increase the number of directlyelected seats. Instead, we were happy with a political reform that was too timid and not enough to shake up the balance of power. As in the past, the views of younger voters were not enough to tip the balance favouring the business lobby and pro-government forces in the assembly. They remain as strong as before. In reality, with the economy booming, albeit in a way that’s too reliant on one industry; and with lucrative cash handouts given every year by the government; few residents see much reason to rock the boat. Unfortunately, the way decisions are taken will continue to be bound by the corporatist assembly and short-sighted personal interests. What to expect next? Nothing different. The assembly misses out on young blood and the more established groups remain unchanged. Public housing, inflation, and speculation in the property market will be among the most passionate debates in the four-year legislative term about to start. Let’s hope this legislature will be able to vote on a minimum wage for Macau. The outcome, however, is expected to be strongly influenced by the business sector. Another interesting topic to watch out for in this assembly will be discussion on the revision of the gaming licences. While licences will only expire between 2020 and 2022, well after this newly-elected legislature’s term ends, the role of casino interest groups will be something to observe carefully. The rest will be singing the same old song we are all used to. The much-loved expression ‘Macau governed by its people’ will have to wait a little longer to become reality. For now, with a few opposing voices, we’ll have to settle for ‘Macau governed by its businesses’.
The much-loved expression ‘Macau governed by its people’ will have to wait a little longer to become reality
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Macau
About 277,000 people were registered to vote in yesterday’s election
The voters speak: Welfare and income before political reforms Voters at the ballot box value more voices in politics, but pensions and public housing trump all Stephanie Lai and Tony Lai newsdesk@macaubusinessdaily.com
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reater debate on social and welfare matters should be the greatest priority for members of the next Legislative Assembly, voters told Business Daily as they went to the ballot box yesterday. Far less important is political reform and universal suffrage, according to the voters this newspaper spoke to. Businessman Patrick Sze said he hoped the new assembly would work for better welfare measures, particular in housing policy. “There are various issues they should tackle, like the housing problem. The property prices here are unaffordable for many households,” said Mr Sze yesterday. “A few years ago, with 3 million patacas [US$375,604] you could still buy a two- or three-bedroom flat with nice quality.” “But now with the same amount of money, you get a two-bedroom flat at a 20-year-old building at best.” Housing was a common concern among many of the 25 voters that Business Daily spoke to outside polling stations in the city’s northern district and Taipa. They said their votes would go to candidates campaigning for better care for the elderly and the disadvantaged, particularly people with disabilities or living in poverty. “I will vote for the candidate that can give a comprehensive political programme instead of just shouting slogans or leaning on a particular issue,” said Ms Chan, a civil servant, voting in Areia Preta. “But I do pay attention to those that can be the voice for [people with] disabilities. For instance, the very deficient facilities.” A voter in Taipa who gave her
name as Mrs Lao said payments to the elderly were important. The 68-year-old retired housewife wants the new assembly to push for an increase to the pension that would offset inflation. “The top priority legislators should have is to fight for more beneficial policies for the elderly as we have worked hard for such a long time,” she said. A better pension, this time for casino workers, was also on the mind of a 30-year-old croupier heading to the polling booth.
Reform concerns Most voters this newspaper spoke to admitted that introducing more democratic reforms to the Legislative Assembly was not among their main concerns. “It would be good if we could have more directly elected seats in the assembly,” said Mr Sze. “But Macau is already quite good now. We just need more social welfare policies.” When Mrs Lao was asked if she thought universal suffrage or opening up the assembly to more candidates was important, she said: “I do not understand what you are talking about”. “A chief executive that is good for the elderly is already good enough. What more can you ask for.” Most voters said last year’s political reform had not brought about substantial changes but said something positive could come from greater diversity in the assembly. Two directly elected members and two indirectly elected seats were added to the Legislative Assembly in last year’s reforms.
“I do not expect there will be any big changes but at least we can have a few more voices representing the public in the assembly,” said Ms Ieong, a convention industry worker in Toi San. “But, if possible, the legislators should push for a better Legislative Assembly structure where 80 percent of the members are directly elected.”
Leadership valued The government should undertake a “gradual process” of replacing politicians appointed by the chief executive with directly elected members, she said. “The appointed legislators give people the impression that they are just defending officials’ interests.”
KEY POINTS Housing a common concern among many voters Voters call for more social welfare policies Some residents criticise ‘superficial promises’ Democratic reforms not among priorities
About half of the voters Business Daily spoke to wanted more directly elected politicians in the assembly in the hope they would better reflect public opinion and keep an eye on the government. “I would even suggest that all of the assembly members should be directly elected,” said a voter who gave his name as Mr Chan and claimed to be a 40-year-old businessman. “With all the indirectly elected members and the governmentappointed ones, they just have too many vested interests and cannot really stand for the public.” Another voter, a nurse who said her name was Ms Chan, said indirectly elected seats served a purpose. “But the current election system for the indirectly elected members is just too opaque,” Ms Chan said. “I do think we deserve more directly elected members in the assembly because they do understand voters’ requests and what is going on in society.” There were other voters wary of any move to increase the proportion of directly elected seats. “Some directly elected members are pretty phony,” said Ms Chan, 50, a former worker in the construction industry. “They just do superficial promises to voters.” Nathan Vong, a 35-year-old casino clerk, said he found it difficult to see how more directly elected politicians in the assembly would lead to lasting change. “The important thing is not through which channel they get elected but for them to really do what they have promised to the voters and exercise some influence,” he said.
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Free shuttle buses, meals to lure voters Graft watchdog claims no breaches of election law Tony Lai and Stephanie Lai newsdesk@macaubusinessdaily.com
Two casino operators provided transport to polling stations for their staff
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ree shuttle buses and meals were openly on offer for voters in yesterday’s Legislative Assembly election. Last week the Electoral Commission said tickets were forbidden to offer meals in return for votes. The city’s graft watchdog the Commission Against Corruption said yesterday it was not aware of any irregularities but pledged to “monitor” closely the situation. People wearing blue and black polo shirts saying MCE (Melco Crown Entertainment Ltd) Volunteer Team could be seen in different parts of the city – including Taipa, downtown Macau, and Ilha Verde – ushering casino dealers in their work outfits into poll stations. Questioned by Business Daily in Taipa yesterday morning, a MCE volunteer staff: “None of your business. We have done nothing wrong.” A casino dealer who gave his surname was Cheok said, “It is just a free shuttle for us to come here. So casino dealers can’t vote right now [after getting a lift]?” In Taipa, people wearing caps from another gaming operator, SJM Holdings Ltd, and polo shirts with a L’Arc casino logo were also marshalling dealers onto buses. One of them, identifying himself as Mr Lee, said: “They [the dealers] all come here by their own free will. No one forces them to vote for anyone.” Angela Leong On Kei, SJM’s executive director, and Kent Wong Seng Hong, a senior consultant for Melco, are the two leading candidates for electoral ticket 1. Shuttle buses with cards in the windscreens marked ‘Landmark Plaza’ in Chinese characters – a reference to the Landmark Macau Hotel owned by businessman David Chow Kam Fai, could also be seen near
polling stations in the northern district. Mr Chow’s wife Melinda Chan Mei Yi heads electoral ticket 12.
Meal ticket Vasco Fong Man Chong, head of the Commission against Corruption, told media yesterday they are “not against any party providing transportation for the voters”. “But no promotion should be done, neither should the transfer of benefits,” he warned. “We are closely monitoring the situation for any irregularities according to the law.” The watchdog had assigned staff “at almost every station” to oversee the voting process, Mr Fong added. It was also reported that many restaurants in the northern district were taking no walk-in guests yesterday morning, as they had been reserved for banquets.
We are closely monitoring the situation for any irregularities according to the law Vasco Fong Man Chong, Commission against Corruption
An elderly woman told local media MASTV she was promised a meal in Chinese restaurant Mayfair if she voted for ticket 13, led by businessman Chan Meng Kam. Business Daily saw staff from Golden Dragon, a hotel-casino owned by Mr Chan and located in NAPE district, walking around the northern district yesterday. Mayfair later posted a notice on its walls saying it “supports a clean
election and everyone pays for their own meals”. Mr Fong said: “No banquet should be organised in connection to the election. The ones organised under the names of associations have always been under our surveillance.” He admitted there were such meals being given yesterday. However, he added, “nothing has yet [been] reported as challenging the election laws”.
Candidacy staff blamed for election law violations T
“There are many cases of frontline staff breaching the rules (…) while the tickets themselves did not know about [it],” he said. Mr Fong said the watchdog has done “many things” that the public and media did not know to warn the candidacies to change their behaviour before they breached the law. Ho Chio Meng, head of the Public Prosecutions Office, said vote buying and bribery had seemingly “worsened” this year, at least based on media reports. His office was currently seeking more evidence for “less than 10 reports” of alleged electoral bribery, he said. Mr Ho urged the government to revise the election law to plug the loopholes being used by some candidates. Mr Fong sided with the prosecution chief, but stressed they had “worked hard” to tackle bribery despite the difficulties caused by grey areas in the law. Secretary for Administration and Justice Florinda Chan said the government would review the election process to see if any legal changes were needed.
here was more foul play by frontline election staff than in previous Legislative Assembly elections but candidates were unaware of it, said the graft watchdog. The Commission against Corruption probed this year’s first case of alleged electoral bribery on Friday, arresting two suspects. They were members of an association that offered free meals to people in return for their votes in a particular candidacy. “There is a very conspicuous situation this year of [frontline] people not following orders,” said Vasco Fong Man Chong, head of the commission, yesterday.
T.L.
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Macau
Strict rules deprive campaign of zest Most candidates played it safe, but negative attacks online grew stronger Tony Lai
tony.lai@macaubusinessdaily.com
“I
t certainly does not feel like the day has come,” said Queenie Chan, a voter in yesterday’s Legislative Assembly election. Candidate Mak Soi Kun’s loudspeaker trucks contributed to the election atmosphere by playing “Ode to Joy”, but for Ms Chan, a 34-year-old banker voting in her third election, it was not much of an atmosphere. “Apart from ‘Ode to Joy’, which
I heard a few times a day,” she said, “and a few glimpses I got of campaign materials and television, I do not really feel like there is an election going on.” Political observers think this year’s election atmosphere was dampened by stricter rules on campaigning. But they said attempts to smear candidates had been made, particularly online. A record 20 tickets of candidates contested yesterday’s election to
fill 14 directly elected seats in the Legislative Assembly, two of them added by last year’s political reforms. Camões Tam Chi Keong, an assistant professor at the Macau University of Science and Technology, told Business Daily that the campaign atmosphere was “less bustling” than in previous elections. Mr Tam blamed the authorities. “The Election Commission introduced stricter measures,” he said, “like banning the posting of
promotional materials in Senado Square for the first time, and it made more checks to make sure no campaign materials were placed outside designated areas.” He remarked: “It is different from Hong Kong and Taiwan, where you can post campaign materials in many places unless it is stated otherwise.”
Below the surface The Election Commission said allowing campaigning in Senado Square could endanger public safety as the place had heavy traffic and was full of tourists. Lou Shenghua, the coordinator of the Macau Polytechnic Institute’s public administration programme, said the Election Commission had been too harsh, particularly on campaigning before the official campaign period. “The time available for campaigning was only two weeks, which is too short. How are you supposed to have in-depth knowledge of a candidate and his proposed policies, and be involved?” Leah Li Ying, an assistant professor of communications at the University of Macau, said: “Most tickets tried to play safe in their campaigns. “They just tried to please
A record 20 tickets of candidates contested yesterday’s election to fill 14 directly elected seats
Election budget rules prime for revamp T
he Legislative Assembly election campaign spending limits should be based on the number of registered voters to create a more level playing field, suggests an academic. The campaign budget ceiling is currently set at 0.02 percent of the government budget, which has been soaring in recent years. The chief executive can change the final figure. “The government can follow the example of other places like
Singapore, where the spending limit is based on a set amount per voter,” said Lou Shenghua. Mr Lou, a public administration professor at Macau Polytechnic Institute, believes it could make the public more sensitive about the way the candidates spend their money. The spending limit per ticket during Macau’s assembly election campaign was set at 5.64 million patacas (US$700,000), almost 3.3 million patacas fewer than the 2009 limit.
But were it not for Chief Executive Fernando Chui Sai On’s decision to lower the limit, it could have topped 16.5 million patacas, given that the public budget reached 82 billion patacas this year. In the parliamentary election in Singapore, each bid cannot spend more than SG$3.5 (22 patacas) for each voter. Given there were over 277,000 registered voters, Macau’s campaign budget represents a limit of 20.4
patacas per voter, according to Business Daily calculations. Mr Lou says the differences between candidates’ financial means have little impact on the election campaign outcome, apart from swing voters. “The richer [candidates] can surely spend more and achieve better results with their promotion but Macau is a small place and does not require large-scale promotion,” he said. T.L.
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Macau their own voters but did not reach out to others.” However, she doubts that more confrontational campaigning would work here. “In a city like Macau, small and where everyone is closely related, a confrontational approach might pique curiosity only once or twice,” Ms Li told Business Daily. After that, she said, it would become too much. Mr Lou said that although candidates had had a low-key approach to the election, the competition among them had been intense. He said they had mounted negative campaigns through online media this year. “The candidates used their own methods, below the surface, to compete for seats,” he said. “The
The smears were aimed not at only one or two candidates, as in the past, but at many, using social media or internet forums Lou Shenghua, Macau Polytechnic Institute political observer
smears were aimed not at only one or two candidates, as in the past, but at many, using social media or internet forums,” Mr Lou said.
Interactive in politics “This year’s election has been more grim-looking as there are different ways of campaigning and the slander attacks are getting more severe,” veteran candidate Kwan Tsui Hang said. TheheadoftheElectionCommission, Judge Ip Song Sang, said on Friday that the commission was aware that online comments on candidates were “more vigorous this year”. Attempts to smear candidates surged in the last two days of campaigning. Several people reportedly received text messages from Hong Kong phone numbers on Friday accusing Angela Leong On Kei, the managing director of SJM Holdings Ltd, of insider trading. Ms Leong, the leading candidate on her ticket, promptly held a press conference to deny the accusation. Political observers say candidates made more use of interactive media. “One new characteristic this year is more online promotion, like animations and videos to provide more diversified, customised and dynamic exchanges with voters,” said Mr Lou. He said candidates had demanded greater accountability on the part of government officials. But Ms Li said the content of the political programmes of veteran candidates was basically “very similar” to their content in past elections. “For instance, some say they will be outspoken for the people. This is nothing new,” she said.
Campaign quotes I am not saying Senado Square is an unsafe place, just that at present it is packed with a big tourist flow and there is less available space Ip Son Sang, Election Commission president, on why the square was out of bounds for campaigning I do not need to bear this [Marxist] label. The rights we are fighting for are different. Of course I will keep on fighting the unfair legislative system Lee Kin Yun, grassroots pro-democracy activist, when asked if he had embraced Marxist ideals This is my house! This is my house! We have helped the workers to resolve disputes and save their job opportunities. We have successfully convinced the government to prioritise local employment, including the drivers. And what have you done for them? Kwan Tsui Hang, Federation of Trade Unions legislator, addressing rival candidate Au Kam San in a televised debate The [Hengqin] land is for the whole [gaming] sector, but not to a particular company. If you cannot solve the problem for the whole sector, the impact would be bad Hetzer Siu Yu Hong, candidate for Angela Leong On Kei’s ticket, on her proposal to build housing on Hengqin for gaming staff The things we are doing are good and we are not afraid to let people know (…). This is not a problem at all Mak Soi Kun, candidate, when asked about the 300 patacas (US$37.50) handed out to each of the Macau Jiangmen Communal Society members We are just forwarding our programmes and opinions to the parents, and they can decide whether or not to take up that message. There is no issue of whether it is fair or not. We are an old election candidacy and we keep the old-school way of doing things. We did not violate any rules Lam Lon Wai, second candidate on Kwan Tsui Hang’s electoral ticket, defending childcare centres run by the Federation of Trade Unions distributing campaign material to children Paul [Pun Chi Meng] looks more active this time comparing with the past, but his plain image, lack of resources and obedience to electoral laws (most others have started campaign activities before the legal period) may put him at a disadvantage Bruce Kwong Kam Kwan, assistant professor at the University of Macau’s department of government and public administration, on Mr Pun’s candidacy for the Association for Together Efforts to Improve the Community
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September 16, 2013 April 19, 2013
Macau
Indirectly elected legislators Last year’s political reform created two more indirectly elected seats in the Legislative Assembly, which went to paediatrician Chan Iek Lap and to Chan Hong. Chan Hong, head of the Hou Kong School, will be the first representative of the newly created social services and education constituency. The Federation of Trade Unions continues to dominate the
labour constituency, with workers’ interests in the hands of veteran Lam Heong Sang and newcomer Ella Lei Cheng I. Ms Lei will replace assembly president Lau Cheok Va, who is retiring from politics. Chui Sai On’s brother Chui Sai Cheong and lawyer Leonel Alves will continue to represent liberal professionals, along with Chan Iek Lap.
José Chui Sai Peng will replace outspoken legislator Fong Chi Keong in the industrial, commercial and financial constituency. The other representatives are incumbent members Kou Hoi Hin, Ho Iat Seng and Cheang Chi Keong. It is likely that the new president of the assembly will be chosen between these two latter legislators, with Mr Ho
leading the race, according to several observers. No changes in the sports and culture constituency, with Vitor Cheung Lap Kwan and Chan Chak Mo re-elected. The 12 candidates for those 12 seats were selected behind closed doors – as indirect seat candidates have been since the handover. But, thanks to last year’s reform of the electoral system, the city’s associations had to register a formal vote. Almost 80 percent of association representatives registered their formal vote.
Workers
Appointed legislators
Social
Independent professions
Industrial, commercial and financial
Chief Executive Fernando Chui Sai On has the power to appoint seven Legislative Assembly members, but it might take days or weeks for his choice to be announced. In the previous election, in 2009, Mr Chui took two weeks to decide on his seven nominees. If precedent is followed there will be several new faces to take up these seats, particularly after José Chui Sai Peng – a cousin of Mr Chui – won an indirect seat. In fact Tsui Wai Kwan is the only appointed legislator available for a fourth consecutive mandate. In the past, the incumbent chief executive has awarded these seats to prominent businessmen, representatives from sectors like education or scholars in law and economics.
Business and Developer
99
September 16, 2013 April 19, 2013
Macau
Kou Hoi In
Cheang Chi Keong
Lam Heong Sang
Ella Lei Cheng I
Chui Sai Cheong
Leonel Alves
Chan Iek Lap
Chan Hong
Vitor Cheung Lup Kwan
Chan Chak Mo
ocial and se edu rvices cation
Ho Iat Seng
José Chui Sai Peng
Directly elected legislators
Culture and sports
Democrats Chan Meng Kam (ACUM)
José Pereira Coutinho (NE)
Angela Leong On Kei (NUDM)
Si Ka Lon (ACUM)
Leong Veng Chai (NE)
Melinda Chan Mei Yi (MUDAR)
Song Pek Kei (ACUM)
Kwan Tsui Hang (UPD)
Ng Kuok Cheong (APMD)
Mak Soi Kun (UMG)
Ho Ion Sang (UPP)
Au Kam San (ANMD)
Zheng Anting (UMG)
Wong Kit Cheng (UPP)
Gaming
Kai Fong
Labour
rs
10 10
September 16, 2013 April 19, 2013
Macau
SMEs unaffected by Hengqin’s condition on minimum capital The island could become a test bed for Guangdong’s free trade zone, official says Tony Lai
tony.lai@macaubusinessdaily.com
I think the success of Guangdong’s bid for a free trade zone is just a matter of time Liu Yang, Hengqin New Area Administrative Committee official
N
o obstacles stand in the way of Macau small and medium enterprises exploring the market on Hengqin Island, an official of Hengqin New Area has said. The Hengqin authorities announced in July that enterprises interested in investing there must have minimum registered capital of 100 million yuan (130 million patacas). Smaller Macau businesses criticised this requirement. But now the director of the Hengqin New Area Administrative Committee’s Bureau of Communication and Cooperation, Liu Yang, has said this requirement applies only in certain circumstances. “The 100 million yuan investment floor applies only to enterprises that purchase land. The requirement is meant to ensure these companies are financially sound and have the funds to buy and develop the land,” Mr Liu told Business Daily on Friday, on the sidelines of a conference held by Delta Bridges. “But this does not apply to SMEs,” he said. “The best way for them to develop here is to let the big firms finish the facilities on the land first and then rent or buy those facilities,” he said. “The so-called barrier to entry for SMEs does not exist.” The Macau SME Association said this month it was looking for opportunities to set up a retailing centre in the Nansha New Area, another special zone in Guangdong, after struggling to make inroads into the Hengqin New Area. Mr Liu said a new set of guidelines would clarify the situation. He said incentives for SMEs to invest would be announced “this year”. By June, 56 important projects
together costing 226.3 billion yuan were in store for Hengqin and work costing 44.6 billion yuan had been completed. The island had 244 registered companies with combined capital of over 20.9 billion yuan. In a keynote address to Friday’s conference, Mr Liu spoke about the recent discussions on establishing a Guangdong free trade zone in cooperation with Macau and Hong Kong. Goods could be imported into the zone, processed and then exported without having to go through customs. Businesses in the zone would be given tax breaks and incentives. The zone could include Hengqin, Nansha in Guangzhou and Qianhai near Shenzhen. “As far as I know, Guangdong has been doing work on integrating the three areas,” Mr Liu said. The central government has approved a free trade zone for Shanghai as part of Premier Li Keqiang’s effort to reinvigorate the economy by shifting it toward services and consumption. The Shanghai free trade zone will have looser rules on matters such as interest rates and business licences. Mr Liu said other places in the mainland now “expect” the central government to approve their own plans for the economy. “I think the success of Guangdong’s bid for a free trade zone is just a matter of time,” he said. He did not say when Guangdong would formally make its bid for a free trade zone. The state-run China Daily reported this month that Guangdong officials had been asked to apply “immediately” to Beijing for a free trade zone.
Mr Liu said Hengqin was qualified to be a test bed for the free trade zone. “Shanghai is still fine-tuning its customs-related measures,” he said. “Hengqin, however, not only has such measures in place, its border management facilities are almost completed.” What part Macau and Hong Kong would play in establishing a free trade zone is unclear. Mr Liu said Macau could contribute its expertise in the tourism industry. He said that Macau and Hengqin could together become a world-class draw for tourists. Together, they could be attracting 60 million visitors a year in the next few years. Last year Macau had over 28 million visitors. S ev er a l o f Ma ca u’ s g a m i n g companies wish to expand on Hengqin.
Mr Liu told Business Daily that these companies were welcome to help build high-end tourist resorts on the island. He declined to comment on the talks with Galaxy Entertainment Group Ltd. Galaxy Entertainment, founded by Hong Kong construction tycoon Lui Che Woo, said last month that it was negotiating with the Hengqin authorities about the size and other characteristics of a development on the island. Another gaming company, SJM Holdings Ltd, founded by Macau tycoon Stanley Ho Hung Sun, has also expressed interest in tapping the market on the island. Shun Tak Holdings Ltd, another company founded by Mr Ho and chaired by his daughter, Pansy Ho Chiu King, bought last month a piece of land on Hengqin where it intends to build hotels and offices.
Transport fixes
KEY POINTS Hengqin to announce incentives for SMEs this year SMEs not covered by minimum capital requirement Over 226 bln yuan invested in 56 key projects on the island Tourists may be allowed to stay 72 hours without visas
Mr Liu said the Lotus Bridge connecting Hengqin to Macau might eventually be unable to carry all the traffic generated by the island’s development. He said policymakers were considering supplementing the bridge with tunnels. An interchange between the Light Rapid Transit elevated railway in Macau and the Hengqin branch of the new Guangzhou-Zhuhai railway had also been mooted. Mr Liu said tourists might be allowed to stay on Hengqin for 72 hours without visas. He said tourists were already allowed to stay in Guangzhou, Shanghai and Beijing for 72 hours without visas.
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September 16, 2013 April 19, 2013
Macau
Package arrivals up 4 pct y-o-y But prices for lower end visits could rise as ‘zero fare’ tours banned as of next month
Flagging a change – ‘zero fare’ tours banned
V
isitor arrivals via package tours increased by 4.1 percent year-on-year to 858,970 in July according to the Statistics and Census Service. In July 2012, package tourists were a saving grace for the general tourism industry in Macau. Their
numbers rose 19 percent year-onyear at a time when general tourism actually contracted by four percent. But as Business Daily reported last week, from next month it’s likely to be more expensive for mainland package visitors at the cheaper end of the market to come to Macau.
That’s thanks to the banning under new mainland rules of so-called ‘zero fee’ tours linked to compulsory shopping trips – where the tour guide and agency is paid commission by a shop or shops if they take visitors to the premises. This July, package visitors mostly came from mainland China (678,810), with 276,318 from Guangdong province, followed by those from Taiwan, with 58,588, Hong Kong (35,706) and South Korea (26,726). In the first seven months of 2013, visitors in package tours totalled 5.49 million, up by 12.0 percent year-on-year. There were 97 hotels and guesthouses operating at the end of July 2013, providing 27,759 guest rooms, up by 14.5 percent year-onyear. Accommodation in five-star hotels accounted for 66.2 percent of all available rooms. In July 2013, a total of 907,965 guests checked into hotels and guesthouses, up by 3.7 percent year-on-year, with 527,957 staying in five-star hotels (up 9.9 percent year-on-year). The average length of stay of guests increased by 0.1 of a night to 1.3 nights. The average occupancy rate of hotels and guesthouses was 84.4 percent, down by 1.2 percentage points year-on-year, with four-star hotels leading at 87.2 percent occupancy. In the first seven months of 2013, the total number of hotel guests reached 6.14 million, up by 14.7 percent year-on-year. The average occupancy rate across all hotel segments stood at 80.5 percent, down by 2.1 percentage points. M.G.
Pataca rebound comes up short The value of the pataca against the currencies of the city’s main trading partners fell to a six-month low. The Monetary Authority of Macau said on Friday the index of the pataca’s trade-weighted effective exchange rate had fallen to 97.56 points in August, 0.73 point less than in July. The pataca had strengthened during much of the first half of 2013, even though it remained far below the 105-point mark it reached in June 2010. Macau’s foreign exchange reserves amounted to 131.4 billion patacas (US$16.5 billion) at the end of August, up by 2.1 percent from July.
Wynn Resorts tightens board rules Wynn Resorts Ltd, locked in a dispute with former vice chairman Kazuo Okada, tightened bylaws governing who may serve on its board or call meetings. Directors may not be compensated by others for service on the board, according to a Friday filing. The company also designated a Nevada court as its main legal forum for disputes. Wynn Resorts forcibly redeemed Mr Okada’s 20 percent stake last year, alleging he made potentially illegal payments to Philippine government officials. Mr Okada challenge the redemption and unsuccessfully tried to have the dispute heard by a federal court instead of a Nevada state judge.
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September 16, 2013 April 19, 2013
Greater China Tencent applies for banking licence Tencent Holdings Ltd, one of China’s biggest Internet companies with a market cap of almost US$100 billion, has applied for a private banking licence, Chinese media reported. The company had its submission approved by provincial authorities in Guangdong, said the Southern Metropolis newspaper. Tencent’s interest in private banking could tie into its Tenpay online payment system, which allows digital transactions for products like WeChat.
Regulator probing drugmaker Bayer Chinese authorities visited a local office of German drugmaker Bayer AG in late August to investigate a potential case of unfair competition, the company said. Bayer said it was working with Chinese authorities, led by a local branch of China’s State Administration for Industry and Commerce, but did not expand on the status of the probe. China’s regulators have been probing numerous international and Chinese drugs firms.
China to invest 80 bln yuan in oil, gas China will invest 80 billion yuan (US$13.07 billion) in oil and gas exploration in 2013, state media said yesterday, as it tries to boost energy supplies reduce its dependence on energy imports. Oil and gas investment in China has risen from 19 billion yuan in 2002 to 67.3 billion yuan in 2011, the official Xinhua news agency said, citing Ministry of Land and Resources figures.
Former RBS trader gets 4-years in jail Shirlina Tsang, a former Royal Bank of Scotland Group Plc trader who pleaded guilty in Hong Kong to fraud for trying to hide losses of 19.5 million pounds (US$30.8 million), was sentenced to 50 months in jail. “This is an extremely serious offence,” District Court Judge Garry Tallentire said as he handed down the sentence. “Your acts led to enormous losses by RBS.” Ms Tsang had admitted to creating false records of her bond trading from mid2010 until October 14, 2011 to make it appear she was generating profit.
HK bans shark fin from official menus Hong Kong’s government will drop shark fin from menus at its entertainment functions and bar officials from eating the product at events organised by others amid global calls to protect the species. The ban will extend to blue fin tuna and black moss and is part of the city’s plans to adopt sustainable foodconsumption habits, the government said in a press release.
China to meet 7.5pct growth target, Kim says But World Bank chief warns of tapering risk
C
hina should hit its GDP growth target of 7.5 percent this year, World Bank Group president Jim Yong Kim said yesterday. But he warned that rising interest rates in emerging markets in response to reports that the U.S. is preparing to scale back its quantitative easing (QE) programme show that significant risk remains. “The rise in interest rates as a result of the announcement of the tapering of QE has exposed weaknesses in the economies of emerging markets,” he told reporters. “Our message is very strong to those emerging markets: think about those weaknesses and begin to move.” Several investment banks upgraded near-term forecasts for China’s growth after a run of strong data for August, including factory output and exports, and many now have full-year growth above the government’s official target of 7.5 percent. UBS AG, Deutsche Bank AG, China International Capital Corp and Nomura Holdings Inc were among the banks to upgrade their growth forecasts for 2013 after the recent data, and now all have it 7.6 percent or higher. Mr Kim was in Shanghai as part of a four-day tour focusing on expanding collaboration with China on climate change.
Shanghai boost China’s plan for a free trade zone in Shanghai is “very positive” and will help improve the country’s competitiveness, Mr Kim said. “Every single country in the world is trying to become competitive and I think this free trade zone will allow China to become more competitive,”
Shanghai free trade zone to help competitiveness, Kim says
he said at a briefing yesterday. The government is committed to financial and fiscal policy reforms which will pave the way for long-term expansion, he said. Premier Li Keqiang will this month officiate at an opening ceremony for the zone, which will test economic and financial changes including interest-rate liberalisation. China may see the weakest expansion in 23 years this year and Mr Li warned last week that the country will fail to achieve sustained growth unless it restructures the economy. “These kinds of financial sector reforms can be difficult, but they are critical,” Mr Kim said. “We want to be as supportive as we can be of the government in tackling these kinds of difficult financial sector reforms even in a time when growth is slowing.” China’s economy expanded 7.7 percent last year, the least since 1999, and the pace may weaken to 7.5 percent this year, according to the median estimate in a Bloomberg News survey in August. That would be the slowest rate since 1990 and match
the government’s target set in March. Chinese leaders are seeking to maintain confidence in the economy. Speaking in Dalian last week, the premier said China will focus on shifting its growth model while ensuring economic expansion remains within a “reasonable range”. “Everyone in the world is looking at Chinese growth numbers,” Mr Kim said yesterday. “The fact the government is saying, well, it’s a little bit slower, but we are committed to quality, we are committed to reforms we need to take, I think is a cause for great optimism for long term growth.” China’s State Council, headed by Mr Li, approved the Shanghai free trade zone in July. While no detailed policies have yet been released, a draft plan included expanded opportunities for foreign companies in industries from banking to health insurance. An opening ceremony will take place on a day from September 27 to 29, depending on Mr Li’s schedule, two people with knowledge of the matter said last week. Reuters/Bloomberg News
Beijing rejects changes for election of HK leader
T
he Hong Kong public can’t nominate candidates for the next chief executive election under the city’s de facto constitution, China’s top official there said, rejecting a lawmaker’s proposal. The city’s Basic Law states that candidates for the chief executive position have to be nominated by a “broadly representative” committee, Zhang Xiaoming, director of China’s Liaison Office in Hong Kong, said in an open letter to Alan Leong, the head of the Civic Party. Mr Zhang’s comments are the clearest China has made in rejecting
demands from Hong Kong opposition lawmakers to allow for democracy in line with international standards in 2017, when it has pledged to allow election of the city’s leader. Chief Executive Leung Chun Ying, who was picked by a committee of billionaires, professionals and lawmakers, is facing rising calls to start consultation on arranging the vote. “The proper way forward is to follow the Basic Law and the National People’s Congress Standing Committee’s procedures, rather than straying from the law and going the wrong way,”
Mr Zhang said in the statement published on the office’s website, as he rejected Mr Leong’s invitation to discuss the proposal at a seminar. Hong Kong’s chief executive said in an interview in June he wants to deliver on the electoral reforms, though increased democracy may lead to China’s refusal to appoint a leader elected by the city’s people. Allowing for a full exercise in democracy in Hong Kong will also contrast with the political system in China, which has been ruled by the Communist Party since 1949. Bloomberg News
editorial council Paulo A. Azevedo, Tiago Azevedo, José I. Duarte, Emanuel Graça, Mandy Kuok Founder & Publisher Paulo A. Azevedo | pazevedo@macaubusinessdaily.com Editor-in-Chief Tiago Azevedo DEputy Editor-in-Chief Vitor Quintã Associate editor Michael Grimes GROUP SENIOR ANALYST José I. Duarte Newsdesk Luciana Leitão, Stephanie Lai, Tony Lai EDITOR AT LARGE Alex Lee Creative Director José Manuel Cardoso WEB & IT Janne Louhikari Contributors James Chu, João Francisco Pinto, Larry So, Pedro Cortés, Ricardo Siu, Rose N. Lai, Zen Udani Photography Carmo Correia, Manuel Cardoso Assistant to the publisher Laurentina da Silva | ltinas@macaubusinessdaily.com office manager Elsa Vong | elsav@macaubusinessdaily.com Agencies Bloomberg, Reuters, AFP, Xinhua, Lusa, Project Syndicate Printed in Macau by Welfare Ltd.
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September 16, 2013 April 19, 2013
Asia Singapore steps up scrutiny of some bank branches Singapore regulators have stepped up their scrutiny of some local branches of Indian banks on concerns about asset quality, three bank executives told Reuters. India’s slowest economic growth in a decade and a weakened rupee have weighed on the balance sheets of heavily leveraged Indian companies, including those that have raised money from Indian lenders in offshore centres such as Singapore. The Monetary Authority of Singapore (MAS) is looking more closely at the books of the local operations of some Indian banks to assess the credit quality of loans made from the branches to Indian companies, bankers said. “There is an enhanced degree of oversight by the Monetary Authority of Singapore on Indian Banks in the recent days,” S.S. Mundra, chairman and managing director of state-run Bank of Baroda, told Reuters. “They are closely keeping a tab on the NPA [non-performing asset] levels and looking at the quality of assets financed.” The regulator has in some cases suggested that banks re-classify some loans as nonperforming assets, two bankers said, speaking on condition of anonymity. Singapore is a significant offshore centre for Indian finance and is the second-largest source of foreign investment flows into India, with 9.2 percent of its population of Indian origin.
Obama to visit Asia next month President Barack Obama will discuss economic and security issues with Asian leaders during a trip to Indonesia, Brunei, Malaysia and the Philippines from October 6 to 12, the White House announced. The trip comes as countries in the region try to work through friction over disputed territories in the oil and gas-rich South China Sea. Mr Obama’s foreign policy has focused on Asia, and his officials have been closely monitoring the maritime dispute. Mr Obama will discuss economic and security issues with President Benigno Aquino of the Philippines, which has filed an arbitration cases before the U.N. International Tribunal on the Law of the Sea. The White House said Mr Obama will start his trip in Indonesia to meet with leaders of countries negotiating the Trans-Pacific Partnership trade deal, which could be finalised by the end of the year. Mr Obama will attend an Asia Pacific Economic Cooperation (APEC) economic meeting in Indonesia and will meet with Indonesian President Susilo Bambang Yudhoyono. Maritime security will be on the agenda for Mr Obama’s meetings in Brunei with the U.S.ASEAN Summit and the East Asia Summit. Leaders will also discuss energy, investment, and trade issues, the White House said.
Japan nuclear free as last reactor switched off Japan began switching off its last working nuclear reactor yesterday for an inspection with no immediate plan for restart amid high public hostility towards atomic power. The move will leave the world’s third largest economy without atomic energy for the second time since the Fukushima crisis erupted in March 2011. Prime Minister Shinzo Abe has openly supported the use of nuclear energy, but the public has remained largely opposed to it for fear of possible serious accidents following the world’s worst atomic disaster since Chernobyl in 1986. Kansai Electric Power will gradually take offline the No. 4 reactor at its Oi nuclear plant in Fukui prefecture in western Japan. The work started yesterday evening, with the reactor expected to stop power generation after several hours before coming to a complete stop early this morning, according to the utility. Japan previously was without any nuclear energy in May 2012, when all of the country’s 50 commercial reactors had stopped for scheduled check-ups, with utilities unable to restart them due to public opposition.
Japan mulls corporate tax cut in stimulus package But finance minister expects ‘very limited effect’
J
apan is considering a reduction in corporate taxes as part of a planned package to cushion the economy from raising the national sales levy, Economy Minister Akira Amari said. Paring income taxes is another option, while a lower priority, Mr Amari told reporters in Tokyo. Prime Minister Shinzo Abe earlier this month instructed officials to compile a plan by the end of September to counter the blow from a scheduled 3 percentage point bump in the consumption tax in April, to 8 percent. Lowering the effective corporate tax rate, which is more than double that of Singapore, would boost Japan’s competitiveness, while helping to offset the economic blow from a sales-tax increase. While a reduction is backed by industry chiefs, Mr Abe is forecast to run into opposition at the Finance ministry, which may be reluctant
to lose revenue. “We estimate about 4 trillion yen to be shaved off from nominal GDP from the sales-tax increase, so we expect stimulus measures to cover that,” said Masahiko Hashimoto, economist at Daiwa Institute of Research Ltd, referring to gross domestic product unadjusted for changes in prices. Japanese stocks rose on Friday, with the Topix index posting its first back-to-back weekly gain since July, closing up 0.1 percent. “We and the finance ministry may have a different opinion on what our finances will allow, but in any case, we will take the best and most appropriate policy within this limit,” Mr Amari said. Cutting the corporate tax would have “a very limited effect” as about 70 percent of Japanese companies don’t pay the levy, Finance Minister Taro Aso told reporters. Japan’s corporate-tax rate of 35.6
percent includes local and national components and compares with 25 percent in China and 17 percent in Singapore, according to the finance ministry. Organisation for Economic Cooperation and Development data show Japan has the second-highest rate of member nations, after the U.S. The rate is now 38 percent because of a three-year increase to fund reconstruction after a 2011 earthquake and tsunami. “Our main scenario envisages a supplementary budget of the order of 5 trillion yen (US$50 billion) or so, and although a reduction in the corporate tax rate has surfaced as a topic, our view is that any major cut will have to wait until fiscal year 2015 or beyond,” Daiju Aoki, senior economist for Japan at UBS AG in Tokyo, wrote in a research note. Mr Abe will decide on October 1 whether to increase the sales tax to 8 percent in April from 5 percent now. Bloomberg News
India economic adviser slashes growth forecast Manufacturing sector expected to do better in second half
Automobile production picked up in August
I
ndia’s economy is expected to grow 5.3 percent this fiscal year, the prime minister’s economic advisory panel said, sharply lower than an earlier estimate of 6.4 percent but higher than last year. The revised forecast is roughly in line with projections of the central bank and many private economists, who expect Asia’s third-largest economy to grow at around 5 percent, the same level as in 2012/2013. A pick-up in automobile production and exports in August indicated that the manufacturing sector would do better in the second half than the first, said C. Rangarajan, the chairman of the Prime Minister’s Economic Advisory Council. “Taking these factors into account, the forecast growth rate appears reasonable,” Mr Rangarajan said. India’s industrial production unexpectedly rebounded in July
while consumer inflation cooled last month, offering some relief for policy makers who have been battling the country’s worst economic crisis in more than 20 years. The rupee has fallen nearly 14 percent against the dollar so far this year, hitting a record low last month, as the economy struggles with decadelow growth, a record current account deficit and a steep fiscal shortfall. The advisory council also said that containing the fiscal deficit within the budgeted target of 4.8 percent of gross domestic product could be a challenge. Finance Minister P. Chidambaram has said the target will not be breached. “My fiscal deficit estimate is now 5.5 percent, but it all depends on how Chidambaram manages it,” said Anjali Verma, chief economist at PhillipCapital (India) Pvt Ltd. “He can go back to slashing planned
spending like last year.” Mr Rangarajan also said the current account deficit could be lower than the US$70 billion that the government is targeting if current trends in exports and imports continued, citing data showing the trade deficit had narrowed in August. However, a large part of the smaller trade gap was due to a US$2.25 billion fall in gold imports, which are expected to rebound over the next few months as India’s wedding and festival seasons kick in. India’s economy grew 4.4 percent in the three months to June – the slowest quarterly rate since the global financial crisis – hurt by a contraction in mining and manufacturing. The panel said inflation for the current fiscal year was expected to be 5.5 percent, lower than the 6 percent recorded in the last fiscal year. Reuters
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September 16, 2013 April 19, 2013
Markets Gaming Stocks - Daily Performance (Hong Kong Stock Exchange) 82.6
53.5
23.5
53.2
23.4
81.6
52.9 52.6
23.3 23.2
80.6
52.3 Max 53.5
average 52.366
Max 46.95
Min 52.5
average 46.296
Last 53.35
Min 46
Last 46.25
23.1
52.0
Max 82.6
average 80.062
PRICE
WTI CRUDE FUTURE Oct13
Last 23.3
23.0
46.75
20.5
24.7
46.50
20.3
24.6
46.25
20.1
24.5
46.00
Max 20.65
average 20.171
DAY %
YTD %
(H) 52W
Min 19.94
Last 20.1
(L) 52W
15.60897436
112.2399979
86.04000092
BRENT CRUDE FUTR Nov13
111.7
0.152425356
6.138350437
115.7599945
96.19999695
GASOLINE RBOB FUT Oct13
276.96
0.249755674
6.44528998
298.210001
246.6799974
GAS OIL FUT (ICE) Oct13
949.75
-0.183920126
4.8
985.5
835.5
3.677
1.072017592
1.29476584
4.525000095
3.154000044
311.37
-0.086638429
4.105787556
322.8999853
276.1999846
NATURAL GAS FUTR Oct13 NY Harb ULSD Fut Oct13 Gold Spot $/Oz
1326.17
-1.2737
-20.3243
1796.08
1180.57
Silver Spot $/Oz
22.221
-2.0238
-26.2006
35.365
18.2208
Platinum Spot $/Oz
1453.3
-0.4248
-4.2464
1742.8
1294.18
Palladium Spot $/Oz
700.75
1.0163
0.1558
786.5
587.4
LME ALUMINUM 3MO ($)
1790
-1.214128035
-13.65171249
2200.199951
1758
LME COPPER 3MO ($)
7041
-0.269121813
-11.22178792
8422
6602 1811.75
3MO ($)
LME NICKEL 3MO ($) AGRICULTURE ROUGH RICE (CBOT) Nov13
19.9
1869
-0.479233227
-10.14423077
2230
13875
0.652883569
-18.66940211
18920
13205
15.42
-0.74026392
0.032435939
16.65000153
14.77000046
Dec13
COUNTRY MAJOR
AUD GBP CHF EUR JPY MOP HKD CNY INR THB SGD TWD PHP IDR AUDJPY EURCHF EURGBP EURCNY EURMOP EURJPY HKDMOP
ASIA PACIFIC
CROSSES
Max 24.7
average 24.527
Min 24.4
Last 24.6
24.4
-1.554959786
-23.46811171
662.5
445.75
641.5
-1.761102603
-21.83978069
913
635.5
SOYBEAN FUTURE Nov13
1381.5
-1.038681948
6.044905009
1409.75
1162.5
120
-0.497512438
-23.29817833
200
115.25
SUGAR #11 (WORLD) Mar14
17.68
-0.282007896
-14.09135083
22.14999962
16.69999886
ARISTOCRAT LEISU
COTTON NO.2 FUTR Dec13
84.46
-0.342182891
7.264414529
93.72000122
74.34999847
CROWN LTD
COFFEE 'C' FUTURE Dec13
World Stock Markets - Indices
NAME
DAY %
YTD %
(H) 52W
(L) 52W
0.9245 1.5876 0.9297 1.3294 99.38 7.9872 7.7544 6.1187 63.495 31.85 1.2694 29.765 43.86 11232 91.867 1.23604 0.83735 8.133 10.6126 132.1 1.03
-0.0216 0.4111 0.086 -0.015 0 -0.0075 -0.0026 -0.0114 0.063 -0.3359 -0.1576 -0.1277 0.0228 1.0506 0.025 0.0906 0.4287 0.0074 0.0603 0.0303 0
-10.9173 -1.8546 -1.5381 0.7885 -13.3628 -0.0501 -0.049 1.8288 -13.3869 -3.9874 -3.7813 -2.4593 -6.5093 -12.8116 -2.7649 -2.3106 -2.619 1.039 -0.7746 -14.0273 -0.0097
1.0599 1.6381 0.9839 1.3711 103.74 8.0111 7.7664 6.324 68.845 32.48 1.2862 30.228 44.82 11730 105.433 1.265 0.88151 8.4957 10.9254 133.8 1.032
0.8848 1.4814 0.9022 1.2662 77.44 7.9818 7.7498 6.1064 51.3863 28.56 1.2152 28.913 40.54 9448 79.408 1.20302 0.79235 7.8281 10.1113 99.64 1.0289
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
4.6
-0.862069
15.68
1.357466
VOLUME CRNCY
46.03174
4.7
2.56
2515711
46.95408
15.79
8.92
1331778
AMAX HOLDINGS LT
1.07
0
-23.57143
1.72
0.75
515100
BOC HONG KONG HO
24.85
0
3.112032
28
22.85
8295605
CENTURY LEGEND
0.38
0
43.39623
0.42
0.23
172000
CHEUK NANG HLDGS
6.34
0
5.843076
6.74
3.31
157000
CHINA OVERSEAS
23.65
-1.458333
2.380951
25.6
17.7
15812772
CHINESE ESTATES
17.72
0.7963595
57.57346
17.92
8.168
163000
CHOW TAI FOOK JE
10.66
-2.022059
-14.30868
13.4
7.44
5973200
EMPEROR ENTERTAI
3.06
1.66113
61.90476
3.19
1.43
1180000
2.4
0
98.01553
2.76
1.053
654268
GALAXY ENTERTAIN
52.35
-1.782364
72.48764
53.55
24.1
11350554
HANG SENG BK
126.5
0.4765687
6.571191
132.8
110.6
1390438
25
-0.5964215
-24.81203
35.3
23.2
607500
85.95
0.2917153
5.719553
90.7
72.1
13518128
COUNTRY
PRICE
DAY %
YTD %
(H) 52W
(L) 52W
DOW JONES INDUS. AVG
US
15376.06
0.4929206
17.33742
15658.42969
12471.49
NASDAQ COMPOSITE INDEX
US
3722.184
0.1672781
23.27098
3731.837
2810.8
FTSE 100 INDEX
GB
6583.8
-0.07861611
11.63126
6875.62
5605.589844
DAX INDEX
GE
8509.42
0.1815399
11.78381
8557.86
6950.53
HOPEWELL HLDGS
NIKKEI 225
JN
14404.67
0.1209402
38.57067
15942.6
8488.14
HSBC HLDGS PLC
HANG SENG INDEX
HK
22915.28
-0.1674674
1.140311
23944.74
19426.35938
CSI 300 INDEX
CH
2488.902
-0.7399136
-1.349602
2791.303
2023.171
TAIWAN TAIEX INDEX
TA
8142.48
-0.3148797
5.75336
8439.15
7050.05
KOSPI INDEX
SK
1994.32
-0.4860134
-0.1367068
2042.48
S&P/ASX 200 INDEX
AU
5219.626
-0.4370022
12.27537
ID
4375.539
0.4346045
JAKARTA COMPOSITE INDEX
PRICE
Macau Related Stocks
459
WHEAT FUTURE(CBT) Dec13
NAME
Min 23.05
24.8
-0.359116022
CORN FUTURE
average 23.291
20.7
108.21
LME ZINC
Max 23.5
Currency Exchange Rates
NAME
METALS
79.6
Last 79.75
47.00
Commodities ENERGY
Min 79.6
FUTURE BRIGHT
HUTCHISON TELE H
3.46
0
-2.808987
4.66
2.98
7244000
LUK FOOK HLDGS I
24.5
-1.408451
0.4098376
30.05
16.88
2440000
MELCO INTL DEVEL
20.35
-2.863962
125.8601
21.1
6.55
6797973
MGM CHINA HOLDIN
23.3
0
75.47454
24.2
12.18
2957422
1770.53
MIDLAND HOLDINGS
3.1
0.6493506
-16.21622
5
2.68
1424000
5252.1
4334.3
NEPTUNE GROUP
0.188
-2.083333
23.68421
0.23
0.131
29635000
1.363361
5251.296
3837.735
NEW WORLD DEV
11.6
0.1727116
-3.49418
15.12
9.98
8791571
SANDS CHINA LTD
46.25
-1.700319
36.22975
48.5
26.35
14067395
SHUN HO RESOURCE
1.7
-4.494382
21.42857
1.92
1.18
26000
SHUN TAK HOLDING
4.23
-3.203661
0.9546526
4.65
2.9
4549169
20.1
-3.13253
13.25438
22.382
15.795
9594438
10.12
-2.316602
-28.125
16.22
10.06
12903500 7841375
FTSE Bursa Malaysia KLCI
MA
1770.8
-0.09027308
4.846212
1826.22
1590.67
NZX ALL INDEX
NZ
986.744
0.2438172
11.86902
998.487
834.309
PHILIPPINES ALL SHARE IX
PH
3738.27
-0.7832198
1.062186
4571.4
3440.12
HSBC Dragon 300 Index Singapor
SI
596.4
-0.09
-3.98
NA
NA
STOCK EXCH OF THAI INDEX
TH
1401.08
0.2274841
0.6573536
1649.77
1260.08
HO CHI MINH STOCK INDEX
VN
476.42
0.1745201
15.1524
533.15
372.39
Laos Composite Index
LO
1310.4
-1.378028
7.872272
1455.82
1038.79
Shanghai Shenzhen Composite index is listing the biggest companies by market capitalisation. All data supplied by Bloomberg unless otherwise indicated.
SJM HOLDINGS LTD SMARTONE TELECOM WYNN MACAU LTD
24.6
-1.992032
17.42243
26.5
19
ASIA ENTERTAINME
4.05
0.4962779
43.88832
4.7647
2.4835
31067
BALLY TECHNOLOGI
74.5
0.5398111
66.62939
75.61
43.16
412232
BOC HONG KONG HO
3.24
2.531646
5.537462
3.6
2.99
5500
GALAXY ENTERTAIN
6.75
-2.597403
70.02519
6.96
3.11
4300
INTL GAME TECH
20.32
1.752629
43.40155
20.94
12.37
3173982
JONES LANG LASAL
86.33
0.3370525
2.847269
101.46
72.56
267404
LAS VEGAS SANDS
63.54
1.097852
37.65165
63.98
37.8353
3170710
MELCO CROWN-ADR
30.93
0.8148631
83.66983
31.42
12.5
1685838
MGM CHINA HOLDIN
3.04
0
73.68537
3.07
1.5895
6100
MGM RESORTS INTE
19.29
2.225755
65.72164
19.35
9.15
8680353
SHFL ENTERTAINME
22.71
-0.1758242
56.62069
23.08
12.35
1404868
SJM HOLDINGS LTD
2.62
-2.962963
15.03256
2.9481
2.0311
16907
150.35
0.4677581
33.65633
151.25
103.0933
464355
WYNN RESORTS LTD
AUD HKD
USD
Hang Seng Index NAME
PRICE
DAY %
VOLUME
35.15
0.5722461
20352427
CHINA UNICOM HON
ALUMINUM CORP-H
2.82
-4.081633
19691296
CITIC PACIFIC
BANK OF CHINA-H
3.53
-1.396648
295322295
BANK OF COMMUN-H
5.82
-1.020408
27695758
31.95
1.751592
2657823
11
-2.654867
13509220
AIA GROUP LTD
BANK EAST ASIA BELLE INTERNATIO
NAME
CLP HLDGS LTD
PRICE
DAY %
VOLUME
12.62
-0.4731861
31650680
9.89
-0.3024194
7141271
NAME
PRICE
DAY %
POWER ASSETS HOL
66.05
-0.3018868
VOLUME 4701143
SANDS CHINA LTD
46.25
-1.700319
14067395
63.1
0.7182761
3081929
SINO LAND CO
10.84
-1.454545
7177401
CNOOC LTD
16.08
0.124533
60923791
SUN HUNG KAI PRO
101.7
-1.357905
5782721
COSCO PAC LTD
11.56
2.300885
10005414
SWIRE PACIFIC-A
92.1
0.2721829
1499296
ESPRIT HLDGS
12.08
0.1658375
4205687
TENCENT HOLDINGS
410.8
-0.4844961
3440870
BOC HONG KONG HO
24.85
0
8295605
HANG LUNG PROPER
25.55
0.1960784
4609896
TINGYI HLDG CO
20.65
1.22549
6889003
CATHAY PAC AIR
14.36
0.7012623
2087991
HANG SENG BK
126.5
0.4765687
1390438
WANT WANT CHINA
11.08
-0.1801802
17238675
CHEUNG KONG
HENDERSON LAND D
WHARF HLDG
67.25
0.5231689
2703788
113.2
-1.307759
3585968
CHINA COAL ENE-H
5.06
-3.065134
85917590
CHINA CONST BA-H
6.04
-0.8210181
282807531
CHINA LIFE INS-H
21.2
-0.2352941
28978819
CHINA MERCHANT
27.1
-0.5504587
2455163
CHINA MOBILE
HENGAN INTL HONG KG CHINA GS
-0.8547009
3694119
0.7986309
1493457
18.4
0.9879254
14230502
HONG KONG EXCHNG
127.8
0.9478673
3019067
HSBC HLDGS PLC
85.95
0.2917153
13518128
92.95
0
4230861
5.46
-0.3649635
260172869
11.58
-0.1724138
13351699
30.4
0.8291874
87.6
0.8635579
19041835
HUTCHISON WHAMPO
23.65
-1.458333
15812772
IND & COMM BK-H
CHINA PETROLEU-H
6.06
-0.4926108
80229234
LI & FUNG LTD
CHINA RES ENTERP
24.3
1.886792
2400837
MTR CORP
CHINA OVERSEAS
46.4 88.35
MOVERS
23095.86
2268742
LOW
22854.54
52W (H) 23944.74
CHINA RES LAND
22.45
-0.2222222
6691392
NEW WORLD DEV
11.6
0.1727116
8791571
18.52
-0.1078749
12006465
PETROCHINA CO-H
8.67
-0.2301496
57780462
CHINA SHENHUA-H
25.15
-3.269231
31113799
PING AN INSURA-H
59.45
-0.5020921
11527228
27
2 23100
INDEX 22915.28 HIGH
CHINA RES POWER
21
(L) 19426.35938
22800
11-September
13-September
15 15
September 16, 2013 April 19, 2013
Opinion Business
wires
Betting on the tortoise in Japan
Leading reports from Asia’s best business newspapers
Taipei Times
Jeffrey Frankel
Professor of Capital Formation and Growth at Harvard University
The Ministry of Economic Affairs rejected speculation that the anticipated signing of a free-trade pact between Taiwan and Singapore will be delayed unless the Legislative Yuan ratifies the cross-strait service trade agreement. “The ASTEP is not inked yet because the two sides are still in the process of selecting appropriate legal texts for an official report,” David Yu, a representative of the ministry’s Office of Trade Negotiations, said.
Asahi Shimbun A consumption tax increase and economic stimulus package to alleviate its effects have two sides of the central government currently engaged in a tug of war. The Abe administration is considering economic stimulus measures to counter a downturn that could arise if the consumption tax rate is raised in April. However, Finance Ministry officials are putting up resistance because they feel priority should be given to restoring the nation’s fiscal health.
Korea Herald The global economy faces greater risks of cyclic downturns as the financial markets have become more interconnected since the demise of Lehman Brothers five years ago, the Bank of Korea chief warned. In a meeting with commercial bankers, governor Kim Choong-soo said the interconnectedness of markets worldwide had become “stronger” as economies tried to fix the global crisis. This market development is likely to increase financial risks worldwide, the central bank chief said.
China Daily The Chinese government’s economic transformation and structural reform policies will be mutually beneficial for Europe and China, analysts have said. Premier Li Keqiang’s support of domestic consumption will offer “sustainable and balanced growth for China”, said Michal Krol, a research associate at the Brusselsbased European Centre for International Political Economy. “It’s more inclusive growth because it has supported the rising incomes of the Chinese population. So, it’s more sustainable than cherry-picking investment that will generate profit in the future,” he added.
I
n April 2014, Japan’s consumption-tax rate is set to rise from 5 percent to 8 percent in an effort to address the long-term problem of high public debt. But will the resulting loss in purchasing power bring an end to the Japanese economy’s fragile recovery, as many fear? The question is reminiscent of April 1997. Larry Summers, who was then Deputy Secretary of the United States Treasury, repeatedly warned the Japanese government that if it proceeded with a scheduled consumption-tax hike, Japan’s economy would slide back into recession. I was in the U.S. government at the time. As the date drew near, I asked Summers why he persisted in offering Japan’s leaders this unwanted advice, given that they were clearly locked in politically. Summers told me that he knew he was unlikely to change anyone’s mind, but that he wanted to be sure that Japanese officials recognised their mistake when they went ahead with the increase. Sadly, his prediction proved correct. Today, Japan’s fiscal problems resemble those of the U.S. and many other countries. The economy is weak, but the Bank of Japan (BOJ) cannot make monetary policy much more expansionary than it already is. And, while fiscal stimulus is called for in the short run, the long-term outlook for Japan’s public finances is deeply troublesome, owing to the huge debts run up in the past. What is required is easy
fiscal policy today, together with plans to achieve fiscal rectitude in the long run. The difficulty with this Augustinian approach – “Lord, make me chaste, but not yet” – is that promises of future discipline usually are not credible. Politicians often say that they will achieve budget surpluses in the future, but seldom do so.
Gradual path Given this, governments should provide specific fiscalconsolidation mechanisms that are visibly likely to take effect when the time comes. Raising the retirement age for future pension benefits qualifies as such a mechanism. Legislating phony sunset provisions for current tax cuts, as the U.S.
Governments worldwide face a similar imperative: maintain policy credibility without undermining economic recovery
did during the George W. Bush years, does not. For Japan, I like a proposal by Koichi Hamada (a Yale economics professor who is an adviser to Prime Minister Shinzo Abe) and others: the planned jump in the consumption-tax rate should be replaced with a gradual preannounced path of increases, with the rate rising, say, one percentage point per year for five years. Because a gradual path establishes long-run fiscal discipline, it would not crash the bond market, as an outright cancellation of the tax increase might. At the same time, it spares an already-weak economy damaging fiscal contraction in the short run. Indeed, the expectation that tax-included prices will rise in the future can stimulate households to buy cars, appliances, and other consumer goods today. Such a gradual path has positive implications for monetary policy, too. In normal times, central banks want to reduce inflation. The problem is that preannounced hikes in tax rates or administered prices can have the undesirable effect of building annual price increases into public perceptions, undermining the central bank’s inflation-fighting efforts.
Slow and steady But these are not normal times. Inflation and interest rates in Japan lately have been even lower than in the U.S. The most important
component of “Abenomics” this year has been the BOJ’s efforts to ease monetary conditions further, despite zero interest rates, and thus end the threat of deflation. Under these circumstances, inflation expectations are not a cause for concern. On the contrary, positive expected inflation would reduce the real (inflation-adjusted) interest rate – not a bad thing under current conditions. There are useful analogies for policies in other countries. The U.S. could legislate a preannounced path of slow but steady increases in energy or carbon taxes (accompanied by immediate short-term offsets, such as a reduction in the distortionary payroll tax or an end to the damaging spending sequester). As in Japan, such measures would enhance long-run fiscal sustainability without weakening demand at a time when the economy has not yet fully recovered from the Great Recession. In addition, the environmental and national-security arguments in favour of discouraging fossil-fuel consumption work better if the increase in energy prices is phased in gradually. That way, people have sufficient time to make effective decisions about automobiles, home heating systems, power plants, research into new technologies, and so forth. Similar lessons are relevant in emerging-market economies. Countries like India and Indonesia are now facing possible financial crises, in part owing to large budget deficits, a major component of which has long been food and energy subsidies. Keeping domestic prices for food and energy artificially low has proved to be not only ruinously expensive, but also very ineffective in achieving the declared goal of helping to alleviate poverty. Some leaders in these countries are aware of the need to reduce these subsidies. A credible, pre-announced phase-out path would provide muchneeded reassurance to skittish global investors, without imposing immediate hardship on the poor. At the same time, the ability to plan ahead in anticipation of the price increases would allow more effective responses, as farmers plant different crops, manufacturers switch to more energy-efficient equipment, and so forth. Governments worldwide face a similar imperative: maintain policy credibility without undermining economic recovery. Bold measures like those envisaged by Abenomics may help. But slow and steady wins the race. © Project Syndicate
16
September 16, 2013
Closing Arrests in Australia match-fixing probe
Exit Street View – with bent fender
Australian police investigating soccer match-fixing allegations have arrested 10 people, including British players, reports the BBC. The probe followed information from the Football Federation of Australia. “It is believed the players and staff involved are all affiliated with the one sporting club,” said Victoria Police. “Many of the players arrested are from the United Kingdom, playing in the Victorian league in their off-season.” The federation said the club involved was Southern Stars, in the Victorian Premier League. A coach and nine players have been detained. They could face up to 10 years in prison if found guilty.
A Google Street View car hit two public buses and a truck in the city of Bogor, Indonesia, according to the country’s police. They stated the car driver hit the first bus, appeared to “panic” when the bus driver responded angrily, and tried to drive off. In doing so it hit the other vehicles , according to local media. It is unclear whether anybody was hurt. “We take incidents like this very seriously. We’re working closely with local authorities to address the situation,” Vishnu Mahmud, head of communications for Google in Indonesia, told news agency AFP.
Sun sets on Weidner’s Solaire casino contract Former LVS president’s firm to contest move by Philippines developer Bloomberry Resorts Corp Michael Grimes
michael.grimes@macaubusinessdaily.com
S
olaire Resort & Casino, the Philippines’ newest integrated gaming resort, has terminated the management contract held Bill Weidner’s Global Gaming Asset Management Group. Bloomberry Resorts Corp – the Philippine Stock Exchange listed firm that is the majority owner of the US$1.2 billion (9.58 billion patacas) resort which opened in March – has also terminated the employment of GGAM’s senior onsite representative, Michael French, the property’s chief operating officer. “GGAM has not spent any material time in attending to the management of Solaire and has failed to perform its obligations and deliverables under the management services agreement,” Bloomberry said in a regulatory filing. In a statement to Agence France-Presse, GGAM responded: “Bloomberry Resorts Corporation’s
assertions regarding GGAM’s performance of its obligations under the Management Services Agreement have no factual or legal validity. Bloomberry has materially breached that agreement and GGAM is pursuing its rights under that contract in arbitration in Singapore.” GGAM exercised an option last year to take an 8.7 percent equity stake in Solaire. GGAM announced during the Global Gaming Expo Asia conference in Macau in May that it was to manage a new US$3.5 billion casino resort in the Bahamas that is being majority-funded by the Export-Import Bank of China – a state-owned Chinese institution. An opening date of December 2014 was mentioned. Mr Weidner is also seeking the exclusive right to build a casino resort on the Matsu chain of islands in Taiwan to serve players from neighbouring mainland China. Mr Weidner is well-known in
Macau as a former president and COO of Las Vegas Sands Corp and who steered that company through its entry to the city’s casino market including the construction of Sands Macao and The Venetian Macao. Mr French has held senior management posts in Las Vegas and Macau casino hotels, including as general manager at Melco Crown Entertainment Ltd’s Taipa property, Altira Macau. Bloomberry said it would hire an experienced casino hotel executive to replace Mr French.
Strained situation There had been rumours for several months that the relationship between Las Vegas-based GGAM and Bloomberry’s chairman, Philippine ports entrepreneur Enrique Razon, had become strained. Industry sources told Business Daily that Mr Razon was frustrated with the pace at which Solaire was building market share in the mass segment compared to Resorts World Manila. The latter is the capital’s first
private sector multi-function casino resort and was the incumbent, having had a soft launch in August 2009. It is near Manila International Airport. Local sources say one factor currently limiting Solaire’s massmarket appeal is that it is not easily accessible from downtown Metro Manila. Resorts World, run by Travellers International Hotel Group – a joint venture between FilipinoChinese businessman Andrew Tan’s Alliance Global Group and Genting Hong Kong – is linked to downtown by a vehicle expressway. Solaire has 500 rooms, 300 gaming tables, and 1,200 slots and is the first of four gaming venues to open in Manila’s Entertainment City zone. Bloomberry says it is optimistic there is enough property level management talent remaining to operate the resort effectively. The Philippine government is hoping Entertainment City will draw millions of newly wealthy Asians, boosting tourism and eventually generating up to US$10 billion in annual revenues.
Henna cruise ship’s name stained in court battle Chinese vessel with mainland tourists aboard seized off South Korean coast Michael Grimes
michael.grimes@macaubusinessdaily.com
A
mainland cruise ship was detained in South Korean waters after a Chinese company applied to a court in that country claiming it was in dispute with the ship’s operator. But in a twist, China’s National Tourism Administration asked South Korea for the immediate release of the liner, the Henna. It is operated by a unit of HNA Group, a conglomerate based on China’s southern holiday island of Hainan. The firm controls Hainan Airlines. In 2010 HNA signed a deal with Hainan Provincial Tourism Development Commission to promote the island. At the time of its detention,
the Henna was anchored off the Jeju Islands, an archipelago inside Republic of Korea waters. The government there has issued multiple licences for foreigners-only casinos in Jeju and relaxed the rules for inward visas issued to mainland Chinese tourists to try and attract new players. According to China’s official news agency Xinhua, the ship had 1,659 passengers and a crew of 650 on board. It was scheduled to sail at 4pm on Friday from Jeju to Incheon on the South Korean mainland. The vessel was held by order of a Jeju court after it received a seizure application over “legal disputes from a subsidiary company of Jiangsu
Shagang Group Co Ltd” said Xinhua on Saturday quoting the cruise operator. The report did not state the nature of the dispute. Yesterday passengers were being evacuated from the stranded liner. More than 1,000 people were scheduled to fly back to China yesterday, said mainland officials. Four Hainan Airlines planes would be used for the purpose China’s consul in Jeju, Chen Junjie, was quoted saying. HNA issued a statement on Saturday saying the detention had “restricted personal freedom of those on board and severely infringed upon the rights of innocent passengers”. The ship, previously operated by the
British-American company Carnival Cruise Lines, has been described as China’s first luxury cruise liner. Business Daily reported last week that although the mainland and provincial governments have been keen to push Hainan up the world rankings as a tourism destination, in 2011 – the last full figures available – it attracted ‘only’ 30 million visitors, compared to 28 million for Macau that year. Hainan is 1,200 times bigger than Macau. We also reported that the Hainan government has recommenced issuing so-called ‘Special Entertainment Licences’ for facilities that look almost identical to Macau casinos.