The revision of the eligibility criteria for the pecuniary subsidy marks a new chapter in the public finance management of the Macau SAR. The measure, announced by the Secretary for Administration and Justice, André Cheong, introduces the requirement of a minimum stay of 183 days per year in the territory—barring a few exceptions—meaning that many residents living abroad will lose the financial support introduced in 2008.
PLATAFORMA invited five lawmakers to comment on the revision, but only one accepted. The others preferred not to make statements on such a sensitive issue—especially so close to the submission of electoral lists for the next Legislative Assembly term. Although receptive to discussing the topic, one of the lawmakers who chose not to comment informed us that within their association, 47% of members voted against the policy when it was presented.
Chan Iek Lap, a lawmaker elected from the health sector, accepted our request and expressed support for the tightening of criteria: “During the pandemic, the possibility of narrowing the scope of the subsidy was discussed.” For the legislator, the current revision is “justifiable” and aims for a “more efficient use of public resources.” Chan notes that many Macau residents with BIR (resident ID) also hold Hong Kong ID cards, and for years have “benefited from subsidies from both regions.” With the new rules, the government is setting a clearer eligibility criterion.
Budget Reallocation
The amendment to the Pecuniary Subsidy Scheme was announced on May 29 by Secretary for Administration and Justice and Executive Council spokesperson André Cheong. According to him, it is not possible to determine the budgetary impact of the revision, given the number of residents living abroad. However, on the same day, Macau residents with a Single Account were notified of their eligibility.
Economist Henry Lei supports the government’s stance, arguing that it is difficult to estimate budget savings due to the exceptional cases provided for in the revision. Lou Shenghua, professor of Social Sciences at the Macau Polytechnic University, also says the lack of disclosure doesn’t necessarily raise concerns about the government’s transparency. “I believe this figure can only be announced after the implementation of this year’s subsidy scheme. In fact, even if the government doesn’t reveal it, the public will inevitably want to know.”
According to André Cheong, there are around 175,000 residents living outside Macau, meaning that, at most, the public coffers could retain MOP 1.75 billion from this revision—a figure likely to be significantly lower once exceptional cases are accounted for.
Despite acknowledging the sensitivity of the topic, Henry Lei puts the decision in the context of the current economic framework. “The government is also considering redirecting savings to support vulnerable groups, a decision that will be hard to contest.” André Cheong confirmed this intention, stating days later, when discussing the revised SAR budget, that the planned increases for certain population subsidies—rising by 2.5%—will be partly covered by the savings from the Pecuniary Subsidy Scheme.
However, he also confirmed a downward revision of MOP 12 billion in gross gaming revenue projections for this calendar year (from MOP 240 billion to MOP 228 billion), requiring “appropriate adjustments to relevant revenue budget categories.” The reduction in gaming tax revenue translates to MOP 450 million less for the Administration and implies an adjustment in PIDDA (Public Investment and Development Expenditure Plan) spending.
“The SAR aims to control and rationalize the growth of fiscal spending,” says Henry Lei, suggesting that part of the savings guaranteed by the subsidy revision may go to Hengqin, specifically the construction of the International Education University Town—a project costing MOP 20 billion, of which MOP 1.7 billion is to be spent this year.
The issue of Hengqin is, in fact, a point of consensus among interviewees. All believe that the development of the Cooperation Zone will benefit from this measure. Lou Shenghua highlights Hengqin’s importance in “creating new living spaces for residents and promoting local economic diversification.” However, Chan Iek Lap insists that “the integration policy with the Greater Bay Area doesn’t have to mean cuts to social benefits,” but rather a more effective redistribution of resources, particularly in social protection, especially in healthcare. “Public services still don’t adequately cover residents between the ages of 18 and 65.” He therefore proposes the creation of a mechanism to support private health insurance, offering a viable alternative to the overburdened public system.
Revising the Social Contract
According to Henry Lei, the Pecuniary Subsidy Scheme is a “social heritage of Macau,” even though it is formally classified as a temporary and non-welfare measure. In this sense, and according to Lou Shenghua, the exclusion of some beneficiaries has been perceived as a potential breach in the social contract that has existed for the past 16 years.
It is, therefore, a measure that brings a paradigm shift in the relationship between the state and citizens. “Fulfilling a fiscal obligation to Macau becomes a prerequisite for accessing social benefits.” In this sense, the measure reconstructs the foundations of the SAR’s social contract, aligning access to public support with a logic of contributory reciprocity. If the government wanted to reduce administrative costs and adopt a more bureaucratic logic, it would have been easier to maintain a universal model. However, by opting for stricter criteria, Lou believes we are moving toward a more rigorous and selective rationalization of social policies.
