The Macao Special Administrative Region (SAR) government began on Monday to take up application forms for a 100 million-patacas (US$12 million) funding scheme to help small and medium-sized enterprises (SME) fend off the negative effect of viral pneumonia on the local economy.
The move kicked off a package of SME assistance plans, which would save thousands of firms from shutting up business.
The government has formed a seven-member panel to evaluate management status and loan payment ability of applicants for the fund, which has a per-SME loan guarantee of 200,000 patacas (US$24,000) and a repayment period of six years at maximum.
Tam Pak Yuen, Secretary for Economy and Finance, said that in addition to the funding scheme called "SME Credit Guarantee Plan, "the government has also planned to launch "Special industry SME Credit Guarantee Plan" soon, which will provide a combined financial support worth nearly 300 million patacas (US$36 million) to SMEs.
The latter will cover tax reduction and administrative cost cutin favor of SMEs in the tourist, catering, entertainment and the taxi business, which have been considered the worst hit in the disease-laden economy.
For example, the government has decided to exempt 20 percent ofthe charges on electricity beginning from June to August, slash the tourist tax and housing rental during the three months, offer free training and subsidy for employees in the tourist sector, whowere given nonpayment leave, and give 1,000 pacatas (120 US dollars) of fuel subsidy to every taxi driver, who can also apply for a 1,000-patacas interest-free loan if they have difficulties in living.
Tam said that the SAR government is also considering to enlarge this year's SME management support scheme by June, which was budgeted with a loaning capacity of 100 million patacas (US$12 million) to SMEs last year.
The government hoped that the three action plans can provide timely financial backup for the money-tight SMEs to ride through the financial difficulties in the unfavorable business environment, he said.
SMEs make up more than 90 percent of Macao's 17,000 businesses. The sector witnessed a strong growth momentum after Macao's return to the motherland in 1999. A total of 1,187 companies were established last year, hitting an annual record since 1999.
Economic insiders said that the government's SME support schemes are expected to benefit some 2,000 SMEs, which are only a small portion of the sector. The majority of SMEs, however, would have to turn to banks for loans and depend on themselves to overcome financial difficulties.
They expected that the market mood would go on the track of a recover in October, when customers on business trips or travels could start to get rid of the shadow of the disease.
(Xinhua News Agency May 20, 2003)
