Turquoise-Coloured Budget for Hong Kong

Chan walking into LegCo to deliver his budget speech

Hong Kong Financial Secretary Paul Chan Mo-po unveiled his budget today and it reflects the tough economic climate the city is in.

Chan reported the deficit is at HK$87.2 billion for financial year 2024-45, with the aim to get Hong Kong into the black by 2028-29. Meanwhile the city's reserves continue to dwindle, from HK$734.5 billion (US$94.5 billion) to HK$647.3 billion, and is expected to decrease further to HK$580.3 billion in 2025-26. 

In order to tighten the government's belt, he announced pay freezes for civil servants and cutting some 10,000 posts. That clearly reveals a very bloated operation.

Ip wearing sunglasses and leather top

Other ways to bring in more money is to charge HK$200 instead of the current HK$120 for departure tax, allow betting on basketball games through the Hong Kong Jockey Club, and to make seniors shell out more for public transportation.

The elderly have had a great time taking advantage of the HK$2 fare on most public transit, and the government has had to subsidise the rest of the fares. But now there will be a cap on 240 trips per month, and seniors will have to pay 20 percent more on those routes costing over HK$10. 

It's controversial because it's mean to take away what was a privilege for the elderly, though 240 trips is more than reasonable.  

Chan's address clocked in at one hour and 48 minutes, and some lawmakers lost interest and looked at their smartphones.

However, it was hard to tell with Regina Ip Lau Suk-yee, who wore dark sunglasses inside the Legislative Council chamber. Lau claimed she had an eye inflammation, but she looked grumpy; she did comply with the dress code of wearing something turquoise to match the colour of the budget's cover.

Famous Macau Water Show to Return

There were lots of acrobatic stunts in the show

Macau is getting back its pre-pandemic stride with Chinese tourists flocking to the former Portuguese enclave and checking out the sights with a bit of gambling on the side. It also helps that five new hotels have opened in the last few months to house them all.

And perhaps for old times' sake -- the show The House of Dancing Water will return to City of Dreams in Macau after it effectively shut down because of the Covid-19 pandemic. During that time it had to let go of 137 performers after their blue card or work visas ran out.

One of the stars was a former ballet dancer

The House of Dancing Water was a show that featured dancing with and without water, acrobatics, dancers, really flexible African performers and even motorcycle stunts -- set in ancient China. Go figure.

The show, designed by former Cirque du Soleil director Franco Dragone, opened in 2010 and by early 2020 some 6 million people had seen it. There had been plans to tweak the show for the following year, but that was postponed indefinitely.

But now it seems there are plans to revive the show by the end of next year.

"We're just now going through the process of the remount," said David Sisk, chief operating officer of Melco Resorts. 

"We've been doing a lot of work on The House of Dancing Water theatre to get it up and ready. We just started doing our first shows there. We're doing a production right now where we're doing some musical things there on a weekly basis. And towards the middle of November, we'll get back out of that and get started back on the remount of The House of Dancing Water."

Over 6 million had watched the show over 10 yrs

Melco has to get the show on the road again -- China expects fewer Macau's resorts to offer fewer gambling -- or "gaming" activities and more entertainment.

It will be interesting to see how Melco revamps the show. The resort had just purchased the show from Dragone in 2019 and then the pandemic hit. Melco hasn't had much luck developing its own shows. In 2018 it had a car-themed one called Elekron that tanked very quickly because it solely aimed to appeal to male audiences. But even then they weren't interested.

Perhaps they will need Dragone's magic touch again?

The Day After June 4

A Porsche escorted by police as its plates have "8964" on them

This weekend in Hong Kong saw many arrests (and releases) of people testing what they could and couldn't do to commemorate June 4.

They could not hold up candles -- even unlit ones -- nor books or flowers. Not even a license plate that happens to be 8964.

Punters trying "8964" combination bets

But they can gamble.

Punters at the Sha Tin Racecourse yesterday made quartet bets using various combinations of 4, 6, 8, 9. That said there is no word on if they won or not.

But we'll take it as a win.

The other big win was today, June 5 in Hong Kong.

Bao Choy Yuk-ling, the freelance producer for RTHK's Hong Kong Connection, where she did investigative reporting on the July 21, 2019 attacks on commuters at Yuen Long Station by men in white shirts armed with long sticks. 

There was video footage of the men being transported by vans and showed the license plates. So she went to the Transport Department to trace the license plates to the owners. However, the form did not have an option for journalism or investigative purposes.

As a result the magistrate found Choy guilty of misstating her intention in obtaining the license plate information and was fined HK$6,000 (US$770). 

She appealed all the way to the Court of Final Appeal which today ruled journalism was a valid reason for her to access the official records.

Choy all smiles outside Court of Final Appeal

"The issues of falsity and knowledge were wrongly decided against the appellant because her journalistic investigation into the use of the vehicle on the dates in question did fall into the wide catchall category of 'other traffic and transport related matters'," the judgment read.

Even if it did not, it was 'not an irresistible inference that she knew that to be false," the judgment said. There was no reason that "bona fide journalism" should be excluded from the phrase," it added.

Choy had big smiles outside of the Court of Final Appeal, a stark contrast to when she was convicted in April 2021.

Before the judgment she said: "Over the last few years, we might have found that many things have disappeared quietly," Choy said. "But I believe our beliefs in our hearts can't be taken away that easily. No matter I win or lose today, the persistence [demonstrated]... is already a meaningful thing."

There to celebrate the win was former Hong Kong Journalists Association chair Sham Yee-lan who hugged Choy. 

"This is real happy Hong Kong," Sham said, referring to the current tourism campaign. 

Indeed. The courts are still defending press freedom.

It's a good day.

Macau Doubling Down on HK Tourists

When Covid first hit, Shun Tak Ferry Terminal fell silent

The buzzing of the Turbojets from Shun Tak Ferry Terminal has returned after many Covid restrictions were lifted on January 8.

Before then, for about three years the terminal was completely dead, the Turbojets docked with no where to go, and the harbourfront was nice and quiet for once. Wonder if the sea life below also enjoyed a resurgence. Were there any marine biologists taking advantage of this time to study that?

People lining up for hours for ferry tickets

In any event, business is ramping up big time in Macau, now that the former Portuguese enclave is enticing Hong Kong visitors if they buy ferry tickets to go there, stay at least one night, the return tickets are free, until March 31.

And guess what -- people are lining up for hours to take advantage of the deal (that saves them less than HK$200 or US$25.60)... 

Macau Government Tourism Office deputy director Cheng Wai-tong said Friday that he expected about 10,000 Hongkongers would visit Macau on a daily basis during the Lunar New Year period, and is hoping for the return of the daily average of 20,000 in 2019.

About 8 months ago the terminal was empty

"The more Hong Kong people visit Macau the better," he said. "This is tied to the capacity of ferries and buses, because it will take some time to restore services to pre-Covid-19 levels."

One woman reported standing in line for four hours and 45 minutes. Others grumbled about how long they had to wait in line and said they should have opened more ticket windows.

Typical Hong Kong bitching about efficiency.

Nevertheless, with Hongkongers taking advantage of the "Macau Treat" campaign, hotels are seeing a 63 percent occupancy, which is not bad to start off and considering everyone is experiencing labour shortages.

Macau was devastated by Covid-19, as it is so dependent on visitors, in particular gamblers.

Macau hopes gambling will get it back on track

Even though Beijing has laid down the law that Macau has to move away from gambling and diversify its economy, the Special Administrative Region may have to depend on Baccarat tables and other enticements just to get the city back to pre-pandemic levels.

The great procrastination has begun...

Macau's Gambling Days are Over

Pre-pandemic Macau was the top gambling hub in the world

The glory days of Macau's casinos raking in US$36 billion annually -- six times more than all of Las Vegas combined are fast evaporating thanks to the Covid-19 pandemic, and President Xi Jinping wanting the former Portuguese colony to pivot away from baccarat tables and slot machines.

And in another sign that this is happening, casino suppliers are quitting Macau for Singapore and the Philippines.

Macau has been told to pivot from gambling

Light & Wonder Inc is a leading provider of casino products and it's relocating its expat staff to the Philippines, the company's top market in Asia, while another equipment maker in Japan is moving 30 percent of its employees to the Philippines and Singapore. 

The Japanese company has also taken half of its inventory out of Macau, as its revenues have plunged 90 percent because of its prolonged slump.

Macau's casinos aren't buying any new equipment until they get licenses to continue operating at the end of the year, and without new sales, Light & Wonder is only getting limited revenues from maintenance and technical support.

Meanwhile, Macau Gaming Equipment Manufacturers Association Chairman Jay Chun said he knew of at least four multinational casino suppliers relocating manpower and resources overseas. The trend could accelerate after the government had announced a cap of 12,000 gaming machines across the city for 2023 under a new casino law. In 2019 there were 17,000 machines.

Though Macau did well for most of the pandemic -- keeping casinos open and allowing a trickle of mainlanders in -- it was hit hard this June when China suspended quarantine-free travel with Macau for more than a month. Tourist numbers were only 300 a day in July, with casino revenue only at US$49 million that month, as casinos were closed for two weeks for a lockdown.

Covid-19 has exacerbated Macau's woes

Many are worried about China-style lockdowns in Macau, which is why they are staying away from the city.

"Singapore and the Philippines are growing exponentially," Chun said. "Macau has already lost its shine."

The devastating economic blow to Macau is only going to make it even easier for China to turn the pliant city into one Beijing wants it to be. Whether it will be a success or not is another issue.

Macau Locks Down to Stamp Out Omicron

Macau shuts down its casinos this week, gaming stocks fall

From today casinos in Macau will be shut for a week in a bid to clamp down on Covid-19 Omicron infections that have spiked -- to 71 infections on Saturday. It has a total of 1,526 infections. This compares to Hong Kong's 1.271 million cases.

For Macau 71 cases is a lot considering it had zero infections for the longest time, and the random case here and there.

This is the first time since February 2020 -- when the pandemic first began -- that casinos are closed temporarily. 

All residents will face a battery of PCR tests

When news broke about the impending lockdown, gaming shares fell between 6.1 percent for SJM Holdings, founded by the late casino tycoon Stanley Ho Hung-sun, and 7 percent for Sands China, a subsidiary of Las Vegas Sands.

Schools and entertainment venues, such as bars and cinemas had already closed because of rising infections and casinos were the last to shut down.

Only those businesses deemed essential are allowed to stay open, otherwise everyone else needs to stay at home. There is no dine-in service at restaurants either. 

The word is that Beijing is not happy with its "favourite child" up until now, and may be using the pandemic as an opportunity to take down the gambling industry several notches in an attempt to make Macau less dependent on gamblers.

However, this will be a tall order as this is the only industry modern Macau has known since the 1960s when Ho won the former Portuguese colony's monopoly gambling license.

Beijing plans to minimise gambling in Macau

In the meantime, while 91 percent of Macanese residents have received two doses of the vaccine -- many of which are probably Sinovac -- the numbers are even less clear for those who have gotten boosters.

Macau is like Hong Kong in that they are both at the mercy of China when it comes to reopening borders.

But Macau only has 600,000 people and doesn't have the volume to support the economy in the long term on its own, whereas Hong Kong still seems to find money to open restaurants and shops, though not at the rate of replacing the ones that have closed.

So we will eagerly watch what happens in Macau this week to see if the lockdown works according to the "zero Covid" strategy, and how the city will be remade even further into China's image...

Lee Sworn in as New Chief Executive

Lee and Xi stand together at the HK Convention Centre

Chinese President Xi Jinping came and went, and left behind a newly anointed John Lee Ka-chiu as the next chief executive of Hong Kong.

The entire swearing-in ceremony was conducted in Mandarin -- not Lee's strong suit -- but with the world watching, or rather the domestic Chinese audience watching, he had to oblige.

So many local Hong Kong and international media were barred from attending the event, and had to reply on pool feeds for pictures and video. This ensured the narrative did not veer from the script.

Lee's swearing-in was in Mandarin

After Lee was sworn in, he gave his first speech as Chief Executive. 

He said he took on the role of Hong Kong's leader with "humility", and thanked the central government for its support, and citizens for their trust, saying he would lead his team to do their best in building an "inclusive and energetic" Hong Kong.

Optimistic words, but hardly reflect the reality. Firstly, he does not have the mandate of Hongkongers, as they cannot directly vote for their leader, and how can he be "inclusive" when he helped former chief executive Carrie Lam Cheng Yuet-ngor shut down any kind of dissent from media outlets to civil society groups and political activists?

Lee added the implementation of the national security law allowed Hong Kong to return from chaos to order, and that the electoral overhaul of the Legislative Council enabled "patriots ruling Hong Kong".

Meanwhile Xi, Lee's boss, said in his speech that the "one country, two systems" framework had proven successful so there was no reason to change it.

He described it as "a great initiative with no precedent to follow", and that it is to uphold the nation's sovereignty, security and development interests, and to maintain long-term prosperity and stability in both Hong Kong and Macau.

Lee's new cabinet is hardly social-distanced...

How are Hong Kong and nearby Macau going to achieve prosperity when China refuses to open the border with Hong Kong and Macau, and that Beijing is cracking down on gambling, the dominant source of income for the former Portuguese enclave?

"Today I wish to highlight once more that the policy of 'one country, two systems' having been tested and proved time and again, meets the fundamental interests of the country and the Chinese nation and those of Hong Kong and Macau," Xi said.

"It enjoys the full support of the more than 1.4 billion people of the motherland, it has the unanimous endorsement of Hong Kong and Macau residents, and it is widely recognised by the international community. There is no reason to change such a good system, and it must be adhered to over the long run."

Ah yes, the support of more than 1.4 billion people! They had no say on how Hong Kong is governed -- they are only told how the city is governed.

But the reasoning goes if it's been endorsed by 1.4 billion people, then "one country, two systems" must be be right, right? 

It's a pity that the British side and the Chinese side have two completely different definitions of "one country, two systems", or perhaps Beijing kept its cards really close to its chest until now?

Either way it's Hongkongers who lose. Those who want to cut their losses are taking a leap of faith to leave Hong Kong and start new lives again. Those who refuse to leave feel that departing would be a sign of giving up.