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By Joseph Li (China Daily)
Updated: 2007-11-14 07:14

Macao's Chief Executive Edmund Ho yesterday vowed to put economic development and improving people's livelihoods high on the government agenda.

During his annual address he told members of the Legislative Assembly that the government will also step up efforts to crack down on illegal labor and corruption.

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"In the coming year, the government will continue to implement various measures for the benefit of the people, further propel economic development and create a prosperous society in conjunction with all quarters of society," he said.

A tax concession package worth more than 1.1 billion patacas ($137 million) was also announced yesterday, as Macao's economy has seen huge growth over the past year.

Ho said he was happy with the continued economic growth and also that unemployment had fallen to 3.1 percent.

He said the convention and exhibitions sector had made good progress, tax income was satisfactory and the overall business environment had remained stable.

In addition, people's median wage had risen 36 percent on 2006, and bank deposits had doubled over the period.

He announced a 25 percent reduction in personal tax and an increase of the personal tax allowance from 95,000 patacas to 110,000 patacas.

On housing, he said all non-rental units will be exempt from housing tax, while rental units will enjoy a 50 percent tax reduction.

He said the housing problem was a priority for the government and vowed it will build 19,000 public housing units by the end of 2012.

To encourage first-time house buyers, Ho said they will be exempt from paying stamp duty on the first 3 million patacas of the property's value.

Addressing one of the past year's major public concerns, Ho pledged to beef up efforts to combat illegal labor and better protect local workers.

On the government's anti-corruption drive, the chief executive said: "The Commission Against Corruption of Macao will do its best ... to investigate major graft cases and attack corruption in order to ensure a clean government."

He added that the authorities will also broaden the powers of the graft-busters.

"Once we have evidence of corruption, those involved will be punished using the full power of the law, regardless of his rank," he said.

He said the government will also seek to amend the law to extend the scope of control to the private sector.

Although Ho did not mention the case directly, the former secretary for transport and public works, Ao Man-long, is on trial in the biggest corruption case in Macao's history.

(China Daily 11/14/2007 page4)