THE M3: SITES 5 &6 TIMELINE; NON-RESIDENT WORKERS; S'PORE GDP/INFLATION

The Macau Metro Monitor, May 19, 2011


 

SANDS MAY PUSH BACK COTAI SITE 5 TO 2012 Macau Daily Times

LVS COO Michael Leven said Sands China is considering opening the entire site 5 all at once, which would be in the middle of 1Q 2012.  “There are 300 workers coming out of Galaxy. They are going to the Labour Affairs Bureau and we hope to pick them up and get closer to our goal,” said Leven.  Sands China has 5,500 workers on site but will need 1,600 more.  Leven acknowledged that opening the new resort later would be “an advantage”. “It’s better to have graduated growth and at the same time it allows for the market to grow....When we finish site 6, some time in late 2012 or early 2013, there will be a two-year respite before any other resort is ready to open," Leven stressed.  “I think in the next few weeks we will be able to determine exactly when and what will open," Leven said. “By the middle of June we will make that decision.”

 

Sands China also decided to manage the hotel tower on site 5 that was supposed to be operated by Shangri-La. “We will be licensing names from two major international brands but we will manage those facilities ourselves,” he said.  “We’re in final negotiations now and we hope to announce those brands, hopefully in two weeks,” Leven disclosed.

 

Sands China is still awaiting a decision from the Court of Second Instance over an appeal of the government’s decision to reject its application for Sites 7 & 8.  Leven commented, “We are now beginning to work seriously on site 3 and our plan is to continue that work and then we will see what happens with sites 7 & 8.”


NON-RESIDENT WORKERS SOAR BY 5,600 IN 2011 Macau Daily Times

The number of non-resident workers with a work permit (blue card) has increased by 5,603 in 1Q 2011.  In March, Sands China was the biggest employer of non-resident staff with 3,075 workers at its hotel management subsidiary Venetian Cotai and 2,395 at Venetian Macau.  Galaxy came in second with 2,739 imported labour in March.  In March, the GRH received 2,688 requests for the issuance of 9,572 blue cards. Only a little over half, 5,019, were authorized.


SINGAPORE'S ECONOMY EXPECTED TO GROW BY 5-7% FOR 2011 Channel News Asia

Ministry of Trade and Industry (MTI) has revised upward the growth of the  Singapore economy from 4-6% to 5-7% for 2011. MTI attributes this to the advanced economies remaining on a path of modest recovery, particularly the US, EU, and emerging Asia.  MTI added that a tight labour market will add to business cost pressures.


MAS: INFLATION SET TO EASE FOR THE REST OF 2011 Strait Times

Inflation has probably peaked and will average between 3%-4% this year, according to Monetary Authority of Singapore (MAS) managing director Ravi Menon.  "Allowing the Singapore dollar to strengthen has had a dampening effect on inflation in Singapore, which would otherwise have been much higher," noted Mr Menon.


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