Under the Pandemic, Fewer Construction Projects Makes it Difficult for Local Construction Companies
【Macau Daily News】The pandemic has slowed down the pace of development for investors, leading to a sudden decrease in the number of private projects and large-scale construction projects in Macau. Some in the construction industry have indicated that the industry is gradually adjusting its business strategies to reduce losses. However, the living space for local companies in Macau is becoming increasingly narrow. They hope that in the future, the government's construction projects can allow local companies to participate, and they also hope that Chinese-funded companies can cooperate in a "Large-leads-small" manner.
Adjusting Strategies to Alleviate Losses
Lai Meng San, the CEO of Lai Si Construction, noted that many construction companies in Macau have recently posted losses, indicating that the industry is facing difficulties due to the pandemic. In fact, in the first two years of the pandemic, many projects were suddenly reduced, and some companies even experienced bad debts, leading to serious losses. However, as the pandemic
gradually stabilizes, the industry is adjusting its business strategies, and the situation of losses has eased.
He mentioned that there are still not many private projects in Macau this year, because business projects have decreased, and most of the government projects are undertaken by Chinese-funded companies. As a result, the living space for local companies has become increasingly narrow in recent years. There is no guarantee that they will have projects to work on next year.
Not Necessarily Involved in Large Scale Construction Projects
Although Macau's gaming industry is undergoing a new round of bidding, it is estimated that there will not be many private projects in Macau in the next two years. This is because many people still lack of confidence in the Macau gaming industry and are concerned about its prospects. Therefore, the number of investment projects of successful bidders is expected to decrease, and they may not dare to make large-scale investments. In this tiny Macau market, it is difficult for the industry to find work as expected. Looking back at the early development of Avenida da Amizade, business enterprises actively invested in new private projects, driving the entire construction industry to flourish. However, under the pandemic, private projects have decreased, and even though government projects have increased, local companies have unfortunately not been able to take advantage of them.
Development is Limited Only Hengqin
As for whether to consider expanding outside of Macau, he frankly stated that when the development space in Macau is limited and business growth is difficult, they can only try to venture out, especially for listed companies. However, if they choose to develop in the north, they will face more competition from Chinese-funded companies, and Macau companies will be limited to participating in construction projects in Hengqin due to qualifications. If they choose overseas markets, they can only rely on familiar customers. Therefore, it is predicted that the industry will still face difficulties in the next year or two, and at this stage, they can only wait and hope for Macau's economy to recover before the industry can improve."