“Collaboration with Small and Medium Size Enterprises” Forum
Organized by Macao Polytechnic Institute and hosted by MGM, with gracious support from the Liaison Office of the Central People’s Government in the Macao SAR, the Forum on “Macao Integrated Tourism and Leisure Enterprises and Corporate Social Responsibility” was successfully held at 3 p.m. on 9 August 2016 at MGM. The theme of this forum was “Collaboration with local small and medium size enterprises”. Participating organizations that also spoke at the forum included (based on the order of their presentation): MGM, Sands China Ltd., Galaxy Entertainment Group, Wynn Macau Ltd, Melco Crown Entertainment, Sociedade de Jogos de Macau S.A., and Macao Federation of Trade Unions.
As over 90% of registered enterprises in Macao belong to small and medium size, they have played a critical role in boosting Macao’s economic development and creating numerous job opportunities. Collaborating with SMEs is conducive to orienting Macao’s economic structure towards moderate diversification; meanwhile, it will help to improve the overall economic performance of Macao’s economy and will raise the living standard of local citizens to a large extent. In view of this, the Macao SAR government has spared no efforts to facilitate a healthy development for local SMEs by implementing successively a series of favorable incentive schemes, such as SME Credit Guarantee Scheme, SME Aid Scheme, Incubating Schemes for Youth Start-ups and Innovation.
As the pillars of local economy in Macao, integrated tourism and leisure enterprises not only strive to show their support to the government by aligning their own initiatives with relevant government policies; and to collaborate with such organizations as the Macao Chamber of Commerce, the Macao Productivity and Technology Transfer Center, the Incubating Center for Youth Star-ups etc, while launching a whole array of favorable measures to assist SMEs in their development. During the Forum, representatives from participating organizations have mainly illustrated their own initiatives related to SMEs, and shared their individual cases of working with different SMEs. These have offered the audience with an in-depth understanding of the impact brought by collaboration between integrated tourism and leisure enterprises and local SMEs. These integrated tourism and leisure enterprises have thus not only created golden business opportunities for local SMEs, but also help them to accumulate valuable experience that can further enhance their competitiveness.
MGM has consistently invested in the development of local SMEs with over 80% of the Company’s products and services supply coming from local SMEs since its opening, which totals the procurement amount at MOP 23.3billion. In November 2015, MGM established the MGM SME Committee, which was composed of prominent local business leaders from different sectors, to share suggestions and information aimed at broadening MGM’s relationships with local SMEs, while building a platform for further collaboration as MGM shares its business development plans and needs on a regular basis. The Company has also hosted a series of Business Matching Sessions, Food Safety Seminar, and provided a platform to showcase local creative industries, young entrepreneurs and Micro SMEs to residents and tourists through its Christmas Market. Between November 2015 and July 2016, a total of 568 local SME vendors have successfully registered as MGM’s new suppliers, of which 255 have been extended a tender, and 145 vendors have entered cooperation with the Company in 1,388 successful cases, with a procurement amount of more than MOP 35milion. Among them, 67% are of Micro SMEs, 26% of young entrepreneurs and 7% of Made-in-Macau enterprises. MGM remains highly attentive to the sustainable development of local SMEs, and has taken the initiative to help SMEs increase competitiveness to an international standard and bring local products to the world, by referring high quality local products to MGM Resorts International, based in the United States.
Sands China Ltd. has long been committed to the principle of ‘procuring locally’, aiming to grow and develop together with local suppliers in Macao. Among its MOP18 billion of total operational procurement in 2015, 80% were purchased locally, amounting to MOP14.2 billion. To further expand its scale of local procurement, China Sands Ltd. initiated a partnership with the Macao Chamber of Commerce in July 2015 to launch a collaboration plan regarding local procurement, in which three groups of local Macao enterprises were designated as suppliers, namely Micro SMEs, Made-in-Macao enterprises and Macao youth entrepreneurs. Meanwhile, it further expanded local procurement to a record high of 353 projects in April this year. In addition, China Sands Ltd. strives to implement its strategies in relationship management with suppliers through launching such measures as drafting the Code of Conduct for Suppliers, Procurement Stratification and Categorization strategies, Quality Evaluation of Service by suppliers, local procurement collaboration projects, management of supplier quality and sustainability, as well as organizing annual supplier award ceremonies to form strategic partnerships with SMEs to reach the ultimate goal of creating a win-win situation for both sides. In particular, these annual supplier award ceremonies adopt multiple criteria such as corporate innovation, quality management, project management, supreme service, cost control and corporate culture etc to evaluate and to award top-performing suppliers, with a view to stimulating local SMEs to achieve continued excellence in a sustainable manner.
The Galaxy Entertainment Group has implemented a series of effective measures in its procurement process to proactively assist local enterprises and SMEs. In the process of identifying suppliers for selecting foods, facilities, renovation and maintenance projects, local SMEs will enjoy top priority as targets for collaborative partners. During the 2014/2015 fiscal year, Galaxy Entertainment has purchased over 90% of its procured products from local enterprises. Take its catering service as an example, over 85% of its procurement came from local suppliers of SMEs. Furthermore, the procurement development of Galaxy Entertainment also designed tailor-made development schemes for qualified suppliers so as to assist their business expansion and to launch collaboration projects, as well as providing business matching, consultancy and training, qualifications assessment, thus assisting SMEs to develop in a sustainable manner that is essential for achieving a win-win situation for both sides. As a pioneer among local gaming operators to form collaborative partnerships with many SMEs, Galaxy Entertainment focused on highlighting its flagship Broadway Food Street within its ‘Macau Broadway™’ project, in the hope to share its financial results with F&B and retail-oriented SMEs under the principle of ‘big enterprises taking lead for small enterprises’, so as to create venues for further cooperation and to create business opportunities.
Wynn Macau has been partnering with local SMEs since before its opening in 2006. As such it is expected that the opening of Wynn Palace will further facilitate the development of different business sectors, bringing more business opportunities to local companies. Through the Local SME Procurement Partnership Program, Wynn has been providing a list of procurement items in 36 categories and organizing quarterly business matching sessions. In just three months, from the first business matching session hosted in April up until June, the company has successfully closed new deals, valued at MOP 68 million, with more than 200 local SMEs. Also this year, Wynn organized a “Procurement Platform Mobile App Design Competition” with an aim of fostering the growth of local technological innovations whilst encouraging young entrepreneurs’ business success. All of the winners of the competition were part of local MSMEs (Micro, Small and Medium-sized Enterprises). The procurement platform will allow local SMEs to conveniently access opportunities presented by larger corporations and will be opened to the public free of charge, representing a collaborative effort to promote mutually beneficial business partnerships among local companies. In addition, Wynn Macau has also been organizing a series of workshops entitled “Creating Startup Success”, aiming to facilitate the business growth of local SMEs.
The collaboration projects with SMEs initiated by Melco Crown Entertainment are based on its strong conviction in corporate social responsibilities epitomized under the vision of “Joining hands to advance and to win together”. The goals of these projects are to increase local procurement amount, increase the number of local SMEs as collaborative partners, to assist these SMEs to upgrade their professionalism and competitiveness, and to form long-term strategic partnerships to create business opportunities to develop together. The procurement policies of Melco Crown Entertainment have unequivocally stipulated that, when considering suppliers of products, even under the condition of equal quality, prices and other conditions, first priority should be given to local SMEs. Melco Crown Entertainment recently launched a brand-new “Meeting with Suppliers”, so as to help local SMEs to get a clear understanding of the whole procuring procedure of business areas that they specialize in, with a view to creating business opportunities. These valuable encounters with suppliers are regularly organized by Melco Crown in its subsidiary-owned properties, with the ultimate goal of providing tailor-made opportunities for local small and medium-sized suppliers of various businesses and services to illustrate and showcase to them the whole procedure of procurement ranging from collecting goods, warehouse storage, to goods procurement and service utilization.
Sociedade de Jogos de Macau S.A.(SJM) strives to provide assistance to local SMEs in Macao, with a view to creating more job opportunities to local residents and optimizing their mode of living, thus achieving harmony among different social classes and providing multiple choices for visitors to Macao and to help them retain some collective memories of Macao’s history. SJM has implemented the policy of purchasing over 80% of total procurement from local SMEs. Meanwhile, it has also adopted multiple measures to support local SMEs, such as using the Kam Pek Community Center to promote cultural and entertainment activities to SMEs, procuring products and services from local SMEs as first priority, providing corporate training needed by some SMEs, reducing or waiving their rentals, arranging reasonable terms of payment etc to help these local SMEs to improve their financial status. SJM recently launched collaborative projects with local SMEs, which have brought many business opportunities for them. The recently launched collaborative project by SJM has not just significantly expanded its supplier network, thus successfully executing its corporate mission of “Taking from local communities, and returning to the local communities”. Specific measures included establishment of consultancy platforms and matching sites, optimizing procurement procedures etc. This project targets at assisting small and mini-scale enterprises, Made in Macao enterprises, youth start-ups, with a view to deepening supports to local SMEs and to forging a healthy and sustained partnership with them.
The representative from the Macao Federation of Trade Unions pointed out during his speech delivered at the Forum that Macao is currently ushering into an economic adjustment period that is epitomized in the speedy transformation of its industry towards diversification. The Macao SAR government has adopted many measures to change its monotonous economic structure, pushing its economy towards moderate diversification, by incorporating the strategic goal of “Building the World’s Tourism and Leisure Center”, embarking on researching and formulation of “A Blueprint for Macao’s Tourism Development”. Local SMEs occupy a significant place in orienting Macao’s economy towards moderate diversification, thus boosting its steady development. The Federation holds the view that these collaborative projects launched by integrated tourism and leisure enterprises with local SMEs can complement many policies and initiatives launched by the SAR government. It is also believed that with the launching of many large-scale integrated investment projects in the Cotai areas soon, more and more business opportunities will be created for local enterprises.
Dr. Zhou Jinquan, Associate Professor of the Gaming Teaching and Research Center of Macao Polytechnic Institute proposed the perspective on SME related measures through Stakeholder’s theory, Corporate Ecology theory and Supply Chain theory. He concluded the forum with the proposition of Enterprise Assistance Program which is a systematic consolidation of SME support measures.
Since April this year, the series of forums organized by Macao Polytechnic Institute have aroused great interest among local communities. Following this second forum on “Collaboration with Small and Medium-sized Enterprises” hosted by MGM, local integrated tourism and leisure enterprises will take turns to host similar forums to build interactive dialogues in the industry, so that local residents and visitors will have a fuller understanding of the work related to corporate social responsibilities implemented by local integrated tourism and leisure enterprises and the effects they have brought about, thus orienting Macao’s economy towards moderate diversification, and contributing to development of local communities and its charity endeavors.
