Transport, Storage and Related Activities
This industry covers sea, land and air transport, storage, freight agents, travel agencies and other transport related services. GO covers the receipts from passenger and freight transport, storage and rentals from leasing equipment, commissions and other receipts; meanwhile, for travel agencies that arrange group tours, the cost of group tours should be deducted from their sales receipts.
Communications
Principal activity comprises the provision of postal, telephone, telegraph, paging, internet and other telecommunications services. GO includes mainly the receipts from communications services provided, such as telephone and internet charges, margin from the sales of goods, commissions and charges from other services rendered.
IC of the above two industries comprises expenses on leasing equipment, water and electricity charges, fuels, cost of materials, bank charges and FISIM, communications, repair and maintenance, other services such as advertising, legal services, non-labour insurance, etc. For travel agencies, tickets purchased (train, ferry and airplane) and costs of group tours are not part of IC; therefore, they should be deducted from the total receipts in GO.
Principal sources of data are the annual Transport, Storage and Communications Survey and the Travel Agencies Survey.
Section J: Financial Intermediation
Monetary Intermediation
This sector covers Monetary Authority of Macao (AMCM), banks, Postal Savings, etc.
Banking
Principal activity is the provision of financial intermediation and other financial services, such as deposit taking, credit granting, factoring, bill discounting, etc.
Banks provide financial intermediation services to the public through borrowing and lending activities. During the process, banks are required to provide certain intermediation value added services for risk management, liquidity provision, etc. that include setting up branch offices, automatic teller machines, network linkages, on-line banking, credit assessment of borrowers, channeling of funds, etc. Respective cost of such services is not collected directly from the depositors and borrowers, yet recovered indirectly through paying lower interest rate to the depositors and charging higher interest rate to the borrowers, i.e. banks collect financial intermediation service charges implicity from depositors and borrowers.
Banks are collecting financial intermediation service charges implicity. Banks have no knowledge of the market value of the services they have produced; concurrently, the customers are also unaware of the amount of charges they have paid for such services. Financial intermediation services are an important part of the GVA of the banking sector, which also constitute as the IC of other user sectors. Consequently, the SNA recommends the Reference Interest Rate for estimating FISIM. Reference interest rate refers to the pure cost of lending, which is free of risk and any financial intermediation services. In practice, the inter-bank or central bank lending rate can be chosen as the reference interest rate.
Macao adopts the Reference Interest Rate in the estimation of FISIM consumed by commercial and non-profit institutions of different industries, households, government and non-residents, as follows:
Estimation of FISIM paid by depositors to banks equals the reference interest rate less the actual interest rate on savings, multiply by the amount of savings;
Estimation of FISIM paid by borrowers to banks equals the actual interest rate on loans
less the reference interest rate, multiply by the amount of loans.
GO of banks is computed as the value of FISIM, plus other financial service charges, rental income, commissions and other income. IC includes the service charges paid to other financial institutions, rentals, expenses on communications, transportation and other services.
FISIM is an output of banks but IC of other industries. FISIM is part of private consumption expenditure of households, final consumption expenditure of the government, imports of services of importers and exports of services of exporters. It is worth mentioning that in the SNA, owner-occupiers of dwellings are considered as entrepreneurs providing accommodation services;
therefore, financial intermediation services used in housing mortgages are considered as IC instead of private consumption expenditure.
AMCM
With reference to the guidelines in the SNA 2008, estimation of GO and GVA of the AMCM are compiled using the cost approach.
Insurance activity and other auxiliary financial activities
These activities cover life and non-life insurance, pension funds, exchange counters, securities companies, insurance intermediaries, etc.
GO of insurance activity is estimated as follows:
GO = Total actual premiums received
Plus
Premium supplements (income from investment of technical reserves)Less Claims payable or indemnity paid
Less
Increase in actuarial reserves and reserves for with-profits insurance (orplus the decrease)
Plus
Net receipts of reinsurance (reinsurance premium received less reinsurance premium paid)GO of exchange counters includes the net receipts earned from the difference in exchange rates when buying and selling foreign currencies, plus the revenue from other services rendered.
GO of other companies equals the sum of honorariums, commissions and other receipts.
IC includes cost of materials consumed, commissions paid, expenses on advertising, marketing and communications, rentals paid, bank charges and FISIM, expenses on transportation and other services.
GVA is the difference between GO and IC.
In the major revision of 2015, taking into account that insurance intermediary is considered in law as an independent operating unit, commissions received by insurance intermediaries are therefore considered as their GO (under auxiliary financial activity), while at the same time regarded as the IC of insurance companies.
The principal source of data is provided by related government department; data for the estimation of FISIM are derived from the results of the quarterly and annual Survey on Interest
Income/Expense of Financial Sector conducted by the related government department, as well as
other auxiliary financial statistics.Section K: Real Estate, Renting and Business Activities
Real Estate Activities
These include real estate development, real estate agency, leasing of dwellings and real estate management, which are described as follows:
Real estate development includes services of real estate developers in the construction and sales of residential and non-residential buildings, such as financing, arranging contractors, services provided in the sales of buildings, etc., for which the return is known as real estate developers’ margin. GO equals real estate developers’ margin plus service receipts from property transaction (such as charges for transfer of property), rentals of buildings and other receipts.
Real estate developers’ margin is the difference between the receipts from sales of buildings and cost of the construction project. Project costs include cost on land, construction fees, expenses on engineering and architectural services and other expenses. However, GO does not include the margin from the resale of existing properties, as it is considered as holding gain according to the recommendations in the SNA.
As the process of construction takes time, the completion and sales of buildings may occur in different accounting periods, which results in the situation that there are construction expenses but no sales revenue in certain periods. Therefore, the compilation of real estate developers’ margin is computed from the volume of work completed, irrespective of the sales of the property. The estimate of real estate developers’ margin is thus based on the floor area completed (mostly residential buildings), cost of land and construction, data on market price of premises, etc.
Real estate agency services include intermediary and valuation services for others in the trading and leasing of real estate. GO consists of commissions received from trading and leasing
plus miscellaneous receipts.
According to the SNA, the leasing of dwellings falls within the production boundary; rental receipts belong to GO of property owner; rental expense paid by households is recorded as private consumption expenditure, or as IC if paid by enterprises. Rentals received are service receipts generated from ownership of property, which are similar in nature to the receipts from sales of goods. For enterprises leasing out owned property, rentals received are service receipts that should be included in GO of the principal activity that the enterprise engages. For the owner-occupiers of the dwellings and individuals who provide residential leasing service to others, such service is classified under “property ownership” as it does not belong to any of the above-mentioned economic activities. The actual rental received by property owner and the imputed rental of owner-occupiers are treated the same as the rental receipt of enterprises, i.e.
part of GO.
Real estate management primarily covers the provision of management services to owners of building units, with management fee being counted as the GO.
IC of real estate activities consists of the costs of materials consumed, electricity and water charges, fuels, advertising and marketing fees, communications charges, rentals paid, bank charges and FISIM, and other service charges.
Sources of data for real estate development are the annual Construction Statistics and the annual Construction Survey; for real estate management, source of data is the annual Service
Sector Survey. The actual and imputed rental receipts of households are compiled according to
the results of the HBS, floor area of occupied dwellings and data from Rent Survey.Business Activities
Renting includes leasing of transport equipment, machinery and equipment, and other goods. Business services consist of legal, accounting and auditing, secretarial, data processing,
engineering and architectural, and other consultancy services, advertising, renting of machinery and equipment, and auxiliary services of offshore companies.
GO is the sum of honorariums, commissions and other receipts (such as rentals received from buildings, machinery and equipment). GO considers only net receipts, i.e. gross receipts less amount paid to others on behalf of clients.
IC includes cost of materials consumed, electricity and water charges, advertising and marketing fees, communications, rentals, bank charges and FISIM, expenses on transportation and other services. GVA is the difference between GO and IC.
Principal source of data originates from the results of the annual economic activity surveys.
Section L: Public Administration
This sector includes the activities of public institutions, such as legislative, judicial, public security and order organs, Municipal Affairs Bureau, as well as other bureaux that are responsible for education, health, social welfare and social assistance, housing, community development, other collective and social services.
Public institution is a non-market producer providing services to the citizens free of charge or at non-market prices; therefore, GVA equals compensation of civil servants, in cash or in kind, plus government’s contribution to social security, rentals of civil servants and consumption of fixed capital.
IC of public institution is the purchase of goods and services for own use; GO is the sum of GVA and IC.
Source of data is the government accounts and the Public Sector Accounts compiled according to guidelines of the United Nations.
Section M: Education
Education institutions are subdivided into public and private institutions. When classified by the types of education service, this activity includes higher education (the University of Macau, the Macau University of Science and Technology, the City University of Macau, the University of Saint Joseph, the Macao Polytechnic Institute and the Institute for Tourism Studies), primary and secondary education, kindergarten, adult education, special education, driving schools, tutorial centres, etc.
Estimates of GVA vary with the profit making or non-profit making nature of the institution.
Government schools (of pre-primary, primary and secondary education), the University of Macau, the Macao Polytechnic Institute, the Institute for Tourism Studies, the majority of the private primary and secondary schools and schools of special education are non-profit institutions;
therefore, GVA equals remuneration and subsidies of employees plus consumption of fixed capital;
IC is the purchase of goods and services for own use and GO equals the sum of GVA and IC.
However, some private institutions of higher education, driving schools, adult education, tutorial centres, etc. are profit making; therefore, GO equals the sum of tuition fees and other receipts; IC is the purchase of goods and services and GVA is the difference between GO and IC.
Principal sources of data are the accounts of educational institutions provided by related government units, government accounts, social and demographic statistical indicators, etc.
Section N: Health and Social Work
Health
This activitiy includes services provided by public and private hospitals, health centres, clinics, medical laboratories, nursing, massage, acupuncture and other similar activities. For public and private non-profit establishments, GVA is the remuneration and subsidies of employees plus consumption of fixed capital; IC is the purchase of goods and services and GO equals the sum of GVA and IC.
For private profit-making establishments, GO equals service receipts from the provision of medical consultations and treatments, resale of medicine and other receipts; IC is the purchase of goods and services for daily use, plus other expenses (on minor maintenance and repairs, cleaning, etc.). GVA is the difference between GO and IC.
Principal sources of data are Health Statistics and accounts of related government units.
Social Work
This activity includes services provided by humanitarian and social assistance agencies, such as crèches, establishments serving the elderly, and establishments providing services to the mentally illed, the mentally handicapped, the blind, the deaf, the drug-addicts, etc. Besides the government-operated institutions that provide social work services, other privately-run institutions are mainly non-profit-oriented.
Principal source of data on government-operated institutions is the accounts of related government units. For private instiutions, sources of data are primarily the results of the 2012/2013
HBS and the government subsidies.
Section O: Other Community, Social and Personal Services
Sanitary, Cleaning and Similar Activities
These activities include the collection and incineration of garbage, and sewage collection and purification. GO equals service receipts plus other receipts. IC is sum of the purchase of goods and services for daily use and other expenses; GVA is the difference between GO and IC. Source of data is the annual Industrial Survey.
Activities of Membership Organizations n.e.c.
These activities include economic associations, professional organizations, employers’
associations, workers’ associations and those providing collective services (e.g. churches, temples, etc.), which are mostly non-profit making organizations.
In the absence of sufficient data, GO, IC and GVA are estimated from the amount of subsidies that the government granted to local non-profit making associations. Principal source of data is the government accounts.
Recreational, Cultural and Sports Activities
Gaming and Junket Promoter Activities
Gaming, a leading industry of Macao, is an important component of GDP and a significant source of public revenues. It includes six gaming enterprises, activities of lotteries, dog and horse racing, and junket promoters. GVA of the industry is the sum of the GVA of the above mentioned activities.
GO of gaming enterprises, lotteries, dog and horse racing equals gross gaming receipts
minus cash rebates and complimentary services to gamblers, plus other receipts. IC includes
commissions paid to gaming junket promoters and operating expenses (e.g. marterials for own use, electricity and water charges, fuels, repair and maintenance expense, rentals, insurance fees, bank charges, expenses on marketing and advertising, transportation and other services). GVA is the difference between GO and IC. Principal sources of data are the Gaming Sector Survey, accounts of gaming enterprises and administrative records from the government.GO of junket promoters includes: (1) service fees received by junket promoters by referring VIP customers to gaming enterprises, (2) receipts for providing gaming-related facilities and gaming-related general management services to the gaming enterprises under the Service Agreement, and (3) other income. IC equals to the purchase of goods and services for daily consumption, plus other expenses; and GVA is the difference between GO and IC. Principal sources of data are the Gaming Sector Survey, administrative records and accounts of selected junket promoters, with references to the opinions and evaluations of the professionals and specialists in the industry.
Other recreational, Cultural and Sports Activities
These actitvities includes cinema, theatre, radio, television and other related activities; news agencies, libraries, archives, museums, botanical and zoological gardens, and other cultural
activities n.e.c., sports activities; lotteries and other gaming activiites, and other recreational activities n.e.c. GO equals to the sum of the service income and other reciepts for profit-making establishments, while it is based on cost approach for non-profit making establishments.
For cinema, theatre, radio and television, sources of data are the Cinema Survey, the Radio
and TV Station Survey, the HBS and the accounts of television station. For nightclubs, karaokes,
discos and similar establishments, souces of data are the HBS, government administrative data and CPI of related services.For public libraries, archives, museums, botanical and zoological gardens and other cultural activities, the principal source of data is the government accounts, while no estimate is made for the privately-run actitivites due to their insignificant share .
Other recreation activities include sports facilities, billiards, swimming pools, renting of sports and other recreational equipment, electronic games and other entertainment. Principal source of data is the HBS.
Other Services
Includes washing and dry-cleaning of clothing and leather goods; hairdressing and grooming services, funeral agents, saunas and other personal services. Principal sources of data on GO, IC and GVA are the HBS, tourism statistics, government administrative data, CPI of the respective services and other statistical indicators.
Section P: Households with Employed Persons
Domestic personnel includes domestic helper, cook, laundress, gardener, butler, chauffeur, personal secretary, baby-sitter, guard, etc. employed on a fee or contract basis. Principal sources of data are the espenses on domestic workers from the HBS, median employment earnings of domestic workers from the Employment Survey and administrative data on the number of non-resident domestic workers.
Volume measures of GVA
With the exception of Public Administration, double indicators are used to estimate volume measures of GVA. Volume measures of GO and IC are first calculated, with the difference between the two regarded as volume measure of GVA. Public Administration uses single indicator, GVA is deflated directly by the salary index of civil servants.
Volume measures of GO and IC can be derived by two methods: deflation with a price index or extrapolation with a volume index.
Deflation with a price index is used for the volume measures of GVA of most activities, which can be expressed as the following formula:
Volume measure of GVA
= Volume measures of GO – volume measures of IC
= (GO at current prices / price index) – (IC at current prices / price index)
= Volume measure of GVA
For a few activities such as those of non-profit education, health, social work, etc., extrapolation with volume indicators is employed due to the missing of relevant price for GO, which is expressed as the following formula:
Volume measure of GVA
= Volume measures of GO – volume measure of IC
= GO at current prices of preceding year * volume index – (IC at current prices / price index)
= Volume measure of GVA
Price Indices / Volume Indices for GO, IC and GVA of Activities Activities at aggregated and sub levels Price indices / Volume indices Mining
GO Price index of aggregates in the price index of construction materials
IC Price index of raw materials calculated from the import data of External Merchandise
Trade Statistics; the price indices of
sub-items in the Composite CPI.Manufacturing
GO Manufacture of Textiles and Wearing Apparel
adopts the unit value index for exports of textiles. Manufacture of Food Products and Beverages applies the price index for food and non-alcoholic beverages in the Composite CPI. Manufacture of other products applies the unit value index for exports of non-textiles.
IC Unit value indices for imports of raw materials and semi-manufactures in different manufacturing activities obtained from
External Merchandise Trade Statistics; price
indices of sub-items in the Composite CPI.Water, Electricity and Gas production
GO Electricity: Local production is extrapolated by using industrial production index; import of electricity involves the purchase and sales value, with the import price index of electricity being applied on the purchase value, while the price index for sales of electricity applied on the sales value.
Gas production: import price index of natural