Presentation on theme: "Presentation Outline Overview of Fiji; economic & financial fundamentals Role & Functions of the Fiji Islands Trade & Investment Bureau (FTIB) FTIB’s."— Presentation transcript:
0 Winning FDI Through Effective Investment Facilitation December 2-4, Sydney, AustraliaWhy Good Facilitation MattersGood morning/afternoon Ladies and Gentlemen, fellow friends from the Investment Promotion Agencies.It is a pleasure for Fiji to be here today. I take this opportunity to firstly thank the organisers for kind invitation to participate at the forum and to present to you investment facilitation works undertaken by FTIB.The FTIB is the Government of Fiji’s key trade and investment marketing agency and in addition to explaining what we do, I will discuss some of FTIB’s strategies, why it is important to facilitate projects and FTIB’s role in facilitating investment projects.Mr. Ravunivadra Uluilakeba – Chief Executive OfficerFiji Islands Trade & Investment Bureau
1 Presentation OutlineOverview of Fiji; economic & financial fundamentalsRole & Functions of the Fiji Islands Trade & Investment Bureau (FTIB)FTIB’s PolicyFTIB’s IPI Performance ResultsStrategies – Effective FacilitationHow Effective Facilitation contributes to the economyWhy Facilitate investment projectsWay ForwardJust going through a brief overview of the presentation:My presentation will cover a quick overview of Fiji;We will then look at Fiji’s economic & financial fundamentals;The Role & Functions of FTIB;We will look at FTIB’s strategies and how we deliver such strategies;Then we will look at how FTIB organises its operations and resources to ensure investor facilitation is not neglected so that investment targets are achieved;Why FTIB focuses more towards project facilitation; andThen will conclude my presentation highlighting reasons why good facilitation matters.
2 Overview of FijiFiji is an archipelago of around 330 islands in the South Pacific approx. 2,700 kms East of AustraliaBritish Crown Colony (October 1970 – Independence)Fiji’s population at 827,900 (Census 2007) :57% Indigenous Fijians,38% Indo-Fijians; and5% Chinese, Pacific Islanders and foreign residents.The business language is English.Middle income country - US$3,343.7 per capita income in 2008Main sectors of the Fiji economy/sources of foreign exchange:Tourism;Textiles, Clothing & Footwear;Agriculture, Forestry & Fisheries;Mineral water.Main trading partners are Australia, NZ, the US, Japan and the EurozoneWell educated workforce - Literacy rate of 93.7%Fiji is an archipelago of around 330 islands in the South Pacific approx. 2,700 kms East of AustraliaFiji became a British Crown Colony in 1874 and an independent sovereign nation in OctOur 2007 National Census estimates Fiji’s population at around 827,900, with 57% indigenous Fijians, 38% Indo-Fijians and 5% made up of Chinese, Pacific Islanders and others. Fiji’s official languages are English, Fijian and Hindustani, with English being generally used in Government, business and trade and in the education system.Fiji is a middle income country, with a per capita income of US$3,343.7 in 2008.The main sectors of the Fiji economy and principal sources of foreign exchange earnings are tourism; sugar; textiles, clothing & footwear; agriculture, forestry & fisheries and mineral water.Fiji's main trading partners are Australia, New Zealand, the US, Japan and the EurozoneFiji has a highly educated population with a literacy rate of 93.7%.GDP per capita (2008): F$5, FJD/USD (End 2008): [=US$3,343.7]4
3 Fiji’s Exports to Major Markets 2006-2009 Overview of Fiji….cont’dFiji’s Exports to Major MarketsLooking at export trends over the past 3 years of Fiji’s main export markets of Aust, NZ, US, UK and Japan :We see generally stable export levels from 2008 to 2009 with quite substantial growth to the Australia, NZ and Japan.8Currency peg : F$1.00 = USD (5 July 2010)Source: Fiji Islands Bureau of Statistics 2009
4 Foreign Investment Projects Registered 2006 – 2009 Overview of Fiji….cont’dForeign Investment Projects Registered 2006 – 2009I’d like to share with you some data on foreign investment projects registered in Fiji.From the graph we can see that the four main sectors that have achieved significant aggregate growth in registered foreign investment are tourism, services (education, real estate, financial intermediation, electric gas & water supply, transport storage& communication), manufacturing, resource based projects, and others (construction, mining &quarrying, wholesale & retail trade.10Currency peg : F$1.00 = USD (5 July 2010)
5 Role & Functions of FTIB Created in 1980: Marketing Arm of GovernmentKey functionsPromoting;Facilitating; &Stimulating Investment & ExportsMaking potential investors aware FTIB will help get their project going / incentives available, etcLet us now focus on FTIB and exactly what we do in terms of export & investment promotion and facilitation investment projects.FTIB is a statutory body, formally created in 1980 as the Marketing Arm of Government, responsible for promoting, facilitating and stimulating investment and exports.Our export & investment development and promotion role includes market research, organising seminars, industry consultations; road shows; one-to-one meetings; business match making via joint ventures; assisting investors; arranging trade & investment missions abroad.As a core function, FTIB is the first point of contact for all foreign investors where we register your projects and issue Foreign Investment Registration Certificates (FIRC). [This is the first stop for a foreign investor: they must obtain this FIRC before doing any business whatsoever, or even obtaining other approvals that may be required].We also facilitate investments by providing assistance to investors to obtain permits/licenses/approvals from other approval agencies, depending on the nature of their project, will be required to obtain while trying to get their project implemented.At FTIB, we have a “Case-Based” approach whereby FTIB officers are specifically assigned sectors under which they are tasked to help investors in whatever way possible, particularly to help them obtain whatever approvals necessary to get their projects going.
6 Investment PolicyNon-discrimination of foreign investors on grounds of nationalityInvestors are protected regarding acquisition of propertyEasy repatriation of profits; facilitated by Reserve Bank of FijiFiji Government highly supportive of exports/investment 2010 National Budget; 2009 DevaluationForeign Investment Access Foreign Investment (Amendment) Act 2004Exceptional to Fishing business; almost all investment areas can be fully foreign ownedI would now like to point out a few important points regarding investment in Fiji. Fiji’s investment policy is non-discriminatory.Investment of foreigners are fully protected.Profits are easily repatriatedInvestment projects in all sectors / activities, except fisheries, can be fully foreign ownedThe Fiji Government is highly supportive of exports and investment, shown by the many tax and other incentives announced in the National Budget and the devaluation which supports exports and investment.Various financial/assistance schemes are also in place to assist exporters- Export Fund Facility (EFF), Import Substitution Program by the Reserve Bank of Fiji.13
10 Short listing Key Investment Factors Fiji is a regional and global hub.Offering a package of trade and investment incentives - duty concessions, investment allowances, tax exemption and tax free regions;Low Corporate Tax Rate of 28%;A Government which welcomes and supports local and foreign investment, within its overall objectives of growing the various sectors of Fiji’s economy;State of the art telecommunication infrastructure;A well developed infrastructure, including electricity, water supply and internal communications.Availability of land at reasonable rates for factory and building construction.Well developed banking and financial institutions providing full financial services.Point 1- Fiji is the centre of trading in the South Pacific for the South Pacific-Asia region. Fiji is not only the centre of trade, but has transformed into a hub for global communications and transportation (shipping and air travel) routes.Point 4- A Government which welcomes and supports local and foreign investment, within its overall objectives of growing the various sectors of Fiji’s economy and enticing new, and retaining existing, investors by providing them with tax and other incentives to boost their businesses.Point 5- State of the art telecommunication infrastructure that provides links through fibre optic cable connections to the rest of the world
11 Short listing Key Investment Factors ….cont’d Fast registration of foreign investment projects.Well educated workforce with a literacy rate of 93.7%.Good health and medical facilities including a modern private hospital and medical centres.Fiji is signatory to various trade agreements, frameworks and memorandum of agreements:This allows for better market access and provides a conducive investment climate and opportunities with other countries. The trade agreements are as follows:Bilateral Trade AgreementsRegional Trade AgreementsMulti-lateral Trade Agreements Framework AgreementFiji has established Memorandum of Agreements with India and ChinaBilateral Trade Agreements - The non-reciprocal bilateral agreements that Fiji had with Tonga, Vanuatu, Papua New Guinea, and Cook Islands have expired, however, Fiji is undertaking national consultations with Pacific Island Countries - such as the Cook Islands - to renegotiate bilateral agreement(s). Fiji is also negotiating a renewed non-reciprocal bilateral trade agreement with Tuvalu.Regional Trade Agreements which includes the Melanesian Spearhead Group (MSG) Trade Agreement with PNG, Vanuatu and Solomon Islands; South Pacific Regional Trade & Economic Cooperation Agreement [SPARTECA]; Pacific Island Countries Trade Agreement [PICTA];Multi-lateral Trade Agreements where Fiji is signatory and member of the World Trade Organisation (WTO), since 14 January 1996.Framework Agreement which includes the Fiji-Australia Trade and Economic Cooperation Agreement [FATERA]; Pacific Agreement on Closer Economic Relations [PACER]:Fiji has established Memorandum of Agreements with India and China - The bilateral agreement on agriculture was signed with China in August In addition, to promote collaboration in the field of transport infrastructure development and civil aviation, a Memorandum of Understanding (MOU) was later signed between Fiji and China in Additionally, a Memorandum of Understanding (MOU) was signed between India and Fiji in 2005 and the two countries had agreed to reactivate the MOU in late Under this MOU, India had made a commitment to assist Fiji in developing the ICT industry in Fiji
12 FTIB’s Strategies: FTIB implements Government policies We encourage investors to abide by Fiji’s laws and to take advantage of the incentives available to themFTIB promotes a pro-investor environment amongst Government agencies; encouraging foreign investors to remain in the country and continue to inject foreign income in the economyInternal system in place – Customer Relationship Management (CRM)Commitment of approximated timeline to investors in regard to responsiveness of services by FTIB – Proactive mode both in the Website and other mode of communicationThe Bureau plays the key role in supporting investment in the country.CRM Database: FTIB has developed the CRM database where by all enquiries are logged into the system and enquiries are then allocated to respective officers to respond to. Sector officers facilitate these enquiries from the start till the end. Managers supervise such enquiries and see that timely facilitation/assistance is being provided to the investor.Website: FTIB has done a re-vamp of its website mid this year. FTIB website is very up to date and informative, which has website links of other Investment Approving Agencies. If investors require detailed information about a particular subject; FTIB’s website directs them to links of other websites. When ever there are any significant changes, it is updated immediately but overall the website is updated yearly.
13 FTIB’s Strategies (Effective Facilitation) Assigning FTIB Officers as:- respective investment sector officers- desk officers by different countriesPreviously FTIB Main Office & 1 Regional office At present FTIBMain Office & 2 Regional OfficesDrive for Multi-Lingo information in website and web-friendly structure with inclusion of downloadable optionsSector Information development – implementation of case studies and comparison statisticsShow Business Case, Case Studies/testimonies from investors to support Contact Information on website.As I had earlier on mentioned in my previous slide that in order to facilitate projects; FTIB has a “Case-Based” approach whereby FTIB officers are specifically assigned sectors under which they are tasked to help investors in whatever way possible, particularly to help them obtain whatever approvals necessary to get their projects going. Further, FTIB officers have been allocated different countries i.e. when attending enquiries being received from a particular country.In order to implement Government’s strategies; FTIB had established another regional office to focus on assisting investors, as well as a stronger shift towards “stepping up” the facilitation role within the whole of FTIB.On behalf of investors, FTIB facilitates stakeholder meetings between the investors and respective Investment Approving Agencies. Issues/matters are discussed during such forums and investors are made aware what things are being expected from them.FTIB arranges ‘round table’ meetings for investors from overseas who are at their initial stage of exploring and obtaining crucial information on doing business in Fiji. Respective Government department officials are invited to participate in these meetings and provide assistance/information to investors. Hence, this saves time and resources. Furthermore, investor queries/questions are attended on the spot.
14 How Effective Facilitation contributes to the economy Facilitation encourages investors to go through with their planned investment and increases the chances of a project getting implemented, thus:Increases the level of foreign remittances into the country;Encourages local and foreign partnership at the private and public sector level (through joint ventures).Increases competitiveness in the private sector and brings in a wider range of products for the local consumers to enjoy.Utilizes Fiji’s untapped resources where local investment is not able to develop.Increases employment opportunities in the countryIncrease level of income earned, which will increase consumer expenditure and therefore contribute to the Gross Domestic Product of the economy.Facilitation encourages investors to go through with their planned investment and increases the chances of a project getting implemented, thus:Increases the level of foreign remittances into the country;Encourages local and foreign partnership at the private and public sector level (through joint ventures).Increases competitiveness in the private sector and brings in a wider range of products for the local consumers to enjoy.Utilizes Fiji’s untapped resources where local investment is not able to develop (Fiji Water, Laucala Island).Increases employment opportunities in the countryIncrease level of income earned, which will increase consumer expenditure and therefore contribute to the Gross Domestic Product of the economy.
15 Why Facilitate Investment Projects Ensure Government’s goals are achieved according to the National Strategic PlanIncrease implementation rate of projects – economic growth, employment creation, etcEase of implementing projects by investorsInvestor friendly environmentEncourage joint venturesInvestment is an important component of an economy and is driving economic growth.As an investment agency, we ensure that the Government’s policies gets implemented as set out in the Foreign Investment Act and Regulations.To increase the likelihood of investors implementing their registered projects. To support investors in the implementation of their projects by following up on applications for licenses, liaising with government departments on reasons causing delays in approvals or registrations and so forth. When projects gets implemented, the economy as a whole benefits and local employment is generated.Provide relevant & adequate information to direct investors in the right direction so investors can obtain relevant approvals/licences/permits from the various Investment Approving AgenciesTo ensure that Fiji provides an accommodating environment for all foreign investors willing to contribute to the economy.Encourage foreign investors to establish healthy relationships with locals and encourage partnerships, training and employment in the country.
16 Case Studies – Successful Agriculture Projects NameRegistration DateImplementation DateTotal InvestmentEmploymentBio Fuels International Ltd23 April 2009The project is still in preparatory stage$250,000 in fixed assets, $727, FJD in funds6 -full time35- seasonalFresh Fruit Fiji Limited21 March 2007Late August 2007F$120,00012 locals on full time
17 Case Studies – Successful ICT Projects NameRegistration DateImplementation DateTotal InvestmentEmploymentATH & In Touch Solutions of IndiaLocal companyWill commence on 15 December 2010F$2,500,00050 full time staffMindPearl Limited16 March 20091 September 2009$3,760,926140 full time & 3 part time
18 Case Studies – Successful Tourism Projects NameRegistration DateImplementation DateTotal InvestmentEmploymentEmaho Sekawa Limited17 June 200820 October 2010Fixed assets: $1,000,000; Funds $1,300,0005-full time,5 part timeLaucala Island Beach Resort14 October 2005October 2008Approx: $ mFixed asset: F$200m360 People
19 Case Studies – Successful Fisheries Projects NameRegistration DateImplementation DateTotal InvestmentEmploymentSun Log Investment (Fiji) Limited12 September 20071 January 2008F$250,00050 Full time20 part timeJ Hunter Pearls11 June 2003In 2004More than $25,0006 locals
20 Way ForwardFTIB one stop shop concept, we will meet, assist & / facilitate all investor needsFTIB set up all over Fiji (West/North/Capital) can show you potential areas to set up your business, make all meeting arrangements, etc.(Fiji Embassy can facilitate this end)Government and Statutory Bodies to improve resources in various departments with assigned KPIs so that efficient services are provided to investorsNew trade office in Shanghai, Fiji missions in Indonesia, South Africa & Brazil.Read from slide:FTIB one stop shop concept, we will meet, assist & / facilitate all investor needsFTIB set up all over Fiji (West/North/Capital) can show you potential areas to set up your business, make all meeting arrangements, etc.Government to improve resources in various departments so that efficient services are provided to investorsFTIB works closely with Fiji embassies, trade offices abroad. In 2011, new mission offices will be established in Indonesia, South Africa & Brazil. Later this year, Fiji trade office was established in Shanghai. With closer collaboration with these overseas based Fiji offices, we envisage and hope to bring in the foreign investors and promote Fiji and opportunities we have.
21 Fiji Islands Trade and Investment Bureau Thank YouVinaka VakalevuSee our Website:2121