Prime Minister the Most Honourable Portia Simpson Miller, opened the 10th Regional Investments and the Capital Markets Conference; Hosted by the Jamaica Stock Exchange at the Jamaica Pegasus Hotel. Please see the Prime Minister’s Speech Below
“Identifying and Developing the Growth Sectors for Sustainable Development”
Address by the
Most Hon. Portia Simpson Miller
Prime Minister of Jamaica
The Jamaica Stock Exchange
10th Regional Conference on Investments and the Capital Markets 2015.
Tuesday, 20 January 2015 at 8:30pm
Jamaica Pegasus Hotel, Kingston
I welcome the opportunity to join you again this year at this premier event, which has become a fixture on the national business calendar.
On behalf of the Government, I commend the Board and Management of the Jamaica Stock Exchange for organising this forum for discussion on the Caribbean economic outlook, each year.
As you contemplate the conference theme of “Regional Transformation through Innovation and Investments” I hope the discussions over the coming days will give rise to insightful ideas.
Such ideas and answers are useful as we continue to strengthen the fundamentals of the Jamaican economy and to position ourselves for sustainable growth and prosperity.
Achieving sustainable growth and development means nothing unless it takes full account of the social, economic and environmental pillars.
These three pillars, known as the ‘triple bottom line’, have been central to the Government’s efforts to correct historic social inequities. We are strengthening the economic base to improve standards of living and to enhance the resilience of our economy to external shocks and natural hazards.
This evening I will focus my comments on the economic pillar in the sustainable development of Jamaica.
It is accepted that a vibrant stock exchange and active capital markets are vital to the Jamaican economy.
In Jamaica’s case, the potential contribution of our Stock Exchange is yet to be fully exploited.
The Stock Exchange encourages private investors, both small and large, to become more involved in financing the development of all sectors of the economy.
My hope is that it will become the norm for the financial resources needed by young entrepreneurs to increasingly be mobilized though the stock market.
Of course, the ability to leverage the stock market for financing carries certain responsibilities for businesses.
They must be willing to subject their operations to the ultimate tests of transparency and accountability.
Sometimes there is some reluctance on the part of businesses to subject themselves to this thorough examination, thus depriving themselves of access to the resources they need to finance expansion.
For our part, the Government commits to developing and implementing the right mix of policies to create the environment for business and commerce to flourish.
We remain steadfast in our commitment to the Economic Reform Programme for the benefit of all Jamaicans.
Since assuming office three years ago, the Government has embarked on a Growth Agenda anchored in a sustainable debt reduction plan, which is being advanced through strategic local and foreign investments and innovations in traditional and emerging sectors.
My Administration will stay the course while relentlessly pursuing new opportunities to unleash growth in targeted sectors of the economy.
As we move forward we are committed to expanding the public-private partnership model as a reliable route to exceeding the growth projections we have set for ourselves.
The growth projections by the Planning Institute of Jamaica provide a glimpse of some of the areas targeted to produce the growth and jobs we seek.
For the 2015/2016 fiscal year real GDP growth of 1.9% is being projected relative to the previous fiscal year.
The expectation is that growth will come mainly from the following areas:-
· Mining & Quarrying
· Agriculture, Forestry & Fishing and:
· Construction
The Mining & Quarrying Industry is expected to benefit from increased production of alumina and bauxite.
This is associated with higher global demand and the projected resumption of mining operations at the ALPART bauxite/alumina plant in the first quarter of 2015.
· The projections tell us that services by Hotels & Restaurants resulting from increased stop-over arrivals and long-stay visitors are expected to grow by 4.5 per cent.
· Meanwhile, Transport, Storage & Communication services should see growth of some 2 per cent.
Ladies and gentlemen, these are all useful targets.
However, we know that this alone is not enough to meet the job creation and income needs of the country and to significantly reduce poverty.
This is why the Growth Strategy seeks to sharpen our focus on enhancing growth as the necessary basis for realizing sustained improvements in the social well-being of our citizens.
As part of this strategy:
· We have laid the foundation through legislative changes and other measures to allow more Jamaicans to become entrepreneurs and for existing businesses to have greater confidence to invest in Jamaica.
· We are aggressively pursuing infrastructure investments as a catalyst for job creation;
· We will continue to facilitate a more competitive environment for large, medium and small businesses. The results have shown significant improvement in the global Doing Business Index.
· We are also continuing, as a matter of priority, to modernize and improve the efficiency of government.
The Growth Agenda and Growth Inducement Strategy are premised on:
· Fiscal Consolidation;
· Business Environment Competitiveness Reforms;
· Human Capital Development, Social Protection, Security & Resilience; and
· Strategic Investments.
Ladies and gentlemen,
The government I lead recognizes that a critical element of achieving sustainable growth is to provide a favourable and predictable business environment.
A predictable business environment that allows business people to plan, compete globally and create wealth.
As a critical component of this, the Government is reducing the cost of doing business.
We are doing so by enacting reforms to the business registration and development approvals processes; collateral reform; reforms to the insolvency framework; and enhanced access to credit.
There is unquestionable proof that this effort is bearing fruit.
As I mentioned before, we have moved up on the global Doing Business Rankings.
Jamaica has also been recognized as the best place to do business in the Caribbean.
We have no time for complacency, so we are pressing ahead with the reforms.
Now that we have a single form for business registration, we are aiming to have online business registration by the end of 2015.
We passed the Security Interest in Personal Property Act and established the Central Collateral Registry.
These measures will broaden the set of assets that may be used as collateral for loans and will allow small businesses easier access to financing.
The Insolvency Act was recently passed and will facilitate the rehabilitation of indebted businesses and encourage more people to start businesses.
Ladies and gentlemen,
We intend to implement a system by June 2015 that will allow the government to track the approval of construction permits across all local authorities.
Much work has already been done to reduce the time for construction approvals, but there is still more to be done.
Ladies and gentlemen,
Complementary to the business environment reforms are initiatives geared towards labour market reform and improved training and certification of labour market participants.
If Jamaica is to become globally competitive, more flexible work arrangements are necessary.
During 2014, the Employment (Flexible Work Arrangements) Act was passed.
We are also aware that achieving growth requires us to also focus on the country’s physical infrastructure including road and highway networks.
You will recall that during 2014, Section 2 (Linstead to Moneague) of the North-South Link of Highway 2000 was officially opened.
Work on Section 1 (Caymanas to Linstead) and section 3 (Moneague to Ocho Rios) is ongoing and will be completed in 2016.
Step by step, mile by mile, we are paving new pathways to growth and sustainable development.
In agriculture, the Government’s Agro Parks Initiative is primarily about expanding the agricultural supply and linkages chain, increasing import substitution and activating under-utilised rural land and labour.
There are currently eight Agro Parks in successful implementation with expected completion of another Agro Park in the next 3 to 6 months.
Ladies and gentlemen, over 5,000 people are benefitting from direct employment and 2,711 hectares of under-utilized land have been brought into agricultural production.
The Agriculture Industry is our second largest employer, accounting for approximately 16 per cent of the Jamaican labour force.
As you are aware it has strong linkages to the Tourism and Manufacturing industries.
Through a Linkages Technical Working Group, we are identifying more creative ways to effectively connect buyers and sellers while addressing the issues affecting the trade as they arise.
We have already seen progress from this working group. It is important to note that the group comprises persons from the public and private sector.
This is another example of the government’s commitment to engage all stakeholders.
In the area of energy:
· We are moving forward with several initiatives to achieve fuel-source diversification and energy conservation.
· This is of importance as the high cost of energy represents a major constraint to the development of key growth industries.
The initiatives being undertaken include generation capacity expansion; renewable generation; net billing; as well as fuel diversification in the mining and agriculture industries.
· The Business Process Outsourcing (BPOs) sub-industry, has been identified as an area which will drive significant economic growth and employment generation.
Already there is ongoing expansion of the industry. An additional 2,500 jobs are to be created by the end of financial year 2014/2015.
· The Logistics Sector initiative is being rolled out on a phased basis. This includes:
§ The privatization of the Kingston Container Terminal.
§ The dredging of the Kingston Harbour.
§ By mid-year the Port Authority of Jamaica (PAJ) will commence a partnership with an international operator for the modernization and expansion of the terminal.
§ There is also the privatization and upgrading of the Norman Manley International Airport (NMIA). The selection of preferred bidder should be completed by June 2015.
§ Connected to these planned port developments is the Government’s intention to pass the Special Economic Zones Ac.
Ladies and gentlemen,
Innovation is a necessary and built-in component of the Growth Inducement Strategy.
I have tasked the reconstituted National Commission on Science and Technology and the newly established National Cultural and Creative Industries Commissions to work on plans to promote innovation across the relevant sectors of our economy.
Both Commissions are working on strategies to create an enabling environment for the growth of existing and emerging science, technology, creative and cultural industries.
I have mandated the teams to ensure that these important areas take their place as major economic drivers of growth, job creation and the expansion of business ownership.
Ladies and gentlemen,
Economic growth and development is not beyond us. Economic growth must go hand in hand with social development. A gentler, safer and caring society is within our reach.
I take this opportunity to call on the Jamaican people to play their individual part in building Jamaica.
As the popular song reminds us “We are all in this together”.
I wish the Jamaica Stock Exchange 10th Regional Conference on Investments and Capital Markets and the Jamaican business community every success.
I invite you to consider Alan Greenspan’s philosophy on business.
The former Chairman of the US Federal Reserve will always be remembered for saying:
“I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.”
Ladies and gentlemen,
As Francis Gray says:
“Yesterday is but a dream and tomorrow is only a vision.
But, today well lived makes every yesterday a dream of happiness and every tomorrow a vision of hope”.
Look well, therefore, to this day.
Thank you.
