Permanent Secretary for Commerce, Trade, Tourism and Transport, Shaheen Ali,
Chairman of the Consumer Council of Fiji Board, Raman Dahia,
Chief Executive Officer of Consumer Council of Fiji, Seema Shandil,
Chief Executive Officer of Fijian Competition and Consumer Commission, Joel Abraham,
Chief Executive Officer Post Fiji Limited, Dr Anirudha Bansod,
Director, Financial Intelligence Unit, Razim Buksh,
Representative from Consumers International,
Panelists,
Members of the Media,
Ladies and Gentlemen,
Bula Vinaka and a very good morning to you all.
Today, we are going to be talking about a very important commodity — one that today — influences a consumer’s decision more than anything. And that is trust.
Ladies and Gentlemen,
Today’s workshop should emphasise the importance of E-commerce and how Ecommerce platforms can become a powerful tool in our transformation to a digital economy.
And when I say digital economy — I mean the entire digital ecosystem from an entrepreneur start up to our international trade.
Ladies and Gentlemen,
E-commerce is not a new concept. But what has happened is — its prominence and sheer need has been exacerbated.
Like we’re having to live with health and safety as a priority, the COVID-19 pandemic has created opportunities that have massively accelerated use of ICT, e-commerce and digitalisation of processes.
It goes without saying, this pandemic has caused a shift in consumer behaviour — from what they want — to how they want to get it. Digital uptake has enabled businesses to respond quickly to the extreme disruption and to foster new business practices and better position themselves for resilience.
Ladies and Gentlemen,
Fiji has a strategic advantage in the Pacific. A recent National E-commerce Assessment commissioned by the Pacific Island Forum Secretariat shows that Telecommunications infrastructure in Fiji remains the best and most developed among the Pacific Island countries.
Fiji is also a leading market in terms of both 4G, LTE, and 5G development in the region.
Mobile and internet access are affordable and far cheaper than other islands which is why we have the highest mobile and internet penetration in the Pacific.
Ladies and Gentlemen,
What this assessment also reveals is that lending services from commercial banks are generally focused on large infrastructure and low-risk projects, with SMEs representing a tiny proportion of loans granted. This low access to financing limits the ability of SMEs to invest in E-Commerce-related ventures and upgrades.
Ladies and Gentlemen,
The notion that “MSMEs are not tech-savvy or digital-literally” is a myth and a thing of the past. I can attest to see how MSMEs have adapted digitally and please allow me to share some examples:
- The FDB COVID-19 Recovery Credit Guarantee Scheme, for MSMEs, have seen almost 99% applications received digitally;
- Our Young Entrepreneurs Scheme has seen more than 350 entrepreneurs and 98% of the our National Export Strategy applications received digitally
- We have seen more than 5,300 businesses, mostly MSMEs, access our online portal for various passes such as permits to operate, curfew passes etc.
Embracing E-commerce at the onset of the pandemic helped many MSMEs pull through the crisis. In fact, they’re now offering a wider range of products and services. Which means, more choices, more competition.
The Fijian Government recognises the demand and potential out there in the digital economy, particularly in the E-commerce space.
To graduate more MSMEs to online business, the Ministry is working with E-commerce platform providers, such as Vodafone and Post Fiji. They will assist MSMEs to adapt and incorporate online trading and digital payment platforms. This partnership is an effort to connect Fijian made products by products to markets in Fiji and beyond.
The Fijian Government in collaboration with Reserve Bank of Fiji, has partnered with Vodafone to assist micro to small enterprises to sign up as a merchant on ‘Vitikart’. A total of $1.2 million has been allocated for this partnership. Funds will be channelled towards covering the cost associated with getting MSMEs onto the Viti Kart platform and receiving payments through internet payment gateways.
Initiatives, such as the VitiKart comes at a time where the very existence of many businesses is conditional to their ability to break barriers and stay relevant, and ahead of the competition.
Ladies and Gentlemen,
Whilst businesses have embraced E-commerce, consumers remain skeptical about the perceived high risks and uncertainty with the online shopping concept – they remain settled towards the traditional shopping environment. Tangible factors in a traditional shopping environment, such as, the appearance of a store and direct contact with a sales person provides a sense of comfort and trust.
We must also acknowledge that consumers, especially young consumers, have also adapted and accepted these tools, including cashless transactions and online transactions and sales.
The lack of willingness to take risk or have confidence in our MSMEs on the part of our Banks and Financial Institutions is still an inhibiting factor. It is not only Banks, all stakeholders like our Telcos, e-commerce platform providers and major retail outlets unwillingness to work with each other compounds the issue.
Ladies and Gentlemen, for E-commerce to work, interoperability is vitally important.
It was heartwarming to read in the media that a group of MSMEs were able to broker a deal with one of the commercial banks a few weeks ago to offer E-commerce products.
This is a perfect example of how collective efforts can result in necessary changes that are needed by the industry.
Ladies and Gentlemen,
There are huge potential benefits of E-commerce to consumer welfare, but at the time lack of product information, unfair business practices, inadequate online dispute resolution and breaches of consumer privacy is commonly found.
To protect consumers and ensure a level playing field, there is a need for review of consumer policies. There should be special features of E-commerce in the respective consumer law. Both consumers and businesses will be made aware of their rights and obligations in the digital marketplace.
There also needs to be a comprehensive audit of policies, incentives and law related to e-commerce. This will lead to better alignment. I am tasking the Ministry to conduct this task in conjunction with stakeholders like Consumer Council.
The Government will be able to achieve a two-fold effect of assisting businesses get on a digital platform, whilst providing consumers certainty with online shopping. And we are doing this because this is the future.
And COVID-19 has made us realise that this change is essential. But we must do it right and transparently.
Building and maintaining consumer confidence is one of the most crucial aspects of Ecommerce. It remains key for businesses in winning this confidence to enable this concept to be successful.
As businesses, you must take up the responsibility to create awareness and disseminate correct information to build trust and confidence.
Ladies and Gentlemen and to our Distinguished Panel,
My challenge and message to all of you is simple, you cannot rest on your laurels. You need to continue to reinvent, adapt and improve when delivering services using the enormously beneficial tool of E-commerce.
The Fijian consumers deserve the best of convenience from E-commerce as consumers overseas.
The Fijian MSMEs deserve the level-playing field created through E-commerce.
The Fijian businesses deserve the efficiencies, market share and ultimately profits margins created by E-commerce.
And, Ladies and Gentlemen, the Fijian Economy deserves the benefits created by enhanced economic activity by E-commerce.
I would advise against this being a virtual talk show. We need robust outcomes and recommendations that the Consumer Council and Ministry can act upon.
With these words, I have the pleasure of declaring the Workshop open.
Vinaka Vakalevu and Thank you.