SPEECH BY THE MINISTER FOR INDUSTRY, TRADE, TOURISM, LOCAL GOVERNMENT, HOUSING AND COMMUNITY, HON. PREMILA KUMAR AT THE FIJI-NEW ZEALAND BUSINESS COUNCIL ANNUAL CONFERENCE
Location: Eden Park, Auckland, New Zealand
Hon. Shane Jones, Minister for Regional Economic Development, Forestry, Infrastructure and Associate Minister for Finance;
Mr Chandra Sen, President, New Zealand-Fiji Business Council;
Mr Vinay Narsey, President, Fiji-New Zealand Business Council;
Members of the Business Councils;
Ladies and Gentlemen,
Bula Vinaka!
It is indeed a pleasure to be part of the Business Councils’ Annual Conference today, with the theme “Towards the Two Billion Trading Relationships”.
I believe during this Conference, business counterparts from both Fiji and New Zealand will be discussing ways to reach the goal of enhanced trade and economic relations.
I’ll keep my remarks short and informative today so we can all maximize the time we have for some questions and discussions.
I was in Auckland in March this year, to mark the first anniversary of the Fiji Trade Commission in New Zealand. During this time, I met the vibrant New Zealand business community to better understand their needs and see how Fiji can work to ensure the existing and future investments and trade with Fiji are secured.
This is part of the Fijian Government’s concerted effort to strengthen our relationship and visibility in New Zealand.
The presence of the Fiji Trade Commission has helped build on the enduring relationship we share, and has created more exposure for Fijian Made products and services, and investments to Fiji, as a business destination. We have seen the Trade together with the Business Councils making a significant impact for Fiji, by showcasing and strengthening trade and investment relations between our countries.
Ladies and Gentlemen,
Today, we recognize the growing strength of this New Zealand-Fiji relationship. Our partnership is stronger than ever before, as the Fijian Government is committed to re-engaging and re-defining our bilateral relationship. It is initiatives such as this Annual Conference that we have underpins the strength of our partnership into the future.
New Zealand’s bilateral engagement with Fiji continues to be enhanced in terms of two-way trade, tourism and investment. The Fijian economy is soaring to a record tenth consecutive year of economic growth and confidence in Fiji is at an all-time high. I have no doubt we will maintain this upward trajectory in the years to come with all your support.
Fiji and New Zealand have a history of close ties spanning culture, sports, business, trade, tourism, defense cooperation and education. Fiji is a regional hub, and a key partner for New Zealand trade in the Pacific and Fiji also offers an ideal location for investment.
Our diplomatic relations have been strengthened over the years and this has been reflected by the important diplomatic inbound and outbound missions led by senior Government Ministers in both countries.
Ladies and Gentlemen,
Total two-way trade between New Zealand and Fiji for the year ended 2018 was NZD$690 million. Fiji continues to be New Zealand’s largest trading partner in the Pacific. Total exports from Fiji to New Zealand for the year 2018 was NZD$100 million, whilst import was approximately NZD$590 million. New Zealand has been one of Fiji’s top five import markets over the years.
I am also happy to note that more Kiwis continue to visit Fiji every year. In 2018, Fiji received 198,718 Kiwis. This was an increase of 7.7%, the highest number recorded in a given year. In the first seven months of this year, about 5% increase in visitor arrival from New Zealand has been recorded compared to same period last year, or a total of 111,712 Kiwis visiting Fiji.
Ladies and Gentlemen,
Let me reiterate, the Fijian Government recognizes the importance of the private sector as the engine for economic growth and development.
Over the years, one of the focus areas of the Fijian Government has been to improve the quality and efficiency of service delivery, through reforms, including the better use of technology. We have invested in infrastructure that will enable services to reach our people faster.
Various e-government initiatives have been launched that are taking the services closer to the people.
Just over a year ago, we made history, as we unveiled the “digitalFIJI” platform. digitalFIJI is a means of bringing digital revolution to Fiji, to our economy and to the lives of all Fijians.
Following the launch of digitalFIJI, a number of new e-services were added, which included births, deaths and marriage registry. In June 2019, the Registrar of Companies services also came online.
Ladies and Gentlemen,
We are cognizant of the fact that starting a business in Fiji has its fair share of challenges. For this reason, the Fijian Government continues to actively facilitate a more conducive environment for doing business in Fiji through our pro-growth and sustainable policies. We have recently launched a centralized portal, known as bizFIJI, for businesses to get information on two key areas of doing business, which are (i) Starting a Business and (ii) Obtaining Construction Permits.
The vision for having this portal, began with a strategy to fast track and improve processes. This will make a major difference in the business environment in Fiji.
We simply wanted to create a single window, where information is readily available and businesses are able to access the relevant forms and documentation required in one place.
Ladies and Gentlemen,
Fiji has the best investment incentives in the region and compares competitively at the global level.
To maintain the positive growth of investments, especially in areas that will spread benefits further in the country, the Fijian Government has provided incentives and benefits for investors in various sectors. In the ICT sector, we have added to our existing incentive package by removing minimum employee and export requirements, as well as the $1,000 license fee.
Loss carry forward has been extended from four years to eight years for all businesses.
To transform healthcare, work has commenced on public-private partnership projects for the Lautoka and Ba hospitals. This will provide opportunity for investment in aged care and retirement villages, hence there are very attractive tax incentives in this sector.
Our audio-visual sector has also shown significant progress and the benefits from the success of this sector is also felt in other industries, such as tourism. The tax rebate for productions has increased from 47% to 75%, with the condition that the funds must be spent in Fiji. There is a 7-year tax holiday for capital investment above $2 million in film production.
We are modernizing the investment legislation to outline the obligations and protection for investors, that is bench-marked on international best practices. We are redefining the role of agencies, such as, Investment Fiji to focus on investment promotion and after care for investors.
Ladies and Gentlemen
We have a story in Fiji that the world wants to hear: a modern, dynamic economy in the throes of rapid economic growth and infrastructure development. A nation that is investing heavily in the education of its citizens, and fielding a highly competitive, English-speaking workforce. A nation that enjoys stability, security and unity among its people. A nation eager for new investment, new industries and new opportunity.
I believe that collaboration and partnership between the two Governments and the Business Councils is vital for the growth of trade and economic relations. The Business Councils can ensure flow of innovation, industry expertise, distribution networks and investment capacity.
Both the Governments can complement that by supporting and strengthening an enabling environment for all players.
I am sure you will make use of this opportunity today to widen your network, create new relationships and establish wider objectives in fulfilling your business aspirations.
With these words, I again take this opportunity to thank the New Zealand-Fiji Business Council for inviting me to this Annual Conference. And I look forward to meeting the industry representatives for further discussions.
Vinaka vakalevu and thank you.