President of the Fiji Australia Business Council, Ms. Lisa Apted;
Australian Deputy High Commissioner to Fiji, Ms. Anna Dorney;
Country Head of Fiji & Head of Commercial Pacific, ANZ, Mr. Saud Minam;
Members of Business Council;
Distinguished Guests,
Ladies and Gentlemen,
Bula vinaka and a very good evening to you all.
It is a pleasure to be here at this evening’s Speed Networking Dinner, organised by the Fiji-Australia Business Council.
Tonight’s occasion reflects the close economic relationship between Fiji and Australia – a relationship that is dedicated to business communities of both countries.
Over the years, the Fiji-Australia Business Council has facilitated business introductions for businesses in Fiji and Australia.
With over 120 companies as members, this Forum has become the perfect space for any business engaged in bilateral trade for support and guidance.
Whilst Governments provide the conducive environment for economic activity, the actual driver for growth is the private sector.
Keeping this in mind, we have taken bold steps to implement reforms that will make doing business in Fiji much easier.
Tonight, I will provide the highlights of the progress we have made and the impact of those reforms.
Ladies and Gentlemen,
My Ministry is mandated to implement reforms in the area of “Doing Business”, to ensure business processes are revitalised and Fiji achieves a ranking of 50 in next 5 years in the 2025 Doing Business Report.
We have collaborated with the World Bank Group, and Singapore Cooperation Enterprise to implement reforms under digitalFIJI.
bizFiji portal launched mid last year, has removed impediments and is a one-stop-shop for an entrepreneur. By just making information available on a single platform, we have been able to reduce time by up to 40%. Businesses do not need to run from pillar to post to get simple information to start a business or to lodge building permits.
This portal will soon include information on other aspects of Doing Business such as trading across borders, getting electricity and paying taxes.
Ladies and Gentlemen,
To complement this digital platform, we have advanced policy reforms simultaneously. An example of this is streamlining of the business licensing processes, as of 1 January 2020.
Previously, to get a business license, applicants had to comply with eight procedures, which took more than two months to complete. This discouraged businesses or new entrants from progressing their ventures.
Now the business licensing procedure comprises only two processes and a license is issued within 48 hours. An entrepreneur can obtain a business registration from Registrar of Companies and Tax Identification Number from FRCS online.
For the first time all the 13 municipalities in Fiji are using the same processes and the same standardised applications.
Most importantly, the reform allows respective agencies to undertake risk-based assessments and places the onus on the businesses to comply with the relevant laws.
Businesses classified as low risk can start a business immediately upon receipt of business license, whilst high-risk business (for example, food handling, use of chemicals and factories) will need to follow the relevant regulatory requirements before commencing operations.
In addition to this, application forms for business licenses, as well as its necessary fee components and risk categorisation are available on the bizFIJI portal. This simply means that an applicant can download and fill the form, calculate the requisite fees and visit the municipal office only once to lodge the application.
Existing businesses also benefit from these reforms, as there is an option to renew business licenses for up to three years. Therefore, this eliminates the annual renewal of license.
Other significant reforms in business licensing includes:
- Start-ups and micro enterprises with up to 3 employees are exempt from the business licensing fee for their first year of operation;
- Micro enterprises with 1-3 employees are given a 50% discount when renewing their business licenses;
- Start-ups, that will operate from a property that has OHS and NFA certification, will not be required to obtain these certificates again, unless the business makes structural changes to the property.
Ladies and Gentlemen,
The results of the reform are evident through the various improvements noted around Fiji. For instance, Nausori Town Council has seen a 72% increase in issuance of business licenses in January 2020 compared to same period last year, that is, 810 business licenses were issued in January 2020, compared to 470 in January 2019.
In Suva, 193 new business licenses were issued, compared to 74 in January 2019. Suva City Council was able to issue renewal of business licenses in less than 24 hours, whilst new business licenses met the 48-hour benchmark. All Municipal Councils have been able to successfully roll out the new process.
The next stage of the reforms is to have an online submission and approvals portal for Starting a Business and Obtaining Construction Permits. This will enable an entrepreneur to apply for building approvals or complete processes for starting a business, with a click of few buttons, on a single platform. Extensive work is scheduled in the year ahead to prepare for the transition.
In order to coordinate the reforms undertaken and to achieve set targets, the Cabinet has endorsed the establishment of the Ease of Doing
Business Task force and has empowered it to cut red tape, eliminate bureaucracy and remove superfluous procedures.
This Task force is chaired by the Ministry of Industry, Trade and Tourism, comprising approval agencies and relevant line Ministries. The Task force is mandated to implement the reforms, provide progressive updates and ensure continued commitment to business reforms at a national level.
Ladies and Gentlemen,
In addition to the reforms on Doing Business processes, the Fijian Government is also undertaking the review of the investment legal framework to ensure that investment remains robust. The intention of the review is to adopt international best practices and to promote national treatment, whereby there is no discrimination between foreign
and domestic investors.
Despite the turn of events and the degree of challenges our region is facing amidst the global outbreak of COVID-19, we are keeping up our pace to continue the vital reforms.
The Government is looking at measures and policy interventions to ensure that the Fijian economy remains buoyant.
Concern is growing over the expected economic damage caused by the Corona virus globally and its impact on Fiji considering the fact that our economy is linked to developments at the global level.
In this regard, I am holding consultations with the industry groups and associations on plans and where Government intervention is required to curtail the negative impact on our economy.
Your presence here today, also signals your commitment to fight against the perils of this outbreak and continue to advance businesses through innovative means.
In closing my address tonight, I look forward to the many exciting initiatives and successful partnerships emerging from this event. We have to work together to take up the unexpected that may confront us in the near future.
I wish you all a very pleasant evening.
Vinaka Vakalevu, Dhanyabaad, Thank you.