Leaders craft solutions
MIAU sa bula re and a very good evening to you all. It is a pleasure to be here with you all to officially open this year’s Top Executive Conference 2022.
This is my first TOPEX conference, however, I have had a vested interest in the annual event, having seen how it brings together Fiji’s private sector leaders.
The theme for TOPEX 2022 — “Strategies, Synergies, Solutions for Sustainable Recovery: 2030 has never been as relevant to us as it is today.
The geo-political, economic, and social structures of the world are changing at almost break-neck speed, presenting the private sector with a series of complex challenges — not least of which are the ever-growing impacts of climate change.
Of course, many businesses are still trying to recover from the toll of COVID-19.
Government alone lost over $3.2 billion in tax revenues due to the pandemic and Fiji recorded its largest ever economic contraction of 17.2 per cent in 2020, with a further 4 per cent contraction in 2021 due the second wave.
The imported inflation we are currently experiencing as a result of high fuel and food prices triggered by the unjust Russian invasion of Ukraine, is also significantly impacting many Fijian businesses, households and families, and The International Monetary Fund has projected global growth to slow from 6.1 per cent in 2021 to 3.6 per cent in both 2022 and 2023.
These economic statistics provide a very important basis for you as private sector organisations, leaders, entrepreneurs, and employers as you engage in meaningful discussions and craft solutions that will allow our nation to recover sustainably.
Through the government’s five-year and twenty-year National Development Plan and in the midst of the recent global economic challenges, the Fijian Government has proven itself a genuine partner to the private sector. Both have worked hand-in-hand to develop and implement policy, respond to COVID-19, power recovery, open international borders, and galvanise trade negotiations to keep our businesses and the Fijian economy alive.
A total of $430 million in unemployment benefits has been paid out by the Government to Fijians to date, and we know that FNPF members withdrew around $180 million from their general accounts during this time.
Approximately 114,000 employees in the formal sector were assisted by the government through the release of $205 million, with $225 million directed towards the informal sector. Of this, around 6000 MSME’s benefitted from a $32 million injection.
Ladies and Gentlemen, we can all agree that Fiji’s economic recovery is looking promising – even better than expected many will say. Since the opening of our international borders on December 1, 2021, our tourism industry has been booming. From January to October this year, we have welcomed just under half a million visitors to our beautiful shores.
Last month alone, 70,152 people travelled to Fiji, with visitors from Australia and New Zealand surpassing 2019 peak levels. That’s an amazing win for every Fijian and for every business owner.
These wins of course are no accident. Government made decisive moves within its pandemic-time national budgets to reduce all major tourism-related taxes, and instead, introduced attractive tax incentives to stimulate investment opportunities in the tourism sector.
These have been implemented in concert with policy measures to promote growth across other sectors, with the aim to further diversify Fiji’s economy. Some of the most successful have been the business process outsourcing sector, agriculture, manufacturing and other value adding industries.
As we look ahead, a double-digit growth of 11.3 per cent is projected for 2022 fueled predominantly by accommodation and food services; transport and storage; finance and insurance; wholesale and retail trade; manufacturing and agriculture. So, I think it is safe to say we are on the same page ladies and gentlemen – it is critical that government and the private sector continue to work in close collaboration towards recovery and sustainability.
At this juncture, it would be remiss of me not to acknowledge FCEF’s commitment towards supporting MSMES, particularly women and youth-led initiatives, through its partnership with government by way of the Business Assistance Fiji and Fiji Enterprise Engine.
This is also an excellent example of inclusiveness by our private sector and realisation of government’s priority “Promoting entrepreneurial culture through sustainable micro, small and medium enterprise”, in its 5-year and 20-year National Development Plan. Those that know me will know that an opportunity space close to my heart is Our Blue Pacific, which remains home to many untapped opportunities in the ocean space.
The Pacific Leader’s endorsement of the 2050 Strategy for the Blue Pacific Continent earlier this year is a testimony to the untapped potential of the Pacific Ocean. That is why Fiji has set itself on a path to become the world’s bluest economy.
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