GROWING THE JAMAICAN ECONOMY: An integrated approach
THE FACT that I am standing here in front of players of the BPO sector without a bulletproof vest speaks volumes to how far we have come and the progress that we have made in working out some of the issues that we have had. I know that this is the start of a mutually beneficial relationship.
The Jamaican investment landscape has been transformed considerably over the past decade and a half. There was a time when BPO was unheard of, taboo even. But today, the average Jamaican has a much better understanding and appreciation of this industry and what it has to offer.
Any sector that is contributing in excess of US$450 million to the economy and is projected to bring in over US$750 million by 2020 must be given priority. Importantly, any sector that has provided employment to more than 26,000 people must be applauded.
There is no doubt that this industry presents an opportunity for significant development for the country, which is why the Government of Jamaica, through an agency like the Special Economic Zone Authority, continues to provide strong support to your sector. In developing the Special Economic Zone (SEZ) legislation, we have implemented rules that encourage strategic investments that foster a partnership between the public and private sectors.
The Government of Jamaica (GOJ) intends to develop the country into a global logistics destination and we are working, in conjunction with the private sector, to do so. The Global Logistics Hub Initiative is about the development of all sectors working in tandem.
In order to achieve the growth that we know the country is capable of, we must have a blueprint for success; we must have a long-term plan which outlines the various steps that we need to take. The Jamaica Logistics Hub Initiative: Market Analysis and Master Plan is this blueprint.
This master plan takes into account the planned expansions of ports and airports, and planned development of special economic zones earmarked as industrial parks, commercial centres and technology parks that will help spur logistics, manufacturing, and service industry clusters, which includes high value-chain activities.
What we must look at – one of the major objectives of any successful linkage programme – is to encourage the creation of new opportunities with local suppliers, as well as the deepening and upgrading of existing connections with those suppliers.
LINKAGE MODEL
Developed countries in Asia and the Pacific have created and followed a linkage model which focuses on information technology. If our aim is to develop, then our strategy must be no different, particularly given the tremendous potential of the BPO industry.
Supporting the creation and nurturing of business linkages requires that we have a clear mandate to provide prospective investors with accurate and timely information. This is one of our key imperatives. This means that we will require a partnership grounded in open communication and transparency, which will see us working in tandem towards nation building, but at all times ensuring profitability.
There is a range of projects currently being developed which will change Jamaica’s SEZ landscape and, by extension, assist in growing industry, employment and the economy.
As the country continues to move up the global value chain, the demand for specialised skills has seen an increase in the creation of training programmes geared specifically towards niche areas. We continue to adapt to the changing needs and industry demands. These training programmes provide opportunities for our untapped human resource and expand the employment options for our nation’s youth.
The Special Economic Zone regime has attempted to create a modern incentive framework that allows businesses to capitalise on a low income tax rate, duty-free imports and general consumption tax exemption on local purchases. This has made the cost of doing business lower, as companies benefit from far improved cash flow and increased profitability within this regime.
In establishing this legislation, in partnership with the private sector, the GOJ had to look at regulations that would be relevant to all sectors. In doing so we recognise that, while the regulations in the initial iteration may not have been best suited for the BPO sector, we have been very willing to, and will continue to, work with you our stakeholders to create the best possible framework within which to operate.
We are aware of the issues that some players have been having with change and renewal, and we recognise that, in some instances, it has not been easy. The SEZ Authority has the unenviable task of serving all sectors, and so we must create a regime that seeks to be balanced while at the same time serving, as best as possible, all interests.
The authority is keen on working with our stakeholders to make certain that business efficiency, lack of bureaucracy and responsiveness to changing business climates are the hallmark of doing business in Jamaica.