Reserve Bank of Fiji Presentation to the Fiji Institute of Accountants FUTURE INVESTMENT AND GROWTH IN FIJI Governor, Reserve Bank of Fiji Governor, Reserve Bank of Fiji Governor, Reserve Bank of Fiji Governor, Reserve Bank of Fiji 10 June 2011 10 June 2011 10 June 2011 10 June 2011 Barry Whiteside Barry Whiteside Barry Whiteside Barry Whiteside
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Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
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8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Governor, Reserve Bank of FijiGovernor, Reserve Bank of FijiGovernor, Reserve Bank of FijiGovernor, Reserve Bank of Fiji10 June 201110 June 201110 June 201110 June 2011
Barry Whiteside Barry Whiteside Barry Whiteside Barry Whiteside
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
2011201120112011 World World World World Growth Growth Growth Growth R RR Revised Upwards evised Upwards evised Upwards evised Upwards %
WORLD GDP GROWTH
Source: IMF World Economic Outlook –April 2011
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Emerging Economies Underpin Global Growth Emerging Economies Underpin Global Growth Emerging Economies Underpin Global Growth Emerging Economies Underpin Global Growth
World output Advanced Economies Emerging and Developing
Economies
2010(e) 2011(f) 2012(f)
%
WORLD GDP GROWTH
Source: IMF World Economic Outlook –April 2011
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
United States Australia New Zealand Japan Eurozone
2010(f) 2011(f) 2012(f)
%
TRADING PARTNERS’ OUTLOOK
Source: IMF World Economic Outlook –April 2011
Positive Outturn in Trading Partner Countries Positive Outturn in Trading Partner Countries Positive Outturn in Trading Partner Countries Positive Outturn in Trading Partner Countries
- -- - Despite Natural Disasters still Positives for Fiji in Trade, Tourism Despite Natural Disasters still Positives for Fiji in Trade, Tourism Despite Natural Disasters still Positives for Fiji in Trade, Tourism Despite Natural Disasters still Positives for Fiji in Trade, Tourism 3.5
3.21.6
10.3 10.4
7.87.2
6.16.8
14.5
9.68.2
4.0
5.54.5
5.4 5.2
9.5
7.8
4.5 5.24.2 4.2 4.4
0
5
10
15
China India Thailand Malaysia Korea Hong Kong Singapore
Favorable Performances and Outlook in Asia Favorable Performances and Outlook in Asia Favorable Performances and Outlook in Asia Favorable Performances and Outlook in Asia %
ASIA’S ECONOMIC OUTLOOK
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Upside for minerals - Gold Prices Expected to Remain above US$1,500
ALUMINIUM PRICES
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2006 2007 2008 2009 2010 2011
US$/Tonne US$/Tonne
6/06 – US $2664 6/06 – US $9135
Source: Bloomberg
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Weaker USD Weaker USD Weaker USD Weaker USD – –– – positive impact on fuel import bill positive impact on fuel import bill positive impact on fuel import bill positive impact on fuel import bill
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Global recovery continuing –. Positives for our trade, tourism, remittances.
• Strong emerging economies growth – More spending power opens us up for
tourists from China, India etc.
• Higher export prices – assist our trade balance
• Favorable exchange rate movements – more competitive market for our exports
and tourism especially from Aus and NZ
Negatives
• High crude oil and food prices - Higher import bill and accompanying inflation
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Agri Manuf Fish Htl Rl Est Fin Mining Trans Edu Elect Othr Pub Whlsale Cons
↑ 2.7%
% Growth will be Broad Based Growth will be Broad Based Growth will be Broad Based Growth will be Broad Based
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Bureau of Statistics and Macroeconomic CommitteeReserve Bank of Fiji
$MVisitor Arrivals Earnings
Arrivals & Earnings at Record Levels Arrivals & Earnings at Record Levels Arrivals & Earnings at Record Levels Arrivals & Earnings at Record Levels
980
1,030
0
200
400
600
800
1,000
1,200
2002 2004 2006 2008 2010
Forecasts as @ April 2011
Annual632
663
0
100
200
300
400
500
600
700
800
2002 2004 2006 2008 2010
Forecast as @ Apr 2011 Annual
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Production erratic but Earnings on the rise Production erratic but Earnings on the rise Production erratic but Earnings on the rise Production erratic but Earnings on the rise
30
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Vatukoula Gold Mines Limited and Macroeconomic Committee
GOLD
Reserve Bank of Fiji
$MProduction Exports
Production & Earnings on the rise Production & Earnings on the rise Production & Earnings on the rise Production & Earnings on the rise
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Islands Bureau of Statistics and Macroeconomic Policy Committee
25%
-27%
56%
MINERAL WATER (EXPORTS)
Exports to Rise Further Exports to Rise Further Exports to Rise Further Exports to Rise Further
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Bureau of Statistics Fiji Sugar Corporation Limited and Macroeconomic Committee
SUGAR
Reserve Bank of Fiji
‘000 tonnesExports
$M
Has sugar bottomed out? Has sugar bottomed out? Has sugar bottomed out? Has sugar bottomed out?
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Production up but Export earnings flat Production up but Export earnings flat Production up but Export earnings flat Production up but Export earnings flat
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Source: Fiji Bureau of Statistics and Macroeconomic CommitteeReserve Bank of Fiji
$MProduction Exports
59
72
83
0
10
20
30
40
50
60
70
80
90
2002 2004 2006 2008 2010 (e)
Annual Forecasts as @ April 2010
Production & Exports upProduction & Exports upProduction & Exports upProduction & Exports up– –– –see huge potential in Forestry see huge potential in Forestry see huge potential in Forestry see huge potential in Forestry
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Bureau of Statistics and Macroeconomic Policy Committee
10.3%
21%
TOTAL EXPORTS*
* Accrual data excluding aircraft
Exports on the increase ! Exports on the increase ! Exports on the increase ! Exports on the increase !
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Islands Bureau of Statistics and Macroeconomic Policy Committee
11.4%
3%
* Accrual data excluding aircraft
TOTAL IMPORTS*
Imports also on the rise Imports also on the rise Imports also on the rise Imports also on the rise
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Mineral Fuels Food Mach&Tran Equp Miscel Manuf Gds Chemicals
Mineral fuel and food imports account for Mineral fuel and food imports account for Mineral fuel and food imports account for Mineral fuel and food imports account for around 47% of total imports around 47% of total imports around 47% of total imports around 47% of total imports
Percentage points
↑↑↑↑11.4%$1,040M
o/w $333M
for re-
exports
$531M
$587M$269M$282M
IMPORTS - 2011Contributions to Growth
8.3
* Contribution of mineral fuel re-exports to imports growth
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Remittance inflows Remittance inflows Remittance inflows Remittance inflows stabilise stabilise stabilise stabilise but industry more bullish! but industry more bullish! but industry more bullish! but industry more bullish!
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Source: Fiji Islands Bureau of Statistics and Macroeconomic Committee
Current Account Deficit now Current Account Deficit now Current Account Deficit now Current Account Deficit now manageble manageble manageble manageble
-19.3% of GDP -18.2% of GDP
-4.7% of GDP-3.2% of GDP
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Foreign Reserves at Comfortable Levels Foreign Reserves at Comfortable Levels Foreign Reserves at Comfortable Levels Foreign Reserves at Comfortable Levels
FOREIGN RESERVES
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
With the foreign exchange inflows there is ample Liquidity in the System.With the foreign exchange inflows there is ample Liquidity in the System.With the foreign exchange inflows there is ample Liquidity in the System.With the foreign exchange inflows there is ample Liquidity in the System.
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Interest Rates have trended down, though lending rates more gradual Interest Rates have trended down, though lending rates more gradual Interest Rates have trended down, though lending rates more gradual Interest Rates have trended down, though lending rates more gradual
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Bank Credit Trending Upwards Bank Credit Trending Upwards Bank Credit Trending Upwards Bank Credit Trending Upwards – –– – but very slowly but very slowly but very slowly but very slowly
- -- -highlights the weak private sector activity highlights the weak private sector activity highlights the weak private sector activity highlights the weak private sector activity
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
J F M A M J J A S O N D J F M A M J J A S O N D J F M A
Y-on-Y
Excluding Food & Energy
Reserve Bank of Fiji
INFLATION
201120102009
Percentage
2011 Year 2011 Year 2011 Year 2011 Year- -- -End End End End I II Inflation nflation nflation nflation F FF Forecast orecast orecast orecast at at at at 7.0 7.0 7.0 7.0 P PP Percent ercent ercent ercent
10.5%
8.1%
(VAT+FEA
Tariff +OIL/Food)
Devaluation
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Inconsistent and minimal as a percent of GDP Inconsistent and minimal as a percent of GDP Inconsistent and minimal as a percent of GDP Inconsistent and minimal as a percent of GDP
Reserve Bank of Fiji
% of GDP
INVESTMENT IN FIJI
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Sources: Fiji Bureau of Statistics & Reserve Bank of Fiji
$651m/11%
Reserve Bank of Fiji
Total Investment levels have been low for some time! Total Investment levels have been low for some time! Total Investment levels have been low for some time! Total Investment levels have been low for some time! Our economic performance is clearly reflective of this! Our economic performance is clearly reflective of this! Our economic performance is clearly reflective of this! Our economic performance is clearly reflective of this!
5.0 %
3.5 %
5.5 %
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Low in comparison to others Low in comparison to others Low in comparison to others Low in comparison to others
NZ
Aus
EASE OF DOING BUSINESS
EASE OF DOING BUSINESS
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
EASE OF DOING BUSINESS---- We just make the top 33%!We just make the top 33%!We just make the top 33%!We just make the top 33%!
EASE OF DOING BUSINESS---- We just make the top 33%!We just make the top 33%!We just make the top 33%!We just make the top 33%!
Reserve Bank of Fiji
Ease of Doing Business 2011 rank 2010 rank Change in rank
Singapore 1 1 -
New Zealand 3 3 -United States 5 5 -
Australia 10 10 -
Samoa 61 67 6
Fiji 62 61 -1
Tonga 71 66 -5
China 79 78 -1
Kiribati 93 91 -2
Papua New Guinea 103 108 3
India 134 135 1
Total Number of Countries - 183
DOING BUSINESS IN FIJI
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
DOING BUSINESS IN FIJITop quartile for getting credit and protecting investors!Top quartile for getting credit and protecting investors!Top quartile for getting credit and protecting investors!Top quartile for getting credit and protecting investors!
Reserve Bank of Fiji
Ease of... 2011 rank 2010 rank Change in
rank
Doing Business 62 61 -1
Starting a Business 104 107 3
Dealing with Construction
Permits58 58 -
Employing Workers 31 -
Registering Property 50 44 -6
Getting Credit 46 44 -2
Protecting Investors 44 41 -3
Paying Taxes 77 76 -1Trading Across Borders 103 108 5
Enforcing Contracts 63 65 2
Closing a Business 117 120 3
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Major Impediments found: in no particular order of priority
Government policy uncertainty
Red tape and bureaucracy
General economic climate
Finding skilled labour
Political situation
Law and order issues
Lack of infrastructure
High Utility costs (eg. water and electricity)
Land tenure instability
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
IMPEDIMENTS TO INVESTMENTHave we addressed the issues from 1999?
Reserve Bank of Fiji
Impediments: Actions Feedback obtained by RBF
Government policy
uncertainty
Govt Investment Packages and policies
introduced over the years• Need proper follow through eg. Develop the
North policy–no markets, infrastructure
problems• No about-turns/ transparency critical
• Transparency of tender processes for Govt
funded projects• Ensure proper regulation/licensing of
builders to maintain construction industry
standards
• Treat local and foreign investors the same
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
IMPEDIMENTS TO INVESTMENTHave we addressed the issues from 1999?
Reserve Bank of Fiji
Impediments: Actions Feedback obtained by RBF
Red tape and
bureaucracy
PM’s Office & Commerce Ministry working
to improve investment approvals process
• Proposal for an EDB
• “Take investors by the hand” approvals
process• Approval process must be investor friendly
with quick turnaround time
• Numerous approvals required across manyagencies
•Where is the “one stop shop?”
• Approving Agencies “protecting their turf”
PROPOSED VS. ACTUAL INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
PROPOSED VS. ACTUAL INVESTMENTGreat potential but low implementation rate Great potential but low implementation rate Great potential but low implementation rate Great potential but low implementation rate
Reserve Bank of Fiji
– –– – Is this Red Tape holding us back? Is this Red Tape holding us back? Is this Red Tape holding us back? Is this Red Tape holding us back?
- -- - better implementation would take us closer to the 25% Investment/GDP ratio! better implementation would take us closer to the 25% Investment/GDP ratio! better implementation would take us closer to the 25% Investment/GDP ratio! better implementation would take us closer to the 25% Investment/GDP ratio!
Source: Investment Fiji
1,846
1,044
687591
223
639
9417
0
400
800
1200
1600
2000
2007 2008 2009 2010
Proposed Implemented
$M
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Lowered tariffs on selected Agricultural equipment
• Accommodative monetary policy (RBF)
• Sound and modern financial system (RBF)
• GFC had negative impact for many businesses
• Still high tariffs on imported farm inputs (barbed wire)
• Hotels need to adapt to preferences of emerging market
tourists (from China & India)
•Uncertainty about taking out profits and capital
THERE IS NO UNCERTAINTY ON
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
OUTWARD REMITTANCES!RBF is responsive to requests for capital & profit repatriation
Reserve Bank of Fiji
Withdrawal of
Investment , $245
Other, $7
Profit & Dividend;
$849
$1.1 BILLION IN WITHDRAWAL OF CAPITAL
FUNDS SINCE 2005
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Initial NEC placements underway•We have an educated, English-speaking
workforce (positive for call-centers)
• FNU should stick to teaching relevant Tradesto cater to demand in these areas
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Political situation Govt committed to elections in 2014under the Electoral Reforms
• Assistance on electoral reforms from
Indonesia
• Continuing “wait and see” attitude by
local investors
Law and order issues Reforms in the Judiciary
• Visible progress in policing
• Judiciary operating smoothly
• Case backlog still an issue
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Lack of infrastructure Major road/bridge/jetties upgrading projects in
progress• $192m earmarked in 2011 ($156m 2010)
• Poor state of existing roads
• Low utilization rate of capital budget
• Delays in tender processes
• Difficulty of access to markets (eg.Dalo)
High Utility costs (eg. water
and electricity) andinconsistent supply.
• Promotion of renewable energy projects to
keep down costs (FEA Nadarivatu HydroProject, etc.)
• Corporatization of Water Authority to
improve consistency of supply (ADB Funded
Suva – Nausori water project)
IMPEDIMENTS TO INVESTMENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Around 1,115 hectares committed to theland bank by landowners o/w 226 hectares
already leased for periods up to 20 to 30
years• Win-win situation for landowners and
tenants
• Equitable distribution of rental to
landowners
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
New Roads & Bridges Maintenance of Roads & Bridges Maintenance of Public Buildings
Outer Island Jetties Fiji Road Upgrading Project Others
Reserve Bank of Fiji
$192 m
TOURISM
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Project Location Value of investment Progress to date
SSS
International
Hotel (Fiji)
Ltd
Nasau, Nadi • $40 million
• Stage 1 - Completed
• Stage 2 - Construction to start
later this year
• Target completion - 2012
Warwick
InternationalHotels
Tabua Sands • $4 million - renovations
• Work has not started yet Naviti Resort• $14 million - additional
rooms
Warwick Fiji
Resort
• $2.5 million - furniture
upgrade
Westin
DenarauDenarau
• $5 million - for next 3 yrs • Work has started
Naisoso Island Nadi
• Total value - $230 million
• Full project to be completed
by 2017
• Bridge/Marina/Sandworks -
Completed
• Peppars Naisoso Island Resort
- Civil & Earthworks
underway
Reserve Bank of Fiji
TOURISM continued
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Project Location Value of Investment Progress to date
Fun World
Center Ltd
Nadi• $15 million
• Stage 1 – Completed
• Stage 2 – Construction
underway
Grand Pacific
Hotel (GPH)Suva • No details available
• At designing stage
• Construction expected
to start in July
FNPF’s Momi
Bay Project Nadi
• Revalued at $55 million against
Fund exposure of $61 million
• FNPF to either sell
property outright or opt
for joint venture
• EOI on joint venture
called last year
Reserve Bank of Fiji
TOURISM - CASINO PLAN
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• The Government has called for Expressions of Interest from
internationally successful casino developers and operators
• Local casinos are expected to attract more visitors and increase visitorlength of stay, particularly from new emerging markets China, Europe
and India
• Advantages:o Create a new segment for Fiji’s tourism sector
o Flow on effect to satellite industries and the public
o Create employment
o Increase Government revenue
• Drawback:
o Possible social implications for locals if not controlledSource: Ministry of TourismReserve Bank of Fiji
MINING
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Currently in small-scale production• Royalty payment made to Govt. and
land-owners on first shipment of
ores
• Paid for surface lease 50 years in
advance
Mt Kasi
Gold
Newcrest
Mining Ltd
(NML)
Wailevu,
Vanua Levu
240,000 ounces
gold reserves
• NML seeking mining license
TuvatuGold
Lion One Ltd SabetoLautoka
Company iscurrently in
exploration
phase
• Phase 1 exploration works• Presence of high quality gold
deposits confirmed via surface
sampling
Source: Industry liaison, company websitesReserve Bank of Fiji
MINING continued
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Source: Media, Industry liaison, company websitesReserve Bank of Fiji
FORESTRY
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Only 1 fish processing company (Golden Ocean) , out of 6, is currently EU
compliant
• 7 fishing vessels (out of the 60) are now EU compliant
• Entry into the EU market will attract investment into the fishing industry ,
especially in processing
• Benchmarking against high EU standards - will assist Fiji to export more
fish to any destination overseas
Source: Industry LiaisonReserve Bank of Fiji
RENEWABLE ENERGY
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
Vuda 17.4MwH $65 million • Project construction to employ 200
workers
• Plantation will employ 215 workers
• 20-25 will be employed at the Plant
• Save $40 million in foreign reserves
Somosomo
Hydro
Department
of Energy
Taveuni 700KwH $20 million • Roads connecting to site completed
• Chinese engineers finalising designs
• Fully funded by the Chinese Govt
Cogeneration
Plant
Bagasse
FSC
Rarawai
BA 30MwH • Expressions of Interest - called Jan.
2011
Namosi
Hydro
Hydro Fiji
Ltd
Namosi 25 MwH $100
million
• Preliminary geological studies –
completed
• Preliminary agreement with FEA to
purchase productionReserve Bank of Fiji Source: Media, Industry liaison, company websites
To sum up FIJI’S RECENT
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
• Private sector investment clearly below par with
reliance on public sector to drive growth
• World Bank suggests we have lost some ground in
terms of ease of doing business (but still in top third)• Are we doing enough to address the impediments to
investment?
• Still large investment interest in Fiji; but we need tonurture this to implementation!
• Excellent opportunities for investment in a number of
key sectors
THE WAY FORWARD
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort
8/3/2019 Governor Reserve Bank of Fiji, Mr. Barry Whiteside’s presentation at the Fiji Institute of Accountants Congress on Friday 10 June 2011 at the Shangri-La Fijian Resort