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Growing Fiji’s Manufacturing Sector

Growing Fiji’s Manufacturing Sector. A presentation at the Fiji Business Forum Suva 4-Jun-2011. Factors enabling Manufacture. Land Raw Material Labour Intelligent workforce Cost-effective Capital Equipment, Plant & Machinery Entrepreneurship Market Access.

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Growing Fiji’s Manufacturing Sector

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  1. Growing Fiji’s Manufacturing Sector A presentation at the Fiji Business Forum Suva 4-Jun-2011

  2. Factors enabling Manufacture • Land • Raw Material • Labour • Intelligent workforce • Cost-effective • Capital • Equipment, Plant & Machinery • Entrepreneurship • Market Access

  3. Where we have a natural advantage • Raw Material proximity: • Timber / wood (furniture) • Agri processing (sugarcane, pawpaw, pineapple, dalo, cassava, coconut, ginger, tobacco, herbals) • Processed Marine based (e.g., Starkist) • Mining & minerals (incl cement?) • Water • ‘Natural / Eco’ (organic, bio-tech) • Dairy, meat & poultry processing

  4. $14.35 m Jan-Sep $10.76 m $2.32 m Source: Fiji Bureau of Statistics

  5. Where we have a natural advantage • Raw Material proximity: • Timber / wood (furniture) • Agri processing (sugarcane, pawpaw, pineapple, dalo, cassava, coconut, ginger, tobacco, herbals) • Processed Marine based (e.g., Starkist) • Mining & minerals (incl cement?) • Water • ‘Natural / Eco’ (organic, bio-tech) • Dairy, meat & poultry processing

  6. Other advantages / reasons • Non-price competition: • ‘Fiji’ – perception of pure & unspoiled (can we do herbals?) • Consumer culture similar to PICs and A&NZ (comfort in dealing, quality and disclosure standards) • Strategic: • Food security (Oxfam prediction) • Trade Balance & forex imperatives • Employment & income generation • Based on EPAs, RTAs: • TCF • Historical: entrepreneurial daring

  7. What we DON’T always have • Large domestic market • Economy of scale • Labour Productivity • Adequate supply of skilled tradespeople • Access to R&D / Technology • Geographic / Logistic convenience

  8. Why we need to continue with Manufacture • Spine of sovereignty • Value addition opportunities / backward integration / market access • GDP growth • Multiplier Effect • Flow-on effect • Employment & Income generation

  9. (Made in Japan ) (Made in China ) (Made in Philippines ) Why Americans can’t find Jobs…* John Smith started the day early having set his alarm clock for 6 A.M. While his coffeepot was perking, he shaved with his electric razor * - source unknown

  10. (Made in Sri Lanka ) (Made in Singapore ) (Made in Vietnam ) (Made in India ) (Made in Mexico ) He put on a trendy shirt , his designer jeans and tennis shoes After cooking his breakfast in his new electric skillet , he sat down with his calculator to see how much he could spend that day.

  11. (Made in India ) (Made in Germany ) (From Saudi Arabia ) (Made in Taiwan ) (Made in Malaysia ) Setting his watch to the radio , he got into his car , filled it with gas and continued his search for a good paying AMERICAN JOB . At the end of yet another discouraging and fruitless day checking his computer , John decided to relax for a while.

  12. (Made in Brazil ) (Made in France ) (Made in Korea ) AND NOW HE'S HOPING HE CAN GET SOME HELP FROM HIS PRESIDENT… He put on his sandals , poured himself a glass of wine , turned on his TV and wondered why he can't find a good paying job in AMERICA .

  13. ( Made in Kenya )

  14. Therefore:

  15. What will help ….1 • Continuing tariff support (small domestic market & no economies of scale) • Cautious approach on EPAs with countries that are ‘kicking away the ladder’ • Recognition of our size & limitations when mingling with manufacturing giants • National focus on Productivity & Quality • Skill based National Training Plan • Quality initiatives • Enabling IR environment • Improved infrastructure (roads, bridges, electricity, water, telecom)

  16. What will help ….1 • Continuing tariff support (small domestic market & no economies of scale) • Cautious approach on EPAs with countries that are ‘kicking away the ladder’ • Recognition of our size & limitations when mingling with manufacturing giants • National focus on Productivity & Quality • Skill based National Training Plan • Quality initiatives • Enabling IR environment • Improved infrastructure (roads, bridges, electricity, water, telecom) • Stability / predictability in Taxes & Legislation

  17. What will help …. 2 too! • Long Term Industrial Policy (LTIP) based on competitive advantage/ strategic needs (FEDB ?) and a consultative process • Trade delegations & overtures based on LTIP (publicity / leaflets based on that) • Tax Free Zones in viable areas of Viti Levu (Naitasiri, Tailevu, Namosi, Rakiraki) • Forced value addition? • Price controls that encourage investment • Control over imports / level playing field on contents (fortification, NIPs, ingredients) • Encouraging display of Local products • Continue export incentives • Job creation subsidy

  18. What will help …. 2 too! • Stability / predictability in Taxes & Legislation • Long Term Industrial Policy (LTIP) based on competitive advantage/ strategic needs (FEDB ?) and a consultative process • Trade delegations & overtures based on LTIP (publicity / leaflets based on that) • Tax Free Zones in viable areas of Viti Levu (Naitasiri, Tailevu, Namosi, Rakiraki) • Forced value addition? • Price controls that encourage investment • Control over imports / level playing field on contents (fortification, NIPs, ingredients) • Encouraging display of Local products • Continue export incentives • Job creation subsidy

  19. Vinaka vakalevu

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