AS INTERNATIONAL TRAVEL FOR NEW ZEALAND RESUMES TODAY, NOT ONLY TOURISTS ARE KEEN TO VISIT OUR SHORES BUT BUSINESS OWNERS AS WELL. [FILE IMAGE]
As international travel for New Zealand resumes today, not only tourists are keen to visit our shores but business owners as well.
New Zealand’s Trade Commissioner to Fiji, David Dewar, says a lot of interest has been shown by businesses to invest in Fiji or to re-connect with their current partners.
Dewar says they are continuing to encourage greater partnerships between NZ and Fiji businesses.
He adds there have already been meetings with existing traders as well as the new ones.
“There are billions of dollars coming into this region for renewable energy, climate change infrastructure. Fiji has been a global leader on that and there are Fijian companies that are on the cutting edge on some of that work.”
Fiji New Zealand Business Council President, Renu Chand says the focus is to maximize investment and business opportunities now that international borders are reopening.
Japanese Ambassador to Fiji, Kawakami Fumihiro and Prime Minister Voreqe Bainimarama. [Image: Office of the Prime Minister]
In a bid to help Fiji stabilize and revitalize the economy, Japan has provided the government with an emergency loan of $200 million for Fiji’s COVID-19 response.
While signing the loan agreement, Prime Minister Voreqe Bainimarama says this support from Japan will further allow Fiji to strengthen its COVID defences particularly the public health system.
Bainimarama says it will equip the frontline workers as Fiji prepares to step through the door of a post-pandemic future.
He adds the key to the door is vaccines and that is why Fiji at every opportunity is advocating for equitable access to vaccines.
Bainimarama says Japan’s plan to host the Olympics in July gives us all hope that life as we knew it is within reach.
The Japanese Ambassador to Fiji, Kawakami Fumihiro says the loan will be provided with extremely concessional conditions with 0.01% interest rate and 15 years of repayment period with 4 years grace period.
He says this loan is the largest in Japan’s long history of aid assistance to Fiji.
The Reserve Bank of Fiji says partial indicators for consumption spending have noted weak outcomes in 2020 and cumulative to November, VAT collections fell by an annual 38.6 %.
The RBF’s December 2020 Economic Review states that in the same period total income generated through wholesale and retail trade activity was lower by an annual 2.7 % up to September, last year.
It says that despite the substantial decline in foreign exchange from international tourism, there has been a notable increase in inward remittances and Government’s external borrowing which collectively have stabilized foreign reserves.
Personal remittance inflows have been strong, having risen by 6.4 % in the year to November to a total of $572.8 million.
Around $52 million was received in the month of November.
Tourism earnings declined significantly by an annual 79.8 % up to the third quarter of 2020.
Cumulative to September, $311.3 million worth of tourism earnings was recorded, of which only $3.1 million was received in the third quarter.
The annual inflation rate stood at -3.4% in November and the outcome is attributed to lower prices of alcohol, yaqona, food and fuel.
As at 31st December last, foreign reserves stood at $2.19 billion which is sufficient to cover 7.3 months of retained imports.
Major decline in vacancies
The RBF’s 2020 Economic Review further states there is an evident downcast in labour market conditions as the RBF’s Job Advertisement Survey registered a 65.7% decline in vacancies in the year to November, compared to a decline of 0.6 % in the same period in 2019.
This was underpinned by reduced recruitment intentions across all major employment categories.
Sectoral performances remain mixed
The RBF says on a cumulative basis, up until November, production of cement and electricity recorded double-digit declines while gold output had been affected by supply delays of essential equipment in the first half 2020.
In the same period, the timber industry showed positive results for pinewood supply and woodchip output, while sawn timber and mahogany production declined.
Visitor arrivals fell by an annual 82.2 % cumulative to November.
At the end of the 2020 crushing season, cane harvested rose by 2.1% while sugar production declined by 5.1%, due to deterioration in the quality of cane harvested.
Permanent Secretary for the Ministry of Housing Sanjeeva Perera at the Lot Allocation Policy consultation at Davuilevu last week
The closing date for making submissions on the proposed Lot Allocation Policy in Informal Settlements has been extended until the 15th of this month.
Permanent Secretary for the Ministry of Housing Sanjeeva Perera says the closing date for submissions has been extended considering the high level of interest shown by the public and the many requests from communities for the Ministry to visit them again for community meetings.
He says so far a total of 1,988 people have attended the public consultation sessions organised around the country.
Perera says the highest number of clarifications were on the lot allocation criteria, use of market value, and how to pay for the allocated lots.
He says given that the policy proposes to use the market value as the basis for calculating the relevant Lot Allotment Price, many interested individuals requested clarification on how and when the valuation will be done, by whom, who will pay for it and also if it is only the land or whether the structures already built on land will be valued as well.
Location of where the cold storage facility in Voivoi subdivision in Nadi.
“It is very encouraging to see commercial real-estate developments unfolding in Nadi, an area that has been badly affected by the Covid-19. Smart entrepeneurs and businesses have taken the downtime to strategize and take advantage of a more readily available construction workforce. There have been a series of groundbreakinginitiatives post Covid such as the BSP commercial developments and now the Ashabhai hub at the Legalega Commercial subdivision located opposite of Fiji Airways Hangar. Construction will stimulate the local economy while we all patiently wait for the borders to open.
On real estate, there has been a general decline of prices and rentals of up to 30%. There has been an increase in the rental pool that has positively adjusted the affordability index in Nadi.” – Arif Khan, Director Bayshore Real Estate, MBA, GRI
The Ashabhai Group of Companies will invest $23 million to construct a 70,000 square feet office space and distribution centre including a 20,000 square feet cold storage facility in Voivoi subdivision in Nadi to serve their customers in the Western Division.
The management is expecting to create additional employment of 70 to 80 employees.
The company says economic activities resulting from this facility during the construction phase and thereafter will benefit the local community.
The Ashabhai Group of Companies says it has confidence in the country’s growth prospects and believes there is light at the end of the tunnel in the wake of global pandemic outbreak.
Founder of the company, the late Ashabhai Purshottam Patel started the business in 1958 and the company currently provides employment to around 450 employees.
Attorney General, Aiyaz Sayed-Khaiyum. [image: Parliament of Fiji]
Attorney General, Aiyaz Sayed-Khaiyum says government will ensure that Fijians do not lose their homes during this extraordinary period when their employment and income have been affected.
Sayed-Khaiyum met with the board and management of the Fiji National Provident Fund to discuss possible options to assist those FNPF members affected by COVID-19 in their home loan repayment.
He further says they will work together with FNPF and all other financial institutions including commercial banks to assist Fijians so that they do not lose their homes.
Meanwhile, the CEO of the Fiji National Provident Fund, Jaoji Koroi says under their existing housing withdrawal policy, members can access their General Account to reduce or pay off their home loan, provided their funds will reduce the debt by at least 15%.
He says this has been accessed by many members over the years.
Koroi confirms the Fund is in the process of reviewing the home loan repayment option, in light of the economic hardships that many members are facing due to COVID-19.
Koroi says they will make necessary announcements once a decision is finalised.
He adds in the last few months, housing withdrawals have tripled compared to last year and this is a good indication that it’s responding effectively to members’ needs.
CEO of the Fiji National Provident Fund, Jaoji Koroi
The CEO of the Fiji National Provident Fund, Jaoji Koroi says under their existing housing withdrawal policy, members can access their General Account to reduce or pay off their home loan, provided their funds will reduce the debt by at least 15%.
He says this has been accessed by many members over the years.
Koroi confirms the Fund is in the process of reviewing the home loan repayment option, in light of the economic hardships that many members are facing due to COVID-19.
Koroi says they will make necessary announcements once a decision is finalised.
He adds in the last few months, housing withdrawals have tripled compared to last year and this is a good indication that it’s responding effectively to members’ needs.
People staying illegally in settlements are not landlords
Minister for Housing Premila Kumar. [image: Fijian Government]
Minister for Housing, Premila Kumar says people staying in informal settlements cannot be landlords as they themselves are staying illegally on that land.
Kumar has made the comment as concerns continue to be raised regarding the arbitrary eviction of people renting in houses in informal settlements by the so-called landlords.
She says the Housing Act is being reviewed and amendments are expected to be made next year.
Kumar says this will end buying, selling and renting of homes in informal settlements.
The Human Rights Commission has brought the arbitrary eviction of Pramil Prasad and his family in Waisasa Settlement in Tamavua to the attention of the Minister for Housing.
Director, Ashwin Raj says it is a matter of concern that the family was forcibly removed from an informal settlement which raises several legal questions about rights, ownership and restitution of rights as we all know renting out property in an informal settlement is unlawful compounded by the absence of tenancy agreements.
The Commission reiterates that arbitrary evictions constitute a violation of section 39 (1) of the Fijian Constitution which guarantees everyone the right to freedom from arbitrary evictions from his or her home or to have his or home demolished without an order of a court made after considering all the relevant circumstances.
HFC Bank CEO, Rakesh Ram says the bank has now extended repayment deferments to 25% of their customers from the initial 50% in March.
He says 53% of these customers are businesses.
Ram says they acknowledge that customers will continue to face hardships which is why any applications for extension on repayment deferment will be reviewed and assessed on a case-by-case basis.
The CEO says they are requesting their customer to discuss other assistance options with the bank if they are still unable to meet their loan repayments post the repayment deferment period.
He says where it would be established that the current pandemic is not linked to the client’s inability to meet the bank’s obligations, then the bank will apply its normal credit criteria to address and protect its risk.
He has also highlighted that the bank has continued to open new business accounts at the same rate in comparison to the same period last year but cash flows are irregular as the effect of the pandemic is being felt by businesses all across the world.
The Minister for Local Government Premila Kumar has confirmed that they have not made any new submissions for capital projects in the 2020-2021 National Budget, but they have requested for funds to continue with the First Home Buyers Grant, First Land Purchases Grant and Social Housing Grant.
She says under the Social Housing Grant they subsidize rent for Public Rental Board and Housing Assistance Relief Trust (HART) tenants.
Kumar says they have also asked for funds in the completion of Koroipita in Lautoka so that homes are provided for underprivileged people in the community.
She says they will continue with the formalization of informal settlements like Sakoca in Nasinu, Tore and Field 4 in Lautoka.
Kumar says three informal settlements should be ready by the end of this year which includes Waidamudamu, Cuvu and Ledrusasa where they will be given 99 year leases.
She says it is better for them to complete the existing projects rather than asking for more.
$2 million was allocated in the 2019-2020 National Budget to upgrade informal settlements.
Kumar says over 520 people have been assisted through the First Home Buyers Grant, First Land Purchases Grant with over $5.3 million.
She says in this time when a country goes through a recession, as a Ministry they need to focus on planning, change in policies and reviewing procedures so that they can streamline the system and reduce any wastage if there is any.
Kumar says if they fix their policies and procedures they will minimize corrupt practices.
She says there should be checks and balances in place, like who decides on who should be the new tenant.
Kumar says the ministries’ budget is expected to decrease depending on what the focus of the budget would be.
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