Scotiabank boss: Go for global branding

Richard Young, Managing Director, Scotiabank, Trinidad and Tobago, is urging TT business people to be aggressive about turning  their businesses into global brands.

He was speaking at a “Doing Business in Jamaica” conference organised by Scotiabank, TIDCO and the TTMA last week. As for Scotiabank’s role in the initiative, he said that having the same bank on both sides “ensures a smoother transaction flow and reduced costs to the businessman.”  The mission to Jamaica  to explore trade possibilities is scheduled for September 7 — 12 and approximately 25 companies have registered so far. Foreign Affairs Minister, Knowlson Gift said the FTAA will bring challenges and noted that Jamaica exported less to Caricom in 2002 than it did in 2001. The deficit stood at 89.4 million in December 2002, approximately twice the figure of the previous year. Recent figures show, however that of 17 billion dollars worth of Jamaican imports, 13 billion originated in TT. “Our trade with Jamaica continues to be robust,” said Gift.

Lorne McDonnough, High Commisioner for Jamaica, disclosed that Jamaica is the second largest market for TT products, just after the US, amounting to about 2.2 billion dollars TT. The evolution of a balanced trade would lead to a win-win situation where both economies can  benefit. He emphasised that Jamaica’s support of liberalisaton in telecommunications has led to more options for the consumer in terms of price. Overall, Jamaica was fourth in the region in attracting Foreign Direct Investment flows, from 130 million in 1994 to 730 million in 2001. Tourism in Jamaica, he said, attracted 128 million of FDI within the last three years. The tourism sector is also showing remarkable resilience, having the highest rate of repeat visitors in the Caribbean. International reserves in Jamaica have increased by 400% to 1.85 billion dollars between 1999 and 2001. The government targets reducing the fiscal deficit and the dollar has been revalued and stands at approximately 58 to 1 US dollar. He highlighted the notion that opportunities exist in Jamaica in the agro-industries, processed food, industrial minerals, lime derivatives, tourism, IT, and spin-offs from the Highway 2000 project. “With globalisation comes liberalisation and with liberalisation comes dislocation adjustment.” he said. He expressed concern that some manufacturers have not taken the time to re-invent themselves using new technology while others are too small to survive without preferential treatment.

Janice Robinson, General Manager, Scotia Jamaica Investment Management Ltd, said that prior to Dec 2002 there was relative exchange rate stability. She listed improvements which were underway in Jamaica like expanded port facilities, upgraded airports, Highway 2000 and conference facilities. Other advantages are a liberalised foreign exchange environment, excellent telecommunications , a strong brand and the beauty of the country. The informal sector accounts for 53 percent of total employment and there is a 43 percent ratio of informal sector to registered GDP.