By Sue-Ann Wayow
IN 2020, the manufacturing sector has contributed to 19.3% of Gross Domestic Product (GDP) employing over 52,000 citizens and Government will continue to improve the ease of doing business in Trinidad and Tobago.
On Monday, during his Budget presentation in Parliament, Finance Minister Colm Imbert also said while there was positive progression, there was a caveat.
He said, “We are focusing on improving the relative ease of doing business. We were assured that we will improve our current position of 105 out of 150 economies in the World Bank Doing Business Report 2020.
“However, there is a caveat. About three weeks ago the World Bank cancelled the Doing Business series on country business climates, citing internal audits, while an independent probe found senior World Bank staff pressured staff to alter data in favour of several countries. The analyses and conclusions in these ease of business documents have now been tainted.”
The minister lauded the manufacturing sector as a catalyst for achieving economic transformation, expansion and diversification post pandemic and Government will be supporting the Trinidad and Tobago Manufacturers’ Association in its drive to double by 2025 non-energy manufacturing exports. The sector is already benefitting from the forex facility at the EximBank.
Imbert reported that in 2020, 97 businesses have utilised US$100million and in the period January – August 2021, 107 manufacturing businesses have already utilised US$81.2 million.
He also said in keeping with the digitisation programme, the Single Electronic Window for Trade and Business Facilitation was strengthened and the Investment Framework for the Approval and Facilitation of Investment was improved in the non-energy sector.
Government was also working towards implementing an Electronic Funds Transfer Framework across the public sector to allow payments to be made electronically to the Government.
The Voluntary Compliance Programme under the Customs and Excise Division so that procedures associated with shipments of bonafide importers can be fast-tracked is being expanded and Government was improving access to finance and foreign exchange by ensuring the timely release of Value Added Tax (VAT) refunds and completing the recapitalisation of the EximBank, Imbert said.
Also, special windows were placed within commercial banks to offer facilities to small-and medium enterprises (SMEs).
Push for new products
Imbert said Government was taking steps to list small-and medium enterprises on the Trinidad and Tobago Stock Exchange for which there was a Junior Stock Exchange Facility and to provide the eligible enterprises with appropriate tax incentives.
A new “Catalytic Fund” is also being set up at the EximBank where export-oriented companies, in both the manufacturing and service sectors, will be able to access financial support to generate increased exports and earn more foreign exchange.
For the promotion of new products, Imbert said, “We are improving production capabilities and promoting new and niche products and we are doing so by accelerating the implementation of the National Quality Policy which will ensure adherence to international standards and technical regulations. This policy programme would guarantee reliable measurements and set up a system that would allow accreditation of testing and certification facilities.”
A national vocational training strategy which would create skilled employees for the manufacturing sector will also be laid out by working with relevant vocational qualification standards as well as through a national apprenticeship programme, modelled along the German Vocational Education and Training System, which was highly recognised worldwide the minister said.
Expansion of trade
Imbert said trade agreements will be negotiated and expanded with regional and international markets and focus will continue on the CARICOM Single Market and Economy.
He said, “We will amend the Immigration (Caribbean Community Skilled Nationals) Act to expand the categories eligible for free movement from 5 to 10, with two further categories awaiting the approval of the definitions at the CARICOM level. The new legislation will afford Trinidad and Tobago nationals, the opportunity to seek employment and live in participating CARICOM Member States and vice versa.”
Member of the diaspora would also be eligible under the Act.
To encourage young people in business, manufacturing and agriculture mainly, Government will establish the Innovation Incubator Project which entails collaboration between the University of the West Indies (UWI) and business entities to provide a space where young entrepreneurs can get advice or locate their businesses and help one another develop.
There will also be a $50 million allocation in professional services and support to SMEs specifically in the areas of accounting services, record-keeping, training, management, inventory control, health and safety and to ensure that they meet their statutory obligations. This programme will be managed by the Ministry of Finance, Imbert announced.
Pt Lisas Port to become country’s second largest port
And the eTecks parks are going to be modernised and re-purposed as a facilitator of commercial development.
He said, “Close to the second largest port in the country, the Port of Point Lisas – a major containerised cargo port. Investors wishing to locate in this zone will have the advantage of easy access to regional and global consumer markets. The industrial estate will be completed in April 2022 and is being constructed by Beijing Construction Engineering Group Company Limited under the belt and road initiative being pioneered by the Peoples Republic of China.”
“The Industrial Estate aims to build an environmental-protection, ecological and fully functional industrial park with light industry and high additional value. It is intended to be a world-class facility that would meet our requirements for economic diversification. Chinese enterprises will now have a platform in this region to expand into the Latin American market.”
