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Senator Don Wehby’s Contribution to The Debate on The Bill Shortly Entitled The Appropriations Act,2022

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MARCH 25, 2022

Mr. President, I rise in support of the Appropriations Bill, 2022, which when passed will approve the estimates of Heads of Expenditure in the 2022/2023 budget.
I would like to commend the Hon. Minister of Finance & the Public Service, Nigel Clarke, on the work he has put into preparing the budget. I think the Minister has lifted the level of budget debate to another level which sets a new standard. His budget presentation under the theme Recovery, Reform and Restoration was supported by empirical data and deep analysis of the issues and for me instilled confidence for the management of the economy now and going forward, by this Government.

I would also like to thank Ms Darlene Morrison, the Financial Secretary, and all the Deputy Financial Secretaries for the hard work they put into each year’s budget. My comment about the Minister of Finance & the Public Service is also a reflection of the professionalism and expertise of the staff at the Ministry. I also want to recognise the BOJ, PIOJ and STATIN, and all the technical staff at the various Ministries for their continued commitment to producing the budget.

I would like to congratulate the Most Hon. Prime Minister on a very comprehensive budget presentation which addressed the main issues facing our nation at this time, and setting out the plans for securing a better Jamaica, for all Jamaicans by Sowing S.E.E.D.S of Peace, Opportunity and Prosperity. S.E.E.D.S. meaning
Security
Environment and Energy
Education and Skills
Development of Infrastructure
Social Partnership & Unity

It was a brilliant presentation and very much prime ministerial and visionary. In terms of the Security aspect of his presentation, I was happy to hear the update that Plan Secure Jamaica is being systematically and strategically implemented through the provision of technological, telecommunications, training, and other resources.

Mr President, I recall for the last two fiscal years we have debated the Appropriations Bill in the context of dealing with the impact of the COVID-19 pandemic.
Countries around the world are opening their economies and easing COVID-19 restrictions. Jamaica has followed suit as the Hon. Prime Minister recently announced the lifting of the DRMA order. I am cautiously optimistic that we have passed the worst of the pandemic. However, this year we are debating the budget in the context of new challenges.

Economic Recovery
The economy has been recovering from the impact of COVID-19 well ahead of most of our neigbouring countries. Economic growth, job creation, debt reduction has all seen positive improvements.
• In the 1st quarter of 2021/2022 fiscal year, the economy grew by 14.2%-the highest ever recorded quarterly growth rate in Jamaica’s history. The economy is projected to continue to grow during the upcoming fiscal year at a rate of 7-9%.
• The Tourism sector is on the rebound to 70% of pre-pandemic levels and the majority of other sectors have also seen improvement.
• Unemployment reached an all-time low of 7.1% in October last year.
• Debt to GDP ratio has fallen to 96% and is on track to reduce even further.
• Business confidence increased by 24% in the quarter ended December 21; and
• Net International Reserves are now at pre-pandemic levels—US$3.6 Billion as at February this year.

These macro indicators have supported Fitch’s affirmation of the country’s B+ sovereign rating and our outlook remains stable. Fitch has highlighted Jamaica’s consistent fiscal policy effort to reduce our stock of debt as a key factor in the ratings.
Achieving these growth rates will firmly place the economy on a path towards pre-pandemic levels. The Government’s leadership through nearly three years of the worst crisis we have ever seen must be commended.

Budget 2022/2023
Mr. President, the budget for FY2022/23 is expected to support recovery, facilitate reform, and foster restoration of the Jamaican economy.
Total expenditure for the 2022/2023 fiscal year is set at J$912 billion, a 9.1% increase relative to the prior fiscal year. Total income estimates of J$906.4 billion, a 12.3% rise compared to FY2021/22.

A budget deficit of J$5.6billion will be funded by cash reserves from prior years’ budget surpluses. My understanding is that budget deficit should have limited impact on inflation and interest rates. I appreciate the Minister of Finance clarifying an unfortunate interpretation of the budget figures by the Opposition where it was suggested that the Government would collect J$99 billion more in taxes during 2022/2023. It is extremely important for the Jamaican people to get the facts.

To compute how much more the Government plans to collect in taxes this coming year, one would have to subtract the latest estimated amount of taxes to be collected this year (2021/22) from the projected amount of taxes to be collected next year (2022/23).

The former figure is contained in the Second Supplementary Estimates tabled and passed in the House of Representatives in January 2022 which shows that estimated tax revenues for 2021/22 is approximately J$606 billion. This figure is included on Page 6 of the 2022/23 Fiscal Policy Paper. In addition, the Page 34 of the Fiscal Policy Paper summarizes the Second and Third Supplementary Estimates, inclusive of the expected revenue for 2021/22 of J$606 billion.
This compares with projected tax collection for 2022/23 of J$671 billion as contained in recently tabled budgetary documents. Tax revenues are therefore expected to grow by the difference between these two numbers, that is, J$65 billion.
So, in summary, the Government plans to collect J$65 billion more in taxes next fiscal year 2022/23 as compared with the current fiscal year 2021/22, without the imposition of any new taxes or tax increases.
The strong fiscal management performance of the government has resulted in the fifth year in a row that there will be NO new taxes.

Headwinds- Rise in Inflation and Commodity Prices
Mr. President, one of the main headwinds that in my opinion is a risk to reaching full pre-pandemic levels of growth is the increase in inflation globally and the uncertainty around the duration of global inflationary pressures.

The Governor of the BOJ and his team have been doing a good job in managing these pressures and I want to recognize him in this regard. Our situation is not dissimilar to developed economies such as the United States. The Federal Reserve launched a high-risk effort to tame the worst inflation since the 1970s, raising its benchmark short-term interest rate.

Proper fiscal management is key for us to navigate the choppy financial seas this year.

Mr President, I heard the opposition speak about the cost of living increase. But we have to place the rise in food prices in context of commodity prices. Global inflation is the highest it has ever been. United States’ inflation reached a 40-year high at 7.5%. The Russia/Ukraine war also has a significant impact on commodity prices.

Based on data I compiled from Business Insider and the World Bank, YOY 2020/2021 commodity price increases were as follows:

*Commodity 2020 2021
Corn (Maize) -3% 57%
Natural gas (US) -22% 92%
Soybeans 10% 43%
WTI Crude Oil -31% 73%
Brent Crude Oil -34% 67%
Wheat 8% 24%

These increases have gotten worse in 2022.
Russia and Ukraine are suppliers of about one third (1/3) of the global demand for wheat which has resulted in an increase in the cost of food items such as bread.

Mr President, when we are speaking to our nation, it is unfair to speak about increase in prices without putting in context why the prices are increasing, so Jamaicans can get a better understanding of the issues we are facing. I will speak to this later in my presentation, hopefully with some solutions.
As I listened to the proposal by the Opposition, I didn’t hear the analytics and empirical data to support what was being proposed.
Mr. President, today I refer to that as the “politics of promises” which is a knee jerk reaction to gain political popularity which has previously gotten us into trouble. For example, the Opposition’s proposal would cost 2% of GDP or J$40 Billion. The question that I must ask is how it is going to be financed. I would suggest that the only way to do so is to raise taxes or increase our debt stock which would spiral us into a bigger problem. Either way the most vulnerable will suffer the most.

So, Mr President, in my opinion, based on all that is happening in the global economy, the tensions in Europe, the discussion we should be having is around how we can become more self-sufficient as a country. I have said many times that we have to grow our way out of our debt problem. In crisis there is opportunity. With the rise in food prices we need to strategically focus our efforts on production to improve food security, raise productivity and create sustainable value-added food products. I have said it over and over that we need to set ourselves a target to cut our import bill from US$1Billion to US$500M by 2030. This is how we are going to cushion the effects of the rise in global food prices. We need to invest significantly more in agriculture, both for local consumption and export.

Debt to GDP Ratio
So, Mr President, earlier I raised the issue about increasing the stock of debt, I will say again, we cannot spend more than we earn and borrow our way to economic recovery. The future is too uncertain to take on more debt. We cannot afford another Jamaica Debt Exchange (JDX) or National Debt Exchange (NDX) restructuring. Our peers have Debt to GDP ratios that are still 10, 20, 30 and some even as high as 60 percentage points higher than their pre-
COVID levels.

A high level of debt results in tremendous debt servicing costs which makes the country susceptible to adverse shocks. A high level of debt increases macroeconomic uncertainty and lowers our ability to engender long term growth as public investment capacity is crowded out by debt service obligations. We have been on the precipice of disaster with respect to our debt to GDP—we cannot go back there.
The former Minister of Finance, Dr Peter Phillips’ did an excellent job in running the first leg of fiscal reform. Audley Shaw took the baton from Dr Phillips and passed it to Nigel Clarke who is doing and excellent job. We must continue to build on those wins, otherwise we will end up in a virtuous cycle of debt.
The key is to find the right balance between fiscal austerity and protecting the most vulnerable in our society. I commend the Minister of Finance for finding this balance with the budget.

Fiscal Commission
Mr President, on a previous occasion, in this House I indicated my support for the establishment of the Fiscal Commission, so that we can have in place a body that will provide the level of oversight and hold the Government accountable to staying on track to achieving the debt to GDP target. This will take away the temptation of “politics of promises” that has gotten us into significant trouble since independence. I noted the update from the Minister of Finance that plans are underway to appoint the Fiscal Commissioner within the 2022/2023 fiscal year. The Commission is not a “nice to have” it is an imperative to enhance the governance structure so that we can continue our path to economic independence.

Renewable Energy
Mr President, another important factor in building our country’s resilience, is reducing our dependence on Crude Oil which I just mentioned increased by 67% YOY 20/21. This significant increase has impacted electricity costs. I want to highlight the efforts of the Government to cover 20% of the JPS Bill for households that consume 200Kwh of electricity or less. This is an example of timely welfare targeting so that only those who are most vulnerable will benefit and the assistance is time bound. Mr President, we also need to incentivize a cultural change towards more renewable sources of energy and put the polices in place to effect the change.

Jamaica’s current usage rate for renewables is 13% and the Government’s target is to reach 30% by 2030 with possibility to formalize a 50% target. It is an ambitious target, but it can be done if we create the right policies the environment and incentives to achieve this objective. In Barbados for example businesses and homeowners engaged in the renewable energy and energy efficiency sectors benefit from energy tax incentives.
The Minister responsible for energy should report to the Parliament on an annual basis of how we are doing against the target and the actions being taken to stay on track.

Social Protection Initiatives
Mr President, I also wanted to note my support for the allocation of J$16.9 billion to the PATH Programme, to support the vulnerable sectors. This support will be provided through the PATH cash grant, Social Pension for the Elderly, Rehabilitation Grants, the Social Intervention/Youth Empowerment Strategy and the support for needy students. We care for all Jamaicans.

Capital Expenditure
Capital expenditure initiatives will stimulate economic activity by providing jobs and creating capital capacity earnings to fuel economic recovery. The total projected spend on capital expenditure for the upcoming fiscal year is J$65.1billion an increase of 20% YOY. Some of the major projects announced which I am pleased about include:
• Southern Coastal Highway Improvement Project
• Montego Bay Perimeter Road; and the
• Northern Coastal Highway

Mr President, in closing, I would like to again offer my support for the Bill and say that, our resilience as a country has been tested more than ever before but we have shown that we can get through this together and we will recover stronger.

Thank you, Mr. President

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The Digital Business Roadmap for Jamaican MSMEs: A Critical Path to Digital Transformation

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Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the economic landscape of many countries, including Jamaica. As the global economy continues to evolve, driven by rapid technological advancements, it is important for MSMEs to embrace digital transformation to remain competitive and sustainable. This blog explores the concept of digital business, the importance of digital transformation for MSMEs in Jamaica, and provides a roadmap for achieving this critical transition.

Defining MSMEs in the Jamaican Context
In Jamaica, MSMEs are defined based on their number of employees, annual turnover, and total assets. According to the Ministry of Industry, Investment and Commerce (MIIC), micro enterprises have fewer than 5 employees and an annual turnover or total assets not exceeding JMD 10 million. Small enterprises employ between 5 and 20 people with an annual turnover or total assets between JMD 10 million and JMD 50 million. Medium enterprises employ between 21 and 50 people and have an annual turnover or total assets between JMD 50 million and JMD 150 million.

Understanding Digital Business
Digital business involves leveraging digital technologies to create new value in business models, customer experiences, and the internal capabilities that support core operations. The theoretical framework behind digital business is rooted in the integration of digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and cloud computing to enhance business processes, improve efficiency, and drive innovation.

Digitization, Digitalization, and Digital Transformation
To understand the journey towards a digital business, it is important to distinguish between digitization, digitalization, and digital transformation:

Digitization
This is the process of converting analog information into digital formats. Digitization in many ways is the first phase of any effort to digitally transform your business. However, it comes with its own set of challenges, especially for MSMEs in emerging markets like Jamaica. The two primary costs MSMEs will have to account for are technology investment and user training. The cost of acquiring the necessary technology (e.g., scanners, computers, and software) to digitize records can be difficult for small businesses, who mostly operate on tight budgets and may find it challenging to allocate funds for such investments. User training often involves upskilling the employees of the to use new digital tools and processes effectively. This training requires both time and money, which can strain the resources of small businesses. These challenges can hinder progress and make the initial steps towards digital transformation more complex and resource-intensive.

Digitalization
If you are able to successfully digitize your business, this increases the likelihood of the next phase of this journey, digitalization. This refers to the use of digital technologies to change a business model and provide new revenue and value-producing opportunities. This involves using digital technologies to change business models and create new value-adding opportunities.

One of the primary challenges with digitalization lies in integration complexities. Many small businesses operate with legacy systems that are not easily compatible with modern digital tools and platforms. Integrating these new digital systems with existing ones can be technically complex and expensive, often requiring specialized IT expertise. Additionally, data stored in different formats or locations can create silos, which make it difficult to establish a unified and streamlined digital workflow. Addressing these silos often necessitates substantial restructuring of existing processes, adding further complexity to the digitalization journey.

Another significant challenge is change management. Employees and management might resist new digital processes, particularly if they are comfortable with the traditional ways of doing things. This resistance can slow down the adoption of digital tools and diminish the effectiveness of digitalization efforts. Moreover, moving from analog to digital processes often requires a cultural shift within the organization. Encouraging a digital-first mindset among employees can be difficult, especially in organizations where traditional methods are deeply ingrained.

The skills gap also poses a considerable challenge during digitalization. This activity typically demands a higher level of technical expertise than digitization. Employees may need to acquire new skills to effectively use digital tools, analyze data, and manage digital workflows. However, finding or developing these specialized skills can be a significant hurdle for many MSMEs, particularly in regions where access to advanced training and education is limited.

Digital Transformation
This is a comprehensive, strategic approach that leverages digital technologies to fundamentally change how an organization operates and delivers value to its customers. Achieving digital transformation in a business requires a holistic approach that involves integrating technology, people, processes, and culture. To successfully achieve digital transformation, a business must start by developing a clear vision and strategy. This involves defining what digital transformation means for the organization and setting measurable goals that align with overall business objectives, such as improving customer experience, boosting operational efficiency, or expanding into new markets. Creating a detailed roadmap with specific timelines, milestones, and resources is essential for guiding the transformation process.

Fostering a digital-first culture is equally important. Leadership must drive the initiative, committing to the transformation and promoting a digital mindset across the organization. Engaging employees early in the process through training and development opportunities is crucial to help them adapt to new tools and encourage a culture of continuous learning and innovation.

Investing in the right technology is another critical step. Businesses should choose scalable solutions, such as cloud-based platforms, data analytics tools, and automation technologies that can grow with the company and streamline operations. It’s essential to select technologies that integrate well with existing systems to ensure a smooth transition. Optimizing processes is also key to successful digital transformation. Before implementing new technologies, businesses should assess their current processes to identify inefficiencies and areas for improvement. Automating repetitive tasks can save time, reduce errors, and allow employees to focus on more strategic activities.

Collaboration is vital in this journey. Digital transformation often requires cross-departmental collaboration to identify challenges and develop solutions. Encouraging teams to work together ensures that digital initiatives are aligned with business needs. Additionally, forming external partnerships with technology providers, consultants, and other businesses can accelerate the transformation process by providing access to new technologies and expertise.

Ensuring data security and compliance is critical as the business becomes more digital. Investing in robust cybersecurity measures protects data and systems from threats, while compliance with relevant regulations, such as data protection and privacy standards, is necessary, especially when handling sensitive customer information. Monitoring and adapting the transformation process is essential for success. Businesses should continuously track their progress using data and analytics to measure performance against goals. Being flexible and ready to adjust strategies based on feedback, new developments, and changing market conditions is vital for ongoing improvement.

Leveraging government and private sector support can also provide significant advantages. Many governments offer grants, tax incentives, or other support for businesses undergoing digital transformation. Collaborating with industry associations and private sector partners can offer valuable resources, training, and networking opportunities, helping businesses stay informed about the latest trends and best practices. Engaging customers in the transformation process is another important step. As new digital tools are implemented, businesses must ensure that customers understand how to use them by providing clear instructions, tutorials, and support. Regularly collecting customer feedback allows businesses to continuously improve their digital services, ensuring they meet customer needs.

Finally, planning for continuous improvement is crucial. Digital transformation is not a one-time project but an ongoing process. Regularly reviewing and adjusting the digital strategy helps businesses stay competitive and responsive to changes in the market. Staying informed about the latest trends in technology and digital business enables companies to anticipate changes and opportunities, ensuring they remain agile and innovative in a rapidly evolving digital landscape.

The Need for Digital Transformation in Jamaica
Jamaica’s Vision 2030 aims to make the country the place of choice to live, work, raise families, and do business. Achieving this vision requires a robust digital economy where MSMEs can thrive. Digital transformation is essential for MSMEs to improve efficiency, expand market reach, and enhance customer experiences. According to the Global Competitiveness Report 2019 by the World Economic Forum, Jamaica ranks 80th out of 141 countries in ICT adoption, highlighting the need for significant improvements in digital infrastructure and capabilities.

The Way Forward for MSMEs
Crafting a digital business roadmap requires careful planning and a thoughtful approach to several key factors. First, it’s essential to understand and address the evolving needs and preferences of customers in the digital age. Ensuring that digital initiatives can scale as the business grows is also critical, allowing for adaptability and responsiveness to market demands. Sustainability should be a central focus, with continuous updates and optimization of digital technologies to support long-term success. Collaboration is another crucial element, as leveraging partnerships and alliances can significantly enhance digital capabilities.

In conclusion, the digital business roadmap for MSMEs represents a vital strategy for achieving sustainable growth and competitiveness in today’s economy. By embracing digital transformation, MSMEs in Jamaica can unlock new opportunities, improve efficiency, and deliver enhanced customer experiences, ultimately contributing to the broader goals of Vision 2030.
© Germaine A. Bryan, 2024

Germaine Bryan is a business developer and startup coach supporting startups and MSMEs. Germaine is a skilled tactician in strategic business planning and has helped hundreds of entrepreneurs build their capacity to operate at scale. Germaine is the Managing Principal of Gerbry Business Ltd. For enquires. please email: germaine@gerbry.business

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Should Jamaica Abandon Its 2030 Vision?

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As a Jamaican employed in an organisation, you are worried about the future of our nation. It appears as if our country is stumbling along, barely keeping its head above water. At the same time, you are aware of the power of a corporate vision.
Why hasn’t someone done the same for our 2.8 million people on the island, and the other 2+ million in the Diaspora?

The good news is that something is already in place in the form of Vision 2030. But why isn’t it changing your everyday experience?

The truth is that we need help. The two main things Jamaicans care most about – economy and crime – seem not to have progressed for decades. Instead, we want the hyper-growth of Trinidad-2004 and Guyana-2023. Or maybe even the steady high performance of the Bahamas.

Or perhaps more importantly, we envy the low crime rates of Barbados or Cayman (formerly a Jamaican protectorate.) At some point, we led all these countries in these areas.

Today, we are working hard not to slip into the same zone as Haiti.

If our leading companies can accomplish so much long-term success, why can’t our country, we wonder? While a direct comparison is unfair, maybe there are a few things we can learn from best practices accepted in your organisation.

A Joined Up, Far-Away Future

A “joined-up” future is one that lots of stakeholders contribute to creating. In a company, it means engaging the board, executives, staff, customers, suppliers, regulators, local communities and more.

Shouldn’t our country do the same?

Based on my experience and queries of colleagues outside government…we don’t know that we already have a joined-up faraway future…at least on paper. In fact, the process used to create Vision 2030 Jamaica from 2003-9 is a world-class model. As such, I have shared it at in-person and online strategy conferences as a case study.

Perhaps you recognise the summary statement: “the place of choice to live, work, raise families and do business.” In times gone, it was the tagline of speeches given by the Governor General, Prime Minister, Leader of the Opposition and many others.

But I looked over the recent Budget Debate notes. I struggled to find much of a mention. A Google search didn’t help. Here are a few ways business people at all levels could intervene now to prevent what former leaders of our country seem to be telling us…this is too important to allow it to be eaten up in regular chakka-chakka.

Why the urgency?

With six or so years remaining until we cross the finish line in 2030, we can’t afford to waste a single moment in mid-race. Remember when Miller-Uibo glanced up at the screen and lost her lead in the 400m final of the 2017 World Championships? We are likely to stumble into defeat also as a nation, unless we pay attention to the following.

A Divisive Election – You and I watch the bitter combat underway in the USA. It appears that cooperation towards common goals is impossible. Within a year, our political parties will try to win the next election by emphasising their differences. This is natural. But it’s the opposite of the intent of Vision 2030 Jamaica. Just imagine if the board of your company were divided into opposing camps. Let’s intervene so that their attention remains on what is most important.

Continuous Inspiration – Your ability to recite our National Pledge and Anthem were picked up as a child. We could elevate Vision 2030 Jamaica to that level of importance, starting with the Forward by Dr. Wesley Hughes, which states in part:

“Today, our children, from the tiny boy in Aboukir, St. Ann, to the teenage girl in Cave, Westmoreland, have access to technologies that were once considered science fiction. They seek opportunities to realise their full potential. This Plan (vision) is to ensure that, as a society, we do not fail them. “

Updated Business-like Measures – How can we know the progress we have made from 2009-2023? Are the measurable results listed in the document beyond reach? Do we deserve an A-? or a D+?

How about fresh, intuitive measures of success which tell us whether or not Jamaica is becoming “the place of choice”? Let’s measure the length of lines outside the US and Canadian Embassies for those seeking permanent residency and how they are growing or shrinking.

Wheeling and Coming Again – Companies have no problem resetting fresh objectives when the old ones no longer do the job. In business, a strategy that is not working is replaced as soon as it’s found to be lacking.

We can do the same for Vision 2030 Jamaica to keep it relevant. This is the beauty of long-term strategic planning.

An honest read of the original document reveals that certain assumptions about the government’s capacity to lead the effort were unquestioned. Today, after over a decade of effort, we have learned much. For example, it’s hard to argue that the planning done in 2009 was enough.

While we once led the world in long-term national planning, we aren’t doing the same in the more difficult world of national strategizing and execution. But there’s time.

As the clock ticks down to 2030, things are likely to become more awkward for all of us. As you may imagine,. the human tendency is to avoid the issue entirely, hoping it goes away.

That may yet happen. But if we don’t confront the gaps in our initial attempt to create a joined-up, faraway vision, we’ll block our citizens from ever believing in a national vision again.

In fact, it would be better if it were declared null and void, than ignored. At least that would have some integrity and enable us to move on to a better national vision, lessons earned.

Better National Strategic Planning

And that is perhaps the biggest lesson for all concerned. We Jamaicans say that we are great starters, but poor finishers. In other words, we know how to kick things off. But when the going gets tough, we aren’t strong at bringing them to fruition.

Said differently, we don’t know how to keep promises just because we made them.

The point here is that Vision 2030, with some five to six years remaining, puts us in an awkward spot. But that’s a lie. We have put ourselves in an awkward spot.

At some point we were strong in envisioning great things. Like a company who creates BHAGs, our executive team gave its sacred honor to accomplish a great thing, like the framers of the Declaration of Independence.

However, we haven’t put in place mechanisms sufficient to rescue our current situation. At the current rate, we won’t be closer to being a “place of choice” than we were in 2009.

In a company it’s easier to find individuals or a team of leaders who may hold themselves accountable for a game-changing result. Often, the metrics are clear.

Unfortunately, no such clarity exists around Vision 2030. And given our impending election fever, it may not come from politicians. Instead, it’s time for business to step up and bring sound strategic planning to the accomplishment of the most important outcomes of our national lifetimes.

Let’s inspire each other to intervene so we can have what we already
know we want. It won’t happen any other way.

Francis Wade is the founder of the Jump Leap Long-Term Strategy newsletter and podcast, and operates a management consulting firm.

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Jamaica Is Pursuing The Strategy Of Mix Development Modalities

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“Tourism is a wealth creation and economic enrichment activity driven by the consumption and production patterns of people!”

“The strategy for destination exploitation of tourism is a composite of many modalities including business models and investment opportunities and not to be viewed through a myopic lenses.

Small highly service dependent economies such as ours must rely heavily on consumption to sustain economic growth, and expansion and Tourism has become the most effective way of achieving this as the propensity to CONSUME of the Tourist is 3-5 times that of the local! It means therefore that the expansion of the local market by increasing tourist arrivals creating a ‘critical mass’ is essential.

The proliferation of boutique hotels is not the answer when physical resources are limited. The strategy of Mix development modalities as Jamaica is pursuing, with mega hotels, boutique and sharing accommodation i.e. Airbnb etc is the most effective way forward.

The essential element of the strategy though is the production/Supply side of the wealth development equation! Jamaica’s focus must be on providing the goods and services that the Tourists demand to satisfy their consumption patterns! THATS WHERE THE REAL WEALTH OF TOURISM RESIDES! Agriculture, manufacturing, Creative Industries, Energy, Construction etc Then SERVICES; medical, financial, legal, entertainment, Restaurants, Shopping, transportation etc.

Please team let’s take a deeper dive in the confluence of economic moving parts that constitutes Tourism and recognize its elongated and expensive value chain so we can truly embrace the wealth it brings!”

Edmund Bartlett – Minister of Tourism Jamaica

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A Legacy of Leadership: Dr. Marlene Street Forrest and the Future of the Jamaica Stock Exchange

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“As the JSE looks to the future, it will be crucial to find a leader who can match, if not exceed, Dr. Street Forrest’s impressive legacy.”

Introduction
Dr. Marlene Street Forrest, who has led the Jamaica Stock Exchange (JSE) for nearly two decades, is set to retire, leaving behind a legacy of innovation and resilience. Her tenure has been marked by significant achievements and overcoming challenges in a male-dominated field, setting a high bar for her successor.

Accomplishments and Achievements
Dr. Street Forrest’s tenure at the JSE has been transformative. Under her leadership, the JSE has seen a notable increase in market activity, listings, and the introduction of new financial instruments.

She spearheaded the launch of corporate secretarial services to assist smaller companies in maintaining compliance and accurate reporting, which is crucial for their growth and sustainability​​.

In recognition of her outstanding leadership, Dr. Street Forrest received several prestigious awards, including the Order of Distinction in the Rank of Commander (CD) in 2016 and the Afroglobal Excellence Award for Global Impact from Canada the same year​.

Her efforts have not only enhanced the visibility and credibility of the JSE but have also contributed significantly to Jamaica’s economic resilience and development.

Overcoming Challenges
Leading the JSE in a male-dominated industry came with its challenges. Dr. Street Forrest often had to navigate skepticism and bias, proving her competence through relentless hard work and strategic vision.

The global financial crisis and the COVID-19 pandemic posed additional challenges, yet she successfully steered the JSE through these turbulent times by promoting market stability and investor confidence​.

Her focus on digital transformation and enhancing regulatory compliance helped the JSE remain a pivotal player in Jamaica’s economic strategy. She emphasized the importance of high-quality, timely financial information and investor education, which are critical for maintaining market integrity and attracting capital​​.

The Road Ahead: What Her Successor Needs
As the search for Dr. Street Forrest’s successor begins, the JSE requires a leader who can build on her legacy of innovation and resilience. Key characteristics for the next managing director include:

Visionary Leadership: The ability to foresee and adapt to market trends and technological advancements.
Strong Regulatory Knowledge: Ensuring compliance and fostering investor trust through transparent practices.
Commitment to Digital Transformation: Embracing new technologies to enhance market operations and accessibility.
Economic Insight: Understanding market dynamics and economic policies to drive growth and stability.
Collaboration Skills: Building strong relationships with stakeholders, including regulators, investors, and listed companies.

Benchmarking against global stock exchange leaders, the new head of the JSE should embody a blend of strategic foresight, regulatory acumen, and innovative thinking. Leaders like Adena Friedman of Nasdaq and David Schwimmer of the London Stock Exchange exemplify these traits, balancing market growth with robust governance.

Conclusion
Dr. Marlene Street Forrest’s leadership at the JSE has set a high standard, marked by significant achievements and resilience in the face of challenges. Her successor will need to bring a mix of visionary leadership, regulatory knowledge, and a commitment to digital transformation to continue driving the JSE’s growth and success. As the JSE looks to the future, it will be crucial to find a leader who can match, if not exceed, Dr. Street Forrest’s impressive legacy.

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Who is Leesa Kow? Managing Director, JN Bank and Chairman of the Caribbean Association of Banks (CAB)

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Leesa Kow is a distinguished leader in the financial sector, serving as the Managing Director of JN Bank and the Chairman of the Caribbean Association of Banks (CAB). Her career is marked by strategic vision and a commitment to digital transformation and financial inclusion.

Early Career and Professional Background
Leesa Kow joined JN Bank in 2003 as Senior Manager for Remittances. Her leadership capabilities quickly propelled her through various senior roles, including Executive of Marketing, Sales, and Promotion in 2006, and General Manager of JN Money Services Limited (JNMS) in 2008. At JNMS, Kow oversaw significant expansion, growing the company’s reach from 200 branches and agents to over 8,000 across three continents within three years, cementing JN Money as the largest remittance brand from the Caribbean​​.

Leadership at JN Bank
Kow’s ascent to the role of Managing Director in July 2022 followed her tenure as Deputy Managing Director from November 2017. As Deputy Managing Director, she was instrumental in implementing JN Bank’s digitalisation initiatives, enhancing operational efficiency and customer service. Her strategic focus on technology and innovation has been pivotal in transforming JN Bank into a more agile and customer-centric institution​​.

Contributions to the Financial Industry
Beyond her work at JN Bank, Kow has significantly impacted the broader financial services sector. Her tenure as president of the Jamaica Money Remitters Association from 2012 to 2017 showcased her leadership in advocating for the remittance industry. In October 2022, she was elected Chair of the Caribbean Association of Banks (CAB), where she continues to influence regional banking policies and practices​.

Educational Background
Leesa Kow’s academic credentials are impressive, holding a Bachelor of Science degree in Management Studies and Accounting (First Class Honours) and a Master of Science degree in International Business (Distinction) from The University of the West Indies. These qualifications underscore her strong foundation in business leadership and strategic management​​.

Impact and Vision
Under Kow’s leadership, JN Bank has made significant strides in digital transformation, positioning itself as a forward-thinking financial institution. Her vision for the future includes continued emphasis on innovation, customer service excellence, and financial inclusion. Kow’s influence extends across the Caribbean, as she leverages her roles to advocate for advancements in the banking sector and to support regional economic development.

Leesa Kow’s journey from senior manager to managing director of JN Bank exemplifies her dedication, strategic foresight, and impactful leadership. Her contributions to the financial sector and her role in shaping regional banking policies make her a notable figure in Caribbean banking, inspiring the next generation of female leaders in finance.

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