JMA Jamaica Day Celebration at Wolmer`s Boys` School

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JMA Jamaica Day Celebration at Wolmer’s Boys’ School
Inside this issue:
EXECUTIVE DIRECTOR UPDATE
2
WORK OF THE SECRETARIAT
4
JMA JAMAICA DAY
CELEBRATION CONTINUED
5
UPCOMING ACTIVITIES
7
SELF RELIANCE THROUGH
MANUFACTURING
8
GLOBAL
COMPETITIVENESS 9
REPORT 2012-2013
BUSINESS OPPORTUNITY: EASY 10
PACKAGED CONVENIENT FOOD
STUDENT LOAN BUREAU:
THE GAME PLAN
10
JMA MEDIA WALL
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First “Manufacturers’ School Invasion” A Success!
The Jamaica Manufacturers’ Association (JMA) Ltd. hosted a “Manufacturers’ School Invasion”, at Wolmer’s Boys’ School
on February 22, 2013, to celebrate Jamaica Day. The event featured an exhibition of locally manufactured products,
cultural activities, as well as visits from high schools and primary schools.
Story continues on page 5...
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Executive Director Update
JMA AND MLSS SIGNS PARTNERSHIP AGREEMENT TO
REDUCE HIV/AIDS STIGMA IN FOOD - SERVICES
INDUSTRY
The JMA has partnered with the Ministry of Labour
and Social Security (MLSS) to reduce stigma and
discrimination in the local food-services industry and
to protect the rights of persons living with HIV and
AIDS.
An agreement for a pilot project was signed on February 4, 2013 at the JMA Secretariat which will involve the Ministry's Occupational Safety and Health
Department and fifteen (15) medium to large JMA
member companies.
Under the terms of the agreement, the Ministry is to
provide sensitization and training to participating
companies, which will lead to a proclamation that
companies will not discriminate against workers who
are HIV positive. The first workshop was held on
February 18.
Caption: Imega Breese McNab, JMA Executive Director and Robert Chung, MLSS Director of Occupational Health and Safety at the Signing Ceremony.
Interested in promoting your business in the JMA’s newsletter?
Please contact Rochelle Roye-DeWalker at
rochelle.jma@cwjamaica or call 922-8880-3. The cost to
advertise is only $3000 + GCT.
MEETING REPORTS
Membership Issues Meeting
The JMA held a Membership Issues Meeting on February 20, to discuss the Elimination of Discretionary Waivers and the
new Tax Package. It was communicated that there were a number of manufacturing inputs that would be affected by the
removal of discretionary waivers as a precondition of the IMF Agreement, such as beef trimmings, yellow corn, equipment,
molasses and sugar. However, it was indicated that the waiver of duties and charges on sugar and molasses was legislated and therefore would not be impacted.
As it relates to equipment, it was explained that the waiver of the Common External Tariff (CET)/duty was legislated,
however going forward manufacturers would have to pay the General Consumption Tax (GCT) upfront and then reclaim
in the following month's GCT payment. It was noted that there would be ongoing representation to set aside funds for the
duty free importation of the other items.
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Executive Director Update Cont’d
MEETING REPORTS CONT’D
Membership Issues Meeting Cont’d
As it relates to the implementation of the Customs Administrative Fee (CAF), it was highlighted that the new structure would
result in increased port charges to import manufacturing inputs ranging from approximately 400% as well as an erosion
of the sector's competitiveness vis-a-vis imports. It was agreed that the Association should seek further clarification from
the government and Jamaica Customs especially as it relates to the administration of the new Customs Processing and
Stripping fees for each shipment and container.
The JMA met with the representatives of the Ministry of Finance and Jamaica Customs on February 28 and is in the process of making representation for more competitive charges for the sector. Members were also provided with an update on
the outcome of the meeting with the Bank of Jamaica (BOJ) held on February 18 on foreign exchange supply to this sector.
Meeting on Creating an Innovation Vision
The Association met with representatives from the Ministry of Foreign Affairs and Foreign Trade (MFAFT), the Office of
Trade Negotiations (OTN) and the Jamaica Exporters’ Association (JEA) on January 23. The meeting took place following
an offer of assistance received by MFAFT from the OTN through funding from the OAS, to clarify to stakeholders how
Jamaica and the region can increase levels of trade by collaborating to improve levels of Innovation.
Recommendations of incentives that could be proposed to the government included:
Rewarding companies that collaborate with smaller companies in the supply chain
Making registration of intellectual property a tax deductable expense
It was suggested that the private sector examines developing programmes around business innovation support from idea
to market, provides assistance in developing investment proposals, establishes an Invention and Innovation Association as
well as develops an Innovation Cluster.
Tourism Linkages Meeting
The JMA attended a meeting with representatives from the Ministry of Tourism, Ministry of Agriculture, Jamaica Hotel and
Tourist Association and EXIM Bank on January 21, to address financing of supplier credit, which was identified as one of
the obstacles preventing business transactions between the hotel sector, manufacturers and farmers. EXIM Bank provided
an insight of their experience and facilities that could be implemented to address this problem.
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Executive Director Update
MEETING REPORTS CONT’D
JMA WELCOMES NEW
MEMBERS!
Tourism Linkages Meeting Cont’d
The below financing options were outlined:
Providing supply credit where EXIM bridges the financing – pay supplier and
await payment from buyer.
Supplier requires raw material financing – get payment from supplier or buyer
deals with pre-production financing – performance of supplier guaranteed or
assured and other collateral required. However, it was noted that finding collateral remained a challenge for SMEs.
Expansion of capacity- equipment and training medium term loan provided to
demonstrated and proven supplier to hotelier, as the hoteliers would be required to partially guarantee the loan.
ORDINARY:
JAMAICA BEVERAGES LTD.
Products: Soft Drink (Busta),
Juice (Juciful and Fruta) and
Water (Cool Runnings)
CEO: Dr. Aleem Mohammed
Tel: 704-6003
WORTHY PARK ESTATE LTD.
Products: Sugar, Molasses, Rum
The recommendation was for EXIM Bank to undertake a pilot project before rolling and Rum-Cream
CEO: Mr. Peter McConnell
out a financing solution.
Tel: 903-6103
Meeting on Incentives and Discretionary Waivers
On January 21, the JMA met with the Ministry of Industry, Investment and Commerce (MIIC), Jamaica Customs, and Tax Administration Jamaica (TAJ) to determine
the feasibility of the current processing regime, given the announcement and commitment to significantly reduce discretionary waivers, importantly, as it relates to
manufacturers and the importation of raw and packaging materials. The Association
highlighted using various scenarios, the disadvantages to manufacturers based on
the current duty structure.
Outcome:
It was recommended that an interim solution be found for producers of GCT exempt
items to import raw material without payment of GCT upfront at the port. A rationalization of the incentive regime, with emphasis on efficiency was recommended for
the long term. The JMA expressed that the ad hoc approach to incentives has
caused the sector to be untenable and confirmed its willingness to engage in the
process of determining the omnibus incentive regime for Jamaica going forward.
YO-LIFE PRODUCERS
JAMAICA LTD.
Products: Frozen Yogurts and
Sorbet
CEO: Mr. Philip Azar
Director: Mr. Peter Azar
Tel: 926-6525
MSE:
MRBUTTONZ
Products: Pin On Buttons, Key
Ring, Bottle Opener and Pocket
Mirror
Managing Director: Mr. Craig
Spence
Tel: 426-7003
The Work of the Secretariat - February 2013
PUBLIC RELATIONS AND
MARKETING ACTIVITIES
Speaking engagements:
ASIS – Jamaica Chapter Annual Awards Banquet recognizing outstanding
security professionals
Twenty-four (24) interviews were conducted on:
Energy
Tax Package/Elimination of Waivers/Introduction of Customs Administration Fee
Dollar slide
National Debt Exchange
Jamaica’s Growth Plan
HIV/AIDS partnership with MLSS
Jamaica Day
Press releases:
Containment measures/growth strategy
HIV/AIDS partnership with MLSS
Jamaica Day
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The Work of the Secretariat - February 2013
ASSISTANCE PROVIDED
Twenty-nine (29) requests for assistance were addressed regarding:
GCT Deferment Certificate
Process to import raw materials
Problems with collections from distributors
Factory space
Contract Manufacturing
Trade Agreements
Permit Application
Customs User Fee
RESEARCH REQUESTS
There were six (6) research requests on:
Energy Efficiency and Climate Change Resilience
Renewable Energy Financing
Labels and corrugated boxes imported into Jamaica in 2012
Tax reform of incentives and waivers
Draft paper on Economic Development Tariff
Manufacturing of natural hair products for export to the United States
MEETINGS ATTENDED
Nine (9) meetings were attended, of note is the meeting on the draft MSME
Procurement Policy held on February 26. The next steps in going forward
for the Minister of Industry are to sign off on the documents and for the documents to be tabled in parliament within the next two (2) weeks. The programme, when implemented is to be managed by the Ministry of Finance and
Planning through an electronic registry system.
JMA Jamaica Day Celebration at Wolmer’s Boys’ School
...Continued from page 1
Exhibitors came out in their numbers to display a range of Jamaican products and services. They include Peak Bottling
Company Ltd., Seprod, Caribbean Cream Ltd., Home Choice Enterprise, HEART Trust/NTA, Trade Winds Citrus, LASCO
Manufacturing, Jamaica Public Service Company, Grace Food Processors, Continental Baking Company., P. A. Benjamin
Manufacturing, Sherwin Williams W.I. Ltd., Dairy Industries, Crimson Dawn Manufacturing, Wisynco Group and the JMA
which represented manufacturers such as Fachoy Foods, Muffetta Enterprises and D’Nex Step Sandals and Accessories.
High Schools attending were Wolmer’s Girls’ School, St. Hugh’s High, Clan Carty High, Kingston High, Dunoon High, Tivoli
High, Denham Town High and Holy Trinity High. Primary schools encompassed Wolmer’s Prep, St. Aloysius Primary, Maxfield Park Primary, St. Albans Primary School, Allman Town Primary, Denham Town Primary, Boys Town, St. Jude's Primary, St. Andrew Primary, Cockburn Gardens Primary and Junior High, Windward Road Primary and Junior High School
and Mico Practicing Primary & Junior High School. Torrington Basic School also attended the festivities.
Highlights:
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JMA Jamaica Day Celebration at Wolmer’s Boys’ School Cont’d
Highlights Cont’d:
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Upcoming Activities
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Upcoming Activities Cont’d
BUY JAMAICAN ROAD SHOW
The Jamaica Manufacturers’ Association (JMA) Limited in partnership with the
National Commercial Bank is planning its next Buy Jamaican…Build Jamaica
Road Show for Saturday, March 23, 2013, at the Portmore Mall, in St. Catherine. Join us in promoting the Buy Jamaican message as we expose consumers
to the wide range of quality Jamaican products available locally and increase
visibility for your products.
The cost for participation is $10,000 (plus G.C.T.) and includes the provision of
a 10 x 10 tent, a trestle table, table cloth and two chairs. Members can also
send products to be displayed under the JMA tent at a cost of $1,500 (plus
G.C.T.).
Please confirm your interest with Miss Aisha Chambers at by calling 922-88803, fax: 922-9205 or email [email protected].
MANUFACTURERS’ MONTH
Manufacturers’ Month is observed in April to celebrate Jamaica’s resilient manufacturers. This year’s activities include:
Prayer Breakfast - April 4
Manufacturers’ Month supplement - April 9 (The Gleaner) and April 11(Jamaica Observer)
POWER 106 FM Radio Feature - April 16
Workshop - April 18
We look forward to your support of these activities.
Self Reliance Through Manufacturing
Currently, manufacturing accounts for approximately 9% of Jamaica’s Gross Domestic Product (GDP). This is a stark
contrast to other developed countries such as the United States, China and Germany, which achieves well over 20%
contribution to GDP by their manufacturing sector. There is no doubt that nationally the low production of goods is an
issue, as the majority of Jamaica’s massive trade deficit stems from the importation of goods that the country’s income
fails to cover. Although the goods that constitute the section with highest value of our import bill are not produced locally such as fuel, technological gadgets, machinery and vehicles, the country is burdened by the unnecessary and excessive importation of products that are or can be produced locally such as food, chemicals, clothes, and books.
Without a doubt, manufacturing should be seen as the engine of growth for the economy, as it has been proven by developed countries that none have achieved or maintained their status without a strong manufacturing industry that supports the growth and development of their service industries. From USA to Germany, Singapore, India and even China,
manufacturing has been integral to the growth and development of these very strong economies regardless of their size
and the genesis of their industries. Note that China and Singapore have proven the power of skills development, technology advancement, capacity building, growth and development through learning and executing, as these countries
started with simple assembling gadgets or constructing apparels and now have moved to producing high tech machinery, ICT, pharmaceutical etc.
Recently, in developed countries, promoting production and consumption of their own goods has become a new strategy
to growth, downplaying to a great extent, reliance on the global market to produce and supply manufactured goods
using cheaper labour. It should be recognized then that manufacturing is the main avenue to becoming truly independent, a right that many Jamaicans have historically and tirelessly fought for. The phrase ‘self-reliance’ has often been
thrown around, however unless we actively develop and promote our productive sectors, for example through farming
and producing the value added products that we consume, we will never be truly self-reliant.
Multiplier effect
A recent 2013 publication by the Planning Institute of Jamaica (PIOJ) ranked the manufacturing sector first, amongst
eleven other sectors in respect to forward linkages. This reiterates the point that manufacturing is one of the main productive industries within the economy as it forms the base and links to other industries such as financial, tourism, service,
wholesale, retail and trade amongst others, by sustaining them and fuelling growth.
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Self Reliance Through Manufacturing Cont’d
Multiplier effect Cont’d
In fact, all these sectors depend strongly on the manufacturing sector for their survival. Take for example our financial
institutions, manufacturers are amongst the main buyers of foreign exchange and form a huge portion of their loan customers. Therefore, without manufactures, financial institutions would face major setbacks and contraction.
Important statistics to note about the manufacturing sector
GDP was 8.78% in 2012
Exports totalled US$13,514,000 in 2012
Contribution to Labour Force was 6.8% in 2012
Contribution to Total Revenue averaged 13.9% from 2006-2011
Getting manufacturing to 15% of GDP by 2018
“Enable Manufacturing Sector to make the transition to higher level of productivity and value-added production.” In
reality, to achieve this goal, Jamaica must focus on a drive to innovate and stimulate research and development. Increasing value added production, creating new products within the local market along with expanding existing manufacturers is the only way we can achieve this targeted goal of a 6% increase within the sector. This desired 15% contribution to GDP by the manufacturing sector would result in a significant decrease in our annual trade deficit, a possible
slowing down in the depreciation of our dollar, by reducing its demand to purchase unnecessary imports and subsequently reducing the national debt.
Given the manufacturing sector past achievement of a high of 21% contribution to GDP in 1989, with an internal market size of approximately 2.8 million people, 3 million tourist arrivals, and a massive external market, including our
large diaspora in our traditional export markets, a target of 15% growth is indeed achievable and a move in the right
direction towards national growth and socio-economic development.
Global Competitiveness Report 2012-2013
Rank/144
Score(1-7)
Jamaica 97th
Basic Requirements
Rank/144
Score(1-7)
Trinidad and Tobago 84th
114
3.82
41
4.95
Institutions
87
3.62
91
3.59
Infrastructure
85
3.59
55
4.3
Macroeconomic environment
141
2.89
19
6.05
Health and primary education
104
5.19
55
5.85
80
3.93
83
3.85
Higher education and training
75
4.12
71
4.2
Goods market efficiency
80
4.19
106
3.92
Labour market efficiency
77
4.32
110
3.97
Financial market development
55
4.3
60
4.17
Technological readiness
73
3.8
60
4.06
Market size
100
2.86
107
2.8
80
3.41
89
3.33
Business sophistication
79
3.82
84
3.76
Innovation
86
3
104
2.9
Efficiency
Enhancers
Innovation and
Sophistication Factors
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Global Competitiveness Report 2012-2013 Cont’d
Jamaica has improved its ranking in the Global Competitiveness Report. However, the country continues to lag behind in
most competitiveness measures. The report shows the ranking out of 144 countries, and a score between 1-7 for the
global competitiveness indicators with comparison to Trinidad and Tobago.
Business Opportunity: Easy Packaged Convenient Food
In this day
,
and age when time is money, easy packaged convenient food is an ideal business opportunity.
Currently, we see an emergence in packaged fruits and sandwiches being sold on almost every major street in Jamaica. Easy packaged convenient foods allow persons with busy schedules to multi-task, as meals are done with
little or no preparation. In the United States, there are three (3) categories in particular that are doing very well
namely, canned food, frozen food and dried food.
Jamaican consumers have demonstrated a preference for products which will allow them to reduce preparation time
for food or to consume products on-the-go. Notably, this new easy packaged convenient food idea is not subjected
to a particular age, as students, the working class, as well as the elderly enjoy this luxury. The business opportunity
that emerges is the innovation of product and packaging solutions. The food industry, in particular the ready-to-eat
market has for years been in great demand and more local manufacturers should recognize this opportunity.
According to a local marketing manager, "Further-processed foods is the way to the future," Notably, Jamaica
Broilers extended its product line to seasoned, ready-to-cook meats under the Reggae Jammin brand due to the
success of its Reggae Jammin rotisserie chicken. Similarly, Grace’s instant porridge and Homestyle’s ready-meals
are a testament to the market potential that lies in convenient foods.
Studies in Canada revealed that by offering value-added products, manufactures are able to increase profit margins by setting higher prices. Small pack sizes are another area to explore to reap more benefits. Consumers demand products that can be accessed on the go, so the smaller the package the more convenient. Some brand managers are heading towards trial-size packs to reduce barriers which some customers may have, by offering smaller
packages at lower prices. Dun & Bradstreet reported that in the United States, about 1,548 establishments operated in this industry in 2010, employing 39,864 workers and generating revenues of around $10 billion.
Convenience food production is an area in which demand has grown over the years and will continue to grow, as
time spent working is increased and leisure time is reduced. Therefore, with demand already exceeding supply,
profitability and success will not be far off and doesn’t require economies of large scale, hence, a lucrative start for
aspiring entrepreneurs.
Student Loan Repayment: The Game Plan
The Students' Loan Bureau – Financing
Higher Education.
It is no secret that many Students’ Loan
Bureau beneficiaries, even before
they complete their courses of study at
a tertiary institution, perceive themselves to be as the children of Sisyphus, burdened with their student loan
debts which they view as insurmountable and a daunting boulder on their
path to a bright future.
It is also no secret that student loan
woes are not restricted to Jamaica as
even in the United States of America
student loan debts in 2011 surpassed
what is owed on credit card debts and
the situation is deemed a crisis.
The purpose of a tertiary education,
which forms a critical part of the SLB’s
mandate, is to aid in the upward social
and economic mobility of Jamaicans;
thus facilitating growth in the contributing members of the Jamaican society
and, by extension, aid in our nation’s
development.
A tertiary education not only equips an
individual with the requisite skills and
knowledge for a specific job, but
should also enhance one’s ability to
seek and create one’s own, and to
strategically approach life’s challenges.
Immediately, I am certain that some
questions will come to mind for many
student loan beneficiaries:
1. What if I am employed but cannot
afford the monthly payment?
2. What if I am under employed/
unemployed and cannot pay anything?
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Student Loan Repayment: The Game Plan
In light of impending legal and bailiff
actions, and the recent licensing of two
Credit Bureaus in Jamaica, and more to
be implemented in the near future, The
SLB encourages beneficiaries to take the
necessary steps towards ensuring that
their “credit future” is secure. Your ability to access a mortgage or a car may
be hinged on the strategies you employ
in relation to your student loan debts.
In the face of reality, if you are a student loan beneficiary or Guarantor we
have a game plan for you:
Employed Beneficiaries:
1. Know that you are a customer and
that the SLB is here to assist you. If
you are employed, regardless of
your salary, please visit the SLB Office, meet with your Loan Servicing
Officer and negotiate a monthly
payment if you are unable to pay
the expected sum. Delinquency can
be avoided once you are employed.
2. Make additional payments when
possible. This should be done especially if you know that you are paying below the expected monthly
payment. The monthly expected
payment is simply the total borrowed plus interest divided by the
number of years you have to repay
the loan.
3. Negotiate a settlement sum – If you
are able to settle your loan in full,
the SLB offers periodic incentives
and negotiation is always an option.
After a beneficiary has completed the
approved programme of study within
the scheduled period, the loan received
from the Students' Loan Bureau (SLB)
becomes due for repayment the following January. Repayment letters are dispatched to each beneficiary by December outlining the monthly payment
amount, interest and other charges, as
well as where payments can be made.
Beneficiaries would be aware of when
their loans are due for repayment,
based on the terms and conditions of the
Loan Agreement.
Payment options for beneficiaries unemployed/underemployed
The SLB recognises that some persons
may not find a job immediately after
graduating and some who gain employment may be earning well below
the expected salary range. As such,
the SLB is willing to work with those
persons and come up with a plan to
start servicing their loans.
the SLB with the most recent contact
information for the beneficiary; Provide the SLB with information on the
place of employment of the beneficiary, so that a salary deduction order
may be effected to service the loan;
Advise the SLB if the beneficiary has
migrated or has plans in place to migrate; Keep abreast of the loan
You should: Notify the SLB that you status; and Make payment to the loan
have not yet found a job; Discuss with if the beneficiary cannot pay or reyour loan servicing officer the pay- fuses to pay.
ment arrangements available e.g.
restructuring of the loan or a gradu- Credit Bureaus and the impact on
ated payment plan, with a view to Delinquent SLB Beneficiaries
selecting the option that is most man- With the recent licensing of two (2)
ageable; Visit the SLB office with a Credit Bureaus in Jamaica, plans are
view to discuss the possibility of a being put in place by the SLB for prodeferment which would allow you to vision of data to the Bureaus on the
formally postpone the commencement accounts of SLB’s beneficiaries. Benefiof repayment of your loan; Request ciaries and guarantors are therefore
an extension of the repayment pe- encouraged to take steps to ensure
riod in order to reduce the monthly that their loans with the SLB are mainpayment amount;
tained on a current basis to ensure a
Try to make even ‘token’ payments good credit rating. Failure to do so
when you are able to or lump sum will result in:
payments when you receive financial Obtaining a bad credit rating; Higher
assistance from friends, family mem- interest rate being charged to benefibers or remittances from abroad. ciaries with poor credit rating who
This will indicate of your willingness seek to purchase assets; and
to honour your debt obligation; and precluding previous guarantors and
will be taken into account in any re- the delinquent beneficiaries from servquest for extension or rescheduling of ing as guarantors for prospective apyour loan.
plicants, including their children or
Seek the assistance of the guarantors other family members.
in servicing the loan until you have
found gainful employment.
The continuity of the Students’ RevolvBeneficiaries who are employed are ing Loan Fund is of critical importance
encouraged to set up salary deduc- to our nation, therefore, beneficiaries
tion orders or bankers order to pay must repay their loans. Non-payment
their loans on a monthly basis.
of loans directly impacts the SLB’s
ability to provide new loans to needy
Guarantors Obligation
students. The SLB continues to invite
Based on the guarantee agreement, beneficiaries and / or guarantors to
the guarantor undertakes to make come in and talk with us so that we
payment to the SLB of all the bor- can work out a payment plan that is
rower’s debts which he has guaran- convenient to you.
teed, if the beneficiary does not pay.
Consequently, the SLB will call upon For further information and details
the guarantor to settle the debt if the regarding repayment please feel free
loan becomes past due or delinquent. to email the Students' Loan Bureau at
[email protected] or contact The
The guarantor should therefore:
Public Relations & Client Care
Ensure that the loan is being serviced Department at 936-4416/936-4438
consistent with the terms and condi- or the Loan Servicing Department at
tions of the Loan Agreement; Provide 936-4479.
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The Jamaica Manufacturers’ Association (JMA) Ltd.
85A Duke Street, Kingston
Tel: 922-8880-3 or 922-8869; Fax: 922-9205
Email: [email protected]; Website: www.jma.com.jm