MINISTER OF Commerce, Science and Technology, Phillip Paulwell, has said that the Government was determined to have the new Companies Act approved during the first quarter of the new financial year.
He said the new Companies Act was among a number of legislation and other measures being implemented by the Government to create the appropriate institutional framework and an enabling environment that would support the business sector.
Minister Paulwell was speaking at the opening of PriceSmart's warehouse on Red Hills Road.
Since the Companies Act was established in 1965, there have been several amendments in order to keep the Act relevant to today's way of doing business.
The proposed Companies Act 2003, seeks to exempt private companies from the requirement of performing full audit, except for financial institutions, such as banks and building societies, or where the company imposes it upon itself.
Minister Paulwell said the enabling business environment, which had been created by changes in legislation and the introduction of new measures, had helped to develop confidence in Jamaica, a factor which had influenced PriceSmart's US$10 million investment here.
In a wide-ranging address, the Minister cited the benefits which have accrued to Jamaica since the liberalisation of the telecommunications sector, which has become one of the fastest growing sectors in Jamaica.
"The United States-based company, Oceanic Digital Jamaica and Irish-owned Digicel, which respectively, paid US$45 million and US$47.5 million for mobile licences, are showing today, that positive things can happen when you invest in Jamaica," Mr. Paulwell said. He noted that Digicel was one of the fastest growing mobile telephone companies, not just in Jamaica, but also the world.
Minister Paulwell said the improving business climate, the adoption of a programme aimed at privatising state-owned enterprises, the consistent decline in the inflation rate for nearly a decade, and Jamaica's proximity to the United States market were factors that had played a central role in increased foreign direct investment (FDI) inflows into Jamaica.
Between 1990 and 2000, FDI inflows into Jamaica grew at an average annual rate of 13.47 per cent, placing among the top five largest recipients on FDI inflows in the Caribbean, behind the Dominican Republic, Trinidad and Tobago, and Costa Rica. However, in terms of FDI per capita, Jamaica was ahead of both the Dominican Republic and Costa Rica.
The Minister also pointed to the manufacturing sector, which he said was poised for development, as modernisation and retooling efforts continued. He noted that a key factor in the growth of the sector, was the availability of lower cost financing to producers through the development banks.
The processed foods industry was also expected to recover from the loss of raw material during the tropical storms Lili and Isidore last year, the Minister said, citing measures, which had been introduced to cut red tape and fast track export procedures, following the signing of a Memorandum of Understanding between the Government and the Private Sector Organisation of Jamaica (PSOJ).
