WINSTON SILL / FREELANCE PHOTOGRAPHER
Michael Lee Chin:
"In Jamaica,
opportunities abound. None of us is running. We are not going to let 50 or 100 bad men take control
of the rest of Jamaica."
Dennise Williams, Staff Reporter
The chairman of the National Commercial Bank (NCB), Michael Lee Chin, says Jamaicans are unaware that the country is a diamond mine. "There are acres of
diamonds in your own Jamaican backyard," said Mr. Lee Chin at last week's Wealth Creation Forum held at the Hilton Hotel in New Kingston, organised by the bank's subsidiary, NCB Capital Markets (NCBCM).
Speaking to investors, the local media and members of the international press, the billionaire spoke of the paradox of rising confidence in the economy against the backdrop of crime and violence. Drawing on his personal experiences, he encouraged the audience to look beyond the problems and invest in the country. According to the NCB boss, Jamaica needs all the help it can get now.
danger plus opportunity
"Jamaica is in a crisis. But the Chinese definition of crisis is danger plus opportunity. Therefore, in Jamaica, opportunities abound. None of us [is] running. We are not going to let 50 or 100 bad men take control of the rest of Jamaica."
Pointing to the abundance of opportunities which exist, he reflected: "If we were born in a different era in Jamaica's history, we wouldn't have the opportunities to education and wealth we have now. Jamaican people are blessed with confidence but we have done a rotten job of stewardship of our assets. So don't watch what is happening now."
Mr. Lee Chin said that the key was for people right now to seize the wealth found in
creating efficient processes. "In North America, the economy is very efficient and so profits are razor thin. In the Caribbean, and the rest of the world for that matter, there are many inefficient situations. You find wealth by making them efficient. And one of our greatest inefficiencies is crime. Other islands are benefiting from that," he said.
Mr. Lee Chin said, "I was in Anguilla [last week] ... the island is about the size of Lime Cay. The developers there are building townhouses at a cost of US$100 per square foot and reselling them for US$1,500 per square foot. I couldn't believe it! If it costs US$1 million to build, they sell it for US$6 million. And they tell me the properties sell quickly. Why is that you ask? Because there is no crime and violence there. In Jamaica, our real estate prices are depressed because of our crime situation."
opportunity
Hence, there is a real estate opportunity in the midst of our crisis. Mr. Lee Chin says that the smart money right now is buying coastline properties in Jamaica. He advised buyers to "wait and ride the tide up."
And speaking of tides, Mr. Lee Chin said the smart money also would be keen to watch out for business opportunities arising from the upcoming tsunami of retiring North American baby boomers. "There will be 100 million baby boomers set to retire in the next few years. The North and South Carolina coastlines are close to capacity and Florida is beyond saturation point. Where do you think the spill over will go? The Caribbean.
"These retirees will need health care and hospitals. They will need recreation facilities and telecommunication services. They will need restaurants and retirement villas. And they will need investment services."
Mr. Lee Chin also criticised companies who continue to "ship" their dividends out of Jamaica. According to the businessman, when dividends and profits are expatriated, this puts pressure on the the Jamaican dollar as well as keeping interest rates high. He told the audience that NCB believed that by reinvesting in Jamaica (thereby compounding profits), this would lay the foundation for a prosperous Jamaica.
And, as he has emphasised in the past, Mr. Lee Chin repeated that "Jamaica has to make sure it is not an island of poverty in a sea of prosperity. Smart investors are preparing from now to buy the best businesses to hold and sit on them."
