Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697783145688.pdf (Fiji)
201819 Annual Report P e r f o r m a n c e s n aPs h o t ta b l e o f co n t e n t At a glance 175 Foreign investment projects registered FJ$ 685.71 M In proposed investments over 3 years 4,481 In proposed employment over 3 years FJ$ 580.07 M In projects implemented generating 3,261 jobs this Financial year 4,418 Investment facilitation enquiries 3,660 Companies assisted this Financial year 2,087 Customer site visits 34 In-bound missions and delegations 2 Table of Contents 5 4 6 Letter to the Minister Chairman’s Foreword Board of Directors 9 Foreign Investment Regulations 16 Investment Facilitation 24 Human Resources 7 8 Acting GM’s Report Macroeconomic Overview 10 11 The Role of Investment Fiji Investment Promotion 18 Trade & Export Promotion 23 Regional Office 29 Financial Statements 26 Prime Minister’s International Business Awards 3 Investment Fiji2018-2019 Annual Report le t t e r t o t h e mi n i s t e r ch a i r m a n s fo r e w o r d Letter to the Minister Minister for Industry, Trade, Tourism (MITT), Local Government, Housing and Community Development, Hon.
Premila Kumar Ministry of Industry Trade & Tourism Civic Tower, Victoria Parade Suva Dear Madam, Pursuant to the requirements of Section 20 (1) of the Investment Fiji Act No.24 of 1986, I am pleased to submit the Investment Fiji Annual Report and Statement of Accounts for the financial year 2018/2019 from 1st Aug 2018 to 31st July 2019 certified by the Auditors.

Yours sincerely, Mr. Truman Bradley Chairman of the Board Chairman’s Foreword “There were 175 newly registered projects in this financial year.
The largest investments captured were in the Tourism & Service sector.

On behalf of the Board of Directors, it is my privilege to present the annual report and financial statements of Investment Fiji for the financial year 2018/19.

The Fijian economy was anticipated to achieve its tenth year of consecutive growth (2.7%) in 2019 following an estimated expansion of 4.2 percent in 2018.
The lower growth is largely in line with the subdued sectoral performances as well as the slowdown in the aggregate demand indicators for the first half of the year, this was also fueled by global economic frictions and uncertainties.

The lead-up to our national Government elections also had an effect that is similar to most developing economies during this time.
In the year to March 2019, tourism earnings grew by 2.3 percent to $366.6 million, compared to a growth of 4.7 percent in the corresponding period last year.

This outcome is mainly led by an increase in earnings from China, NZ, Japan, US, Pacific Islands and the United Kingdom, which more-than-offset lower earnings from Australia, Canada, Continental Europe, Malaysia and Korea.

In terms of the market share, Australia still accounts for the largest share of tourism earnings followed by NZ and the US.
Investment Fiji was determined to spread the word that Fiji is open for business and in the financial year 2018/19, we successfully implemented 120 foreign investment projects worth $580.07 million, creating more than 3,200 employment opportunities for Fijians.

Apart from implemented projects, Investment Fiji has remained focused throughout the year to attract new foreign investments.
To achieve this goal, we catered to 34 in-bound missions from mostly New Zealand, Australia, Japan, ASEAN countries and China, we also assisted 105 in-bound private investors.

As a result, projects registered in this financial year 2018/19 will generate 4,481 employment opportunities for local communities over the period of 3 years.

In terms of trade and export support, we assisted with 354 export enquiries; compared to last year, this is an increase of 11 percent.
In the same period, we also undertook 258 site visits to better understand how we can assist local exporters and familiarise ourselves with their operations.

The election of a strong Government that upholds fiscal policies conducive to economic growth is one of the reasons that Fiji remains the economic powerhouse of the region.
Backed by strong support from the Fijian Government, Investment Fiji is driven by passion, determination and a strong sense of commitment to make a difference in the lives of Fijians by attracting Foreign Direct Investment (FDI).

As outlined in the Fijian Trade Policy Framework, Investment Fiji will continue to promote our key resource-based sectors.
I would therefore like to express my appreciation to the management and staff of Investment Fiji for their dedication and hard work, also to our strategic business partners who contributed to the growth of Fiji.

Further, thank you to the Executive team that have continued to lead Investment Fiji and I also take this opportunity to thank the Government and the Ministry of Industry, Trade and Tourism for their support and assistance which has enabled Investment Fiji to carry out its key functions.
I also thank my fellow Board of Directors for their continuous dedication, support and commitment.

With the leadership of the Acting General Manager to ensure Investment Fiji upholds its duties, Investment Fiji has yet again ended another financial year with a good track-record.
Looking forward to 2019/20 we are committed to delivering on all our goals to advance Fiji’s economy and socio-economic development through job-creation as well as stimulating economic activity and sustainable economic linkages whilst capacity building for future progress.
4 5 Investment Fiji2018-2019 Annual Report bo a r d o f d i r e c t o r s ac t i n g g m’ s r ePo r t Board of Directors Mr. Truman Bradley Chairman Mr. Shaheen Ali Deputy Chairman Solomoni Nata Board Member Mr. Visvanath Das Board Member Dr. Angeela Jokhan Board Member Acting GM’s Report “We are aspiring to strengthen our business- to-business support, broadening our inward investment footprint and encouraging international business owners to locate or expand.
Mr. Richard Breen Board Member Mr. Nemani Vuniwaqa Board Member Mr. Esala Masitabua Board Member Ms. Raijeli Taga Board Member Mr. Avinesh Raju Board Member Mr. William W.Q.
Situ Board Member Mr. Ritesh Gosai Acting GM Investment Fiji had a successful year providing both investment and export support services to local and foreign companies, along with engaging with these companies as the Fijian economy remained on track to achieve its tenth year of consecutive growth at 2.7 percent in 2019, following an estimated expansion of 4.2 percent in 2018.

As a statutory body of the Ministry of Industry, Trade & Tourism, we are guided by the overall strategies of Government.
Our day-to-day philosophy is driven by a private sector spirit of delivering on our targets, being creative, looking outwardly at the performance of other countries to remain competitive and attracting Foreign Direct Investment (FDI) and facilitating local investment to our country.

In the financial year 2018/19, we have been closely working with local companies, assisting them in the execution of their business ventures and investments leading to employment opportunities for Fijians.
We successfully implemented 120 foreign investment projects worth $580.07 million, generating 3,261 employment opportunities for Fijians.

In terms of re-investments, 85 projects were implemented, 34 in-bound official delegations were assisted and 7 out-bound investment and trade missions were undertaken.

For private in-bound missions, 105 investors were assisted with 19 local seminars and workshops were held.
For Joint Ventures, 188 enquiries were made, 354 export enquiries and 4,418 investment opportunity enquiries were made.

For the financial year 2018/19, a total of 175 FIRCs were issued with a proposed investment value of $685.71 million and expected to generate 4,481 jobs over the next 3 years.

Operating at optimal levels and leveraging Brand Fiji delivers greater outcomes and therefore efforts to enhance our internal systems were incorporated in our operations for this financial year.
I take this opportunity to thank and acknowledge the assistance received by Investment Fiji from the private sector to undertake its key roles and functions.

My sincere appreciation is also extended to the hardworking Investment Fiji team.

They continue to work as one, building cross-functional partnerships and adding value to all our stakeholders, local and international.

Their efforts have resulted in major achievements this year, including the Prime Minister’s International Business Awards in 2018.
I also wish to acknowledge the support provided by the Government and in particular the Minister for Industry, Trade and Tourism, Local Government, Housing and Community Development, Honorable Premila Kumar and the Permanent Secretary Mr. Shaheen Ali for their policy directives, advice and financial assistance which enabled us to carry out our role effectively.

Our goal is to improve the business environment and achieve the best possible results for the people of Fiji.
I look forward to even greater success in the year ahead and would like to thank the Chair and Board of Directors of Investment Fiji for their support and assistance during the year.

6 7 Investment Fiji2018-2019 Annual Report ma c r o e c o n o m i c ov e r v i e w fo r e i g n in v e s t m e n t re g u l a t i o n s & construction (5.2%) sector.
In addition, while the number of building permits issued increased by 1.7 percent in the first quarter, the total value of these permits were lower by 14.8 percent.

Liquidity in the banking system (measured by commercial banks’ demand deposits) fell by 10.2 percent in May to $323.2 million, on account of a decline in foreign reserves (-$10.5m) and an increase in statutory reserve deposits (+$0.2m).

However, as at 28 June, liquidity has increased to $434.0 million.
The merchandise trade deficit (excluding aircraft) narrowed by 10.6 percent to $724.3 million in the year to March compared with a widening of 11.7 percent in the same period last year.

Total exports (excluding aircraft) rose by 10.1 percent due to a significant growth in re-exports (51.2%) which more- than-offset the decline in domestic exports (-7.4%).
Total imports (excluding aircraft) fell by 3.1 percent led by lower imports of machinery & transport equipment, chemicals and animal & vegetable oils & fats.

Annual inflation was 2.1 percent in May, unchanged from April but lower than the 5.1 percent in May last year.

The lower inflation outcome was due to the decline in prices of food & non-alcoholic beverages; communications; health and the transport categories.

The year-end inflation rate is now forecast at 3.2 percent.
Foreign reserves (RBF holdings) was $1,933.2 million in May, sufficient to cover 4.4 months of retained imports (MORI).

As at 01 July, foreign reserves stood at $1,979.2 million, sufficient to cover 4.6 MORI.

Source: Reserve Bank of Fiji (2019) The global growth forecast for 2019 was downgraded to 2.6 percent from the 2.9 percent that was projected in January.
The revised growth is reflective of broad-based weaknesses observed in both advanced and emerging market & developing economies during the first half of the year, including falling investments and heightened trade tensions.

Risks to global growth are tilted to the downside and include further escalation of trade tensions, tighter financial conditions and prolonged Brexit negotiations.

Movements in global commodity prices were mixed in May.
Crude oil prices fell due to an increase in oil production by the United States (US).

World market sugar prices fell on account of India’s increasing output and weak global demand.

Sectoral performances continued to reveal mixed results.

Visitor arrivals grew by 6.5 percent in the year to May due to higher arrivals from New Zealand (NZ), US, Japan, Australia and the rest of Asia.

Likewise, electricity (6.1%), mahogany (53.6%) and sawn timber (3.9%) production rose cumulative to May.
However, declines were noted in the production of gold (-13.3%), pine logs (-5.9%) and woodchip (-19.9%) in the same period.

Partial indicators for consumption revealed mixed results into the second quarter.

New lending by commercial banks for consumption purposes rose by 7.8 percent in the year to May arising from higher disbursements to the wholesale, retail, hotels & restaurants category.
In the same period, new vehicle registrations declined by 37.8 percent whereas second-hand vehicle registrations rose by 0.6 percent.

Investment/construction related activity has softened.
New bank lending for investment purposes fell by 20.1 percent cumulative to May underpinned by a decline in loans to the real estate sector (-31.1%) which more-than- offset the increase in loans to the building 8 The Foreign Investment Act Investment Fiji is governed by the Foreign Investment Act 1999, Foreign Investment (Amendment) Act 2004 and Foreign Investment (Budget Amendment) Act 2016.
As a Statutory Organization, Investment Fiji operates independently as the Facilitation arm of the Fiji Government, providing services and assistance to promote, and stimulate investments and exports.

The foreign investment legislation provides a simple, transparent and non-discretionary system to facilitate the entry of all foreign investment into Fiji.
Under this legislation, foreign investors have market access rights to all sectors of the private economy, except for the ‘Reserved list’ of a limited number of economic activities that are specifically reserved for local investors.

In addition, some business activities are classified as restricted and certain conditions may apply.

Such reservations and restrictions are clearly set out and readily available to prospective investors in the Foreign Investment (Amendment) Regulations 2013.
A total 17 Reserved Activities exist which are reserved for locals only and not open to foreign investors.
The following activities are prescribed for Fiji Citizens only: • A Milk Bar or Cafeteria Business • A Taxi Business • A Kava Business • Retail Sale via Stalls and Markets • A Handicraft Business • Tailor Shops • Repair of Personal and Household Goods • A Plumbing Business • An Electrical Business • Plant Nursery and Care • A Day-care Centre • An Internet Cafe and Amusement and Gaming Centers • Home-stay Lodging Services • A Bakery Business, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts • Back-packer Operations • A Nightclub, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts and • A Liquor Bar, other than those operated within the vicinity of a hotel/resort and/or operated by foreign owned hotels/resorts.
In addition, there are 8 Restricted Activities that require minimum investment or local shareholdings.
Sectors falling under the Restricted Activity list include: • Fishing • Forestry (Plant management and Logging) • Manufacturing (Tobacco production) • Tourism Projects (Cultural Heritage) • Real Estate Management & Real Estate Development • Construction • Earthmoving Businesses and • Inter-Island Shipping and Passenger services (exclusive of tourism support services) 9 Investment Fiji2018-2019 Annual ReportMacroeconomicOverviewForeign InvestmentRegulations th e ro l e o f in v e s t m e n t fi j i i n v e s t m e n t Pr o m o t i o n Our Vision Creating wealth for our Our Mission Developing a sustainable Our Values Professional, transparent, nation and achieving a and successful nation by visionary, effective, better Fiji for all stimulating investment and influential, innovative, exports passionate and communicative Investment Fiji’s purpose is to develop a sustainable and successful nation by stimulating investment and exports.
In order to do this, Investment Fiji needs to attract and develop FDI and domestic investment, enable and assist investors to set up and grow and work with new and established exporters in upskilling and promoting their products and services overseas.

Investment Fiji fulfills four primary roles: Investment Promotion, Registration and Facilitation as well as Export Promotion.
Investment Promotion Foreign Direct Investment (FDI) is helping developing countries in capital formation by bringing in fresh capital, access to technology and managerial skills with the purpose of increasing the growth rate of the economy, national income ultimately per capita income.

The purpose of the Investment Division is therefore to attract foreign and domestic investment, encourage technological and HR up-skilling, create employment and identify joint venture opportunities for local firms.
Investment Registration The purpose of the Division is to register investment projects by issuing the Foreign Investment Registration Certificate (FIRC).
Investment Facilitation The purpose of the After Care Division is to provide customer centric post-establishment and follow-on investment services through to developmental support designed to facilitate both the successful start-up and the continuing development of a foreign and local investor with a view towards maximizing its contribution to the local economic development and improving the availability of information.
Export Promotion The purpose of our Trade and Export Division is to increase Fijian exports through capability building and Internationalisation support activities, training and enterprise development, identification of export opportunities, market research, introductions, domestic seminars, online tools and printed materials.

What we accomplished in 2018/2019 A total of 1,586 enquiries on investment opportunities were received from local and foreign investors.
Enquiries ranged from information requests on market information and how to establish a business in Fiji.

In addition, 188 enquiries were related to joint venture opportunities.

Investment Fiji hosted 34 inbound missions and delegations and were involved in 7 outbound missions.

Investors from China, Australia, USA, New Zealand, Korea and India were interested in all sectors, particularly services, wholesale and retail, manufacturing and tourism.
Outbound Missions China International Import Expo (CIIE), Shanghai, China (November) Investment Fiji was invited by the Fiji Consulate General & Trade Commission – China to be part of the official Fijian delegation which attended the 1st CIIE held in Shanghai, China from 5th to 6th of November, 2018.

CIIE is a major initiative of the Chinese Government to firmly support trade liberalization and economic globalization and open the market to the world.
It will help countries around the world to strengthen economic and trade exchanges and cooperation and promote global trade and world economic growth.

This event paved the way for Fiji in launching the Fiji National Pavilion which allows Fijian Exporters to sell their products and services to the millions of Chinese consumers.
Expanding Trade and Investment Plans (ETIPS) in the Pacific Region, Brisbane, Australia (November) Investment Fiji was amongst other stakeholders from PNG, Solomon Islands and Samoa which convened in Brisbane, Australia for a one-day workshop on 22nd November, 2018 to discuss and validate findings of the ETIPs report.
ETIPs is a scoping study funded by the UK Government through the Trade and Investment Advocacy Fund that has been tasked to undertake a study on how Pacific countries can capitalize on opportunities presented under the EU Economic Partnership Agreement, in the context of BREXIT.

Investment Manager Mr. Kamal Chetty was one of the attendees at the event where discussions were held on the issues, challenges and opportunities in exporting to the UK and EU markets.
Key insights that came out of the workshop included focusing on high value niche markets, product differentiation, image building/ branding and partnerships on standards.
10 11 Investment Fiji2018-2019 Annual ReportThe Role ofInvestment FijiInvestmentPromotion Outbound Missions Indonesia – South Pacific Business Forum (ISPBF) , Jakarta, Indonesia (March) Outbound Missions 1st Pacific Exposition, New Zealand (July) i n v e s t m e n t Pr o m o t i o n i n v e s t m e n t Pr o m o t i o n Investment Fiji was invited by the Ministry of Industry, Trade & Tourism (MITT) to be part of the Fijian Delegation attending the 1st Pacific Exposition from 11th to 14th July, 2019 in New Zealand.
The Forum was designed to be one of the avenues to knit the gap and enhance dialogue between Indonesia and the South Pacific to further discuss common challenges and ways to strengthen cooperation.

Fiji also had a booth promoting Fijian tourism and goods to the potential buyers and service providers.

It created opportunities to connect, expand market access, exchange experiences, success stories and new business ideas between entrepreneurs from Indonesia and the South Pacific.
Fiji Trade, Investment and Tourism Promotion, Seoul, Korea (July) Investment Fiji was invited by the Fiji Embassy to the Republic of Korea to attend the Fiji Trade, Investment and Tourism Promotion on 12th July, 2019 in Seoul, Korea.

The purpose of the program was to raise awareness of Fiji as an investment destination and also create awareness of the Fijian made products.

The event was attended by 175 investors from Korea.
Representatives from the Fijian Embassy in Korea, Ambassador of the Republic of Fiji to the Republic of Korea, Investment Fiji, Fiji Korea Friendship Association, as well as private tourism consultant of tour De ‘M Company, promoted “Fiji as a tourism destination” and together staged a comprehensive promotional event.
Investment Fiji, represented by Senior Trade Advisor, Mr. Shaneel Nair delivered a presentation at the promotional event focusing on the role of Investment Fiji, the overall investment climate as well as highlighting opportunities across priority sectors in particular tourism.
Inbound Missions China-Fiji Trade Investment Forum, China (November) The China Council for the Promotion of International Trade (CCPIT) and China Chamber of International Commerce (CCOIC) hosted a China-Fiji Trade and Investment Forum on 20th November, 2018 at the Grand Pacific Hotel in Suva.

The main focus of the mission was to provide the 30 member Chinese delegation an overview of Fiji as an investment destination.
Investment Fiji, represented by Investment Manager, Mr. Kamal Chetty delivered a presentation focusing on the key roles of Investment Fiji, strategic reforms undertaken by the Fijian Government and also available investment and trade opportunities in Fiji.

Investment Fiji was invited by the Fiji Embassy in Jakarta to be part of the Fijian Delegation which attended the inaugural Indonesia – South Pacific Business Forum in Jakarta, Indonesia on 21st March, 2019.
The purpose of the forum was to bring together entrepreneurs from South Pacific to discuss opportunities and challenges in developing smart and innovative business solutions as well as establish sustainable business ties between Indonesia and the South Pacific.
The forum with the theme “Connecting People for Sustainable Growth” was attended by businesses and Government officials from Fiji, Kiribati, Marshall Islands, Nauru, New Caledonia, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Tuvalu.

Investment Fiji was represented by Investment Manager, Mr. Kamal Chetty who delivered a statement focusing on the role of Investment Fiji, the overall investment climate as well as highlighting business opportunities in Fiji.
Doing Business in Fiji Forum, New Zealand (May) Investment Fiji was invited by Fiji Consulate General & Trade Commission – Australia and New Zealand to participate in the Doing Business in Fiji Forum held in Wellington, Christchurch and Auckland, New Zealand from 6th to 8th May, 2019.

The three day seminar was attended by 215 representatives from the business sector and chamber, non-Government organizations and interested individuals.
The symposium presented a great opportunity for Investment Fiji to formulate a targeted approach for identifying and promoting high impact investment opportunities and strengthen working relationship with both the New Zealand Trade Office and the New Zealand Fiji Business Council.
Investment Fiji, represented by Investment Manager, Mr. Kamal Chetty presented in all three forums focusing on the role of Investment Fiji, the overall investment climate as well as highlighting opportunities across priority sectors.

Detailed assistance programs, incentives and tax regime specifically designed for potential investors were also explained to the participants, and they were encouraged to choose Fiji for their next investment destination.
16th China International Small and Medium Enterprise Fair (CISMEF), Guangzhou, China (June) Investment Fiji was invited by the Fiji Consulate General & Trade Commission – China and CISMEF organizing committee to be part of the official Fijian delegation to attend the 16th CISMEF held in Guangzhou, China from 23rd to 27th June, 2019.
Themed with “Heading into the New Era of High-Quality Development”, the event brought together representatives from the Government of China and co-host country of Malaysia, Chinese and foreign experts, scholars and entrepreneurs to explore the general trend of the industry and new growth factors to achieve high-quality development.
The seminar presented an opportunity to tap into one of the most influential SME promotion platforms in Asia, not just to explore and exchange, but to show what Fiji has got to offer as an economy dominated by small and medium enterprises.

The Fijian delegation also met with senior officials and senior business executives to further strengthen the bilateral trade relations between the two sides.
Investment Fiji, represented by Senior Investment Advisor, Ms. Musarat Ali delivered a presentation at the promotional event focusing on the role of Investment Fiji, the overall investment climate as well as highlighting opportunities across priority sectors in particular tourism.
12 13 Investment Fiji2018-2019 Annual Report Inbound Missions Forum for Economic and Investment Cooperation Between Fiji and Indonesia, Indonesia (December) Inbound Missions Roadshow of Guangdong Products, China (June) i n v e s t m e n t Pr o m o t i o n i n v e s t m e n t Pr o m o t i o n The Embassy of Indonesia hosted a 20 member high-level delegation from various Ministries and private sectors on 1st December, 2018.

The main purpose of the mission was to explore investment opportunities in Fiji.
Investment Fiji, represented by Senior Investment Advisor, Ms. Musarat Ali delivered a presentation focusing on the role of Investment Fiji, the overall investment climate as well as highlighting opportunities across priority sectors.

Investment Fiji, on behalf of the Indonesian Embassy extended invitations to key public and private entities to be part of the forum allowing the delegates to have a better understanding of Fiji and boost the investor confidence.
Macao Chamber of Commerce (MCOC), Macao (December) An official delegation from Macao Fiji Chamber of Commerce accompanied by the Consulate General and Trade Commission of the Republic of Fiji in China paid a courtesy visit to Investment Fiji on 20th December, 2018.

The purpose of the visit was to discuss ways in which Investment Fiji can assist with relevant business connections and information to develop good relationships between Fiji Chamber of Commerce in Macao and Investment Fiji.
This mission provided great opportunity for MCOC to broaden their knowledge on Fiji’s priority sectors and identify possible future partners.

Yokohama Advance Mission, Japan (March) Investment Fiji with the Fijian Embassy in Japan organized a fact-finding mission for a six member delegation from Yokohama from the 12th to 18th March, 2019.
The key interest of the delegation was in Disaster Management and Prevention, Oil Recycling, Traffic Control Systems, Water Treatment and Waste Recycle in an effort to develop a model for Smart Cities.

Investment Fiji assisted the delegation by organizing 17 one-to-one meetings with various stakeholders from both the public and private sectors and provided assistance with initial market research.
Matrade Trade Mission, Malaysia (June) Investment Fiji in partnership with the Consulate General of Malaysia and Fiji Chamber of Commerce facilitated Matrade Trade Mission to Suva on 27th June, 2019 at the Grand Pacific Hotel in Suva.

The Mission consisted of 25 prominent companies from Malaysia seeking Trade and Investment opportunities in Fiji.
The key interest of the delegation was in the areas of food and beverages, building and construction materials, ICT, lifestyle, medical/pharmaceuticals, personal care and machinery.

Investment Fiji assisted the delegation in organizing close to 15 one-to-one meetings with relevant stakeholders in Fiji and a presentation focusing on the role of Investment Fiji, the overall investment climate as well as highlighting opportunities for future investments.
Investment Fiji in partnership with China Council for the Promotion of International Trade (CCPIT) Guangdong, China Chamber of Commerce in Fiji, and Nadi Chamber of Commerce and Industry hosted the 2019 Road Show of Guangdong Products on 18th June, 2019 at Pullman Nadi Bay Resort in Nadi.

The main focus of the mission was to provide the 30 member Chinese delegation an overview of Fiji as an investment destination.
The key interest of the delegation was in the areas of tourism, agriculture, home products, sport products and import/export of goods such as seafood.

Investment Fiji assisted the delegation in organizing close to 20 one-to-one meetings with local stakeholders for business match-making and a presentation focusing on the investment and trade opportunities for future partnerships.
MERCOSUR-ASEAN Chamber of Commerce Trade and Technical Mission, Argentina (June) Investment Fiji hosted the MERCOSUR-ASEAN Chamber of Commerce (MACC) Trade and Technical Mission to Fiji from 17th to 20th June, 2019.

MACC is a bi-regional and innovative Chamber of Commerce which is committed to identifying, developing and assisting its members.

This mission consisted of 10 members of the MERCOSUR delegation who were keen to explore investment and trade opportunities in Fiji.
Investment Fiji assisted the delegation in organizing close to 20 one-to-one meetings with relevant stakeholders in Fiji and a presentation on possible future collaboration to promote Fiji.

This was the very first event organized solely by Investment Fiji which received wide media coverage and endorsement from both MACC and Ministry of Industry Trade and Tourism.
New Caledonia Economic Mission to Fiji, New Caledonia (July) Investment Fiji in partnership with New Caledonia Trade & Invest facilitated the New Caledonia - Economic Mission to Fiji from 29th to 30th July, 2019 at the Grand Pacific Hotel.

The mission consisted of 26 prominent companies from New Caledonia who were seeking investment and trade opportunities in Fiji as part of their comprehensive in-market survey.
The key interest of the delegation was in the areas of Food and Beverages, Building and Construction, Banking, Energy, Forestry, Health and Medical Services, ICT, Water and Sanitation and Agriculture.

Investment Fiji assisted the delegation in organizing 30 one-to-one meetings with relevant stakeholders in Fiji and introduced to the delegation potential future business ventures and opportunities.
14 15 Investment Fiji2018-2019 Annual Report in v e s t m e n t fa c i l i t a t i o n in v e s t m e n t fa c i l i t a t i o n As part of our proactive approach to ensure investment enquiries convert to actual investments, Investment Fiji has developed a comprehensive range of post-investment or after-care services.
The reforms initiated by Investment Fiji through its ‘Transform to Perform’ corporate change program were continued throughout 2018/2019, as we implemented a customer centric investment facilitation strategy aimed at generating a deeper understanding of the investors’ business goals.

Investment Registrations in 2018/2019 The Investment Registration & Facilitation Team registers investment projects by issuing the FIRC and converts an investment enquiry into an actual investment.
During the reporting period, Investment Fiji attended to a total of 4,418 investment related enquires, which included face-to-face, telephone discussions, emails and written correspondence.

Enquiries focused largely on the business environment, tax incentives and concessions; the Dual Citizenship Decree, the Foreign Investment Regulation (FIR) 2009, Foreign Investment (Amendment) Regulation 2013 and Foreign Investment (Budget Amendment) Act 2016.
A total of 175 Foreign Investment Registration Certificates (FIRC’s) were issued at a total proposed investment value of $685.71 million and expected employment of 4,481 over a three year period.

The service sector accounted for 54 projects, followed by wholesale & retail with 27 projects throughout 2018/2019 (Aug-Jul).

Tourism projects comprised of 25 projects whilst Manufacturing Sector recorded 25 projects registered in 2018/2019 (Aug-Jul).
The Service Sector continues to attract the majority investments in Audio Visual, Restaurants and Tourism Auxilliary Services to the country with 54 service related projects registered at a value of $285.34 million during the reporting period.

During the reporting period, Chinese investors accounted for 29% of total investors, showing particular interest in Wholesale & Retail, Service, Tourism, Real Estate and Manufacturing.
A total 16% of investors were from New Zealand while 15% were Australian and 68 Fijian investors formed joint ventures with foreign investors to conduct business in Fiji.

Projects Implemented Investment Fiji monitors registered projects in order to generate a clear understanding when a proposed project becomes implemented.

The process concerns the establishment of close relationships with investors, site inspections and collaboration with other Government Agencies and Departments.
Projects can take several years to implement from the time of registration in particular in the tourism, real estate, energy and mining sectors.

In 2018/19 financial year, a total of 120 projects reached the implementation phase, that is, they became commercially operational at a value of $580.07 million and generated 3,261 full time jobs for Fijians.
Over the 5 year period, from 2014 to 2018/2019 (Aug-Jul), a total 628 projects were implemented at a combined value of FJ$ 2,548.72 million creating a total of 9,993 full time jobs.

IMPLEMENTED PROJECTS FROM 2014 - 2018/2019 YEAR 2014 2015 2016/2017 2017/2018 2018/2019 TOTAL NO.
OF PROJECTS VALUE - FJ$ MILLION 74 90 159 185 120 628 $330.53 $363.01 $536.39 $738.72 $580.07 $2,548.72 FTE 946 590 2,241 2,955 3,261 9,993 Facilitation of Registered Projects Investment Fiji conducted 2,087 site visits during this financial period.

A total 1,364 visits were carried out by the Investment Facilitation team.

This involved liaising and attending to issues faced by investors and working with other investment approved Agencies by organizing meetings and site visits.
Investment Fiji also assisted foreign investors who required work permits or work visa extensions, by providing progress reports to the department of Immigration.

Investment Fiji has also assisted 3,660 foreign registered projects in the form of amendments and changes to their business name, business activities, shareholding structure, extension of time, cancellation of FIRC and other requests.
In addition, the Facilitation Team assisted projects through it’s regulatory process, business facilitation and market growth objectives.

Facilitation of Reinvestments Reinvestments are also strong indicators of investor confidence in the Fijian economy.

While there has been huge interest from prospective investors, existing investors continue to reinvest in Fiji.

In 2018/19, reinvestment by 85 investors were valued at $366.05 million, generating 2,745 employment opportunities for Fijian citizens.
As part of achieving economic growth for Fiji, it is imperative that local investment projects are assisted through facilitation that will lead to successful implementation of projects.

Investment Fiji assisted 73 local investors valued at $619.52 million.

These investment ventures by locals have created 2,583 employment opportunities in the country.
Island Grace (Fiji) Limited: Six Senses Since the completion and opening of the resort in 2018, Island Grace (Fiji) Limited better known as its trading name, ‘Six Senses’ resort has had a successful journey.

What started as an integrated resort development project under the umbrella of Vunabaka, the company is specifically focused on the resort operation and has acclaimed itself as a 5-star resort.

Located on Malolo Island in the Mamanuca Group, Six Senses offers an exclusive and luxurious island getaway.
Six Senses Financial Controller, Mr Shivnesh Singh shared the Resort’s developmental plans since its opening.

“Fiji is growing in tourism market and the people are very special and friendly.

The resort focus is to promote the sustainability, wellness of the island environment with a target to be a plastic free resort by 2022” Mr. Shivnesh Singh said.

The resort opened with 25 private villas, 9 residences and 194 local employees working on a full- time basis who reside on the island.
The resort plans for expansion in the near future with more residences being built and added into Six Sense inventory.
16 17 Investment Fiji2018-2019 Annual ReportInvestmentFacilitation tr a d e & exPo r t P r o m o t i o n tr a d e & exPo r t P r o m o t i o n Driving our Exports to New Markets The mission of the Trade and Export Division is to be the nation’s leading statutory body for the development and promotion of products and services for exports, to enhance global competitiveness, maximize export earnings and achieve national sustainable economic goals.
In line with the Fijian Trade Policy Framework, Investment Fiji is committed to transforming Fiji’s thriving economy into a vibrant, diversified and internationally competitive export-led growth economy; accomplished by enhancing the performance of the manufacturing and service sectors contribution to economic growth, as well as focusing on other growth areas in the priority sectors.

It is therefore imperative that we provide our exporters with the right pool of knowledge and capacity building.
We conduct market research and assist exporters to find suitable markets for their products.

We also host local export and capacity building seminars and workshops.

Overview In the financial year 2018/2019, Fiji’s total exports in 2018 was F$2.18 billion, of which F$1.19 billion was domestic exports (products originating from Fiji) and F$983.7 million was re-exports.
The primary goal of the export promotion team is to work with new and established exporters in upskilling and promoting their products and services.

Export Assistance The Division provides assistance in the areas of technical assistance, information on logistics and regulatory environments, undertaking research and participating in trade fairs and export missions.
Value-adding is an innovative method Investment Fiji recognises that enables Fijian products to become a higher valued product in the marketplace.

By helping local exporters to upgrade and become first-tier suppliers, it is anticipated that this will improve the attractiveness of Fiji to inward investment, increase local sourcing and embed investors by raising their exit costs and providing a compelling long term business proposition.
This key service is part of Investment Fiji’s support designed to maximize long-term benefits from inward investment, both local and foreign and to develop a comparative advantage for Fiji.

In addition, Investment Fiji will be conducting domestic seminars across Fiji, and one vital component of extending such services to the regions is in assisting local investors to become export-ready and how to value- add to existing products.
Our dedicated Trade and Export team is tasked with increasing Fijian exports through capability building and internationalisation support activities, training and enterprise development, identification of export opportunities, market research, introductions, domestic seminars, online tools and printed materials.

These key services are designed to assist local and foreign investors develop comparative advantages of their products for export.
Fiji’s major export destinations are Pacific Island countries driven by re-exports of petroleum oils, United States with increased exports of mineral water, Australia led by precious metal and apparels, Japan with a large export of woodchips and New Zealand with increased exports of Kava.

Other major trading partners are China, European Union countries and other Asian countries.
Being the ‘Hub of the Pacific’, Fiji is also a strategic trans-shipment center for cargo traded between the Pacific Island countries.

Fiji creates and manufactures Fijian-made products and services across many industries and sectors.

Assisting local exporters benchmark themselves against international standards is one of the most important pillars of Investment Fiji’s Trade and Export team.
We believe our local products have a unique niche proposition, and can compete against some of the best in the world.

Fiji also has a strong potential in export of services, with ICT and Business Process Outsourcing (BPO) sectors being a priority for the Fijian Government.

Fiji is focused on increasing exports and investments in value added products rather than just export of raw materials.
We continue to work closely with international partners, Fiji’s Trade Commissions and Embassies around the globe to connect local exporters to potential buyers and new markets.

Through our prestigious Prime Minister’s International Business Awards, Investment Fiji gives local companies a platform for recognition and benchmark performance and capacity-building.

The awards inspire other local companies to innovate, showcase their achievement and contribution to Fijian economy.
Investment Fiji has developed a strategy that allows exporters to sell more products overseas through market research, introductions and targeted result-driven missions aimed at advising exporters on market trends and potential entry strategies.

We stand ready to assist any interested international and domestic investors and exporters with any guidance they require.
18 19 Investment Fiji2018-2019 Annual ReportTrade & ExportPromotion tr a d e & exPo r t P r o m o t i o n tr a d e & exPo r t P r o m o t i o n What we Accomplished in 2018/2019 The Trade and Export team handled a total of 354 export enquiries during the financial year 2018/2019 which is an increase of 11% when compared to 2017/2018 period from local and foreign companies.
Enquiries over this period focused mainly on market access, market growth, biosecurity regulations and standards on exporting and importing, and overall contacts.

Investment Fiji takes an active role in promoting Brand Fiji through Cross Promotional Campaigns, Marketing Collaterals, Exhibitions, Conferences, Investment Missions, Trade Missions and online tools.
The team conducted 258 export customer visits or engagements which entailed market entry, capability building, market growth, event management and capital investment focusing largely on Agriculture, Manufacturing, Wholesale & Retail, Forestry, Fisheries, Services, Textile, Clothing & Footwear, Mining and Mineral Water Sectors.
As the secretariat of the Fiji-PNG Business Council, the Division organized four meetings for the Council and attended monthly Fiji-US Business Council meetings as a co-opted executive member.

Domestic exports are commodities grown, produced or manufactured in Fiji which mainly include sugar, mineral water, gold, garments, fish, timber, fruits and vegetables, molasses, kava, textiles, clothing and footwear (TCF), coconut oil and other commodities.
To successfully promote Fijian Made products, the Division has actively hosted, attended and facilitated a number of meetings, missions and events.

The Division also works with Ministry of Industry, Trade and Tourism in promoting The Fijian Made Buy Fijian Campaign which encourages consumers and organizations to produce and buy Fijian Made goods and services.
Trade Exhibition (Outbound) Fiji Day Celebration, New Delhi, India (September) Fiji product samples were collected and sent to the Embassy of Fiji in India, for their promotional activities.

The trade exhibition allowed the Embassy to promote Fijian made products at a Fiji Day event to raise awareness of the high-quality, niche Fijian products.

A number of potential Indian buyers and importers attended the event.
Sustainable Seafood Innovation Workshop and Networking Event, Fiji (October) The Fish 2.0 competition connects seafood businesses and investors in order to grow the sustainable seafood sector.

Fish 2.0 provides businesses with opportunities to gain visibility and find strategic partners.

Businesses will be able to refine their strategy, improve their business models, and learn how to effectively present to investors.
The event included a reception for interested investors, industry leaders and other seafood experts to meet with the participants and learn more about innovation and opportunities to grow seafood ventures in the Pacific and Australia region.

The team shared information on the event with 13 seafood companies in Fiji.
Local Seminars & Workshops National Single Window Visioning Workshop, Fiji (August) The 2-day workshop held on 14th & 15th August 2018, included presentations from World Bank Group Expert Mr. Pugliatti who introduced the Single Window concept, outlining the processes and flows of the proposed system.

Agencies and the private sector are able to identify any potential loopholes / issues, and that issues with current system are eliminated in the Single Window concept.
All ideas and concerns shared during group discussions are taken into account for proper planning and implementation.

Proper and careful planning will ensure successful implementation of the system.

The workshop was attended by 23 Departments and Agencies, including all Tier 1, Tier 2 Agencies as well as representation from the Private Sector.

Investment Fiji took active part in group discussions which were presented during the workshop.
All group work discussions are noted by WBG for their further work on planning and implementation.

North Capability Export Seminar, Investment Fiji, Labasa (February) Investment Fiji hosted Northern Capability Export Seminar on 28th February, 2019 at the Investment Fiji, Labasa Office.
The purpose of this seminar was to assist potential/current exporters to understand the importance of an export plan; understand its different elements and how this can be implemented in their business and how an export plan can be used as a tool to understand a company’s export market.

The seminar was an interactive session whereby 13 participants were made aware of the importance of developing an export plan.

The team had received positive feedback from participants.
The team will continue to follow up with 13 companies on their process of creating their export plan and provide assistance should these participants require future guidance in development of their capabilities.
20 21 Investment Fiji2018-2019 Annual Report Local Seminars & Workshops tr a d e & exPo r t P r o m o t i o n re g i o n a l of f i c e USA – Pacific Islands Trade seminar, Fiji (October) Investment Fiji in conjunction with the US Embassy hosted the Generalized System of Preferences (GSP) program on 4th October, 2019 at USP, providing information on preferential duty-free treatment for thousands of products from Fiji, Tonga, Kiribati and Tuvalu.
During the seminar participants learned how to utilize the program for their business.

Participants learnt about the opportunities GSP presents to Pacific Islands businesses in boosting exports.

The event was a success with around 110 individuals attending the seminar.

There was a lot of interest and feedback received from the participants to enter the US market.
Development of Fiji’s Exporter Guide, Fiji (April) Investment Fiji in collaboration with Market Development Facility (MDF) hosted a round table discussion with relevant Agencies on the development of Fiji’s Exporter Guide on 26th April, 2019 at Investment Fiji.

Prior to the roundtable discussion, the Consultation team had undertaken an exercise to collect feedback from exporters and Government Departments (approving Agencies) by using e-survey’s (questionnaires) and one-to-one meetings.
A summary of the feedback exercise along with a brief background of the project, the mapping of Fiji’s export ecosystem and the draft content was presented to stakeholders at the roundtable discussion.

The purpose of the discussions with stakeholders was to verify / identify key information that are relevant and should be included in the Exporter Guide in order to make it useful for businesses and (potential) exporters.
22 Overview 218Investment Opportunities 16 FIRC Applications received 773 Investment Enquiries (new/current) 51 Export Enquiries 28 Joint Venture Partnerships Joint Venture Opportunities The Regional Office facilitates joint venture opportunities with registered Investors who wish to work with resources owners and existing domestic Investors.
The Manager Regional Development Mr. Lisala Dyer and the Senior Investment & Trade Advisor West Mr. Thomas Magnus met with potential investment company “Queen Harbor Pte Limited” for a proposed propose Integrated Tourism Development Joint Venture Partnership with Nakovacake Development Trust.

The meeting was held on the 14th of December, 2018 outlined the project proposal and the benefits to the land owners.
Moving forward, the Nakovacake Development Trust Board signed MOU for the scope of the proposed development at Nasaulevu, Nadi.

Private Inbound Mission A team of private investors from Paramina, Philippines who are specialized in engineering, contractors and mining consultants met with the Manager Regional Development Mr. Lisala Dyer on Friday 12th October at Investment Fiji Lautoka Office.
The Team led by the Vice President Operation Mr. Peri Resabela where they are keen to work with Lion One Limited in the mining project in Sabeto.

The Managing Director Mr. Stephen Mann sees this as an opportunity to partner in the engineering project at the mining site.

Partnership with Government Stakeholders Investment Fiji took a seamless approach to work in partnership with the Ministry of iTaukei Affairs and the Ministry of Rural & Maritime Development for better information sharing.
This creates better networks within, better initiatives and better facilitation of investment opportunities and registered projects.

Participating in Roadshows The Regional Office participated in 2 of the rural government roadshows held in the West and North.

These event promoted its offices and services of Investment Fiji in the region mainly in linking resource owners with Investors and farmers with exporters.
Provincial Meeting Participations The Manager Regional Development Mr. Lisala Dyer worked closely with the Provincial Administrators for information sharing in Provincial Meetings on foreign investments project and create potential opportunities in their region.

Investment Fiji presented at the Macuata Provincial Council Meeting on Thursday 07th March 2019 at Kshatriya Hall, Labasa and Seaqaqa Tikina Meeting on 03rd April 2019 at Naravuka Village.
This is also to create awareness to resource owners on opportunities for investments.

23 The Fijian Tourism Talanoa Session Investment Fiji participated in the Tourism Talanoa Session at the Sheraton Fiji Resort, Nadi which focused on the importance of the tourism sector as one of the major revenue earners and emphasised on more networking in facilitating foreign investors.
Kadavu Kava Farmers Co-operative Limited Investment Fiji assisted 20 rural farmers from Kadavu a year ago where it launched its first kava pounding shed in Vunisea funded by the Ministry of Agriculture.

By having kava pounded it reduced the bulk of kava being shipped across to Suva in terms of space taken which means they can ship more to their buyers in Fiji and overseas.
Investment Fiji2018-2019 Annual ReportRegionalOffice hu m a n re s o u r c e s hu m a n re s o u r c e s Multi-celebrated organization Investment Fiji, over the years, have celebrated festivals like Eid, Diwali, Christmas and Easter with the entire team.

These celebrations involved food, fun and games and learning activities organized by the social committee.
These activities allowed learning different cultural backgrounds and their importance through team-based exercises, which was fun and rewarding as gifts were given to participants as well as to teams who completed the games at high note.

Team Bonding Team Investment Fiji has a social committee and the whole team elected the office bearer positions such as Social Committee President, Vice President, Treasurer and Event Coordinator through electronic voting.
Investment Fiji social committee also scheduled events once a week promoting healthy living represented through sports and trains for Futsal and represents the organization in games with other business houses.

Training has always been an integral part of Investment Fiji’s capacity building.

This year, Investment Fiji staff attended both local and overseas trainings to boost the knowledge base and information exchange.
This involved training provided to Capacity Development for Investment Promotion in Japan, boosting management with skills and knowledge where two managers attended the Fiji Directors Course, Senior Finance Administrator attending training as Certified Financial Controller, IT Manager attending a training on Certified Information System Security Professional.
The success of our ‘Transform to Perform’ Corporate Change Program depends on our ability to retain, motivate, develop and continued attraction of employees with the skills and experience to help Investment Fiji master challenges and make the most of opportunities.

This year our major focus has been on capability and capacity building through better skills set training provided to individuals.
In efforts to boost our service delivery, we recruited 9 new employees in 2018/2019 (Aug 18- July 19) on permanent positions as well as temporary contractual basis.

The manpower level sits at 49 staff by the end of this financial year.

Health & Safety To boost safety at work place, Investment Fiji installed 5 new aircon units in the office area for proper ventilation.
The year ended with zero injuries and zero accidents although many hazards appeared during the office aircon installations, carpet cleaning and general maintenance exercises.

Staff observed caution signage and notices placed prominently around the office.
49 38 11 STAFF FULL TIME PA RT TIME 22 MALE 27 FEMALE 4 5 .7% 31 .4% 22.9% 20-29 30-39 OTHERS AGE GROUPS 24 25 Investment Fiji2018-2019 Annual ReportHumanResources 2 0 1 8 Pr i m e m i n i s t e r ’ s in t e r n a t i o n a l bu s i n e s s a w a r d s 2 0 1 9 Pr i m e m i n i s t e r ’ s in t e r n a t i o n a l bu s i n e s s a w a r d s Prime Minister’s International Business Awards 2018 Awards The 2018 Prime Minister’s International Business Awards, was successfully hosted by Investment Fiji at Sofitel Fiji Resort on 23rd November, 2018.
There are three Special Award Categories, Eight General Award Categories and One Supreme Award.

2019 Launch The 2019 Prime Minister’s International Business Awards was successfully launched by Investment Fiji at the Grand Pacific Hotel on 28th June, 2019.
Supreme Award Sponsored by Fiji Water Winner - Fiji Airways Excellence in Innovation Award Sponsored by Ministry of Industry, Trade & Tourism (MITT) Winner – Rotomould Fiji Limited Best Small Business Operating Internationally Award Sponsored by DHL Express Winner - Green Gold Kava Excellence in E-Commerce Award Sponsored by Vodafone Winner – Fiji Airways Best Medium Business Operating Internationally Award Sponsored by Ministry of Industry, Trade & Tourism (MITT) Winner – Nelesh Kamal Company Excellence in Service Award Sponsored by Lysaght Fiji Winner - Fiji Airports Best Large Business Operating Internationally Award Sponsored by Home Finance Company Bank Winner – The Rosie Travel Group Primary Industry Business Excellence Award Sponsored by Reserve Bank of Fiji Winner – Ram Sami & Sons Fiji Limited Young Entrepreneurship Award Sponsored by Ministry of Youth & Sports Winner – Intro Green Distributors Re-exporter of the Year Award Sponsored by Swire Shipping Winner – Foneology Solutions Limited Excellence in Business Leadership Award Sponsored by Golden Manufacturers Limited Winner – Amit Singh of CBS Power Solutions Socially Responsible Business of the Year Sponsored by Tropik Wood Industries Limited Winner – Digicel Fiji Limited Investment Fiji has been hosting the Prime Minister’s International Business Awards for the past 27 years, recognizing our successful Fijian Businesses for their innovative business style.
The Prime Minister’s International Business Awards has 12 exciting categories that provides due recognition to organizations from a wide range of sectors.

The Awards are a prestigious endorsement of Fijian business success in recognizing and celebrating the best of business talent based on their accomplishments, persistence and hard work.

Application Drive The Trade & Export Division conducted the application drive from July to September.
The IBA team visited the Northern, Western and Central Divisions and received a number of new applications.

The Trade & Export team had 61 companies registered initially during the application drive.

The total number of applications received/submitted were 138.

The Highest number of applications received was for the - Best Small Business Operating Internationally, Excellence in Innovation and Excellence in Business Leadership categories.
We have noted that 60% of the applications received were from new companies which had never participated in the previous years.

The Trade & Export team works closely with the PR Division to promote the application drive through the media platforms and visited and consulted potential companies suited for the awards.

Media promotion for the Awards was promoted through print & Television Ads on Fiji Sun and FBCTV as well as on social media platforms such as Twitter, Facebook, LinkedIn and IBA website.
26 27 Investment Fiji2018-2019 Annual Report fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s Financial Statements 30 31 Statement by Board Chairman and Acting GM Independent auditor’s report 34 35 33 Income statement 36 Statement of changes in equity Statement of financial position Statement of cash flows 37 Notes to the financial statements 28 29 Investment Fiji2018-2019 Annual Report fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s STATEMENT BY BOARD CHAIRMAN AND ACTING GENERAL MANAGER For the year ended 31 July 2019 In the opinion of the Board Chairman and Acting General Manager: [i] the accompanying income statement of Investment Fiji is drawn up so as to give a true and fair value of the results for Investment Fiji for the period ended 31 July 2019; [ii] the accompanying statement of changes in equity of Investment Fiji is drawn up so as to give a true and fair view of the changes in equity of Investment Fiji for the period ended 31 July 2019; [iii] the accompanying statement of financial position of Investment Fiji is drawn up so as to give a true and fair view of the state of affairs of Investment Fiji as at 31 July 2019; [iv] the accompanying statement of cash flows of Investment Fiji is drawn up so as to give a true and fair view of the cash flows of Investment Fiji for the period ended 31 July 2019; and [v] at the date of this statement, there are reasonable grounds to believe that Investment Fiji will be able to pay its debts as and when they fall due.
Dated this 6th day of February, 2020.
……………………………...................... Chairman ……………………………...................... Acting GM 30 31 2018-2019 Annual ReportInvestment Fiji fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s INCOME STATEMENT For the year ended 31 July 2019 Income Government grant - operational Registration Extract fees International Business Awards - Income Other income Total income Expenditure Administrative expenses Depreciation Amortisation of Intangible assets Operating expenses Personnel expenses Internatinal Business Awards - expenses NOTES 2019 $ 2018 $ Total expenditure 2,902,371 2,832,133 Net Surplus / (Deficit) for the period 139,575 76,419 The accompanying notes form an integral part of this income statement.
32 33 2018-2019 Annual ReportInvestment Fiji STATEMENT OF CHANGES IN EQUITY For the year ended 31 July 2019 STATEMENT OF FINANCIAL POSITION As at 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s ACCUMULATED FUNDS Balance as at 1 January Surplus for the Year Balance at the end of the year NOTES 2019 $ 2018 $ 1,011,149 934,730 139,575 76,419 1,150,724 1,011,149 The accompanying notes form an integral part of this statement of change in equity.
ASSETS Current Assets Cash on hand and at Bank Receivables Total Current Assets Non Current Assets Property, plant and equipment Intangible Assets Total Non Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade creditors and accruals Payable to Ministry of Finance Provision for employee entitlements Total Current Liabilities Non Current Liabilities Deferred Grant Income - Capital Total Non Current Liabilities TOTAL LIABILITIES NET ASSETS ACCUMULATED FUNDS AND RESERVES Accumulated funds and reserves TOTAL EQUITY NOTES 15 9 10 11 14 12 13 2019 $ 739,872 92,389 832,261 262,944 439,426 702,370 2018 $ 917,104 104,263 1,021,367 348,644 455,516 804,160 1,534,631 1,825,527 92,055 82,500 95,591 270,146 113,761 113,761 383,907 110,374 455,000 106,802 672,176 142,202 142,202 814,378 1,150,724 1,011,149 1,150,724 1,011,149 1,150,724 1,011,149 The accompanying notes form an integral part of this statement of financial position.
34 35 ……………………………...................... Chairman ……………………………...................... Acting GM Investment Fiji2018-2019 Annual Report STATEMENT OF CASH FLOWS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s Cash flows from Operating Activities Receipts of grants and others Receipts from /(payments for) special account Payments to suppliers and employees 2019 Inflow / (Outflow) 2,719,627 (149) (2,806,632) 2018 Inflow / (Outflow) 2,491,672 30,053 (2,366,639) NOTE 1.
GENERAL INFORMATION Investment Fiji is a Government of Fiji entity domiciled in the Republic of the Fiji.

Investment Fiji was created in 1980 under Economic Development Board Act No.11.

The address of its registered office and principal place of business is disclosed in Note 21 to the financial statements.

The principal activity of Investment Fiji is to promote, stimulate and facilitate trade and investment in Fiji.
Net cash provided by/(used in) Operating Activities (87,154) 155,086 Cash flows from Investing Activities Payments for property, plant & equipment Proceeds from sale of property, plant & equipment (90,078) - (221,611) 55,747 Net cash used in Investing Activities (90,078) (165,864) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year (177,232) 917,104 (10,778) 927,882 Cash and cash equivalents at the end of the year [Note 15] 739,872 917,104 The accompanying notes form an integral part of this statement of cash flows.
NOTE 2.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance The financial statements prepared by Investment Fiji are in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) issued by the International Accounting Standards Board.

The principal accounting policies adopted by Investment Fiji are stated to assist in a general understanding of these financial statements.
The accounting policies adopted are consistent with those of the previous year except as stated otherwise.

All amounts are stated in Fijian currency.

Basis of Preparation The financial statements have been prepared on the basis of historical cost.

Cost is based on the fair values of the consideration given in exchange for assets.
In the application of IFRS for SMEs, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments.

Actual results may differ from these estimates.


The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
Judgments made by management in the application of IFRS for SMEs that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The following significant accounting policies have been adopted in the preparation and presentation of the financial statements: 36 37 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s NOTE 2.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) NOTE 2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Allowance for Doubtful Debts e) Employee Benefits (cont’d) a) b) An allowance is made in respect of debts considered doubtful based on a review of outstanding amounts at year end.

Bad debts are written off during the year in which they are identified.

Borrowings Borrowings are recognised initially at fair value, net of transaction costs incurred.

Borrowings are subsequently stated at amortised cost using the effective interest method.
Borrowings are classified as current liabilities unless Investment Fiji has an unconditional right to defer settlement of the liability for at least 12 months after the balance date.
c) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in income statement in the period in which they are incurred.
Wages and salaries Liabilities for wages and salaries expected to be settled within 12 months of the reporting date are accrued up to the reporting date.

Defined contribution plans Contributions to Fiji National Provident Fund (FNPF) by Investment Fiji are expensed when incurred.
f) Foreign Currency Transactions Functional and presentation currency Investment Fiji operates in Fiji and hence the financial statements are presented in Fiji dollars, which is Investment Fiji’s functional and presentation currency.

Transactions and balances Foreign currency transactions are translated into Fiji currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
d) e) Cash and Cash Equivalents g) Government Grants Cash and cash equivalents comprise cash balances, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Employee Benefits Annual leave The liability for annual leave is recognised in the provision for employee benefits.
Liabilities for annual leave are expected to be settled within 12 months of the reporting date and are measured at their nominal values using the current remuneration rate which is expected to be applied at the time of settlement.

Long service leave The liability for long service leave is recognised in the provision for employee benefits and measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Government grants are recognised in the statement of financial position initially as deferred income where there is reasonable assurance that they will be received and that the entity will comply with the conditions attached to them.
Grants that compensate the entity for expenses incurred are recognised as revenue in the income statement on a systematic basis in the same period in which the expenses are incurred.

Grants that compensate the entity for the cost of an asset are recognised in the income statement as revenue on a systematic basis over the useful life of the asset.

Income Tax Income of Investment Fiji is exempt from income tax in accordance with Section 17(24) of the Income Tax Act.
Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation and impairment loss.

Cost includes expenditure that is directly attributable to the acquisition and installation of the items.
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives using the following rates: h) i) Retirement benefits The liability for retirement benefits is recognised in the provision for employee benefits and measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Audio Visual Equipment Computer Equipment Furniture and Fittings 20% 20% - 35% 10% Leasehold Improvements Office Equipment Motor Vehicles 10% 15% 20% 38 39 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s NOTE 2.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) NOTE 3. INTERNATIONAL BUSINESS AWARDS Property, Plant and Equipment (Cont’d) Profits and losses on disposal of property, plant and equipment are taken into account in determining the results for the year.

Sponsorship Ticket Sales i) j) 2019 $ 244,037 49,841 2018 $ 280,734 80,399 Intangible Assets Acquired computer software and licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.
These costs are amortised at the rate of 20%.

Costs associated with maintaining computer software programmes are recognised as an expenses incurred.

Costs that are directly associated with the development of identifiable and unique software products controlled by the agency, and that will probably generate economic benefit exceeding costs beyond one year, are recognised as intangible assets.
k) Trade and other receivables Trade and other receivables are recognised initially at fair value less allowance for doubtful debts.

An allowance for doubtful debt of trade and other receivables is established when there is objective evidence that Investment Fiji will not be able to collect all amounts due according to the original terms of the receivables.
Total International Business Awards - Income 293,878 361,133 Prime Minister’s International Business Awards is intiative taken by the Fiji Government to reward businesses and exporters who are postiviely contributing to the economy on an international level.

This event is hosted by Investment Fiji on behalf of the Fijian Government and is fully funded through sponorship funds and ticket sales.

NOTE 4.
NOTE 4.

OTHER INCOME Fiji-PNG Business Council secretariat fee Amortization of Deferred Grant FNU Grant Profit /(loss) on disposal of fixed assets Interest Received 2,400 28,441 1,289 - 184 2,400 - 7,822 55,747 - Total Other income 32,314 65,969 l) Value Added Tax (VAT) NOTE 5.
ADMINISTRATIVE EXPENSES Revenues, expenses, assets and liabilities are recognised net of the amount of Value Added Tax (VAT), except: i) where the amount of VAT incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii) for receivables and payables which are recognised inclusive of VAT.
The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

The VAT component of cash flows arising from operating and investing activities, which is recoverable from or payable to the taxation authority, is classified as operating cash flows.
Advertising and public relations Audit fee Bank charges Board members' expenses Computer repairs Director's fees Electricity Entertainment and hospitality Stationery Subscriptions Telephone and fax Telephone computer line Travel/accommodation and subsistence Reallocation Allowance for CEO 26,112 4,128 4,095 7,179 43,512 18,083 39,886 3,547 8,960 3,249 32,303 62,607 21,769 31,128 14,149 3,945 4,283 2,831 38,440 24,917 39,786 4,037 12,298 4,052 35,466 62,533 28,024 - Total Administrative Expenses 306,559 274,761 40 41 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s NOTE 9.
RECEIVABLES AND OTHER ASSETS Other receivables Debtors Vat Receivables Prepayments 2019 $ 35,481 - 35,481 6,924 49,984 2018 $ 35,481 20,000 55,481 6,980 41,802 Total Receivables and Other Assets 127,871 159,744 NOTE 6.
OPERATING EXPENSES Insurance Trade promotion seminars /investment workshops Motor vehicle repairs and maintenance Office expenses Printing Hire of photocopiers Postage and courier Rent Operating leases on motor vehicles Government Initiative Mission - Overseas Strategic Development Workshop 2019 $ 62,965 5,534 12,931 14,847 88,392 8,328 1,127 204,059 135,770 31,695 - 2018 $ 61,687 19,368 19,762 17,757 35,598 12,203 1,263 196,783 129,531 36,174 25,056 Total Operating Expenses 565,648 555,182 NOTE 7.
PERSONNEL EXPENSES FNPF contribution FNU levy Fringe benefit tax Salaries and wages Staff training 132,390 13,963 4,138 1,378,201 15,574 114,293 14,350 10,603 1,429,471 9,666 Total Personnel Expenses 1,544,266 1,578,383 NOTE 8. INTERNATIONAL BUSINESS AWARDS Advertising, Publicity & Printing Launch Plaques and Prize Money Award Night (Main Event) Post IBA Expenses 63,820 32,477 67,445 129,067 1,218 72,101 30,230 54,163 168,607 5,978 Total International Business Awards - Expenses 294,027 331,079 Prime Minister’s International Business Awards (IBA) is an annual event managed by Investment Fiji and the expenses incurred is verified and accorded specifically for the overall preparation, pre-event, launch, main and post event.
42 43 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTE 10.
PROPERTY, PLANT AND EQUIPMENT fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s Gross carrying amount Balance at 31st July 2017 Acquisitions Reclassification Disposals Balance at 31st July 2018 Acquisitions & transfers Disposals Balance at 31st July 2019 Accumulated Depreciation Balance at 31st July 2017 Depreciation expense Disposals Reclassification Balance at 31st July 2018 Depreciation for the year Disposals Balance at 31st July 2019 Carrying Amount As at 31 July 2018 As at 31 July 2019 Audio Equipment $ Computer Equipment $ Furniture & Fittings $ Leasehold Improvements $ Office Equipment & Others $ 25,407 3,435 - - 28,842 - (6,653) 51,031 9,634 4,070 - - 13,704 4,438 (6,653) 11,489 15,138 39,541 385,170 61,951 (136,336) - 310,785 39,170 (5,717) 655,022 188,955 52,860 - (107,510) 134,305 66,602 (5,717) 195,190 176,478 459,832 171,356 4,837 - - 176,193 - (9,860) 342,526 80,409 14,674 - - 95,083 14,056 (9,860) 99,279 81,110 243,247 201,125 - - - 201,125 - (96,493) 305,757 171,939 5,829 - - 177,768 4,302 (96,493) 85,577 23,357 220,179 44,960 - - - 44,960 - (4,623) 85,297 15,778 6,051 - - 21,829 6,042 (4,623) 23,248 23,131 62,049 Motor Vehicles $ 124,612 - - (124,612) - - 124,612 - (124,612) - - - - - - Work In Progress (CRM) $ 313,974 157,911 - (442,457) 29,428 (29,428) - 29,427 - - - - - - - - 29,428 29,427 Total $ 1,266,604 228,134 (136,336) (567,069) 791,333 9,741 (123,346) 1,469,061 591,327 83,484 (124,612) (107,510) 442,689 95,440 (123,346) 414,783 348,644 1,054,278 There are some assets with zero written down values which are in use.
However, management is of the view that the residual value of these assets are not significant to impact on the balance of Property, Plant and Equipment.

44 45 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s NOTE 11.
INTANGIBLE ASSETS Cost - Computer Software and Licences Balance as at 1 August 2018 Acquisitions Transfer from Property, Plant & Equipment Work In Progress - Website Balance as at 31 July 2019 Accumulated amortisation: Balance as at 1 August 2018 Amortisation for the year Transfer from Property, Plant & Equipment Balance as at 31 July 2018 Net Carrying Amount As at 31 July 2019 NOTE 12.
PROVISIONS Employee Entitlements Opening balance Add: Accruals made in the year Less: Leave utilised in the year Closing Balance Analysis of total provisions: Current Non current NOTE 13.
Deferred Grant Income - Capital Opening Balance 01 August Released to Income Statement Total Deferred Grant Income 2019 $ 572,270 - - 80,342 652,612 116,754 96,432 - 213,186 2018 $ - 435,934 136,336 - 572,270 - 9,244 107,510 116,754 439,426 455,516 106,802 104,937 (116,148) 95,591 95,591 - 95,591 142,202 (28,441) 113,761 82,843 104,990 (81,031) 106,802 106,802 - 106,802 142,202 - 142,202 NOTE 14.
PAYABLE TO MINISTRY OF ECONOMY 2018 $ 2017 $ FIRC registration fees 82,500 455,000 Total Payable to Ministry of Economy 82,500 455,000 Cash and cash equivalents consist of cash on hand and balance held with banks.

Cash and cash equivalents included in the statement of cash flows comprise the following statement of financial position amounts: NOTE 15.

NOTES TO THE STATEMENT OF CASH FLOWS Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and balance held with banks.
Cash and cash equivalents included in the statement of cash flows comprise the following statement of financial position amounts: ANZ Banking Group - Operational Account ANZ Banking Group - Special Expenditure Account (a) ANZ Banking Group - Other Funds Account (b) HFC Bank - InvFj IBA (a) Petty Cash Total cash and cash equivalents 409,011 225,164 84,912 20,085 700 739,872 210,595 247,833 457,976 - 700 917,104 a) b) This cash relates to the International Business Awards night and is only incurred for that purpose.
This cash relates to the Foreign Investment Registration Certificate (FIRC) application fee and only incurred for that purpose.

Customer Relationship Management (CRM) database project is software developed to manage all investor information, investment levels, re-investment levels and overall engagement and monitoring.

This software was commenced in August 2019.


46 47 Investment Fiji2018-2019 Annual Report NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2019 fi n a n c i a l st a t e m e n t s fi n a n c i a l st a t e m e n t s NOTE 16.

COMMITMENTS NOTE 18.


RELATED PARTY DISCLOSURES a) b) Rental lease commitments for Suva, Lautoka, Labasa office and Archive are as follows: Not later than one year Later than one year but not later than five years Total rental lease commitments Operating lease commitments for leased motor vehicles are as follows: Not later than one year Later than one year but not later than five years Total operating lease commitments NOTE 17.
CONTINGENT LIABILITY Contingent liabilities exist with respect to the following: Retirement benefits 221,884 473,062 694,946 66,356 63,900 130,256 221,884 694,946 916,830 130,474 119,501 249,975 The names of persons who were directors of Investment Fiji at the date of this report are as follows: Mr. Truman Bradley - Chairman Mr. Shaheen Ali - Deputy Chairman Mr. Esala Masitabua Mr. William Situ Dr. Angeela Jokhan Mr. Avinesh Raju Mr. Solomoni Nata Mr. Nemani Vuniwaqa Mr. Visvanath Das Mr. Richard Breen Ms. Raijeli Taga Directors’ remuneration as at July 2018 is $18,083 (July 2018: $24,917).
Compensation for key management personnel: Short-term employee benefits Housing and other allowances and benefits 2019 $ 92,982 15,595 108,577 2018 $ 253,500 27,792 281,292 57,789 57,789 57,789 57,789 NOTE 19.
EVENTS SUBSEQUENT TO BALANCE DATE Retirement benefit yet to be paid to an employee retiring in accordance with provisions of Article 26 paragraph of the Collective Agreement signed in 2001 between Investment Fiji and the Fiji Public Service Association (FPSA) regarding terms and conditions of service of salaried staff.

The employee retired on 18 May 2009 and no claim has been received so far by FPSA.
From the next financial year, Investment Fiji has ceased secretariat duties for the Fiji-PNG Business Council.

Therefore, the secretariat fees usually received from the secretariat duties will also cease from next financial year.

NOTE 20.

PRINCIPAL ACTIVTIES The principal activity of Investment Fiji is to promote, stimulate and facilitate trade and investment in Fiji.

NOTE 21.
NOTE 21.

INVESTMENT FIJI DETAILS Registered Office and Principal Place of Business The registered office and the principal place of business of Investment Fiji is: Level 6, Civic Tower Victoria Parade Suva Fiji.

Number of employees As at balance date, Investment Fiji employed a total of 49 (2018: 53) employees.
48 49 Investment Fiji2018-2019 Annual Report fi n a n c i a l st a t e m e n t s SUVA DISCLAIMER Data and information provided by Investment Fiji is for information purpose only and not intended to be a source of advice, financial or otherwise.
Investment Fiji does not accept any responsibility or liability for any direct or indirect loss or damage (whether in tort, contract or otherwise) which may be suffered or occasioned by any person howsoever arising due to any inaccuracy, omission, misrepresentation or error in respect of any information and content provided in this document.

This document may contain links to internet sites or references to alternative sources.
Such references and links are provided as an information service only and Investment Fiji does not in any way, expressly or implicitly, endorse the linked sites, or resources or the respective contents thereof.

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Except with the prior written permission of Investment Fiji and/or other copyright owner, no person may download, duplicate, reproduce, edit, publish, make available or disseminate through whatever means any content contained in whole or in part.
6th Floor Civic Tower, Victoria Parade P.O Box 2303 Government Buildings, Suva T (+679) 331 5988 F (+679) 330 1783 E investment@investmentfiji.org.fj LAUTOKA Ground Floor Jay Lal & Company Complex 21 Tui Street Lautoka E lautoka@investmentfiji.org.fj LABASA Level 1 Suite 1 LTD Building Damanu Street Labasa E labasa@investmentfiji.org.fj 50 Investment Fiji