FIJI BUSINESS ROUNDTABLE

PRESENTED BY

Mr. Kamal Chetty
Manager Investment & Trade
Investment Fiji
4 September 2019Tokyo

E CFOI JNIOI M
NIC
Highlights
Figures

OURRoleINVESTMENT
Opportunities

OUR Role
Core Functions

As a statutoryorganization, Investment
Fiji operates
independently as thefacilitation arm of the
Fijian Government,
providing services andassistance to promoteand stimulate
investments and exports.

EXPORT PROMOTIONINVESTMENT PROMOTION

Working with new and

Identifying the ideal fit

established exporters inbetween the economic

upskilling and promoting

benefit of Fiji and thetheir products & services

business opportunity for theoverseas.

investor

INVESTMENT FACILITATIONINVESTMENT REGISTRATION

Enabling and assisting

Issuing the Foreign

Investors to set up and grow

Investment Registration

through comprehensive

Certificate.

after-care support.

Suva | Lautoka | Labasa

FIJIin Figures

Real GDP 2019f

Nominal GDP (2017)

GDP Growth Rate

FJ$7.4 b

FJ$10.1 b

2.7% (2019f)

International
Trade

Total Import
Total Export
Goods-FJ$5.7bn
Goods-FJ$2.2bn
Services-FJ$3.3bn Services-FJ-$1.5bn

2018

Unemployment Rate

Inflation

Moody’s Rating

4.5% (2017)2.1% (2019)

Ba3

International Visitor Arrival

870,309 (2018)

Growth 2017-2018

3.3%
Source: Fiji Bureau of Statistics, RBF, S&P (2018)

P O P U L AT I O N

884,887
As of 2017

49.3%

50.7%

FemaleMale

Population Growth Rate

0.6%

As of 2017

LABOURForce

MEDIAN
Age

POPULATION
Under 25 years

LITERACY
Rate

392,14827.5 yrs

46.1%

93.7%

2017

2017

2017

2016

Source: Fiji Bureau of Statistics, (2018)

Growing Number of Foreign Projects

Registration by Numbers
Attracting foreign direct investment isimportance to Fiji because of the many
economic and social contributions it
has to offer.

No. of Registered Projects

Foreign Direct
Investment

4504184003623683503002572612013

2014

279250200150100

1331302011

2012

117805002009201020152016

2017

2018

Foreign Project Registration by Sector, 2018
Services

3%

Wholesale & Retail
Trade
Tourism

3%2%

3%
4%
33%
6%

Manufacturing
Agriculture & Forestry
Real Estate
Construction

11%

Education
Mining & Quarrying
13%
21%

Financial Intermediation
Electricity Gas & Water
SupplyProposed Investment of Foreign Projects ($m)
1,800.0

R e g i s t r a t i o n b y Va l u eJapanese has registered 23 projects inFiji with a total proposed investment of$24 million over the last 9 years.

Millions of Fijian Dollars

Foreign Direct
Investment

1,626.8
1,600.0
1,400.0
1,189.9

1,200.0

1,109.7

1,096.6

1,000.0
841.8
800.0

703.5
592.1

600.0
400.0

500.1

466.1
317.7

200.00.0
2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Foreign Projects by Major Countries-2018

China
32%
United States
7%

India
9%
Australia
16%

New Zealand13%

Business Registration
Process

Business Registration Process
STEP ONESTEP TWO
Investment Fiji issues
Foreign Investment Registration Certificate

Registrar of Companies
to reserve Business NameSTEP THREE
STEP FOUR

Registrar of Companies
to register BusinessFiji Revenue& Customs Authority
register Tax Identification Number
STEP FIVE
Reserve Bank of Fiji
for issuance of Shares
STEP SIX
Department of Immigration for Work or
Residence Permit

STEP SEVEN
Depending on the nature of activity,
approval/license from other Government
Authorities will be required

PROCESS COMPLETEINVESTMENT
Opportunities

As a statutory organization, Investment Fiji operates
independently as the facilitation arm of the Fijian
Government, providing services and assistance topromote and stimulate investments and exports.

Foreign Direct Investments
Incentive

LOW CORPORATE TAX RATE

20% Corporate Tax Rate
10% CTR for companies listed on SPSEFiji has a stableeconomy with lowlevels of inflation, astrong banking sector,
low tax rates,
established trade
agreements and anumber of tax
incentives toencourage investmentand trade.

TRADE AGREEMENTS

SPARTECA
MSGTA

PICTA
IEPA

STRONG BANKING SECTOR

ANZ and Westpac listed in the Top 30 of the Global
Financial World's Safe Banks Index of 2017
WELL EDUCATED WORKFORCE

More than 94% Literacy rate
TAX FREE ZONES

Whole of West, North and Eastern Division, including
Kadavu and Rotuma. Upcoming Economic Zone

DUTY EXEMPTIONS

Duty concessions on importation of raw materials andcapital goods.

The agriculture sector contributes approximately 8.1% to GDP.
In 2018 a total of 18 Agricultural projects were registered at a proposedvalue of $72 million.
Tax exemption is offered for new commercial agricultural farming and agroprocessing.
Opportunities for foreign investors to lease or buy land.
Fiji is able to offer very low entry cost in agriculture business whencompared to other countries.
Majority of exports concern Sugarcane, Taro (Dalo), Ginger, Pineapple,
Papaya, Kava, Cassava
884,887 residents and over 800,000 tourists create a lucrative domestic
market of over 1.6 million people.

Agriculture Sector

Fiji offer lucrative investment opportunities, in commercial rice, beef, sheep,goat and dairy farming.
Fiji has great potential for value addition of niche agricultural produce, suchas processing of virgin coconut oil, ginger, vanilla and cocoa.
Huge potential for aquaculture – prawn, beach de-mer and fish farming

Fiji’s cost effective near-shore location, advanced telecommunications
infrastructure, natural English language skills and attractive labor rates act
as positive impetus in attracting world class BPO and ICT organizations toFiji.
A 250% tax deduction is applicable on any expenditure incurred by an eligible
ICT company investing in Research and Development.
For small ICT start-ups, a 150% deduction on all start-up costs will be madeavailable.

ICT & BPO Sector

In 2018 tourist arrivals reached 870,309 with earnings increasing to $2 bn.
Over 42% arrivals were Australian nationals followed by New Zealanders
with 23%, USA with 10% and Chinese visitors at 6%.
In 2018 visitor numbers from New Zealand (198,718), USA (86,075) andJapan (11,903) were the highest ever in a given year. With the resumptionof direct flights between Nadi and Narita three times a week, Japan
recorded the highest percentage increase of 87.4%.
Tax Free for capital investment above FJD$2,000,000 for a period of 13
consecutive fiscal years in a Tax Free Region (TFR).
The Fijian Tourism 2021 Development Plan aims to grow the country’s
tourism industry to $2.2 billion with 930,000 visitor arrivals by the end of2021.

Tourism Sector

Aside from the traditional holiday markets, opportunities exist within theMICE and Special Interest segments such as Sports Tourism andYachting.
Fiji offers lucrative Hotel Industry incentives offered via the Fiji Revenue
and Customs Authority under the Income Tax (Hotel Incentives)
Regulations 2016.

Visitor Arrivals by Country, 2018

TourismSector

1%2% 1% 1% 0% 1%Australia
New ZealandUSAPacific Islands
ChinaCont. Europe
Rest of Asia
United KingdomCanadaJapan
South Korea
India
Hong Kong
Others

2%
4%
6%
42%

Highlights

6%

10%

Fiji’s annual Visitor Arrival number reached a
new high of 870,309 in 2018, recording a 3.3%
growth from the previous year.
Retail – investment in high end retail shoppingthat looks at the development andenhancement of Fijian Made products toensure an immersive visitor experience.
Accommodation – gaps in the accommodation
sector note the need for higher end
accommodation types such as upscaleboutiques and eco-friendly resorts.
Additionally, whilst Fiji has shown its capacity
to attract international chains, there is still aneed to encourage more accommodation
properties with state of the art conference
facilities to cater for the increase in MICE
market.

23%

Average Tourist Expenditure by Country, 2018
FJD

CanadaUnited…
Japan
India
Australia
Korea
New ZealandUnited State…
China
Continental…
Rest of Asia
Pacific Islands
Source: Fiji Bureau of Statistics (2017)$2,705$2,697$2,463$2,409$2,391$2,371$2,236$2,132$2,042$1,826$1,488$1,427

Construction and fit out of 300 key resort hotel approx. F$100
Million - looking for JV partner up to 60%
Holiday Inn will be part of Denarau Waters Integrated Tourism
Development which is one of the largest tourism development inthe South Pacific.
Full funding for Stage 1 is in place through a local bank. The
developer has also invested significant funds
Will feature state of art conference facility which is currently
lacking in Holiday Inn Suva

Holiday
InnFinancial Indicators
4th YearInvestment Projects
GULF INVESTMENTS is a registered local
company in Fiji looking for a JOINT VENTURE
PARTNER to invest in the proposed
HOLIDAY INN HOTEL PROJECT in Denarau
Island, Nadi, Fiji.

FJ $40m

FJ $24m

Expected Gross
income per year

Expected expenses– departmental cost& operating expenses

FJ $16m

68%

Expected net income per year

Room Occupancy in first year

F$318.65

F$216.68

Average daily room rate

Revenue per available room

Grand President seeks an investor who can invest from 10 percent – 40
percent investment or more in this project.
The total project cost for Grand President is approximately Thirty Million
Dollars [30,000,000.00]
The project will be located in the Central Business District in close
proximity of the British High Commission, Malaysian High Commission,
Indian High Commission and Micronesian Embassy.
Will feature state of art conference facility which is currently lacking inSuva.

GrandPresident
Investment Projects
D C Singh’s Investments Limited is a
registered company in Fiji looking for a JOINTVENTURE PARTNER to invest in theproposed GRAND PRESIDENT in Loftus
Street, Suva, Fiji.

Financial Indicators
FJ $3.3m

FJ $0.68m

Expected Gross
income per year

Expected expenses– departmental cost& operating expenses

FJ $2.6m

F$63.00/m2Expected net income per year

Average retail rental cost per monthfor Suva CBD

F$33.3/m2

F$300

Average A Grade officespace/conference area rental cost
per month for Suva CBD

Approximate cost for one car park
space per monthFiji is the center of trade in the South Pacific with excellent
communication infrastructure as well as air and sea transportationroutes.
Potential investments in organic and natural food production, niche
manufacturing and assembly for the greater Pacific region including
Australia and New Zealand.
Quality raw materials from the main primary industries of Agriculture,
Fisheries and Forestry offer value adding opportunities.
Given Fiji’s location and size, the key is niche and premium and what
applies to agriculture also applies to manufacturing.
Duty exemption on raw materials imported for manufacturing that arelater exported.
Fiji is signatory to various trade agreements which allows for better
market access and provides a conducive investment climate andopportunities with other countries.

Manufacturing Sector

The income of any new activity in commercial agricultural farming,agro-processing and pharmaceutical manufacturing approved andestablished from 1 January 2015 to 31 December 2028 shall be exempt
from tax relative to the level of investment.

The Fiji Green Growth Framework outlines the governments national energypolicy.
Currently 60% of energy produced is through renewable sources, primarilyhydro. Target to have all power generated via renewable energy by 2030.
Fiji’s demand for renewable energy has been increasing as the fueled bynational economic growth.
The Government Rural Electrification Program has been allocated $50.8
million in the FY 2018-2019 budget to cater for solar installations, housewiring and generator repairs.
Construction of a 12 Mega Watt biomass power plant completed at a cost of$92 million.
5 year tax holiday is available to a taxpayer undertaking a new activity inrenewable energy projects and power cogeneration.

Energy Sector

Duty free importation of renewable energy goods is also available.
Availability of untapped renewable energy resources such as hydro, wind,biomass, solar, and geothermal which could be used for power generation.
The Sustainable Energy Financing Project is a loan scheme that supports
equipment purchase/ installation.

THANK YOU
S U VA , F I J I

6th Floor
Civic Tower, Victoria ParadeP.O Box 2303
Government Buildings, Suva
T (+679) 331 5988
F (+679) 330 1783
E investment@investmentfiji.org.fj
Investment Fiji (@Investment Fiji)
Investment Fiji

www.investmentfiji.org.fj