RESERVE BANK OF FIJI
_________________________________________________________________
ADDRESS BY
GOVERNOR OF THE RESERVE BANK OF FIJI
BARRY WHITESIDE
AT THE LISTING OF FREE BIRD INSTITUTE LIMITED ON THE
SOUTH PACIFIC STOCK EXCHANGE
Venue: Intercontinental Hotel, Natadola, 2 February 2017
Mr Hiroshi Taniguchi, Chair and Chief Executive Officer of Free Bird Institute
Limited
The Board and Management Team of Free Bird Institute Limited
Dr Nur Bano Ali, Chair of the Board of the South Pacific Stock Exchange
Ms Latileta Qoro, Chief Executive Officer of the South Pacific Stock Exchange
Members of the Capital Markets Industry
Members of the Media
Invited Guests, Ladies and Gentlemen
Introductory Comments
Ni sa Bula Vinaka, "Konnichiwa"
and a very good morning to you all!
I am delighted to be here today to officiate in the listing of Free Bird Institute
Limited on the South Pacific Stock Exchange.
founding shareholder, Mr Taniguchi's dream to
I understand that it has been the
see his company listed on a Stock Exchange so I congratulate the Institute for its
perseverance in meeting all the necessary requirements for listing.
Less than a year ago, we witnessed the listing of Vision Investments Limited
(VIL) and I noted at the time that it had been 5 years since there was any
previous activity on the Exchange. It is certainly pleasing to now see a second
listing in less than a year. I feel this reflects the increasing acknowledgement of
the benefits to be derived from participating in our small but developing stock
market.
Background
Ladies and Gentleman, Free Bird Institute Limited is a company with its own
unique business intentions and a true visionary in Mr Taniguchi at the helm.
I came to know about this gentleman several years ago when a Reserve Bank
team comprising myself, some Board members and our Economics team came
our "meet the industry" trips.
out west on one of I was intrigued by the name of
the institute and indicated to my team that we must make it a point to meet them.
"free bird"
What did they do and where did the name come from? Clearly it had
nothing to do with poultry distribution as I soon found out!! Incidentally that
west trip did include a visit with the Rooster Chicken people as well!! So we
obviously had a comedian amongst our Economics team who made all the
arrangements!
So, on that visit in 2013 I came to know that the Institute is an English language
school catering to non-English speaking foreigners, who travel to Fiji, spend a
little time with us and learn the language.
I am told the average length of stay is 10 weeks, with the programmes varying
from 2 to 50 weeks. Many of these students will use their new skills acquired in
Fiji to assist them in achieving their education and employment dreams across
the globe. The Institute was established with the approval of the Ministry of
Education in Fiji and its, mainly local, teaching staff are licensed by the
Ministry.
From the day the Institute first opened its doors in 2004 up to the end of 2015,
more than 15,000 students from 29 different countries have graduated not only
with their newfound English-speaking prowess, but with great experiences and
memories of their time in Fiji. The key student source market over the years has
been Japan.
In 2016 the total enrollment across the two campuses in Namaka and Lautoka
was a little under 1,500. I understand there is also a smaller Ba Provincial Free
Bird Institute.
Attracting young people from overseas to come to a strange land to study is not
easy, especially when they do not speak the language! It can also be an
extremely competitive business. However, it is clear that Mr Taniguchi has
in his "total immersion" approach for
found the secret recipe students.
I have been reliably advised that the Institute has been active in marketing Fiji as
one of the best places to learn. I visited its website and was greeted by one of
the most attractive taglines about Fiji which says,
"Study English in Islands
Closest to Heaven". I thank the Institute for helping build on our niche
education-tourism sector and supporting our most important foreign exchange
earning industry. No doubt our Minister for Tourism will also be well pleased.
Listing of Free Bird Institute Limited
With 10 years of experience in Fiji now under its collective belt and an ever-
growing international reputation as a respected English language educator, the
Institute has now set its intentions of extending the opportunity to local investors
to be part of its plans and aspirations going forward. Being the first company to
representing the education sector, today's listing of
be listed Free Bird Institute
Limited's
shares is an achievement to be celebrated and supported.
Ladies and Gentlemen, the company directors had initially approached the
Reserve Bank and the South Pacific Stock Exchange back in 2014 expressing
their intention to get the company listed. With some information gaps identified,
the company took it upon itself to understand the requirements, and implement
necessary changes to its structure and plans, to ensure that it was ready to be
listed, and that it would be able to continually meet listing requirements.
The company appointed Kontiki Capital Limited as its investment advisor to
handle its listing application in May 2016, and the first draft Offer Document
was submitted for our assessment in October 2016. Subsequent to numerous
discussions to ensure that all relevant legislative and regulatory requirements
Reserve Bank's approval was
have been adequately met, the granted in
December 2016.
Ladies and Gentlemen, today's launch highlights an important factor that is
crucial to the growth of our economy and continued confidence in our financial
system: this is the The
partnerships between foreign and local investors.
promotion of such collaboration is at the top of our list of national priorities as
we seek to improve Fiji's standing in the ease of doing business assessment, and
attract new foreign investment into our country.
We hope that today's launch sends a favourable message to potential foreign
owned entities wishing to consider Fiji as an investment destination. Industry
stakeholders and relevant regulatory agencies will continue to work together to
develop the capital markets industry in Fiji and enable it to reach its potential,
with the private sector driving economic growth.
The Fijian Economy
Before I conclude, allow me to share a few points on our economy.
2016 for most of us will go down as the year of severe tropical cyclone Winston.
But through all the pain, suffering and hardship, we also saw the resilience of our
fellow Fijians to turn their lives around. We recognised the tremendous
international, regional and domestic support and goodwill that was unparalleled
in our lifetimes, and the efforts of Government, the public and private sectors, all
with the one goal to turn the economy around. And then of course, across all
that destruction and sadness, there was Rio, and the absolute joy it brought us
when our 7's team won gold!
With all that happened last year, we still were able to post an estimated growth
of 2 percent. That speaks volumes of our people.
For 2017 we are initially forecasting GDP growth at 3.6 percent.
The Fijian economy clearly remains on a recovery path as all the reconstruction
work continues. Despite the setbacks from the natural disasters, consumption
and investment activity have remained buoyant, signaled by positive trends in
various partial indicators. Supportive fiscal measures, accommodative monetary
policy settings, favourable labour market conditions and inflows of remittances
and tourist earnings continue to boost consumer spending and investor
sentiments.
Inflationary pressures in 2016 came largely from domestic supply side factors
following the natural disasters. Inflation going forward in the near term is
expected to continue to be domestically driven with any major downside risks
stemming from adverse weather conditions, but also any sharp increases in
international oil and food prices. For now, year-end inflation is projected at
around 2.5 percent.
With the modest performance of Fiji's external sector, foreign reserves levels
remain adequate, currently at $1.9 billion, which is sufficient to cover 5.1
months of retained imports of goods and non-factor services.
Our financial system remains stable and continues to support the economy
during this time of recovery. Bank lending has been reported at sustainable
levels after a period of aggressive growth in the last 5 years. Non-performing
loans as an indicator of the soundness of our financial system have been
recorded at all-time lows. The performance of the insurance industry continues
to be assessed as satisfactory even though the 2016 results of the general
insurance sector will be significantly impacted by claims arising from the TC
Winston insured losses.
Notwithstanding the current stable assessment of our economy, the Reserve
Bank will of course continue to closely monitor global and domestic
developments and assess likely vulnerabilities that may negatively impact our
growth and the stability of our financial system.
Closing
In closing Ladies and Gentlemen, I take this opportunity to again acknowledge
Free Bird Institute Limited for its strategic vision and perseverance towards
achieving its listing aspirations. I congratulate Mr Taniguchi, the Board and
staff for reaching this milestone in the company's journey in Fiji and wish you
well as a listed entity.
Ladies and Gentlemen, I cannot leave you without making my usual regulatory
statement to urge all potential investors to take the time to carefully peruse the
Offer Document that has been prepared for this listing. Please ensure to conduct
your own analysis and do seek professional advice from licensed investment
advisers or stockbrokers on the suitability of investing in the stock market as per
your objectives.
With that said, I now have much pleasure in officially declaring Free Bird
Institute Limited as listed on the South Pacific Stock Exchange.
Arigato gozaimasu! Vinaka Vakalevu!
END.