$190m BP acquisition going ahead: FHL - www.fijilive.com - 30/03/2009
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Fijian Holdings Limited (FHL) has confirmed that the $190 million acquisition of BP SWP is going ahead.
And FHL managing director Sereana Qoro said the settlement of this acquisition would be made in a few weeks upon finalisation of overseas funding agreement.
She said this deal was not only the biggest but one of the most significant investment breakthroughs in FHL’s history.
“It has always been the desire of FHL to invest in the lucrative petroleum industry,” Qoro said.
“In fact, FHL participated a few years ago in the bid to purchase Shell Company in the early stages of the bidding process, which was eventually won by Total,” she said.
Qoro said this move was in line with FHL’s three year strategic plan to selectively grow its investment portfolio by expanding into the Pacific region.
She said the acquisition should also be a milestone for Fiji because for the first time, a major petroleum company operating in the Pacific would be locally owned.
She added this would have positive implications on Fiji’s foreign reserves in the long term.
Three major provinces in Fiji had questioned FHL’s move to acquire BP SWP saying the acquisition was too huge a deal for FHL’s size and that risks would be extremely high.
But FHL maintained that it could not go wrong with oil.
“The petroleum business is well established with 60 years of successful trading history, well integrated around six countries in the Pacific and highly profitable as a going concern,” Qoro said.
Qoro reassured shareholders that the investment in BP SWP Ltd met all the investment benchmarks that FHL had always used over the years.
Meanwhile, the Fiji Islands Revenue and Customs Authority (FIRCA) has issued a garnishee order against FHL for taxes owed by BP SWP.
BP SWP general manager Matt Elliott said the company was now inn discussion with the tax commissioner to resolve tax issues so to complete the deal with FHL.
March 31, 2009
March 19, 2009
State, Fiji banks to battle crisis
State, banks to battle crisis
www.fijisun.com.fj - 3/19/2009
www.fijisun.com.fj - 3/19/2009
The recent announcement by the Association of Banks to work with the Interim Government in finding ways to counter the economic crisis has been welcomed by the business community.
Businessman Mick Beddoes yesterday said the announcement that banks would guide government to establish measures to help Fiji overcome the global financial crisis is good news.
And he has called on the banks to announce what measures it would be taking to help people with their mortgage repayments and other commitments so that Fiji could avoid the impact of the financial crisis. Mr Beddoes suggested that the first step taken by the banks should be to reduce by up to 50per cent housing and other loan repayments for the next 12 months before reviewing things and adding back any arrears existing to the balance owed.
“This will bring immediate relief to the people and allow them to make adjustments to their budgets,” he said. “Although many people have already taken their deposits out of the banks in fear of losing their money, government can encourage people to start re-depositing their funds.
“Thereby assisting banks in improving the liquidity problem we face by issuing a government guarantee for every person’s savings similar to measure taken in other countries.” He said people are worried but this could be reduced significantly if banks and the government announce measures that would help assure them that they won’t lose their homes. “This will also help them to maintain reasonable cash flow to better manage the finances and survive through these difficult times,” Mr Beddoes added.
Huge drop in tourist arrivals
Huge drop in tourist arrivals
http://www.fijisun.com.fj/ - 3/19/2009
http://www.fijisun.com.fj/ - 3/19/2009
A total of 32,955 tourists arrived in the country in January which is a 27.6per cent drop compared to last year.
Tourism Fiji board chairman Patrick Wong yesterday said the first quarter of 2009 is likely to record a drop of 25per cent but they are working hard to bring in more tourists.
“We are having tactical campaigns in New Zealand and a stimulus package campaign in Australia,” he said.
Mr Wong said a “Fiji Me” roadshow is currently being held in New Zealand where they have visited places like Whangarei, Auckland, Hamilton, Christchurch and Dunedin. “Tourism Fiji and our industry partners are presenting Fiji directly to trade partners under one roof in the locations.
“It effectively trains and provides our trade partners with up-to-date knowledge of Fiji as a destination as well as the range of products we have to offer penetrating the markets.”
Mr Wong said the roadshow is a marketing initiative that is cost effective, focused and suitable for a market such as New Zealand that has such a diverse geographical spread.He said Tourism Fiji’s activities in Europe includes the DAS BOOT in Dusseldorf, Germany, an event serving boat owners, yachts, divers and tourism destinations, BIT in Milan, Italy, ITB in Berlin, Germany and MITT in Moscow.
“These leading trade shows showcase the best international tourism suppliers and presents the entire spectrum of products of the tourism industry”
Mr Wong said these trade shows are prime meeting places that provides outstanding opportunities for the private sector to present their product and enhance their image serving the travel and tourism industry.
“In light of the global financial crisis, it is critical that Fiji maintains its market stamina, being visibility and remaining focused for long term benefits of Fiji’s Tourism Industry investing into the future of our country”.
He said occupancy levels are also soft throughout the region as February and March are our traditional low season months of the year which are further impacted by the financial crisis.
“Hotel worker are exhausting all annual leave owing prior to temporary workers released from their duties. Depending on occupancy after exhausting all avenues permanent employees are worked on a shorter working week.
“I would say the worse is over with February and March being traditionally our lowest tourism season of the year.”
March 2, 2009
Fiji trade deficit widens, remittances down
www.fiilive.com - Fiji trade deficit widens, remittances down
02/03/2009
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Fiji continues to buy more than it sells, adding to a deteriorating trade balance that has worsened by 30 per cent to $1.9 billion by November last year, the Reserve Bank of Fiji has revealed.
In its economic review for last February, the central bank said that although Fiji’s exports rose by 16.7 per cent, it was overshadowed by the 24.2 per cent growth in imports.
The review showed that the increase in export receipts was underpinned by re-exports, predominantly of mineral fuels, as well as higher earnings from sugar, fish and gold.
The increase in imports, on the other hand, was across all categories.
“Mineral fuels, food, machinery and chemical imports contributed well over 80 per cent to the growth,” the report adds.
Remittances, which has in recent years assisted the Tourism industry in propping the economy, continued its downward trend and registered a 26.7 per cent annual decline in 2008.
The Reserve Bank governor Savenaca Narube, on Friday, called on key players to avoid the blame game and focus on rebuilding the economy.
“While Fiji is isolated from the financial mess, we unfortunately cannot avoid its economic fallouts. What is happening around us is unprecedented,” he said.
“If ever a time that the country needs to work together to build our economy this is one of them. The economy is our bread and butter. It is our livelihood. It puts food on the table. It pays for our children’s education. It protects the future of our grandchildren.
“So we should all play a part in building this economy right now. We should avoid the blame game. We should focus all our energy in getting things done in a coherent and consistent fashion.
Narube also said that now is the time to take action.
“We are forever setting up committees. The only growth industry now is conferences. We study that. We review that. We review the review and so forth. What we very much lack is action. It is action that makes things happen.
“I believe that if we all implement 50 per cent of what we say we will do, we will be far better off than where we are today."
Fiji cost of living eases: RBF
02/03/2009
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Inflation eased slightly to 6.1 per cent in January this year, the Reserve Bank of Fiji reveals.
This is compared to 6.6 per cent in the previous month (December) and 7.4 per cent in January last year.
The RBF’s February-end economic review said the slight slowdown in January inflation was mainly strengthened by lower oil prices filtering into the transport and heating and lighting categories.
“Nonetheless, food remained the largest contributor to inflation, buoyed by higher charges for market items as a result of the recent flood,” the report said.
“In the months ahead, domestic price pressures are expected to mount given the supply constraints of market items,” it said, adding the supply of these products was anticipated to be restored by mid year.
The report added that the 2009 year-end inflation forecast remained unchanged at 4.5 per cent.
“Some of the upside risks to this forecast include the volatility in crude oil and wheat prices, and the higher-than-expected increase in costs of market items due to the recent flooding.
“The decline in taxi fares is nonetheless expected to mitigate some of these price pressures.”
Foreign reserves, on the other hand, stood at around $672.2 million, sufficient to cover 2.7 months of imports of goods.
Productivity ‘can lift Fiji economy’
01/03/2009
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One of the easiest way to grow the economy is to raise productivity, says Reserve Bank of Fiji governor Savenaca Narube.
However, Fiji’s rate of productivity growth is extremely disappointing, he said while speaking at the Rotaract Club of Suva’s business seminar on ‘Productivity and Ethics’ yesterday.
“My estimate is that if we raise productivity rate by one percentage point, it will raise GDP (Gross Domestic Product) by nearly twice that.”
He said productivity is firstly a way of thinking and secondly a mechanical process.
“You can have the best processes in the world but if the people behind them do not want to follow them, productivity will suffer.
“If you have the best degree from the best university but you lack the willingness to work you will not go far.”
A good frame of mind he said, is the first thing to have.
Narube added everyone thought the sub prime problem was over but all were wrong.
“The crisis has deepened and widened beyond anyone’s imagination. While Fiji is isolated from the financial mess, we unfortunately cannot avoid its economic fallout,” he said.
02/03/2009
--------------------------------------------------------------------------------
Fiji continues to buy more than it sells, adding to a deteriorating trade balance that has worsened by 30 per cent to $1.9 billion by November last year, the Reserve Bank of Fiji has revealed.
In its economic review for last February, the central bank said that although Fiji’s exports rose by 16.7 per cent, it was overshadowed by the 24.2 per cent growth in imports.
The review showed that the increase in export receipts was underpinned by re-exports, predominantly of mineral fuels, as well as higher earnings from sugar, fish and gold.
The increase in imports, on the other hand, was across all categories.
“Mineral fuels, food, machinery and chemical imports contributed well over 80 per cent to the growth,” the report adds.
Remittances, which has in recent years assisted the Tourism industry in propping the economy, continued its downward trend and registered a 26.7 per cent annual decline in 2008.
The Reserve Bank governor Savenaca Narube, on Friday, called on key players to avoid the blame game and focus on rebuilding the economy.
“While Fiji is isolated from the financial mess, we unfortunately cannot avoid its economic fallouts. What is happening around us is unprecedented,” he said.
“If ever a time that the country needs to work together to build our economy this is one of them. The economy is our bread and butter. It is our livelihood. It puts food on the table. It pays for our children’s education. It protects the future of our grandchildren.
“So we should all play a part in building this economy right now. We should avoid the blame game. We should focus all our energy in getting things done in a coherent and consistent fashion.
Narube also said that now is the time to take action.
“We are forever setting up committees. The only growth industry now is conferences. We study that. We review that. We review the review and so forth. What we very much lack is action. It is action that makes things happen.
“I believe that if we all implement 50 per cent of what we say we will do, we will be far better off than where we are today."
Fiji cost of living eases: RBF
02/03/2009
--------------------------------------------------------------------------------
Inflation eased slightly to 6.1 per cent in January this year, the Reserve Bank of Fiji reveals.
This is compared to 6.6 per cent in the previous month (December) and 7.4 per cent in January last year.
The RBF’s February-end economic review said the slight slowdown in January inflation was mainly strengthened by lower oil prices filtering into the transport and heating and lighting categories.
“Nonetheless, food remained the largest contributor to inflation, buoyed by higher charges for market items as a result of the recent flood,” the report said.
“In the months ahead, domestic price pressures are expected to mount given the supply constraints of market items,” it said, adding the supply of these products was anticipated to be restored by mid year.
The report added that the 2009 year-end inflation forecast remained unchanged at 4.5 per cent.
“Some of the upside risks to this forecast include the volatility in crude oil and wheat prices, and the higher-than-expected increase in costs of market items due to the recent flooding.
“The decline in taxi fares is nonetheless expected to mitigate some of these price pressures.”
Foreign reserves, on the other hand, stood at around $672.2 million, sufficient to cover 2.7 months of imports of goods.
Productivity ‘can lift Fiji economy’
01/03/2009
--------------------------------------------------------------------------------
One of the easiest way to grow the economy is to raise productivity, says Reserve Bank of Fiji governor Savenaca Narube.
However, Fiji’s rate of productivity growth is extremely disappointing, he said while speaking at the Rotaract Club of Suva’s business seminar on ‘Productivity and Ethics’ yesterday.
“My estimate is that if we raise productivity rate by one percentage point, it will raise GDP (Gross Domestic Product) by nearly twice that.”
He said productivity is firstly a way of thinking and secondly a mechanical process.
“You can have the best processes in the world but if the people behind them do not want to follow them, productivity will suffer.
“If you have the best degree from the best university but you lack the willingness to work you will not go far.”
A good frame of mind he said, is the first thing to have.
Narube added everyone thought the sub prime problem was over but all were wrong.
“The crisis has deepened and widened beyond anyone’s imagination. While Fiji is isolated from the financial mess, we unfortunately cannot avoid its economic fallout,” he said.
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