The Keith Duncan-led Private Sector Organisation of Jamaica (PSOJ) says it welcomes the specific initiatives geared toward digitisation, financial inclusion, support to the nation’s micro small and medium size enterprises (MSMEs) and key industries such as agriculture, manufacturing, and export, announced Tuesday by Finance and the Public Service Minister Dr Nigel Clarke.

In a statement, the PSOJ said it also recognised the continued medium-term attention to fiscal balance, “notwithstanding the significant short-term adverse budget impact from the COVID-19 pandemic”.

In breaking down its reaction to Clarke’s opening presentation in the 2021-2022 Budget Debate, the PSOJ focused on key areas.

Economic Recovery and Social Support  

The budget was crafted to stimulate economic recovery and provide social support while maintaining fiscal responsibility in one of our most difficult times as a country.  

Social Support an Imperative

In this regard, the PSOJ supports the continuation of the CARE Programme ‘Set Cash’ to assist those unemployed from all sectors and continuation of support of our vulnerable population through social safety net programmes.  

Public Health and Vaccination Expenditure a Pillar in Recovery

Another key announcement is the support to Public Health and vaccination programme. This is indeed one of the most critical and immediate areas for economic recovery. With the high positivity rates lives and business continuity are at risk and we are therefore grateful that this has been prioritised.

Focal Areas of Support

Generally, the initiatives announced by Minister Clarke were targeted in the areas of Digitization of the Economy, initiatives to stimulate MSMEs, increased capital expenditure to stimulate jobs and  reforms to drive exports. 

Key Initiatives to Note

The PSOJ said it recognised that it was important for the private sector to utilise these benefits to drive productivity and growth and that, once they are on stream, the organisation would encourage its members to avail themselves of the various initiatives such as $1 billion to facilitate two per cent loan on borrowing amount of $800,000 for digitisation of firms.

Capital Expenditure is Growth Enhancing 

The announced capital expenditure on infrastructure projects of close to $50 billion is important to drive jobs and economic activity and provide much-needed support to critical areas such as education, security and the real sectors.

Investor Friendly Reforms 

Jamaica’s attractiveness as an investor friendly market should improve with the review of costs of Relocation of Corporate Entities from other Jurisdictions and the Large Scale and Pioneer Industry Act to stimulate investment as well as the finalisation of the new Customs Act which will improve the trade facilitation landscape and drive efficiencies that will see improvements for cross border trade and most importantly exports.  

Next Steps

According to the PSOJ, all Jamaicans – government, policymakers, business owners, employees and the general populace – must be cognizant of the fact that this spend is possible through the one-off policy dividend from the Bank of Jamaica (BOJ).

“As such, we must all dig deep to ensure the swift implementation of the proposed measures and that the private sector makes the investments to start, grow and enhance their businesses to ensure economic recovery and growth is realised as soon as possible,” the PSOJ said.