Businessuite Weekly
1
2
Businessuite Weekly
Businessuite Weekly
3
Contents Cover Story
10
Is Jamaica Settling For Second Best? Tourist Board In Talks With Air China To Be One Of Four Stops Between Beijing And Cuba Jamaica is expected to become one of four stops between Beijing, China and Havana, Cuba following talks between Director of Tourism at the Jamaica Tourist Board, Paul Pennicook and Air China...
EDITORIAL
Leadership
6
8
For years now the government and several promotional companies have been using the phrase ‘Jamaica is open for business’, in relation...
Leadership Lessons From the Apple of the Technology World’s Eye – Steve Jobs “Our task is to read things that are not yet on the page” - Steve Jobs. Steve Jobs, the legendary Apple magnate, passed away in October...
AUTO
Company Reports
7
15
Stewarts Auto, the new home to Jaguar in Jamaica Jamaica is now home to the Jaguar Land Rover Brand with the launch of the Jaguar Discovery Sport and XC product line. Addressing last...
2016 VW Passat launched in Jamaica despite emissions scandal The Volkswagen 2016 has been launched in Jamaica despite the recent issues Volkswagen is facing with the EPA over its diesel engine’s...
4
Businessuite Weekly
Christopher Blythe’s Sarifa Insurance Brokers Limited to launch online auto insurance platform Come Friday, persons shopping for insurance will now be able to compare and purchase auto insurance policies from the comfort of their...
Contents
Foreign Exchange
16
Jamaican Dollar closes Friday trading at record high average of $119.02 for US$1
Content Director The Jamaican dollar closed off trading on Friday at an average of $119.02 to US$1. This means Jamaica is closer in line with the International Monetary...
Businessuite Event Calendar
Publisher and Editor in Chief
Advertising Sales
businessuitemagazine@gmail.com
Graphic Design and Layout: Bonito Thompson
Photo credits
Caribbean Export says it is time to capitalise on the spa, health and wellness tourism industry Pamela Coke-Hamilton led Caribbean Export Development Agency (Caribbean Export) says the time is ripe for the region to take advantage of...
Barbados’ Bank’s Holdings Limited facing possible takeover Bank’s Holdings Limited (BHL), Barbados’ biggest beverage company is facing a takeover by St. Lucia-registered Company, SLU Beverages Ltd.
Sourced from the internet and contributed
Social Media
CLICK Digital Agency
Businessuiteonline
Businessuite is your source for information, news and tools on starting, running and growing your business. We know your time is valuable and scarce, so we take the time to find, create and present all the information that will be relevant to the success of your business. Businessuite Online, Businessuite Digital, Businessuite Magazine, Businessuite Today, Businessuite Minute and Businessuite News Channel are owned and operated by Blackslate Media Group. Info: 876-631-4505 (o) or 876-280-9192 (m) 876-458-3253 (Mobile)
PUBLISHERS:
Businessuite News Centre BNC A division of the Blackslate Media Group “Silicon Mountain” Mandeville Jamaica For all information 876-630-2216 (Kingston Office) 876- 342-9332 (Mobile) 876-630-2216 (Mandeville Office) 876-542-3719 (Mobile) aldo@blackslateholdings.com OR email blackslateholdings@gmail.com
Commentary
20
The Businessuite News Centre BNC
Subscription and Distribution
Regional
18
Kayla Wright
Aldo Antonio aldo@blackslateholdings.com
The Week Ahead
17
Credits
, Mark s Laas Lick: Economic growth and the dense political fog It is not unusual for politicians in opposition to be suddenly endowed with all of the answers and ‘perfect’ solutions to our economic ills. Just ask...
Businessuite Weekly
Corporate Information:
Blackslate Media Group Ltd, “Silicon Mountain” Mandeville Jamaica 876-631-5418 (Kingston Office) 876-458-3253 (Mobile) 876-631-4505 (Mandeville Office) 876-280-9192 (Mobile) To learn more about Blackslate go to www.blackslateholdings.blogspot.com aldo@blackslateholdings.com
5
Editorial By Kayla Wright
F
or years now the government and several promotional companies have been using the phrase ‘Jamaica is open for business’, in relation to several business sectors. Last week I was present at a function where Technology Minister, Phillip Paulwell announced that in the Telecommunications sector, the call had been answered and that Jamaicans can expect that “very soon” there will be a new player in the market.
r
This ‘big news’ follows the recent mergers between LIME and Flow as well as DIGICEL and SportsMax, two sets of local telecommunications providers who are seemingly stepping away from the voice and data and broadening their horizons. It also comes amid declarations from Paulwell himself of the government’s plan to ensure that wifi access is available to all persons with a mobile smart phone or smart device “without the need to enter into a business or privately owned building”. This therefore begs several questions. If calling is now made much easier using apps such as Whatsapp, Viper, Telegram and even Magic Jack, what service will this so called ‘new player’ bring to the Jamaican landscape? Similarly, one is left to consider that this is not the first time that these plans have been mentioned. According to the Minister, the recent merger, as well as reduction in calling rates has improved competition in the market. He says it is expected that an additional player will further boost this competition which will result in “greater benefits for the consumer” in relation to rates and services. But even with this ‘promise’, what guarantee does Jamaicans have that a new player can be expected soon? Should we be hopeful that the sad state of affairs of constantly dropped calls, an inability to load a photo on Instagram (despite 4G and 3G data services), constantly buffering videos and lulled Whatsapp conversations due to slow speed will be a thing of the past in just a short period of time? Or should we drink a glass of water to help swallow this pill? There is even further cause for concern in relation to this pronouncement by the minister of ‘WIFI access for all….’ While good in concept, one must seriously question how the minister plans to see this through as well as how he intends to finance this. In theory the idea is all too compelling and Jamaicans would be all too happy to rally around it, however, we have to be honest with ourselves and answer some questions. Should Jamaicans brace themselves for another set of taxes in an effort to ‘stay connected’? Does Jamaica have the infrastructure for such a feat and are we willing to sacrifice a bit more of that monthly pay check to get and stay connected…. sometimes? BM
...cause for concern in relation to this pronouncement by the minister of ‘WIFI access for all….’ While good in concept, one must seriously question how the minister plans to see this through... 6
Businessuite Weekly
Auto
Stewarts Auto,
the new home to Jaguar in Jamaica
Jaguar Land Rover, Discovery Sport
Jaguar XE
J
amaica is now home to the Jaguar Land Rover Brand with the launch of the Jaguar Discovery Sport and XC product line. Addressing last week’s launch of the Stewart Auto’s Suzuki Showroom as the temporary home for the Jaguar Series, Suzuki brand and sales manager, Matthew Stevenson said the Discovery Sport and XC are sending a message to other brands such as BMW, Audi and Mercedes.
Discovery Sport Stevenson says the Discovery sport is for the driver that loves adventure. He says the capability of the Discovery Sport is heightened by the introduction of All Terrain Progress Control (ATPC) for 2016. ATPC is an advanced system that enables drivers to set and maintain a steady speed in offroad conditions. Developed by Land Rover’s industry-leading all-terrain specialists, ATPC functions similarly to a cruise control system, operational between 2km/h and 30km/h. He says the system adapts the vehicle’s behaviour according
to the terrain, allowing even novice users the control of an expert off-road driver.
XE Meanwhile, Stevenson says the Jaguar XE has already been named Best Large Car in the 2015 Diesel Car Magazine Awards, beating tough competition from the likes of the BMW 3 Series and Ford Mondeo. The judges praised the XE’s competitive pricing, beautiful looks, classy cabin, low CO2 emissions and its sporty driving dynamics. Stevenson says with a thrilling driving experience that enthusiasts yearn for and class-leading emissions, Jaguar has called out the Germans and told them to step up their game. He says the Jaguar XE is the only car in its class to feature a lightweight aluminium-intensive monocoque which, combined with Jaguar Land Rover’s efficient new Ingenium diesel engines, helps it to deliver fuel economy as high as 75mpg and emissions as low as 99g/km CO2. BM
Jamaica is now home to the Jaguar Land Rover Brand with the launch of the Jaguar Discovery Sport and XC product line Businessuite Weekly
7
2016 VW Passat launched in Jamaica
despite emissions scandal T
he Volkswagen 2016 has been launched in Jamaica despite the recent issues Volkswagen is facing with the EPA over its diesel engine’s NOx emissions.
Compared to the current Passat, the refreshed 2016 looks a lot more attractive and brings the exterior design in-line with the rest of the Volkswagen models. Outside, the 2016 Passat receives a new sculpted hood, front fenders, front and rear bumpers, and decklid. And for the first time in the Passat’s history, Volkswagen will offer optional LED headlights and taillights. Another new addition to the U.S. Passat is the introduction of the R-Line trim, which includes unique rocker panels, a black accented front bumper, a faux rear diffuser trim piece, and special 19-inch rims, wrapped in 235/40 all-season rubber. The 2016 Volkswagen Passat will carryover its 2015 engine lineup, which includes the 170 horsepower 1.8 L turbocharged 4-cylinder engine, the 280 horsepower 3.6 L VR6, and the 150 horsepower 2.0 L turbo-diesel 4-cylinder engine. However, due to the current emissions situation facing VW, it is unclear right now if this engine will be available when the refreshed Passat goes on sale later this year.
Marred by Scandal Meanwhile, Switzerland on Saturday temporarily banned the sale of VW diesel-engine models which could have devices capable of tricking emission tests possibly affecting 180,000 cars which have not yet been sold or registered in the Euro5 emission category. This comes after VW, the biggest carmaker in the world, admitted cheating on emissions tests in the US. Newly elected VW Chief Executive, Matthias Mueller who replaces Martin Winterkorn, says restoring the company’s reputation is his top priority: He also announced sweeping changes to the way the company was run, including handing greater autonomy to regional divisions. BM
This comes after VW, the biggest carmaker in the world, admitted cheating on emissions tests in the US. 8
Businessuite Weekly
Leadership Leadership Lessons From the Apple of the Technology World’s Eye – Steve Jobs By Dr. Leahcim Semaj
Too often we find only managers at the helm of companies instead of visionaries, who possess a completely different skillset in addition to the management batch. So how do we become leaders, we must change!
Steve Jobs
“Our task is to read things that are not yet on the page” Steve Jobs Steve Jobs, the legendary Apple magnate, passed away in October 2011, yet his name rarely leaves the tongue of any enthralled with a discussion over innovation, visionary leadership and what the pursuit of excellence and passion can yield. He belongs to that unique set of innovative leaders, such as Henry Ford, Elon Musk and Walt Disney who chose not to solely live in the world, but believed in creating the world that they wanted to live in. Henry Ford once said “if I had asked people what they wanted, they would have said faster horses”. Indeed, it takes a different pattern of thinking to achieve truly great things. Jobs was a leader in a world of managers. Leaders lead into the future whereas managers manage what exists in the present and past. One is guided by vision, one is guided by metrics, and sales plans. One uses intuition and empathy, the other relies solely on logic. The truth is that people want to be lead, not managed and fault for low productivity and profits can never be ascribed to anyone outside of those at the helm of the ship. The path to true leadership requires the cultivation of vision, determination, empathy and above all the integrity and character. It is a path of continuous learning and changing, adapting, a commitment to vision and innovation. What is a leader you may ask? The quote I began with from Jobs summates it beautifully. A leader is a visionary, I am sure not only could Jobs read what wasn’t on the page but he could also describe it and map out all the intricate processes that would make it a reality. This was his legacy, taking what was normal, clunky and unimaginative and innovating to make people have tangible emotional connections with his many creations. This is the role of a leader. He/she must inspire and endear trust.
I share the position of William Rhodes, “Banker to the World” that there is no problem that good leadership cannot solve. That goes for the political, personal and corporate world. Change management has been my life’s work. It is full time for our businesses to recognize the benefits of leadership, building upon the management skills that have taken us so far, yet no more. As Jobs said we must be visionaries cultivating the ability to read what is not yet written, see pitfalls not yet apparent, and see profit not yet earned. As a leader, dedication to innovation and excellence should be your calling card. A better Jamaica is possible if we would but dream and take practical steps to put these dreams in action. I have worked in numerous sectors and industries across the region and the one thing I have found consistent is a lack of leadership. My company’s goal is to take companies above where they presently are or beyond their wildest dreams. To help them to cultivate effective leaders not only at the helm but from the ground up. It is our human capital, mind power that is the hope for Jamaica’s future. Our political management, need to take a bite of the apple and realize that simple truth. The Jamaica Employers’ Federation has recognized Dr. Semaj for “Leadership in Innovative Workplace Practices”. He is included in Peter Ferguson’s publication CHANGE MAKERS as one of the 101 men who have helped to define modern day Jamaica. This Psychologist combines ancient wisdom with contemporary ‘livity’ to bring fresh insight to old human problems. As a Transformation Specialist he offers two options – ABOVE or BEYOND. Above where you presently are or Beyond your wildest dreams.
Dr. Leahcim Semaj
Businessuite Weekly
9
Cover Story
IS Jamaica settling
Tourist Board in Talks with Air China
to be one of four stops
between Beijing and Cuba 10
Businessuite Weekly
for second best?
J
amaica is expected to become one of four stops between Beijing, China and Havana, Cuba following talks between Director of Tourism at the Jamaica Tourist Board, Paul Pennicook and Air China.
Pennicook who was addressing last week’s 25th staging Jamaica Product Exchange ( JAPEX) trade show in St. James, said other tour and travel operators in Asian markets to sell Jamaica as part of multi-destination packages in the Caribbean. Air China will launch three weekly flights that will make a stop in Montreal, Canada and then continue to its final destination in Havana, Cuba from its Beijing hub later this month.
Businessuite BusinessuiteWeekly Weekly
11 11
Jamaica settling for second best? However there are concerns that the move to settle as one of four stops between Beijing and Cuba is seen as just that, settling. Following the announcement earlier this year of the plan by the US government to remove restrictions against Cuba, Co-executive director of the Caribbean Policy Research Institute, Christopher Tufton expressed concern that Americans no longer need a government licence, although travel must be for an approved reason. He expressed concern that with as many as 250,000 tourists per year could be passing through Jamaican airports on their way to Cuba; Jamaica will be greatly affected since those tourists can now simply fly direct. For 2013 Jamaica had 1,860,935 stopover arrivals from foreign nationals, according to the 2013 Economic and Social Survey. A total of 1,272,262 were arrivals from the US, or about 63 per cent of total stopover arrivals. Meanwhile, in 2014, Cuba recorded three million international visitors more than Jamaica and Cuba earned more than US$2.5 billion in 2014. The offering from several Caribbean countries is equal to a warm beach, clear waters and rich history. What happens when tourists have experienced enough of one history and wish to learn more and engage in one that was effectively closed off? Undoubtedly there will be some tourists who might otherwise have gone to Mexico, Puerto Rico or come to Jamaica who will choose to visit Cuba. Beyond beaches and convenience, Cuba’s unique history also presents a compelling draw for tourists. However, President of the Jamaica Hotel and Tourist Association ( JHTA) Nicola Madden-Greig says the move by the tourist board to secure a spot for Jamaica as one of the four stops along the Beijing
“with as many as 250,000 tourists per year could be passing through Jamaican airports on their way to Cuba; Jamaica will be greatly affected since those tourists can now simply fly direct..” Christopher Tufton Co-executive director of the Caribbean Policy Research Institute
to Cuba route will prove to be a game changer for tourism in Jamaica. She says the Chinese market is one of the fastest growing outboard travel markets and could potentially increase significantly stop-over arrivals to Jamaica. She says it would also open up more resort areas as these travellers tend to be more adventurous and crave local experiences. Madden-Greig says Cuba has always been open and considered a major competitor for Jamaica. She says while the opening to the American market does present a challenge, it also represents an opportunity as already there are twin-destination requests as visitors consider maximizing their time to visit two unique destinations. The JHTA President says Jamaica will have to continue to market its allure, mystique and outright popularity with the American travellers. She says to date there has been no fall out from Cuba being open to
12
Businessuite Weekly
the US market but authorities will continue to monitor and work to ensure that Jamaica retains its market share.
Aggressive Marketing Madden-Greig says going forward, Jamaica needs to continue to aggressively market ALL its assets way beyond the traditional sun, sea and sand. She says on-going updates and development of new properties and attractions must be a focus to re-invent ourselves and remain fresh, adaptive and appealing to the changing demands of international travellers. “Jamaica has all the right assets, and is much better positioned than most other Caribbean islands in terms of share diversity. We just need to ensure the market is fully aware of all the options so that when they are deciding Jamaica remains top of mind.” According to Madden-Greig, Jamaica is not doing anything wrong. However, she says the country needs to do better what we do best. She says Jamaica’s brand appeal is very strong and compelling. “The only aspect of our product we need to work on is communicating more to our people the absolute value of tourism and ensure we eliminate the level of harassment in some of our resort areas.”
New Airline Seats acquired Meanwhile, Pennicook says more than 60,000 new airline seats have already been secured for Jamaica, ahead of the 2015/16 winter tourist season, which begins in December. He says it is expected
“the move by the tourist board to secure a spot for Jamaica as one of the four stops along the Beijing to Cuba route will prove to be a game changer for tourism in Jamaica.” Nicola Madden-Greig President of the Jamaica Hotel and Tourist Association (JHTA)
that over 50,000 of the seats are coming out of the United States, and that a number of new flights will also be coming to Jamaica. According to Pennicook, come December 18, American Airlines introduces a non-stop service from Los Angeles into Montego Bay on weekends. He says come November 1, South West Airlines introduces daily service from Houston into Montego Bay and come December 1, Frontier Airlines comes into Montego Bay for days per week from Philadelphia. He says in addition to those, Delta Airlines will be increasing its service out of Minneapolis in the United States, while flights will also be arriving from Gothenburg, Sweden, and Olso, Norway, and for next summer, there could be a flight from Dublin, Ireland. BM
Businessuite Weekly
13
Company Reports Christopher Blythe’s Sarifa Insurance Brokers Limited to launch online auto insurance platform “the platform will allow customers to go to the www.sarifaja.com website, fill out the proposal and get quotes from all insurance companies.” Christopher Blythe President of Sarifa Insurance
C
ome Friday, persons shopping for insurance will now be able to compare and purchase auto insurance policies from the comfort of their own home. This follows the move by CEO of Sarifa Insurance Brokers Limited, Christopher Blythe to continue his aim to change how Jamaicans purchase auto insurance with his flagship online insurance platform. According to Blythe, the platform will allow customers to go to the www.sarifaja.com website, fill out the proposal and get quotes from all insurance companies. He says the customer will then be able to choose which company they want to work with. Blythe says the platform will offer customers the full description of the type of coverage available after which they will be able to upload their documents. Once approved, the customer can purchase their policy online with a credit card. The Sarifa Insurance CEO says while some insurance companies have also begun to offer the options of online quotes and payments, Sarifa will be the first insurance broker to introduce this system with the main difference being that Sarifa will compare all the different insurers as opposed to just one. He says the benefit to the customer will be the side-by-side comparison which allows them to choose the most suitable policy which is on the market based on what all the insurers have to offer. Blythe says in terms of accuracy, Sarifa’s online portal will take into account that each insurer has a rate guide for their different polices. He says as such, his team has programmed the rate guides
14
from each insurer Sarifa represents into the platform. Blythe says the system has been rigorously tested to ensure the accuracy based on each rate guide and is updated as soon as changes are made by the insurer. Responding to concerns that one of the benefits of person to person contact is that although a base price might be charged, there is room for discussion on additional discounts that the customer may not have been aware of, Blythe says since there are many factors which could affect the quote, Sarifa aims to ensure that its system is able to compute all the possible discounts the customer could be entitled to. He says in doing this, the customer will get the best quote at all times once the information they enter is accurate and complete.
Customer Honesty Blythe says measures have also been put in place to ensure that customers are honest when uploading information. He says during sign up, each customer will have to accept the understanding, consent and declarations page before they can purchase a policy or get a quote. He says in essence anything that is deemed to be inaccurate could render the policy void. Blythe says in terms of checks, the customer has to upload certain documents before they can pay for the policy and once they are uploaded the customer service team will verify each document. He says the main goal of the online platform is to ensure convenience for the customer. BM
Businessuite Weekly
Businessuite Weekly
15
Foreign Exchange Jamaican Dollar closes Friday trading at record high average of $119.02 for US$1
T
he Jamaican dollar closed off trading on Friday at an average of $119.02 to US$1. This means Jamaica is closer in line with the International Monetary Fund (IMF) suggestion that the ideal value of the Jamaican dollar is JMD$120 to US$1.
While on a visit to the island last June, IMF chief Christine Lagarde, said the Jamaican currency was overvalued and had to endure further de-valuation. The Jamaican dollar has fallen from $99.33 to US$1 on May 1, 2013, when Jamaica first signed the loan agreement with the IMF. In a Country Report on Jamaica released last week, the IMF argued that analysis of quarterly exchange rate data for Jamaica from 1996 to 2014, show that “real depreciation (against the US dollar) of 10 per cent is associated with around 0.5 percentage point increase in economic growth.� It adds that in the short run, temporary shocks may affect growth but in the long run, a more depreciated Jamaican dollar will co-exist with higher output levels. Meanwhile the Euro traded for JMD$134.31, the Great Britain Pound for JMD 180.76 and the Canadian at an average of JMD$ 89.15. BM
16
Businessuite Weekly
The Week Ahead Businessuite Event Calendar 5
September 28
September 30
Rotary Club St. Andrew North Venue: Wyndham Hotel New Kingston
JCC & MF&G Wednesday Breakfast Seminar Venue: New Kingston Conference Center
September 29 PAML/PSOJ Annual Pension Seminar Venue: The Jamaica Pegasus Hotel, 81 Knutsford Boulevard, Kingston
UNLEASHING YOUR TEAMS TALENT | LEADERSHIP ENGAGEMENT TRAINING Venue: Courtleigh Hotel and Suites, Knutsford Boulevard Caribbean Cream Limited Annual General Meeting Venue: Institute of Chartered Accountants, 8 Ruthven Avenue, Kingston 10 Jamaica Chamber of Commerce Board of Directors Meeting Venue: Rotary Club of Mandeville Venue: Golf View Hotel, 5 1/2 Caledonia Road, Conference Room, Mandeville, Manchester
Managing Safety & Health Risks Workshop Venue: The Alhambra Inn Lasco Financial Services Annual General Meeting Venue: Knutsford Court Hotel, 11 Ruthven Road, Kingston 10 Lasco Affiliated Companies General Meeting Venue: Knutsford Court Hotel, 11 Ruthven Road, Kingston 10 Kiwanis Club of New Kingston Venue: Institute of Chartered Accountants, 8 Ruthven Avenue, Kingston 10
October 01 JAAP Portland Meeting Chapter Venue: Institute of Business & Professional Services, West Street, Port Antonio
Businessuite Weekly
17
Regional Caribbean Export says
it is time to capitalise
on the spa, health and wellness tourism industry
P
amela Coke-Hamilton led Caribbean Export Development Agency (Caribbean Export) says the time is ripe for the region to take advantage of and capitalize on the health and wellness industry.
Speaking at the recently held two-day regional spa and wellness project in Barbados, the Caribbean Export Executive Director noted that it is well known that the Caribbean has a strong history as a major tourist destination and that consequently tourism is the most significant contributor to many of the economies across the region. She says in view of this, the onus is on those in the Caribbean to take ownership and responsibility for the diversification of the industry to ensure that the region benefits from the changing demands of visitors. Coke Hamilton says considering that the global spa and wellness industry is said to worth some US$2 trillion, the region needs to address issues such as ensuring that international standards are being implemented, that the Caribbean brand is receiving adequate visibility and representation in key markets and that the policies and regulatory frameworks are in place to facilitate the development of the sector. Hosted by Caribbean Export in collaboration with the Caribbean Development Bank and the United Kingdom’s Department for International Development (DFID), regional industry practitioners convened to review the results to date and identify the next steps of the implementation strategy to support the regions health and wellness tourism industry. Following the review of the project, the group hopes to chart a clear path forward with revision to the regional strategy accordingly to support the growth and sustainable development of the regional spa and wellness sector. BM
18
Businessuite Weekly
Barbados’ Bank’s Holdings Limited
facing possible takeover US Virgin Islands
B
ank’s Holdings Limited (BHL), Barbados’ biggest beverage company is facing a takeover by St. Luciaregistered Company, SLU Beverages Ltd.
SLU had which already had the largest single shareholder in BHL has offered to purchase all shares in the company after acquiring the shares of the second largest shareholder, Massy Holdings, in a block trade on the Barbados Stock Exchange last week. SLU says it will pay US$2 per share in keeping with the price it paid Massy last week Tuesday for its 13.1 million shares in the Barbadian business that owns Banks Breweries, Pine Hill Dairy, Barbados Bottling Co. Ltd and Banks Distribution Ltd. BHL shares were previously listed at US$1.25 per share. SLU says the offer is not dependent on SLU Beverages Ltd. acquiring all shares of Banks Holdings Limited, but the company is willing to purchase any or all such shares outstanding. It says the full details of the offer are being prepared within the framework of the relevant legislation and would be communicated to current shareholders in due course. BM
SLU says it will pay US$2 per share in keeping with the price it paid Massy last week Tuesday for its 13.1 million shares in the Barbadian business
Businessuite Weekly
19
Commentary By Mark Wignall
, Mark s Laas Lick BPO’s in Jamaica should find favor with bright high school leavers
T
he teenager leaves school with eight or nine impressive passes in CSEC. Sometimes daddy is there but, more often than not it is mommy and, all too common, her own educational level has kept her for many years in the ranks of ‘lower socio-economic level.’ Mommy doesn’t readily have the funds to send the teen off to begin tertiary studies so the focus must be on finding the school leaver a job. Easier thought of than seeing it realized. Some would say that the parent should have been saving over the period of the earlier schooling of the child but this view tends to ignore an unsurprising reality. That reality speaks to the fact that when the mother’s earnings are added up over that same period, there was barely even enough to cover living expenses, food and clothing for the general household and travel expenses and lunch for the child while in school. So a week goes by then, a month, then a year and after that a natural torpor sets in and crudely embraces the child. In two years the child begins to mentally drift as its dream nosedives and the mother sinks into depression. Some may be better at this and it does help if the household is classified in the increasingly unclassifiable ‘middle class.’ That simply means that at best, the household earns more than those in the ‘lower socio economic level’ and, if the entire funding of an average four year university course is not there, usually the first year’s full fees and expenses are in place. For this reason, after listening to the Prime Minister’s Sunday presentation (September 20th) of her party’s claimed successes and where the PNP administration wants or intends to take this country, my ears pricked up when she spoke of the likely roll out of 18,000 jobs in the Business Process Outsourcing sector over the next five years. In New Kingston there is the brand ‘Sutherland’ and in Montego Bay there are more than a few global brands operating. My
20
checks indicated that a local outfit in Central Manchester is setting up operating space for what is likely to be one of the largest BPO’s in the Caribbean. The initial investment for that location alone is US$10 million. These BPO’s are done on the build-it-and-they-will-come basis. Actually it’s a little more complex than that but the idea is to announce to global brands that Jamaica is open for BPO business and we have a bright, easily trainable workforce. The vast majority of those jobs will be new ones and not something rehashed where someone in his late 40’s is seeking another shot at life while displacing the younger age cohort. Most of the BPO’s are call centers where the local workforce is trained to respond to the customer service needs and business information delivery of global brands. I am unaware that Jamaica has any of the more complex BPO’s under the ‘light manufacturing’ designation. I have checked with a few individuals in the financial sector which are funding agencies of these BPO’s and the feedback I get from them is that the one area of the PM’s speech that deserved more media attention is actually almost absent from current debate. The matter must not be seen as the great solution to Jamaica’s high rate of youth unemployment. The majority of jobs in these call centers will be ‘starter jobs’ for young people who wish to pursue various career paths later in life. The pay will not allow them to dine out in swank New Kingston eateries or travel at will to North Coast weekends. What the jobs will do is absorb a significant chunk of those brights teens and young 20 year olds sitting at home unemployed and raiding the little that is in mommy’s kitchen cupboard.
*The views expressed in this article are not those of Blackslate Holdings, Businessuite Magazine or any of its subsidiaries.
Businessuite Weekly
94D Old Hope Road Kingston 6 Jamaica Telephone: (876)978-5508/ 978-0426 (876)619-1351 Fax: (876)927-9125 Customer Feedback/ Queries: E-Mail: Info@cabjm.com
Businessuite Weekly
21
22
Businessuite Weekly
Businessuite Weekly
23
24
Businessuite Weekly