4 October - December 2015
Wisynco wins ‘Manufacturer of the Year’ at JMA’s 47th Annual Awards Banquet Inside this Issue JMA Hosts Trade and Intelligence Training Programme
1
JMA’s 47th Annual Awards Banquet
3
Safe Quality Food Workshop
4
JMA signs MOU with DBJ
4
Jamaica USA Chamber of Commerce Trade Expo
5
New Members
5
Work of the Secretariat
6
Jamaican Made Christmas
6
JMA Hosts Preferential Trade Workshop
7
Private Sector Demands Good Governance
8
Annual Christmas Mingle
9
Wisynco’s team accepting the Manufacturer of the Year Award from Donna Parchment -Brown, at Executive Director’s Report the JMA’s Annual Awards Banquet, held at the Jamaica Pegasus Hotel on October 10, 2015. At third left is President of the JMA, Metry Seaga. See highlights of the event o page 4. Economic and Trade Review
10 13
JMA Hosts Trade and Business Intelligence Training Programme As part of the JMA’s thrust to expand exports, the Association in collaboration with JAMPRO hosted a training programme on Thursday, November 5, 2015 at the JAMPRO Business Auditorium. The training programme entitled “Using Market Intelligence Tools to Research and Analyse Global Business Opportunities” was predominantly focused on developing and or enhancing business information skills and competencies through credible platforms. Mr. Jordane Richardson, Trade and Research Economist at the JMA, and a certified Market Intelligence Trainer, demonstrated innovative approaches to gather intelligence using the International Trade Centre’s (ITC) market analysis tools in conjunction with other platforms. He was supported by Ms. Wendy Walker, Consulting Officer for Business Information Services at JAMPRO who expounded on export promotion. Turn to Page 2
JMA Hosts Trade and Business Intelligence Training Programme Cont’d
(L) Trade Research Economist at the JMA, Mr. Jordane Richardson, fully engages members of the audience at JMA’s/JAMPRO’s Training Programme on Market Intelligence.
Members of the audience are enwrapped as Ms. Wendy Walker (L) Consulting Officer for Business Information Services at JAMPRO expounds on Trade Fairs and Trade Missions.
JMA’s 47th Annual Awards Banquet The Jamaica Manufacturers' Association (JMA) in partnership with Digicel Business celebrated the 47th staging of its Annual Awards Banquet on October 10, 2015 at the Jamaica Pegasus Hotel, in record-breaking style. The event held under the theme “Renew and Grow,” recognized and honoured innovative and efficient manufacturers, who epitomize excellence, and are shaping the future of Jamaica’s manufacturing sector. Mr. Adam Stewart, CEO of Sandals Resorts International was the night’s keynote speaker, who expounded on strategies and opportunities that will promote sustainable growth in the manufacturing sector, as well as opportunities for linkages with other sectors.
JMA Members Benefit from Safe Quality Foods Workshop Members of the manufacturing community benefitted from a Safe Quality Foods (SQF) Workshop held on October 13, 2015 at the JMA’s headquarters. Certified SQF Auditor and Presenter, Mr. Anthony Green, educated manufacturers on the basic concept of safe quality foods, as well as the principle, design and implementation of a SQF System for the various food audits.
JMA’s Executive Director, Mrs. Imega Breese-McNab giving opening remarks to a captivated audience.
Members of the audience busy taking notes, as Mr. Anthony Green makes his presentation.
JMA signs MOU with the DBJ The Jamaica Manufacturers' Association (JMA) was one of three Business Service Intermediaries (BSIs) to sign a Memorandum of Understanding with the Development Bank of Jamaica (DBJ) on October 21, 2015. The signing represented the official launch of the DBJ's Innovation Grant from New Ideas to Entrepreneurship (IGNITE) funding initiative, geared towards micro, small and medium-sized enterprises (MSMEs) in the productive sectors, with innovative ideas and a great potential for economic development. The grants are channeled through the BSIs, that will assist (R) President of the JMA, Metry Seaga, signs the MOU with representatives with some of the unique challenges enfrom other organizations, as Dr. Peter Philips , Minister of Finance and Planning countered by the MSMEs. looks on.
JMA goes global at Jamaica USA Chamber of Commerce Trade Business Expo President of the Jamaica Manufacturers’ Association (JMA), Mr. Metry Seaga, represented the JMA at the 2015 staging of the Jamaica USA Chamber of Commerce (JAUSACC) Jamaican Business Expo. The Expo held under the theme “Brand Jamaica to the World in Florida” was held on the 9th of October. In his opening remarks, Mr. Seaga noted that the JMA values the partnership built with JAUSACC, whose purpose of supporting quality Jamaican products and services by creating trade and investment opportunities reflects a shared priority of the JMA. He further stipulated that the power of brand Jamaica in the international market place cannot be discounted and “while we aim to capitalize on the brand potential and expand global awareness, protecting our brand equity is of vital significance.” The Chamber’s efforts to facilitate increased trade between Jamaica and the United States will aid in boosting exports of locally manufactured products and investment in the sector.
JMA’s President Metry Seaga (R) and President of JAMPRO, Diane Edwards (L) .
New Members
ORDINARY MEMBER AG Chem Plant Ltd. CEO: Mr. Joe Pires Address: 2 East Ashenheim Road , Kingston 11 Tel: 757-0022 Fax: 901-3854 Group: Chemicals, Cosmetics and Pharmaceuticals Products: Herbicides, Insecticides and Rodenticides.
ASSOCIATE MEMBER Point Global Marketing CEO: Ms. Javette Nixon Address:23 Westlake Avenue, Richmond ,Kingston 10 Tel: 906-6387/630-3980 Group: Associate
Office Outlet Ltd. CEO: Mr. Winston Mahfood Address: 2 Mona Great House , Kingston 6 Tel: 977-1334 Group: Associate
WORK OF THE SECRETARIAT ASSISTANCE PROVIDED
Forty (40) requests for assistance were satisfied in areas including: Clarification on Capital Equipment (GCT and Duty Free Relief) Filing of EPL Importation of corrugated carton from Costa Rica Environmental Levy Product Sourcing Importation of Sugar and Packaging Materials
JMA Members Participate in a Jamaican Made Christmas Members of the Jamaica Manufacturers’ Association (JMA) participated in a two day expo entitled "A Jamaican Made Christmas." The initiative was coined by Continental Baking Company Foundation. The expo which commenced on Sunday, November 29, 2015, was held at the Jamaica Pegasus Hotel and showcased fifty (50) small and medium size manufacturers. The fundamental aim of the expo was to drive the sales of locally manufactured products and stimulate their growth rates. See highlights below.
JMA Members Participate in a Jamaican Made Christmas Cont’d
JMA Hosts Preferential Trade Workshop As part of the JMA’s initiative to drive exports and in alignment with the newly created Export Division, the Association hosted an engaging and comprehensive workshop on November 19, 2015. The workshop offered valuable and holistic insights on how to successfully expand commodities beyond the Jamaican market. Opportunities for preferences under the various trade agreements signed by Jamaica were also discussed. In addition, presentations were made by the; Jamaica Customs Agency (JCA) which sensitized members on ASYCUDA; the Bureau of Standards Jamaica, explaining labeling and packaging requirements for export; as well as Kelvin Kerr from the Trade Board Limited , who gave an in-depth analysis on Rules of Origin criteria.
Members are fully engaged during the presentation.
Private Sector Demands Good Governance
L-R William Mahfood, President of the PSOJ; Warren McDonald, President of the Jamaica Chamber of Commerce; Damien King, Co -Executive Director of CAPRI; Jeanette Calder, Co-Executive Director of the Jamaica Civil Society Coalition and Metry Seaga, President of the JMA.
The Jamaica Manufacturers Association (JMA), the Private Sector Organisation of Jamaica (PSOJ) and other major stakeholders of the Jamaican private sector and civil society sought a Covenant of Commitment from the two political parties, irrespective of who forms the next Government in the upcoming election. At a press conference held at the PSOJ’s office on November 19, 2015, the stakeholders in a letter to Prime Minister Portia Simpson Miller and Leader of the Opposition, Andrew Holness, outlined five critical areas in which they are seeking a commitment. These included fiscal responsibility, price stability, social safety nets, public/private partnerships and ease of doing business. President of the JMA, Metry Seaga noted that good governance and transparency are important components of the initiative, which is dependent on non-tribal politics.
Mrs. Beverly Rose-Forbes Honoured at Annual Christmas Mingle Mrs. Beverly Rose-Forbes was honoured by the Jamaica Manufacturers' Association (JMA), at its annual Membership Christmas Mingle, held at J. Wray and Nephew’s Bar 21, on December 16, 2015. Mrs. Rose-Forbes was commended for her immense contribution to the Association, in her various capacities while at the Ministry of Industry, Investment and Commerce. The Mingle continues to provide an excellent forum for creating linkages. See highlights below.
Staff Members of the JMA shares Christmas Joy with Walkers Place of Safety Staff members of the JMA on December 29, 2015 visited the Walkers Place of Safety to share the Christmas spirit. The Association expresses immense gratitude to all members who contributed in making the children's Christmas one that was quite memorable.
Executive Director’s Report RULE OF LAW WORKING GROUP The Jamaica Manufacturers’ Association (JMA) together with other private sector entities proposed the formation of an oversight committee to improve crime and justice within Jamaica. A company's exposure to crime plays a significant role in determining investment and private sector development, as well as growth of businesses in the sector. On November 9, 2015, the Rule of Law Working Group was established at the Partnership for Jamaica (PFJ) Council Meeting. The initiative allows for a wider participation of state and non-state agencies to combat crime and violence. The Rule of Law Working Group will be chaired by Mr. Howard Mitchell, Deputy President of the Jamaica Manufacturers’ Association (JMA) .
OFFICE OF UTILITIES REGUATION (ADMENDMENT) ACT The JMA submitted comments on the Office of Utilities Regulation (Amendment) Act and noted the following:
While the BOJ is expected to play an integral role by way of guidance on the determination of an appropriate rate of return, this role should be strengthened to include a tripartite team encompassing the BOJ, DBJ and PIOJ. These institutions have personnel with the necessary skills set to guide on issues.
There should be greater clarification as it relates to special rates to be given to consumers who are unable to pay the full cost of electricity. It is unclear whether the facility will be confined to residential users will be extended to manufacturing/industrial users? (Section 4. Subsection (4A) (b) (iv)).
In determination of the rates under “Section 4. Subsection (4A) (b) (v),” consideration of special rates will be given to SEZs. However, this must be done in a transparent manner so as to not create barriers to the development of small manufacturing entities. Many small companies are being disadvantaged by high energy costs in Jamaica which makes it harder for them to compete with other companies from CARICOM, particularly Trinidad.
As it relates to the inclusion of a 4th Schedule, the oversight committee should be composed of persons who have a baseline of either qualifications or experience of the quality that allows for good judgment, as well as a proven/established record of independence from political bias. This is essential so as to avoid the same type of deficiency that plagued the previous Law. Given the controversy and complexity that could ensue regarding some of the applications for tariff rates, decisions should be posted on the website, and parliament be advised on a quarterly basis on such decisions.
Executive Director’s Report Cont’d REVIEW OF 2015
Executive Director’s Report Cont’d
Economic and Trade Review
GROSS DOMESTIC PRODUCT
Graph 1: Manufacturing sector’s performance by quarter
GROSS DOMESTIC PRODUCT
Production in the manufacturing sector started out below expectation with a 2 per cent decrease when compared to the previous first quarter. This was due to lower output levels in both Food & Beverages and Oth
Graph 1: Manufacturing sector’s performance by quarter Production in the manufacturing sector started out below expectation with a 2 per cent decrease when compared to the 2014 first quarter. This was due to lower output levels in both Food & Beverages and Other Manufacturing. In the second quarter, production recovered moderately by recording a 0.4 per cent growth compared to the same quarter in 2014. The third quarter saw a more pronounced improvement in production with a 7.9 per cent growth. The absolute production recorded was $16,227 million. This was the highest third quarter production since 2009.
TRADE
The merchandise trade deficit for January to September 2015 review period stood at US$2,819.4 million, a fall of 13.4 per cent when compared to the US$3,256.2 million recorded in the similar 2014 period. Total expenditure on imports was valued at US$3,789.9 million (see graph 2), a decrease of 13.3 per cent or US$581.4 million, while total earnings from exports amounted to US$970.4 million (see graph 3), a decrease of 13.0 per cent or US$144.7 million when compared to the similar 2014 period.
Economic and Trade Review Cont’d
Graph 2: Total imports in trade merchandise as at September 2015
Graph 3: Total exports in trade merchandise as at September 2015
The main contributors to the overall decline in imports were the commodity groups, Food and Mineral Fuels, etcetera. Mineral Fuels etcetera, fell by US$641.9 million or 41.0 per cent in the 2015 period. The reduction was due to lower volumes of crude oil and processed fuels, primarily Bunker C grade fuel oil, Automotive Diesel oil, (ADO), Motor Spirit (gasoline), Propane and Butane as well as the fall in the prices on the international market. The reduction experienced in total exports was as a result of a decrease in all commodities, with the exception of Chemical products and Animal & Vegetable Oils. Both products experienced 32.5 per cent and 7.9 per cent increases respectively. Notably, key exports products such as Food, Beverages & Tobacco, Crude Material, Mineral Fuels and Manufactured Goods all experienced a decline in exports for the nine (9) month period when compared to the same period in 2014.
Economic and Trade Review Cont’d INFLATION
Graph 4: Total inflation as at November 2015 Barring a hike in prices for December, Jamaica is set to record its lowest inflation level in a calendar year since the 2006 when inflation stopped at 5.7 per cent. As at November 2015, total inflation for the year was 3.4 per cent and is set to end the calendar year at less than 5 per cent.
NIR
Graph 5: Total Net International Reserves as at November 2015 The Net International Reserves (NIR) fell by 4. 5 per cent in November, to end the month at US$ 2.3 billion. This represented a 15 per cent increase when compared to the same period last year. The NIR remained relatively stable during 2015 with its lowest point being US$ 1.7 billion in January and the highest point US$ 2.5 billion and had an overall increase of 27 per cent.
Economic and Trade Review Cont’d
EXCHANGE RATE
Graph 6: The exchange rate for one (1) US dollar At the end of the year 2015 the exchange rate for one (1) US dollar was $120.34. The year 2015 saw the US exchange rate remain relatively stable with a change of 3.8 per cent. The previous years of 2014 and 2013 saw the US exchange rate increase by 7 per cent and 13 per cent respectively.
Work of the Secretariat PUBLIC RELATIONS AND MARKETING
Interview/Promotions
RESEARCH ASSISTANCE PROVIDED
There were four (4) research requests fulfilled including:
MEETINGS ATTENDED
Meetings attended included: October CARICOM Stakeholders Consultations on the Draft Framework Policy on the Single Jurisdiction (MFA&FT)
Export Division Promotion JMA’s position on the Sugar Cess Opportunities in Manufacturing-Editorial JMA’s post-award Banquet promotion Manufacturing on the upswing-Editorial
Information on vegetable fats and oils production Key intelligence on how to start a manufacturing company Market Pointers for Belize, Mexico and Peru
Work of the Secretariat Cont’d
Tax Reform Meeting Trade Portal Demonstration Argentina Mission – Cluster Initiative Inaugural Leadership Dialogue and Colloquium – “Forum on the future: Jamaica 2030 and beyond” DBJ New Products for MSMEs: IGNITE VAT and CEF Courtesy Call – Peter Bunting Strategy Meeting for educational and awareness programme
November Sugar Cess Meeting Meeting with MIIC – Consultants – Strategic Review/Modernization SEZ Meeting Meeting with IMF Representatives National Consultation on CSME Public Procurement System requirement Meeting with Minister of Finance December Cuba Demystified: Jamaica CEO Forum
Upcoming Events
Expo Jamaica -April 14-17, 2016
The Jamaica Manufacturers’ Association (JMA) Ltd. 85A Duke Street, Kingston Tel: 922-8880-3 or 922-8869; Fax: 922-9205 Email: jma@cwjamaica.com; Website: www.jma.com.jm Facebook: www.facebook.com/JMAlimited; Twitter: https://twitter.com/manufacturersja