businessuite magazine digital weekly oct 12th 2015

1 Businessuite WeeklyIssue: 7


Cover Story

EDITORIAL

Technology

Leadership Mergers and Acquisitions

Company Reports

Marketing

10

6

8

9 16

14

15

ContentsThe IMF and World Bank announce downward revision of growth projections for Jamaica

Despite what has been considered as an improvement in Jamaica’s economic situation, the country has been greeted with a revised downward projection for growth up to 2016...

The Cost of Corporate Social Responsibility

In the last couple of years, we have seen several cases of companies which have bought in to this concept of “doing good” through environmental...

Jamaica’s Amber Connect launches GPS tracking suite

Come next month, Jamaicans can expect to benefit from what Amber Connect co-founder and CEO Dushyant Savadia describes as “safer and...

Leadership & Politics

My column last week introduced the concept of the “New Work Order” and the joblessness that it will inevitably bring if current trends persist...

The Heineken takeover of Red Stripe

Acquisitions continue to be the order of the day following the latest move by Heineken International to acquire an additional 1.6 billion shares in...

JMMB Money Transfer Launches Fastest Intra-Island Transfers

JMMB Money Transfer ( JMMBMT), the recently rebranded remittance arm of the JMMB Group has introduced its intra-island money transfer service...

Targeting Confidently

One of the easiest ways for a marketer in Jamaica to lose the respect of his boss’ and that of his peers is trying to explain to them that he is persuing a...


Regional

The Week Ahead

20

19

Contents

Honduras: IMF Staff Completes Review Mission to Honduras

The mission from the International Monetary Fund (IMF) has completed its second review mission to Honduras with Mission Chief, Roberto...

Bahamas: Baha Mar Resort negotiations resume

Negotiations have resumed between embattled developer Sarkis Izmirlian, financier Export-Import Bank of China (CEXIM Bank), contractor China...

Businessuite Event Calendar

Content DirectorKayla Wright

The Businessuite News Centre BNC

Publisher and Editor in ChiefAldo [email protected]

Subscription and Distribution

Advertising [email protected]

Graphic Design and Layout: Bonito Thompson

Photo credits Sourced from the internet and contributed

Social MediaCLICK Digital Agency

BusinessuiteonlineBusinessuite 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 JamaicaFor all information 876-630-2216 (Kingston Office)876- 342-9332 (Mobile)876-630-2216 (Mandeville Office)876-542-3719 (Mobile)[email protected] email [email protected]

Corporate Information:Blackslate Media Group Ltd, “Silicon Mountain” Mandeville Jamaica876-631-5418 (Kingston Office)876-458-3253 (Mobile)876-631-4505 (Mandeville Office)876-280-9192 (Mobile)To learn more about Blackslate go [email protected]

ISBN NumberISSN 0799-4427

CreditsProduction

trade

17

18

Matalon Roofing Invests Over $500m, creates 76 Jobs to prevent wastage of roofing materials

Matalon Homes and the Tankweld Group have joined forces to boost Jamaica’ housing sector through a joint venture called Matalon Roofing...

Jamaica one step closer to Logistics Hub Initiative

Jamaica is one step closer to realizing the dream introduced by Industry, Investment and Commerce Minister, Anthony Hylton to improve...


Editorial

In the last couple of years, we have seen several cases of companies which have bought in to this concept of “doing good” through environmental and social initiatives. This initiative in recent times has been branded Corporate social responsibility (CSR). It refers to a corporation’s initiatives to assess

and take responsibility for the company’s effects on environmental and social wellbeing. The term generally applies to efforts that go beyond what may be required by regulators or environmental protection groups. But why is it important for a company to exercise Corporate responsibility? In a 2012 article, Forbes Magazine highlighted six reasons why companies should Embrace CSR. According to Forbes, while CSR will not solve the world’s problems, it allows companies to benefit themselves while benefiting society. The article goes on to list 6 reasons why companies should embrace the practice:

r

By Kayla Wright

According to Forbes, while CSR will not solve the world’s problems, it allows companies to benefit

themselves while benefiting society.

Innovation. According to Forbes, in the context of CSR, innovation is a huge benefit to a company and society as it may positively impact challenges and concerns related to general environmental and social issues. Cost savings. Forbes says one of the easiest places for a company to start engaging in sustainability is to use it as a way to cut costs. Brand differentiation Long-term thinking. This is a shift from worrying about the next fiscal quarter’s financial results to the impact business

1.

2.

3.

4.

The Cost of Corporate Social Responsibility


In Jamaica, several companies have taken up the baton and are attempting to do their part in building the

country while benefitting their company.

In Jamaica, several companies have taken up the baton and are attempting to do their part in building the country while benefitting their company. Some of these include Scotia Bank’s ‘Bright Future’ initiative, Sagicor’s ‘Spending Time Shaping Lives’ umbrella, NCB’s staff volunteerism and annual projects and KFC’s scholarship donations for various sports, entertainment and community development programmes. This year, several of the efforts of Jamaica’s socially responsible corporations will be recognized as the American Chamber of Commerce in Jamaica (AMCHAM) prepares for tomorrow’s Business & Civic Leadership Awards & Banquet. According to Executive Director of AMCHAM, Becky Stockhausen, among the individual Civic Leadership award nominees are: Norman Horne, Dr. Valerie Facey, Dr. Guna Muppuri, Mr. Nickoyon Brown, Mr. Joseph Matalon, Professor Ernest Madu and Father Richard HoLung. Meanwhile, she says several non-profit organizations are in line for the Civic Leadership award, including: Jamaica Cancer Society, Refinery Community Council, Kiwanis Club of New Kingston, Jamaica Environment Trust, Mona Social Services, the SOS Children’s Village, Environmental Health Foundation, Swallowfield Chapel and Women’s Centre of Jamaica. Stockhausen says among those vying for the Corporate Social Responsibility Award are: Indies Pharma Jamaica, Heart Institute of the Caribbean and the National Commercial Bank. BM

decisions today have on financial and social results ten years from now. Customer engagement. Using CSR can help you engage with your customers in new ways. Since the message is about something “good,” it can often be an easier way to talk to your customers. This is an underused tool for business-to-business company communication. Employee engagement – Along similar lines, if your own employees don’t know what’s going on within your organization, you’re missing an opportunity

5.

6.


Come next month, Jamaicans can expect to benefit from what Amber Connect co-founder and CEO Dushyant Savadia describes as “safer and smarter driving experiences” and an overall sense of security following the

rollout of the Amber Connect GPS tracking suite of products. According to Savadia, who was addressing the America Chamber of Commerce in Jamaica (AMCHAM) President’s Breakfast last week, the new system will allows for GPS tracking, automatic distress calling, automatic system shutdown and fleet management as Amber Connect begins the rollout of out several devices including Amber Cars, Amber Fleet, Amber Kids, Amber Home and Amber My Team. Amber Car Amber Car connects a driver to the car through a smartphone app or web portal that monitors vehicle movement and tracking in real time through a Global Positioning System (GPS) tracker, remote diagnosis system and a multi-purpose fully featured tracker. Savadia says while GPS tracking is not new, what makes Amber Car different is that it combines GPS with Location Based Service (LBS) to keep car owners constantly aware of motor vehicles, assets and family via the smartphone application. He says at the touch of a button, this application will allow the average individual and fleet managers to get real-time feedback on driving habits like harsh braking, sudden accelerations, and speeding. Savadia says users can view trip history, receive weekly emails of their driving statistics and scan receipts to be automatically updated in an expense report. He says discussions are also underway regarding how the product will be marketed and distributed next month.

Jamaica’s Amber Connect launches GPS tracking suite

Technology

Amber Fleet Similar to Amber Car, Amber Fleet combines GPS with Location Based Service (LBS) to keep car owners constantly aware of motor vehicles, assets and family via the smartphone application. Savadia says the device has a ‘geo-fencing’ alarm feature that alerts the user when a vehicle moves outside of a user-designated geographical area, as well as real-time systems to monitor performance, speed, movement, distance, and even time spent driving and time spent sitting in traffic. Savadia says this will especially benefit Fleet managers who need to manage a large vehicle fleet. He says it has a ‘tele-cut-off’ function that allows the user to shut off both fuel and electronics remotely; and a panic button for emergencies, in addition to an automatic SOS alarm on collision. The Amber CEO says the device also has a remote voice-monitoring function that allows a manager/user to listen to voices of persons in the vehicle where the device is installed. Amber Kids According to Savadia, one of the products under the Amber Kids category is a smart watch with GPS; two-way calling; SOS button; and travel history so that the wearer can be monitored in real time. It also consists of a device removal alert. He says the other product is a Safety ID Card with similar features to the watch, but it also comes with a voice monitor and geo-fencing alert. Amber Connect Jamaica was incorporated on August 5, 2015 and Savadia says it is expected that the Amber Connect products should be on the market by next month. BM

Amber Connect Product Suite

l


Leadership & PoliticsBy Dr. Leahcim Semaj

Leadership

My column last week introduced the concept of the “New Work Order” and the joblessness that it will inevitably bring if current trends persist. Now what this joblessness means for civility in society can be traumatic, if not properly tempered. You see, I have a theory: If we as societies do not find a way to convert the creative energies of our men and women into productive, fulfilling tasks, we risk persistently tearing the social contract ever so slightly until the fabric of society unravels. Simply put, an unproductive male tends to favor destructive activities, contributing to crime and violence, whereas an unproductive female tends to rest on reproductive means to survive. Both instances result in social issues and come at a cost to the state.

What if there was a way to offset some of these costs. I have a crazy albeit topical question for you –What if we could find a way to pay people not to work? Sound reasonable? Others will say, but Leahcim, we are already doing this have you not seen productivity ratings in the public sector? Other may utter “that psychologist has finally lost it”. However, it would seem economist and politicians are also boarding the one way train to crazy-town especially in Sweden where this figure is proposed to be $2,800 per month. This idea is called the universal minimum income and as Fast Company contributor Ben Schiller notes, “it’s gaining momentum.”

Albert Wenger of Union Square Ventures opined that a minimum income would allow us to “embrace automation rather than be afraid of it” and let more of us participate in the era of “digital abundance.” The truth is that the New Work Order will leave many jobless. One camp advocates that for social goods such as water and electricity we set a threshold for pilferage – it may be cheaper to allow them to steal, seeing as we cannot produce the means for them to gain these benefits legitimately. Radical thoughts maybe, morally skewed possibly, but less taxing on the reserves of the country, definitely.

Of course business people are crying foul and their tears are indeed valid. But in essence, this paradigm serves as a mitigating tool. If the state cannot provide gainful

employment to its citizen’s whether for a lack of skill or lack of resources, some mechanisms must be put in place as those who cannot achieve possess the capacity to be either the thorn or the rose. In a sense the universal minimum income will guarantee mediocrity as workers will be beneficiaries for even the smallest contribution, which may be nominal and valueless to development, however, more importantly it does not come at a cost to development. Doing nothing is actually doing something.

Elections will be soon upon us, and some admonish those who choose not to vote forgetting this too is a form of political participation. Will the universal minimum income work? That remains to be seen but such an idea, “evens up the playing field for people who haven’t had good opportunities in life by establishing a floor under the poorest. The “precariat” goes from being perpetually insecure to knowing it has something to live on. That, in turn, should raise well-being and produce more productive citizens” (Schiller, 2015). Insecurity breeds contempt, don’t corner a dog and expect it not to bite back.

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

What if we could find a way to pay people not to work? Sound reasonable?


Despite what has been considered as an improvement in Jamaica’s economic situation, the country has been greeted with a revised downward projection for growth up to 2016.

In the World Economic Outlook (WEO) report which was released last week, the International Monetary Fund (IMF) noted that the island should grow at 1.1 per cent in 2015 down from 1.7 per cent projected in the previous report. It says the island should also grow at 2.1 per cent in 2016 down from 2.2 per cent in the previous report. World Bank and Jamaica Meanwhile, the World Bank continues to express concern for Jamaica’s growth. According to the Bank, for decades, Jamaica has struggled with low growth, high public debt and many

Christine Lagarde

Cover Story

Managing director of the International Monetary Fund

The IMF and World Bank announce downward revision of growth

projections for Jamaica


external shocks that further weakened the economy. It says over the last 30 years, real per capita GDP increased at an average of just one percent per year, making Jamaica one of the slowest growing developing countries in the world. Head of the World Bank, Jim Yong Kim says he sees where the reform program is beginning to bear fruit and where institutional reforms and measures to improve the environment for the private sector have started to restore confidence in the Jamaican economy. However, he says despite some revival, economic growth is still low and the country continues to be confronted by serious social issues that predominantly affect youth. He says there is also concern regarding the unemployment rate.

Jamaica tops regional growth projections Despite this however, the WEO report forecasts that despite the downward revision, the island is set to beat the regional average growth for Latin America and the Caribbean region (LAC). The LAC region is set to grow at negative 0.3 per cent and 0.8 per cent in 2015 and 2016 respectively. The WEO says commodity prices led by energy and grains are no longer

5

4

3

2

1

0

6

2014 2015 2016 2017

LAC: Caribbean Jamaica

Series: GDP Growth, constant 2010 USD Source: Global Economic Prospects Created on: 10/09/2015

The IMF and World Bank announce downward revision of growth

Growth projections for Jamaica until 2017 compared to the aggregate growth projections for Latin America and the Caribbean through to 2017


Jim Yong Kim

President of the World Bank Group

“Despite some revival, economic growth is still low and the country continues to be confronted by serious social issues that predominantly affect youth”

supporting the growth in Brazil, Venezula, Argentina and Mexico. It says as a result their growth is weak, but it also allows commodity importers like Jamaica a chance to grow. Jamaica is expected to edge out oil-rich Trinidad & Tobago, which is set to grow at 1.0 per cent and 1.4 per cent in 2015 and 2016, respectively and the Dominican Republic should grow at the fastest pace in the Caribbean at 5.5 and 4.5 per cent over the review period. Speaking at last week’s World Economic Outlook Press Conference in Lima Peru, IMF Economic Counsellor and Director of Research Department, Maurice Obstfeld hailed Jamaica’s current program with the IMF as a perfect example of how the region can emerge from its low growth and high debt trap.

IMF and Caribbean Commodity importers Obstfeld says on average, there is a very bleak outlook for the Caribbean as common shocks continue to affect all countries in the Latin America and the Caribbean region. He says the general


fall in commodity prices is affecting everyone, with each country encountering their own issues. He says countries with strong policy frameworks which have built up fiscal buffers in previous years and which, notwithstanding the fall in commodity prices, continue to have fairly reasonable prospects. Obstfeld says the bleak picture is largely due to the common shocks and also the particularly difficult circumstances of a couple of very large countries. And Deputy Director, Research Department of the IMF, Gian Maria Milesi-Ferretti, says Caribbean commodity importers have been buffeted by severe weather shocks that have taken a heavy toll on capital in a number of countries. Milesi-Ferretti says the growth outlook has improved for Caribbean commodity importers that rely mostly on tourism. He says this is due to the fact that the US economy has strengthened and that has helped tourism as well as the large decline in oil prices and other commodity prices, particularly oil prices. However, he says these countries still face growth challenges as they still have, with low growth, fiscal situations that are extremely precarious. BM

Economic Counsellor and Director of the Research Department for the International Monetary Fund

Maurice Obstfeld

“on average, there is a very bleak outlook for the Caribbean as common shocks continue to affect all countries in the Latin America and the Caribbean region.”


Company Reports

JMMB Money Transfer ( JMMBMT), the recently rebranded remittance arm of the JMMB Group has introduced its intra-island money transfer

service which General Manager, Sharon Gibson says is the fastest such product of its time in Jamaica.

Gibson says the subsidiary continues to deliver cutting-edge services to its clients and the intra-island transfer is the latest addition. She says JMMBMT is the first remittance provider to offer this service in a record time of seconds not minutes, “we are ahead of the industry benchmark, which is 10-15 minutes.”

The JMMBMT General Manager says the newly introduced service is also ranked among the most competitive in the local market for intra-island transfers. She says this is an edge which will provide a win-win for its clients while also giving it a competitive advantage in the market share.

Gibson says individuals will be able to collect their intra-island transfers from over 100 locations islandwide, while being able to send transfers from almost 50 locations across Jamaica. She says individuals may also access their funds whenever they need it by using the deposit-to-account service, which allows persons to receive money in any account, at any financial institution in Jamaica. Gibson says funds transferred via the deposit-to-account service can then be accessed as early as the same day for

JMMB Money Transfer Launches Fastest Intra-Island Transfers

most commercial banks in Jamaica or up to 48 hours for other financial institutions.

JMMBMT and Corporate Responsibility Meanwhile, in its efforts to fulfill its corporate responsibility function, JMMBMT, in rolling out its intra-island money transfer service, has partnered with the Heart Foundation of Jamaica to donate up to 1% of all its fees, between now until March 2016, to the Foundation.

Gibson says the donation is expected to assist in the reduction of incidences of chronic cardiovascular diseases, which is the leading cause of death in Jamaica. The Joan Duncan Foundation, which represents the philanthropic arm of the JMMB Group, will also match the JMMBMT donation of up to J$75,000 at the end of the period in support of the work of the Heart Foundation of Jamaica.

Sharon Gibson says even as the company seeks to generate revenue, it aims to balance its corporate social responsibility by giving to outreach efforts that improve clients’ lives. She says as such “JMMBMT is looking to engage in other similar partnerships with a focus on health, in order to assist in curbing the high incidents of lifestyle related diseases which have far-reaching implications.” BM

Sharon Gibson

General Manager of JMMBMT

...individuals will be able to collect their intra-island transfers from over 100 locations islandwide, while being able to send transfers from almost

50 locations across Jamaica


Marketing

One of the easiest ways for a marketer in Jamaica to lose the respect of his boss’ and that of his peers is trying to explain to them that he is persuing a differentiation strategy for the company’s products. Everyone claim to know about the concept

but very few seem to understand how it works or have any confidence in it. One of the most difficult aspects to accept is that it is essentially target marketing; meaning of course that the strategy is the deliberate move on the part of the marketer to go after certain market segments at the exclusion of others. As soon as the target market is defined to the typical local business executives, comes the reflexive question; what about those segments of the market that are being ignored in the strategy? They then move immediately to point out the importance of those neglected markets and how the product could be redesigned to appeal to them also. The temptation is always to move to a more general approach with the hope of getting a larger slice of the pie. In so doing however, the product ends up having something for everyone but not enough for anyone. The idea behind product differentiation as a strategy is to achieve an advantage for your product based on its uniqueness. This presupposes that there are identified market segments that will find the differences in your product sufficiently appealing for them to forgo similar products in favour of yours. It is critically important however that the market segment being targeted has the size and value to ensure the viability of the product. An important fact that is exposed with sharp target marketing strategy; the more narrowly targeted the product the smaller the market segment. This is precisely the issue that most professional business executives have with target marketing as a strategy. In other words they see no reason why they shouldn’t be going for the ‘whole hog’. The argument then becomes, ‘if we do not go after those neglected customers, our competitors will’. Our local marketing executives usually lose the boardroom battle defending their differentiation strategy. This is usually so because the idea of getting more by going after a wider market with the single product is intuitively a strong argument. To overcome that mistaken view will require the assertiveness of highly confident marketing executives who are technically strong and armed with convincing marketing data to support their points. Incidentally, there is a serious shortage of good marketing talent in the country. Fo the most part our marketing executives speak in generalities and are about “making some noise around the product. Even for those who are technically strong, invariably there is little to no relevant research data to support their position. This leaves him to rely on what is generally considered by his peers spurious marketing theory. Notwithstanding the general resistance to differentiation as a strategy, most local business executives are quick to point out the distinctive features of their products. Quite often when the distinction claims are examined closely, the differences being aaserted are usually insignificant if they exist at all. For the difference in a product to be significant, it must be a decisive factor in customers’ mind when purchasing decisions are being made. By all indications therefore,

Targeting Confidently

By Ronnie Sutherland

Strategy Consultant and Media Executive

product differentiation appears to be a desired goal among local business operatives yet there seem to be very little confidence in relying on it as a strategy. One common reason why most marketing executives fail to convince their bosses and colleagues with their target marketing plans has to do with the fact that their plans are generally not well thought out. The plans they submit tend to start and stop at the general description of the target market. Target marketing however is much more than that. It includes developing unique brand images, unique technology, unique features, unique channels and unique customer service. A well thought out plan will detail how differentiation will be achieved by employing such strategies as competitive pricing, enhancements to functional design or features, distributor location, brand reputation, product customization and enhanced customer support. The expressed objective of differentiation through these strategies is to obtain an advantage for the product or service that is readily perceived by the target customer. As intimated earlier, the astute marketer will be very careful in the selection of the market segments to target. It helps to understand that the target market must be those customers who are most likely to buy the company’s product. At the point of identifying this set, all temptation to be be too general with a view to getting a larger slice of the pie must be resisted. That is like firing ten bullets in random directions with the hope that one will connect instead of aiming just one dead centre of the mark. The correct approach to defining the target market will undoubtedly get the most objections in the board room. That correct approach will see the target market being narrowly defined. In others words, those marketers who are targeting age group segment of 18 – 49 year old are not likely to succeed in nowadays highly differentiated markets. A few years ago Burger King had a differentiation strategy that had the company narrowly defining the age demography of its target market as 19 – 21 year olds. Because the consumer maketplace has become so differentiated, it’s a misconception to talk about the marketplace in any general way anymore. Now one has to decide whether to market to socioeconomic status or to gender or to region or to lifestyle or to technological sophistication. There is no end to the number of way the pie can be sliced. The idea is to describe them with as much details as possible, based on the your knowledge of the product or service. The idea of product differentiation is further complicated by the fact that age no longer means what it used to. 30-year olds are now likely to be still living with their parents. People now repeat stages and recycle their lives. The lifestyle and orientation of two gentlemen at 64 years old could be markedly different. One could be retired and lazing at home while the other is remarried and busily dropping a toddler at school then off to work. A more precise description of the target market can be had by generational marketing. This approach has been in use since the early 1980s. In so doing, the consumers are defined not just by age but also by social, economic, and psychological factors.


Acquisitions continue to be the order of the day following the latest move by Heineken International to acquire an additional 1.6 billion shares in Diageo, parent company of Desnoes and Geddes Limited (D&G), increasing its

ownership in the company to 73.32 per cent.

Last Wednesday, consumers were informed that Heineken announced had acquired the entire issued share capital of Udiam Holdings AB for US$4.2 billion, increasing the approximately 15.45 per cent share capital the firm had held in the liquor distributor. The company says it is now seeking to acquire the remaining the shares of D&G and is offering US$0.259 ( J$30.6) per share.

According to a release from Heineken, upon acquiring seven per cent of the remaining shares, it will be delisting the D&G’s shares from the Jamaica Stock Exchange ( JSE). The company says all transfers of D&G shares will render both the transferor and transferee liable to transfer tax and stamp duty, and dividends paid (if any) on D&G shares will not be eligible for the special five per cent rate of withholding tax applicable to shares of listed companies held by Jamaica residents (but will be subject to tax at the full rate with respect to any such dividends paid).

As part of the agreement, Heineken will be transferring 20 per cent of its holding in Guinness Ghana Breweries Limited to Diageo, allowing the company to increase its shareholding in the Brewery to 72.42 per cent.

The Heineken takeover of Red Stripe

Mergers and Acquisitions

Effect on Jamaican Market Managing Director of Red Stripe Jamaica, Cedric Blair, says following the acquisition, he does foresee any shifts in production for the Diageo brands produced locally under the deal. Blair says sine Heineken is the No. 3 beer company in the world, continuity is expected. He says he does not believe there will be a negative impact on production in terms of the brands that are produced and sold in Jamaica.

Cost of the transaction The net cash consideration paid to Diageo on the transaction is US$780.5 million, which will be used to reduce its borrowings. Additionally, the acquisition will result in after-tax profit of US$668 million for the company.

Heineken CEO Jean-François van Boxmeer says this transaction is mutually beneficial and will allow both parties to concentrate their resources in the individual markets, while at the same time providing a framework for ongoing, long-term co-operation. He says it allows them to increase focus on their respective beer businesses and certain licensing arrangements in Jamaica, Malaysia and Singapore and Ghana. Van Boxmeer says it also brings more of its manufacturing under directly control in line with its business strategy over the past five years. He says as majority owner, Heineken will be able to drive the investment and strategic direction of the operating companies in Jamaica and Malaysia. BM

Jean-François van BoxmeerCEO of Heineken


Production

Matalon Homes and the Tankweld Group have joined forces to boost Jamaica’ housing sector through a joint venture called Matalon Roofing Limited. According to Managing Director of Matalon Roofing Peter Matalon, with an initial investment of $540

million and the creation of 76 jobs, the venture offers state of the art technology to provide homes with the highest quality Standing Seam roofing materials where every panel and trim accessory is created to the precise measurement, resulting in minimum wastage. Matalon says the significant investment in the high-tech machinery into the new company which features 6000 square feet of showroom and office space, and 15,000 square feet of warehouse and manufacturing space, would ensure that customers received the perfect roof at the best price. Matalon says significant investment has also been made into state of the art technology and equipment “thereby allowing us to deliver what we term “Precision at a New Height”. He says while Matalon Roofing will carry a wide range of roofing products, the main focus and advantage will be in the manufacturing and installation of Standing Seam continuous metal roofing. The Managing Director says what will make Matalon Roofing different from any other supplier of the Standing Seam roof is technology. Matalon says the company’s systems are computerized allowing it to manufacture panels and trim accessories to precise tolerances, ensuring customers get the exact fit upon installation. He says the roofing trims are all formed on a computerized folder which ensures accurate angles so all pieces are exactly the same and fit precisely together. He says the company’s computerized roofing software also determines the exact material required for the job down to the last screw. Meanwhile, Chief Executive Officer, Andrew Paul Matalon says the company will also offer a variety of roofing options to commercial property owners in a wide range of color and style options in all product categories. He says Matalon Roofing has invested heavily in the training of its technicians to ensure that their quality roofing products are matched by the best production, installation, sales and customer service teams. BM

Matalon Roofing Invests Over $500m, creates 76 Jobsto prevent wastage of roofing materials

Employee at the Matalon Roofing Company


l

Trade

Jamaica one step closer to Logistics Hub Initiative

Jamaica is one step closer to realizing the dream introduced by Industry, Investment and Commerce Minister, Anthony Hylton to improve trade facilitation through the Logistics Hub initiative following the move by Kingston Wharves Limited (KW) to invest

$2 billion into the construction of a logistics and warehousing facility.

Speaking following a recent tour of the first phase of work on the 160,000-square foot Total Logistics Facility, Minister Hylton said it is a sign of confidence in the Government’s initiative. He says the construction “leaves no doubt in my mind that the Jamaica Logistics Hub is alive and well. “

Minister Hylton says the investment by KW will make it easier for the nation’s exports to grow as it creates a platform for micro, small and medium-sized enterprises to connect with the world.

Chief Executive Officer of the KW, Grantley Stephenson says the one-stop facility, which is being built at the port operator’s Newport West premises in two phases, will operate 24 hours daily, seven days per week. He says it will facilitate KW’s entry into supply chain management, manufacturing, order fulfillment, product assembly, labeling and other demand-based services. Stephenson says it will also include administrative offices, and provision made for Government support service providers such as Jamaica Customs Agency.

Stephenson says the first phase of works is scheduled to be completed in a little under a year with the entire project expected to conclude in five years. BM

Hon. Anthony Hylton (left) and Grantley Stephenson (right)


The Week Ahead

October 12

Jamaica Bankers Association/Jamaica Institute of Financial Services4th Annual Anti-Money Laundering/Counter-Financing of Terrorism Conference Venue: The Jamaica Pegasus Hotel, 81 Knutsford Boulevard, Kingston Jamaica Employers’ Federation Workshop on Events Planning and Management Venue: Mandeville

Rotary Club St. Andrew North Venue: Wyndham Hotel New Kingston

October 13

AMCHAM Jamaica Business & Civic Leadership Awards Venue: The Jamaica Pegasus Hotel, 81 Knutsford Boulevard, Kingston

3rd Quarter 2015 Business & Consumer Confidence Indices Release Venue: NCB Wellness Centre Rotary Club of Mandeville Venue: Golf View Hotel, 5 1/2 Caledonia Road, Conference Room, Mandeville, Manchester

October 14

Kiwanis Club of New Kingston Venue: Institute of Chartered Accountants, 8 Ruthven Avenue, Kingston 10

Businessuite Event Calendar5


Honduras: IMF Staff Completes Review Mission to Honduras

The mission from the International Monetary Fund (IMF) has completed its second review mission to Honduras with Mission Chief, Roberto Garcia-Saltos welcoming what he says are “the positive

results obtained through the ambitious policy decisions made over the past 22 months”. The Mission Chief says the policies are creating the foundation for sustained inclusive growth and fiscal sustainability. In his report on the 2015 fiscal year, Garcia-Saltos said the real economic growth is projected to be 3.5 percent. He says the outlook for growth is expected to be broad-based, led by communication, agriculture and manufacturing, and supported by favorable terms of trade and growth in trading partners. Garcia-Saltos says inflation through August remained low and is expected to reach about 4 percent by end-year. He says through September, net international reserves rose by US$206 million to about 4.5 months of imports, contributing to a strengthened external position. The mission chief says on the fiscal sector, it is encouraged by the more solid fiscal position, with lower deficits for the central government and in the state electricity company (ENEE), both smaller than originally envisaged. Garcia-Saltos says program implementation remains strong as the structural benchmarks were observed, while significant progress toward meeting end-of-December 2015 benchmarks has been made. He says the 2016 budget submitted to congress is in line with program commitments and the IMF welcomes the medium term fiscal plan included with the documentation sent to congress. The IMF Mission Chief says for 2016, the outlook for

Regional

the Honduran economy remains just as positive, with growth projected at 3.6 percent, inflation low, at about 5 percent, and lower current account deficit. He says the mission and the authorities have reached staff level understandings for the program for 2016 including quantitative targets and appropriate policies to institutionalize the hard-won gains in macroeconomic stability, and simultaneously boost growth-enhancing spending by the government. He says these understandings are subject to approval by the IMF’s Management and Executive Board, which is expected to consider the second program review later in the year. Garcia-Saltos says the authorities have also decided to protect the fiscal gains by establishing a fully functional medium-term fiscal framework. He says this would institutionalize fiscal discipline, thus helping to reduce the debt burden and enhance policy credibility. The mission chief says monetary policy is expected to continue, appropriately, to focus on keeping inflation under control and strengthening the external position while providing adequate support to economic growth. Garcia-Saltos says the economic policies in the updated economic program designed by the government aim to improve transparency, support economic growth and job creation while maintaining prudent fiscal policies. He says important actions to promote growth include a program to substantially reduce electricity distribution losses and better practices in public financial management that should create additional room for higher public spending on needed infrastructure. In line with this strategy, the authorities are taking actions to fight corruption and improve transparency in the operations of government. BM


Bahamas: Baha Mar Resort negotiations resume

Negotiations have resumed between embattled developer Sarkis Izmirlian, financier Export-Import Bank of China (CEXIM Bank), contractor China Construction America (CCA), the government of The Bahamas and the liquidators

regarding the future of the multibillion-dollar Baha Mar megaresort project. According to reports, the negotiations have reached “a delicate stage”, and the current round of meetings is set to continue. This follows the move by Bahamas Supreme Court Justice Ian Winder to grant the application to wind up Baha Mar and appoint joint provisional liquidators. It also follows the move by US Bankruptcy Judge Kevin Carey to dismiss the Chapter 11 cases of the Bahamas-based Baha Mar companies. It stems from a desire by Rosewood Hotels and Resorts to end its partnership with Baha Mar. Last month Rosewood asked the Delaware bankruptcy court to void its Baha Mar licensing agreement, citing a number of factors including the fact that the developer of the resort filed for Chapter 11 bankruptcy in June. Another major ground for separation was Rosewood’s allegation that the developer falsely represented that it was the legal owner of the hotel real estate. Since Winder appointed Edmund Rahming of KRyS Global along with Nick Cropper and Alastair Beveridge of AlixPartners Services UK LLP as joint provisional liquidators on September 4, they have focused on negotiations between the parties involved in the $3.5 billion reimagining of what was once called the Cable Beach strip. The most recent development has been the return of CCA to the Baha Mar campus to conduct what CCA Senior Vice President Daniel Liu has termed “an assessment” of the property, and of what damage had been suffered while the project had been shuttered. BM

businessuite magazine digital weekly oct 12th 2015

Documents