Fiji’s Business Climate in Crisis: What Next?

Opposition MP Premila Kumar has expressed deep concerns regarding the decline of Fiji’s business climate, emphasizing that the government has failed to address pressing economic challenges. In her statement, she highlighted significant job losses, particularly the over 3,000 positions missing in the textile, clothing, and footwear sector since the onset of the COVID-19 pandemic. Many businesses are on the brink of closure due to escalating operating costs.

Kumar criticized the Acting Prime Minister and Minister for Finance for prioritizing political attacks over constructive engagement with investors, stating that the government has demonstrated a lack of understanding of the current business difficulties, which include rising costs and an unfriendly business environment. The closure of Performance Flotation Development Limited was referenced as a detrimental blow to investor confidence and a sign of the government’s ineffective economic policies.

She drew attention to the preferential treatment given to specific sectors, such as the recent tax holiday granted to Fiji Water, questioning the fairness in the government’s economic policies when others struggle to survive. Kumar also challenged the government’s claims about a 25 percent increase in investment lending, arguing that it is meaningless if businesses continue to close, and skilled workers are leaving the country in record numbers.

Despite claims of a thriving economy and efforts toward diversification, Kumar asserted that there are no tangible results to show, indicating that the investment pipeline is stagnant with no clear delivery timelines. She concluded that for Fiji to attract the necessary investments, the government must foster a stable and respectful business environment.

In response to these significant issues raised by Kumar, FijiLive has sought comments from the Acting Prime Minister for further clarification.

This ongoing dialogue highlights the critical need for a collaborative approach to revive Fiji’s economy and ensure that all sectors are treated equitably to promote growth and stability.