Minister of Commerce, Hon. Joey Hew's Keynote Address - 2017 Membership Appreciation & Elections

Keynote Address by Minister for Commerce, Planning and Infrastructure Hon. Joey Hew, At the Chamber of Commerce AGM, The Wharf, Wednesday, 24 January 2018, 4-7 pm Ladies and gentlemen,

Good afternoon and thank you for inviting me to speak at this 2018 Annual General Meeting.

As a past President of the Chamber I feel distinctly at home amongst this audience, last addressing the membership on Sept 8th 2004 as incoming President, before Hurricane Ivan hit on the 11th September. I hope history does not repeat itself. Nonetheless, I am very happy to have this opportunity to discuss some of the important initiatives being undertaken by the Ministry of Commerce.

Before I begin my remarks I would like to congratulate the Chamber for its new Advocacy Agenda and Action Plan for the next three years which calls for members to become more actively involved in expanding economic opportunities for the greater good of our community and the

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country as a whole. I welcome the plan and fully support all of its areas of focus, particularly as it relates to employment and workforce development.

I also take note of the Chambers ambition to assist in the development of a simple, stable and effective business environment.

Having managed a family business for many years and as a small business owner myself, I am very familiar with the challenges and collective concerns that have been expressed by the business sector. However, as a representative of Government, I am also extremely encouraged by this Administrations willingness to take bold steps and pull out as many stops as possible, to create a more business friendly environment that serves to help rather than hinder business creation, development, expansion and success.

I say that I am encouraged by Governments commitment because from a purely economic perspective, all of the key macro-economic indicators confirm that the Cayman Islands business environment is healthy and robust.

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As the Hon. Premier expressed just last week at the Chamber Legislative Luncheon, our GDP is among the best in the region and has shown consistent growth over the past four years. It is anticipated that 2.1% growth will be recorded for 2017 and 2.4% is forecast for 2018.

Meanwhile, unemployment fell to 4.1% in early 2017 and as the economy continues to grow, further decline in unemployment figures is expected.

Given these very positive statistics, it would be easy for Government to shift its focus to other priority areas in need of attention. But instead, based on the recognition that a vibrant and thriving commercial sector is vital to our economic well-being and to the creation of jobs, the Ministry of Commerce, Planning and Infrastructure continues to work hard to positively improve the business experience of entities across the board. (i.e Micro, small, medium and large).

For example, my Ministry is looking to fervently engage in simplifying the process for obtaining a Trade and Business Licence, particularly as it pertains to small local entities. Efforts are underway to streamline the 3|Page

application process for new licences and allow the online submission of applications for grants and renewals.

These changes are being developed as part of an ongoing e-Government initiative which is reliant on inter-agency collaboration between my Ministry, and the Departments of Commerce and Investment, Computer Services, General Registry, Government Information Services and the EGovernment Unit.

In order to eliminate the duplication of effort and unnecessary paperwork on the part of the applicant, which currently exists, the inter-agency team has already begun streamlining the application process and preparations have begun with respect to amending relevant legislation.

This project will be completed in phases, and is being developed in conjunction with a new online application system which will be used by the Department of Commerce and Investment.

I am sure you will be pleased to note the first phase is expected to be completed by the end of this month – January 2018. It will eliminate the requirement for Trade and Business Licence applicants to provide a cover 4|Page

letter, business plan, strata approval and character reference. It also replaces the lease agreement currently required with a letter of intent.

To prepare for the launch of Phase One, my Ministry has published the Trade and Business Licensing (Amendment of Schedule) Regulations 2017 which removes the requirement for a business plan to be submitted as part of the Trade and Business Licence application process. The Regulations also eliminate the need to provide evidence of compliance with pension and health. To make this happen, a consequential amendment is being effected to the Trade and Business Licensing (Forms) Regulations 2015 and the Ministry will be seeking approval for these Regulations in short order.

Phase Two of this initiative will remove the bank reference or utility bill requirement for Caymanians, as well as the Department of Environmental Health and the Planning Department approval requirements. Also to be eliminated during phase two are the requirements to provide evidence of compliance with pensions and health and the requirement to submit corporate documents; these will instead be accessed directly from the

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General Registry system. I am happy to report that phase two is expected to be completed by the end of March 2018.

Since Phase Two will require amendments to the Trade and Business Licensing Law, 2014, my Ministry is currently working with the legislative drafting team on amending the Law. In terms of timeline, by the end of the first quarter of this year, my Ministry aims to have successfully implemented these major steps.

Another initiative which I consider to be most important and which features high-up on my priorities list, is the support that Government gives, through my Ministry, to the ongoing development of small businesses. In this regard, Government has opted to renew the micro and small business incentive programme for a further two years. In essence, this will allow these businesses to continue to benefit from a reduction of trade and business licensing fees.

It is recognised and accepted that the small business sector is the backbone of our economy and the Ministry staff and I are fully aware that

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new business start-ups are an essential component in our country’s continued progress and prosperity.

Consequently, Ministry staff are working with key stakeholders to establish a Small Business Development Centre to boost the level of support delivered to the small business sector. Services that will be provided by this umbrella organisation include: professional business counselling, technical training and assistance will also be given with respect to helping members gain access to funding.

For maximum effectiveness, these services are intended to be long-term, relationship-based and will include business development programmes that help to foster economic growth. As such, the Small Business Development Centre’s services are anticipated to complement existing business support services which are currently provided by the Chamber of Commerce and the Small Business Association.

Given the importance of collaboration and partnership, my Ministry intends to work closely with the Chamber of Commerce, the Small

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Business Association and other relevant stakeholders to take this plan forward.

Turning our attention now to the youth, I am very keen to ensure that opportunities exist that will allow the younger persons in our community to pursue their dreams of becoming an entrepreneur or independent wage earner. To promote this initiative and to strengthen relationships between students and businesses, my Ministry will continue to work with the University College of the Cayman Islands on the UCCI Student Consulting Programme.

This annual 10-week programme aims to match small business owners with a team of students who are enrolled in the university’s upper-level Entrepreneurship and Small Business Management course. From the business perspective, owners are able to benefit from receiving free and confidential business advice, whereas the students gain an opportunity to acquire hands-on experience by assisting business owners with issues they face in their businesses. We consider this to be a win-win scenario for both business owner and student, and look forward to this year’s programme launching in mid-February 2018.

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Moving on to the topic of investment, my Ministry has been reviewing the possibility of re-introducing the National Investment Bureau to encourage both local and overseas investments into the Cayman Islands. The proposed Bureau is visualised to be a “one-stop shop� for any investor wanting to do business in the Cayman Islands. The bureau is envisioned to facilitate investment, offer meet and greet services and provide investment brochures and booklets.

With respect to inward investments, my Ministry will look closely at the merits of attending trade shows and conferences with a view to further strengthening our Islands appeal through promotion overseas, to governments, individuals, organisations and the like.

In addition to these projects that are underway, I would like to highlight a few more initiatives that the Ministry is undertaking although time does not permit me to go into great detail. The Ministry, in conjunction with the Central Planning Authority (CPA), will be implementing a detailed analysis and revision of the Development Plan in 2018. The George Town Revitalization Project is an essential element for the sustainability of 9|Page

George Town and the Ministry has received a draft plan to review and will be hiring a coordinator to oversee the implementation of the plan. In addition, the Ministry will also continue with planned road works such as the completion of the Esterley Tibbetts Highway, Linford Pierson Highway and connector roads. These will all be completed to National Roads Authority standards which include curbage, drains and bike paths.

I trust this brief synopsis of some of the projects that are underway has sufficiently conveyed that the Ministry is not only listening to the concerns expressed by the business community, but we are taking the necessary steps to change the status quo and bring about positive improvements.

With that said, I also welcome opportunities for meaningful dialogue between the Ministry and the new Chamber Executive, led by Mr. Paul Byles. While it would be too much to expect agreement at all times on all subjects, I am happy to note that many of the Chambers action plans dovetail nicely with Governments policies, particularly in relation to community development and economic growth and diversification. I therefore look forward to maintaining and further strengthening the

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close, collaborative business relationship that exists between my Ministry and your membership.

I thank you for inviting me to share some of my thoughts with you today and I wish the Chamber continued success under your new executive leadership.

ENDS

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