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ContentsMessage From the editor- page 3

News President Zacca urges business leaders to practise good ethics- page 4

NCB invests in capacity building of sMes- page 6

President Zacca hails public sector workers- page 7

sPeCial FeatureOnline marketing and your bottom line- page 8

MeMBer FOCus Meet the new inductees- page 10

haPPeNiNgs Mentorship dinner highlights- page 12

executive lyme highlights- page 13

highlights from Chairman’s Club Forum- page 14

highlights from st James/eu closing Cceremony- page 15

News FrOM the CeO’s rePOrt- page 16

exterNal trade statistiCal BulletiN MarCh 2013- page 23

Message from the

Editor

The small and medium enterprise (SME) sector is a vital part of any economy, especially as it relates to job creation. As Jamaica struggles to break free from the current economic recession, developing this sector and ensuring that it continues to expand is one of the key obligations of the government and various players in the private sector, especially financial institutions. 

Undoubtedly, one of the main challenges facing many operators in the SME sector and would-be entrepreneurs is lack of financing for their businesses and ideas. However, other gaps exist, such as the need for more emphasis on training, capacity building and other areas for technical assistance that these small entities lack. It is for this reason that The PSOJ is proud to partner with National Commercial Bank Jamaica in its new initiative with the Inter-American Development Bank (IDB), as the Project

Management Office. The two institutions recently signed a Technical Cooperation Agreement valued at US $1,029,009 (NCB $567,009 and IDB $462, 000) to help a number of Jamaican SMEs reach their full potential. We will provide updates on the progress of this initiative in future issues of this publication.

In developing businesses, it is also important to place special emphasis on practising sound ethics. Jamaica has earned an unfortunate reputation for being one of the most corrupt countries in the world, according to Transparency International. The PSOJ is committed to its role of promoting good governance practices in the private and public sectors and we urge all stakeholders to do the same as we work together to ensure that Jamaica realises its goal of becoming ‘the place of choice to live, work, raise families and do business.’

(L-R) Marcus James, CEO, Access Financial Services; Sandra AC Glasgow, CEO of The Private Sector Organisation of Jamaica; Imani Duncan-Price, Group Marketing Mamager, JMMB Group

5 4

Jamaica has consistently ranked amongst the most corrupt countries in the world in recent years and in order for us to stage an economic recovery, this problem has to be properly addressed.

Speaking at a Kiwanis Club of North St. Andrew meeting, PSOJ President Christopher Zacca addressed the importance of developing ethical leadership and how this can help to reverse the trend of rampant corruption in the country.

Last year, Transparency International ranked Jamaica at 83 of 176 countries with a score of 38. On a scale of 0-100, 0 means that a country is perceived as highly corrupt; 100 means that a country is perceived to be ‘clean.’ “The good people at Transparency International aren’t embellishing the truth... The fact is, we have a tendency as a society to dismiss the importance of principles and ethics in both our personal and business dealings and we fervently believe in ‘begging a bly’ at every step of the way,” he said.

President Zacca Urges

Business Leaders to Practise Good Ethics

ethical leadership is far more complex than simply having the

right values or good character. The Business Roundtable Institute for Corporate

Ethics, an independent entity in the United States that works with CEOs of leading corporations, provided a framework for developing ethical leadership and

identified 10 key areas. Zacca highlighted five elements that he believes Jamaican CEOs and COOs should

utilise:

articulate and embody the purpose and value of the organisation. It is

important for leaders to tell a compelling and morally rich story, but ethical leaders must also embody and

live the story. This is especially difficult in today’s business environment where, thanks to social media

and advanced technology, everyone lives in a fishbowl. However, CEOs and other business leaders should be

ethical role models for all of society.

focus on organisational success rather than personal ego. Ethical leaders understand their place within the larger

network of constituents and stakeholders. It is not about the leader as an individual; it is about the goals and dreams of the organisation. Ethical leaders also

recognise that value is in the success of people in the organisation.

find the best people and develop them. Ethical leaders pay special attention to finding

and developing the best people, precisely because they see it as a moral imperative – helping them to

lead better lives that create more value for themselves and for others. Finding the best people involves taking

ethics and character into account in the selection process.

create a living conversation about ethics, values and the creation

of value for stakeholders. Too often, business executives think that having a laminated

‘values card’ in their wallets or having a purely compliance approach to ethics has solved the problem.

There is a fallacy that values and ethics are the ‘soft’ part of management. Nothing could be further from

the truth.

create mechanisms for dissent. It is critical to have an established and explicit way for employees to ‘push back’ if someone thinks that a

particular market, region, or internal process is out of line. This needs to be made part of the organisational culture. Zacca expressed gratitude that the State has

recently passed legislation that will provide security to enable whistleblowers to expose the illegal, corrupt

and unethical practices in the private and public sectors.

There are a number of benefits to ethical leadership, which can only bode well for individual companies and Jamaica on a whole. According to Zacca, the most important benefit is that the organisation – and by extension, the country – is much less likely to collapse.

“Secondly, long term profit or sustained profit-making is usually based on ethical behaviour that brings company goodwill among its stakeholders,” he continued, adding that it also leads to better relations in the workplace.

Zacca was full of praise for tertiary institutions The University of the West Indies, Mona; the University of Technology, Jamaica and the University College of the Caribbean for offering courses in the legal, social and ethical aspects of business. He also highlighted the work done by the PSOJ in this regard, starting with CEO, Sandra Glasgow, who was among a group of six Jamaicans who attended a two-week train-the-trainer programme on ‘Business Ethics for Caribbean SMEs’ in Washington DC. Arising out of this programme, the PSOJ, in collaboration with representatives from both the private and public sectors, implemented the FINPYME Ethics Programme, which specifically addressed the role that SMEs can play in transforming the negative image of Jamaica.

“This initiative fits in with the PSOJ’s long established role of promoting good governance in the private and public sectors in Jamaica. Through the work of our Corporate Governance Committee, we have made ground-breaking strides in raising the level of awareness of good governance among our member companies and other private sector interests in Jamaica,” Zacca pointed out.

In closing, Zacca urged the Kiwanis Club members, many of whom are business leaders, to assist the PSOJ in “spreading the word on why we need to engage in good corporate governance and business ethics” and help to change the negative perception about us regionally and internationally.

NEWS

6 7

President of the Private Sector Organisation of Jamaica (PSOJ), Christopher Zacca, has commended the government for the manner in which it was able to achieve the new Heads of Agreement with public sector workers.

“I want to commend the government’s negotiating team for the way you have carried out this negotiation, outside of the public ear and in a way that is respectful and with humility towards the unions,” said Zacca, addressing the signing of the Heads of Agreement for the 2012-2015 contract period between the government of Jamaica and public sector unions and associations. 

He congratulated the union leaders for their approach and thanked the public sector workers on behalf of the private sector for “once again stepping up to the table as members of Team Jamaica.”

Under the agreement, the unions have agreed to change their negotiating cycle from two to three years, along with wage restraint from 2012 to 2015.

Zacca reiterated a commitment made to Prime Minister, the Most Hon Portia Simpson Miller, that the private sector “will find ways to work with public sector employees to ease the pain” that has been caused by their financial sacrifice.

He also noted that the interest of business leaders, the unions and workers are aligned in “the joint goal of building a platform for economic growth and development with equity in the country,” and vowed never to see Jamaica return to its current plight.

While noting the high debt burden, which necessitated the need for such an agreement to be signed, Zacca said, “this is a time to come together as Team Jamaica with government, opposition, union leaders, private sector, civil society, as one team, that is going to take us out of where we are and into a bright future.”

President Zacca

Hails Public Sector

Workers

The National Commercial Bank Jamaica Limited (NCB) has once again demonstrated its commitment to the local Small and Medium Enterprises (SMEs) sector, as well as a national socio-economic developmental objective, by signing a US$1,029,009 Technical Cooperation Agreement with the Inter-American Development Bank (IDB).

“At NCB, ensuring that our Small and Medium Enterprises receive the support and training they need to propel them in their course towards nation-building is of

great importance,” stated NCB Group Managing Director, Patrick Hylton.

Among the components of the project will be the development and deployment of a credit scoring system; capacity building of SMEs, including family businesses; technical assistance for selected SME clients, as well as communication and knowledge management.

NCB will support the project through cash and in-kind contribution totalling more than US$500,000 ($47.5 million), which

represents 55 per cent of the overall project budget. The bank will also create a special pool of funds (approximately $500 million) at an attractive interest rate for access by qualified participants in the programme. The project will run for up to 36 months following the signing of the agreement.

The Private Sector Organisation of Jamaica (PSOJ) has been appointed as the Project Management Office for the supervision and execution of project activities.

A novel concept associated with this project is the use of a ‘Shark Tank’ concept, dubbed ‘Capital Quest,’ to allow SME participants, after being exposed to some of the capacity building modules, to solicit financing from a panel of financiers including bankers, angel investors and venture capitalists. PSOJ President, Christopher Zacca noted, “It is one of the first programmes in this country to offer young entrepreneurs the opportunity to access matching equity funding from a panel of financiers. This is an absolutely fantastic part of this project and it demonstrates the creativity and foresight of NCB and IDB.”

Remarking on the IDB’s involvement in the partnership, IDB Country Repesentative, Gerard Johnson commented, “It is welcoming to have our name associated with the growth side of the challenges facing Jamaica. Through this partnership, we are grateful for the opportunity to do something that will contribute to another aspect of economic growth.”

NCB invests in Capacity Building of SMEs

The objectives of the agreement are to increase financing to small enterprises segments that drive economic growth

and to strengthen NCB’s capacity to significantly increase lending and

financial services to SMEs.

I want to commend the government’s negotiating team for the way you have carried out this negotiation, outside of the public ear and

in a way that is respectful and with humility towards the unions,

IDB Country Representative Gerard Johnson and NCB Group Managing Director, Patrick Hylton, sign the Technical Cooperation Agreement while PSOJ President Christopher Zacca, NCB’s Senior General Manager, Retail Banking Division, Audrey Tugwell Henry and Nadeen Matthews, Senior Assistant General Manager, Strategy, Marketing and Communications, NCB look on.

“

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9

and Your Bottom Line

Are you still promoting your business offline, unconvinced that online marketing works? You may be missing out on one of the fastest-growing marketing trends today.

A reputable online presence is essential for business success in our networked world. It increases brand awareness and loyalty and puts you close to your customers and what they want from you. They help shape your products and services and the engagement does wonders for your bottom line.

Working with a small budget in a tough economy brings headaches about where to put your marketing dollar, but smart local businesses – big firms and start-ups – that embrace Internet marketing reap substantial returns on their investment.

Here’s what these companies know about online marketing:

The Internet offers tremendous business opportunities, but simply having an online presence is not enough. You need to stand out with an effective strategy and winning content. If you are not sure your online marketing is working or you don’t know how to begin, it may be wise to outsource this service to professionals.

Digital marketing companies understand the online spaces where your business needs a presence and the platforms that yield the greatest results, freeing you up to work in your core competencies.

Contributed by Panmedia

it’s cost effective! You reach more clients on a smaller budget than the hefty sums conventional marketing demands. Bonus: many forms of online marketing are free.

variety, variety, variety Online marketing offers options for sharing

ideas, concepts and information, including social networks, email, audio, video, blog, social media,

RSS distribution and newsletters. In traditional marketing, you would need to select several media

outlets to cover all bases.

the world is your oyster You’re not limited to advertising your business in

one region or country only. It is now possible to go global with your message and reach millions.

target your audience You can zero in on specific demographics such as

gender, age and location, so your marketing dollars are wisely spent. You can even target specific income and education levels and occupation.

track real time results You can track real-time results using online analytics and tools to determine how your

marketing campaign is performing.

easily refine your strategyYou can test conversion rates at a fraction of

the cost of a traditional media campaign. If your marketing strategy’s ROI is poor, you can tweak

your campaign inexpensively.

build online engagement Online marketing makes it easy for the audience to engage with your products and services. This is a

great way to build brand loyalty, get people talking about your brand and get valuable feedback from

your customers.

Online Marketing

SpEcial fEaturE

10 11 MeMber focus

Meet our newest member companies:

Alternative Power Sources Limited (APS) APS was incorporated in 2005 from a merger between JamPearl Engineering and Construction (JEC) and Brightlight Solar. The company is a member of the Jamaica Solar Energy Association and the Solar Energy Industries Association (USA). Since its inception, APS has developed a strong reputation and its credibility has made it the authorised dealer for some major brands such as Xantrex Technology Inc, Outback Power Systems Inc, Southwest Wind Power, Bergey Turbines, BP Solar, Power-One Inc (Italy), Delta Lightning Arrestors Inc, Trojan Brothers and Calpak Solar Water Heaters (Greece). These partnerships have allowed APS to offer worldwide warranty and full technical support to its customers.

In January 2009, operations branched out into the region with APS Bahamas Limited, fulfilling the company’s goal of providing renewable energy solutions for the Caribbean while utilising local talent and expertise, gained through the exchange of technology by the worldwide companies represented.

BCW CapitalBCW Capital, located at 82 Knutsford Blvd, was formed in December 2011 as a

boutique securities dealer with the aim of providing an innovative product offering for institutional and high net worth clients in Jamaica and the Caribbean. The company opened its doors in July 2012, after obtaining its securities dealer license and pension investment license from the Financial Services Commission.

BCW Capital connects pools of capital with clients that need funding for projects, expansion, or mergers and acquisitions. These investment products are structured internally or via the company’s strategic relationship with leading global investment banking firms. BCW Capital is also licensed as a pension investment manager. 

DHL Express DHL is the first company that comes to mind when one thinks of global logistics. The market leader in the industry worldwide, DHL possesses expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. DHL Express has a global network of more than 220 countries and territories and about 275,000 employees worldwide, offering its customers superior service, coupled with local knowledge, to satisfy its supply chain requirements.

Green Sun Energy Plus LimitedGreen Sun Energy Plus Limited is central Jamaica’s trusted alternative energy solutions and energy saving supplier, located in Mandeville, Manchester. The partners and principals have 20 years experience in the alternative energy field and define their success by achieving the highest level of customer satisfaction. Green Sun is a member of the Jamaica Solar Association and has been identified by the Development Bank of Jamaica (DBJ) as an energy supplier. The principals are Paul Pedley, Chester Stewart and Tetlow Frith.

HRM Options Group InternationalHRM Options provides tailored human resource solutions to match the unique demands of its roster of clients. The company focuses on positively impacting the bottom line of small to mid-sized organisations by providing a comprehensive set of HR services that are typically only available to much larger businesses, giving them the benefits of a high-calibre staff, for a fraction of the cost. HRM Options provides both outsourcing and consulting services, with a number of customisable options available.

Jamaica Insurance Brokers Association (JIBA)The Jamaica Insurance Broker Association (JIBA) is a limited liability company set up to represent the interests of both insurance brokers and the public. All members are regulated advisors who pride themselves on the professional advice and range of products and services they offer, geared towards meeting the clients’ needs and requirements.

JIBA is the official voice of the broking industry, advising its members, working with the regulating body the Financial Services Commission (FSC), consumer and industry associations and other stakeholders on key insurance issues.

Additionally, the association provides technical support as well as guidance on regulation requirements, and continues to raise and maintain industry standards. It also assists its members in providing security to the public through education initiatives.

Sterling Asset Management LimitedSterling Asset Management Limited was founded in 2000 in response to an evident gap in the market for attractive medium- to long-term investment vehicles. Sterling was established with a capital base of $19.5 million. The company is licensed and regulated by the Financial Services Commission of Jamaica and provides investment advice to corporate, institutional and individual investors. Over the past 10 years, the company has experienced tremendous growth as a result of the confidence and satisfaction of our valuable clientele.

Sterling aims to preserve and enhance its clients’ wealth through sound investment strategies that achieve very attractive returns on a broad array of high quality financial products and services. The company offers carefully designed solutions tailored to each client’s profile to meet his/her investment objectives. Sterling also has a strong belief in good corporate citizenship and supports numerous outreach programmes that give back to our community and facilitate the development of a better Jamaica.

Sure Loyalty SolutionsSure Loyalty Solutions was incorporated in March 2011 as a customer relationship management and marketing consultancy company. Its core business includes the development, launching and management of loyalty programmes, both coalition and proprietary, customer management and analytics services and precision marketing.

Indies Pharma Jamaica LtdIndies Pharma was incorporated on December 9, 2003, founded by Dr Guna Muppuri, a family physician who sought to change the way his patients were able to access the medication they required. Dr Muppuri was also concerned by the lack of availability of certain medicines in Jamaica, which were widely available elsewhere in the world.

Indies Pharma has reaped much success since its inception, becoming the first Jamaican company to cop the prestigious 2009 Century International Quality ERA Award during the convention in Geneva, Switzerland. The award recognises excellence in the use of technology, innovation and management. It has also won the Bureau of Standards’ National Quality Awards in 2006 and 2008; the Montego Bay Chamber of Commerce Best New Business Award in 2006 and the PSOJ’s Employment Creation Award in 2007. Indies Pharma provides direct employment for more than 40 people and has been rated as one of the fastest growing pharmaceutical companies in Jamaica.

Meet the New

Inductees

Individual member Marian Ross, who also accepted on behalf of Sterling Asset Management

Dexter Tulloch, representing Sure Loyalty Solutions Paul Pedley and Tetlow Frith representing Green Sun Energy Plus Limited

The main focus of the first PSOJ Chairman’s Club

Forum of 2013, held on January 29, was on the

role of the Opposition in Parliament. However, the occasion also marked the beginning of a new phase

in the lives of nine local businesses as they were

officially inducted as mem-bers of The Private Sector

Organisation of Jamaica.

12 13 happENiNgS

The Membership Committee and other members of the PSOJ crew invaded Kingston’s newest hot spot, Cru, on Wednesday March 20 for the year’s first quarterly Executive Lyme. Members of the PSOJ’s Executive Committee, some of 2012’s 50UnderFifty awardees and current and prospective members of the PSOJ were in attendance at what was a very successful event.

Special thanks go to our sponsors: International Asset Services Ltd (headline sponsor), Caribbean Producers Jamaica Ltd., (owners and operators of Cru), Rainforest Seafoods, Jamaica Broilers and the Marketing Counselors Ltd.

PSOJ Crew

Takes Over Cru!

14 15 happENiNgS

Here are some highlights from the first PSOJ Chairman’s Club Forum for 2013, held on January 29.

Chairman’s Club Forum2013 highlights

The project came to a close earlier this month with a ceremony for the over 200 young people who successfully completed the training and employment programme, funded by the European Union, the Constituency Development Fund (CDF) and Global Gateway Solutions Inc.

The main objective of the St James Youth Training and Job Placement Project was to train and certify 200 people, mainly women, between the ages of 18 and 30, from communities in South St James for employment in the IT Communications sector. Maroon Town, Cambridge and Anchovy were the main communities targeted, as well as other towns in the wider St James area. Many of these communities were formerly banana-growing regions and are now experiencing high rates of youth unemployment due to the decline of traditional agricultural industries.

The project came to a close earlier this month with a ceremony for the over 200 young people who successfully completed the training and employment programme. The main speakers were Her Execellency, Paola Amadei, Head of Delegation of the European Commission and Hon Derrick Kellier, Member of Parliament for Southern St James. Here are some of the highlights.

Highlights from the

St James Project closing

ceremony

16 17 NEWS from thE cEo’S rEport for fEbruary 2013

contraction of Jamaica’s economy continued in Q4 2012The contraction of the Jamaican economy continued in the fourth quarter (Q4) of 2012 by the similar amount of –0.6 per cent, as was the case in the previous quarter. For 2012, initial estimates by the Planning Institute of Jamaica (PIOJ) is that the economy contracted by –0.2 per cent. During Q4 2012, Goods Producing Industries declined by –2.7 per cent while Services Industries were flat.

net international reservesDuring January 2013, Net International Reserves declined by -US$116.5 million to US$1,009.05 million, compared to US$1,125.6 million at the end of December 2012. January’s decline in the NIR reverses the small increase in December 2012 and restores the 20-month trend of consecutive month-over-month decline. This is not unexpected as the factors driving the decline in NIR – weak export performance and declining confidence in the Jamaican dollar – have not abated. Year over year (Jan 2012 to Jan 2013), the NIR is down by -US$873.6 million.  At the end of January 2013, gross reserves were adequate to finance 16.67 weeks of “goods” imports or 12.47 weeks of “goods and services” imports, just slightly above the 12 weeks international benchmark of reserves adequacy.

Economic highlights

foreign exchange rateUS Dollar: During January 2013, the Jamaican dollar depreciated by an additional $1.16 to $94.14, compared to $92.98 at the end of December 2012. Indeed, at the end of February 2013, the dollar was selling for $96.99 to US$1 and seems well on its way to breeching the $100 to US$1.00 level. For the first two months of 2013, the Jamaican dollar is down -$4.02 against the USD, compared to –$6.38 or –7.36 per cent during 2012 and by $0.74 or 0.86 per cent during 2011. This retreat into the safe haven USD is largely driven by uncertainty about when and what will be the terms of a new GOJ/IMF agreement; but more fundamentally, by diminishing confidence in the medium to longer-term prospects for the Jamaican economy. Pound & Canadian Dollar: During January 2013, the Jamaican dollar appreciated by $2.92 or 1.91 per cent against the GBP to $149.72 from $152.64 in December 2012. Against the CAD, the dollar depreciated in January 2013 - by $0.58 or 0.62 per cent to sell for $93.88 compared to $93.30 in December 2012.

interest ratesOver the past three months, there have been economically significant movements on four key interest rates. During December 2012, interest rates on the GOJ major benchmark - the six-month Treasury Bill - jumped 38 bps to 7.18 per cent after lingering below the critical 7.0 per cent measure of debt sustainability for 22 months from February 2011. Then in January 2013, the rate on the six-month T-Bill increased by an additional 28 bps to 7.46 per cent. This clearly suggests that the market is exacting a higher premium from the GOJ to fund its short-term financial requirements. This is possibly linked to the unsustainable debt dynamics of Jamaica and the waning credibility of the GOJ to service its debts as originally agreed.  In another rate movement, in late February 2013, the Bank of Jamaica announced that it was slashing 50 bps off its 30-day certificate of deposit to 5.75 per cent. As leeway and in justification, the BOJ cited weak demand conditions in the economy and the GOJ’s efforts at fiscal consolidation as tempering the inflationary impulses of the reduction. It is possible, however, that the BOJ was reducing the rate on 30-day CD - over which it has a greater measure of control, to keep downward pressure on the more market driven six-month T-Bill.

tourismStopover arrivals in December 2012 were 192,158 - a decrease of –2.8 per cent over the 197,713 stopovers recorded in December 2011. The number of cruise passengers also decreased in December 2012 by 4.9 per cent to 146,050 visitors, compared to 153,561 in December 2011. Regionally, stopovers from the US declined by –1.5 per cent in December 2012 to 113,530 compared to 115,252 in December 2011. Visitors from Europe, including the UK, declined by –8.5 per cent in December 2012 to 21,597 visitors compared to 23,612 arrivals in December 2011.

Stopover arrivals from the Caribbean recorded a 13.6 per cent increase in 2011 to 66,216, reversing a -10.8 per cent decline in 2010. 

Economic data for the first quarter (Q1) of 2013 has been decidedly mixed, with the majority falling below expectations. However, the pallor of uncertainty that

hung over the market seems to have more of a political than economic genesis. In the United States, there was additional proof of consolidation in the housing

market, with ‘Pending Home Sales’ rising to 4.5 per cent beating expectations for a 1.7 per cent rise while ‘New Home Sales’ was also five times higher than forecast. The Institute of Supply Management Manufacturing

Index came in better than expected and the ‘Empire Manufacturing Index’ and the ‘Richmond Fed’

Manufacturing Index’ also turned positive, reversing the negative print of the past month. Though ‘Personal Income’ of –3.6 per cent came in below expectations,

‘Retail Sales’ were slightly better than expected and the University of Michigan Consumer Confidence came in

better than expected at 77.6. 

Despite the positive print on these US data, the issue that dominated market sentiment and discussions

was ‘sequestration’ - the automatic spending cuts that began to take effect at midnight on March 1, in the

absence of an agreement among US lawmakers on ways to reduce the Federal deficit. Opinions among some

analysts are that the US$85 billion in spending cuts are unlikely to affect the economy, but others think that

the demoralising disagreements among US lawmakers are likely to affect business and consumer confidence, and could shave as much as 0.5 per cent from US GDP

growth during the first half and cost as many as 750,000 jobs.

In Europe, uncertainty about the outcome of Italian elections seem to have a greater dampening effect on

market sentiment than the usual litany of bad economic news coming out of the various countries. A further decline of –0.6 per cent for Euro-zone Q4 2012 GDP showed that the four-year long recession in the Euro-zone continues unabated. This view is supported by

readings of the forward-looking Purchasing Manager’s Index (PMI) for three of the larger economies in the European Union - Italy, France and Britain - which all persisted below the 50 mark indicative of future

economic expansion. Nonetheless, this dreary economic news was overshadowed by the uncertainty surrounding the Italian elections which was felt to have the potential of again pushing-up borrowing costs and

reigniting the Euro-zone funding crisis.

In China, the lowest reading (50.1) of PMI (Manufacturing) in four months cast a pall over robust imports and export figures and renewed fears that the

Chinese manufacturing juggernaut might be slowing. In Japan, the government’s efforts to lift its economy

out of its fourth recession in 12 years and decades long deflation by committing to open-ended asset purchases which weakened the Yen, sparked fears of a currency

war, adding to uncertainty. Micro news of positive earnings reports and mergers and acquisitions gave a

fillip to equity markets, but uncertainty and weak macro conditions capped gains.

Otherlocal news

The global picture

18 19

The focus of the meeting was on the UNCTAD research on Corporate Governance Disclosure Findings. Dr Axel Kravatsky joined the meeting by Skype at 8:30am to discuss:1. The UNCTAD report.2. Collaboration with The PSOJ on a presentation of the report to listed companies (in collaboration with JSE).3. Prospects for collaboration with The PSOJ on the writing of a Code of Corporate Governance for Trinidad & Tobago

Dr Kravatsky’s Skype presentation was well received. He noted that comparing Trinidad and Jamaica, Jamaica has the highest distinction of all countries surveyed, while Trinidad has the lowest. To strengthen the system, owners need to know more about their company’s operations and he noted that this has become more evident in Jamaica over the last 14 years.

The idea of the Caribbean Corporate Governance Institute is based on The PSOJ’s Corporate Governance code, which refers to having a central body that can control and direct everything. Dr Kravatsky noted that The PSOJ’s Code is the single code in Jamaica to which no company has indicated their formal adoption or made reference to. He therefore thought it would be useful to have a central reference.

The chair advised Dr Kravatzky that a special meeting would be convened with him to further discuss his findings. Marlene Street-Forest will contact him personally to also discuss his findings on the JSE. The Chair noted that the message has to be clear: we must not limit ourselves to corporate governance. It was agreed that once the final report is received, Dennis Brown (who collaborated with Dr Kravatzky on the report and represented The PSOJ at the UNCTAD meeting in Geneva) would be invited to the special meeting.

National Commercial Bank was the overall JSE best practice winner. Applicants from junior stock market companies did not meet the necessary requirements for the corporate governance awards; therefore, no company was chosen from that group.

Mrs Marlene Street-Forrest disclosed that the JSE will be hosting a workshop as early as March of this year, which the PSOJ will be asked to facilitate.

Corporategovernance

commitee

The Education and CSR Committee, and the Trade Policy Committee have been formally handed over to the Jamaica Employers’ Federation and the Jamaica Exporters’ Association respectively, and the members of both committees have been advised of this.

The DBJ had provided a grant of US$1.8M to The PSOJ for matching grants for SMES to encourage them to use the services of the Commercial Alternative Dispute Resolution Centre (CADRC). The CADRC is now closed and only one grant of the equivalent of US$1,000 was disbursed. The PSOJ’s CEO has asked the Managing Director of the DBJ, Milverton Reynolds, if the balance of the grant could be used to support corporate governance training for emerging growth companies in the SME sector. The idea is to select 10-15 companies (including companies controlled by some of the 50UnderFifty Business Leaders) and provide them with training and guidance in setting up/managing their Boards to improve their Board/Corporate governance practices. Mr Reynolds has agreed in principle and PSOJ CEO Sandra Glasgow is to submit a formal proposal

The Anti-Crime/Anti-Gang Bill is in its final stages. The final comments made by the various interest groups were included and amendments made to the Bill. The Legislation Committee will approve the Bill which will be tabled in Parliament. It is the intention of the Government to pass the legislation before the close of this financial year.

Meeting with National Security Minister Peter Bunting – As promised, the electronic presentation made by Minister Bunting to committee members on January 30 was received and was circulated. Chairman Lt Commander George Overton felt that Minister Bunting’s presentation went well - his strategies were well articulated and his projections were realistic. He said that the intention of the Committee is to meet at a later date with both Ministers simultaneously.

Proposed Security Fora with Minister Bunting – The PSOJ made contact with Minister Bunting’s office to ascertain available dates for the Clarendon forum and also dates for the rest of the year at different locations across the island. This activity is on-going. Funding/Sponsorship for the forum has not yet been confirmed. A pro forma invoice was received for the Clarendon forum. This will be sent to Committee member Maria Williams (GraceKennedy) for possible sponsorship.

On February 2, Chairman, President Christopher Zacca met with Minster of Science, Technology, Energy and Mining, Phillip Paulwell, regarding the Request for Proposals (RFP) to supply up to 115 MW of electricity generation capacity, among other energy related issues. Mr Zacca informed that Minister Paulwell and his team are still examining the proposal submitted and will be making an announcement at the end of March. The private sector awaits this announcement to determine its position.

An energy audit of The PSOJ was conducted by Eaton Haughton of Caribbean Esco. Following the audit, contact was made with the Private Financing Advisory Network (PFAN) to ascertain if they would fund the implementation of the project which includes retrofitting the PSOJ building as a model site for energy conservation. Work continues to finalise and implement this project.

The Committee’s Terms of Reference were reviewed. Bruce Levy agreed to make the recommended changes to the document in order to have it adopted.

Standing Commitee

on National Security

Energy and Environment

Commitee

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The Crime Stop Coordinator’s report highlighted the following for the month of February:

• The number of calls received was 79, four less than the 83 received in January.• The success ratio was 1:7, compared to 1:6 in the previous month.• The number of calls made to 311 was 70, six less than the 76 recorded in January.• The number of arrests made was four, two less than the previous month.• A total of $20,500 was paid out in February. This is $21,700 less than the $42,500 paid out in January.• $1,712,400 was the value of narcotics recovered, compared with a value of $8,494,300 for the narcotics recovered in January.

Crime Stop

prospects sent information during the period:• Prime Developments Ltd.• Honey Bun Ltd. • Rattray Patterson Rattray • Creditinfo Jamaica Limited • DunnCox • Foodie Focused Ltd.• Chronicles Ja. Ltd.

resignations• The Business District• Stocks & Securities• William Wilson Ltd.• Laurence Stewart (migrated)• Advanced Digital Services

Membership

The meeting was informed that The PSOJ has reached out to proposed sponsors in a different manner by structuring value propositions for sponsorship opportunities for more than one event, rather than on a per function basis and had sent these requests earlier, rather than at the time of the event. The prospective sponsors were also given the option to sponsor single events/activities.

Mentoring of Emerging Entrepreneurial Leaders Dinner – A mentorship dinner will take place on March 22 with Guest Mentor, Donna Duncan Scott.

A database of prospective entrepreneurs to be invited for the year is being developed, as well as a schedule for the proposed Guest Mentors for the year.

Terms of Reference - The Terms of Reference were reviewed and adopted by the committee. The committee’s scorecard will be drafted, circulated and discussed when next the committee meets.

50UnderFifty Awards Banquet - The committee had not met since the 50UnderFifty Awards Banquet in November and a review of the event was given by Mrs Glasgow. Everyone felt that the event was a major success and commended The PSOJ and The Gleaner on the success of the event. The suggestion was made to stage another 50UnderFifty Awards Banquet. This generated a very energetic discussion looking at the pros and cons of having a similar event this year.

Request for Proposals for the re-designing of The PSOJ’s website were being solicited. An engaging discussion ensued on the need to have the organisation’s website, and in particular, the Facebook Page, to give more value to members and generally to promote the PSOJ. The meeting was informed that a meeting was held with a consultant to discuss the re-design of the website. The committee recommended that Proposals be obtained from PSOJ members.

The first Membership Committee meeting for the year which was held on February. Highlights are as follows:

Executive Lyme - The first quarter Executive Lyme is slated for Thursday, March 21. The proposed venue is the new location of Caribbean Producers Jamaica on Lady Musgrave Road, Cru. CPJ has advised that they are interested in hosting the event. Details of the arrangements are being finalised. The Committee welcomed the news that International Asset Services has agreed to be cash sponsor for all four Lymes scheduled for 2013.

Agreement for product sponsorship for the year was received from Rainforest Seafoods. Jamaica Broilers has not committed to a full year’s sponsorship, but on a per function basis and based on their ability. The Marketing Counselors will continue to do the flyer for the Lymes.

applications formembership approved by psoJ executive:• SMS• Mona Geoinformatics• Caribbean Producers Jamaica• Toyco Ltd T/A Hotel Four Seasons• Interglobal Technology Solution• Faithlyn Stewart

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db/ncb proJect- atn/12712-JaBarrington Bryce has been awarded the contract of Project Manager for the IDB/NCB Project ‘Institutional Strengthening of NCB for the Expansion of Small Business Financing.’ He was selected from among three candidates interviewed. Mr Bryce has excellent and very relevant project management experience, having worked with international agencies such as the IDB and the World Bank. His contract began on March 1 and he will be based at NCB in the Project Management Office.

NCB hosted a formal signing ceremony and press conference for the project on February 25 at its head offices in New Kingston.

At the second meeting of the Project Steering Committee (PSC) held on February 25, it was agreed that separate bank accounts (in Jamaican and US dollars) would be opened to receive NCB’s counterpart contributions. This is in addition to the accounts already opened to receive IDB’s contributions.

The Operations Manual which includes the Annual Operating Plan was approved by the PSC on March 1. We have since submitted to the IDB a letter advising that the Conditions Prior to First Disbursement have been met. We are awaiting the bank’s non-objection letter to submitting a request for the first disbursement.

Projects

Marketing and Public Relations

department

february 15 - special meeting of the membership to discuss tax measuresPresident Zacca issued an invitation to PSOJ members to attend an emergency meeting to discuss the tax measures recently announced by the government and the likely impact these measures will have on businesses as well as the general economy.  The meeting resulted from the announcement made by Minister of Finance, Peter Phillips, to the nation on February 11 about the National Debt Exchange and the Minister’s announcement in Parliament on a raft of new tax measures, some of which will be effective March 1, 2013. A copy of Ministry Paper 15/13 containing the details of the announced tax measures was circulated.

The special meeting was held at the Jamaica Pegasus Hotel, on Friday, February 15.  Although given short notice, the meeting was very well attended by the membership and a lively and candid discussion on the state of affairs of the nation, concerns and the way forward ensued. Notes were taken from the meeting for further action by the PSOJ Executive and Officers.

ExtErNal tradE StatiStical bullEtiN march 2013

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