ICT S ector In Fiji F T I B
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1 ICT S ector In Fiji Fiji Islands Trade & Investment Bureau September 2008
2 Government's Policy for the ICT Sector Government has approved 2 temporary studio city zones. USP Statham ICT Park & ATH Technology Park Government demarcated the Kalabo Tax Free Zone to a ICT Economic Development Zone with a 10 year tax exemption to attract ICT investments Government is currently developing an E-Commerce Bill to ensure that interest of suppliers & buyers engaged in transactions over the net are adequately protected The development of the industry is also critical under the National Export Strategy
3 FTIB s Role & ICT Sector Registration of the Foreign ICT investment proposals Facilitate the implementation of approved ICT projects Promotion of the ICT industry Lobby Government for ICT Incentives/Concessions Research on ICT Sector & Markets
4 ICT Sector Potential to create employment Deregulation of telecommunications industry Move away from standard to tailor-made incentive package on a case by case basis Terms of Reference to setup ICT Task Force Committee
5 Industry Overview Fiji is well positioned to attract ICT investments, starting from the lower end and moving up the value chain Fiji has managed to secure its position in attracting renowned ICT investors to locate their back offices offshore Current ICT business types include: Call Centers Mail Management Data/Voucher Processing Telehosting/Warehousing Software Development Audio Visual Disaster Recovery Management System
6 ICT Sector Overview Competitive Advantages World-class international connectivity Time Zone ICT Dedicated Zones Well trained, customer friendly and flexible workforce Low cost of labour Natural accent/language
7 ICT Sector Overview Competitive Adequate labour supply Advantages Fiji s good English-speaking populace Fiji s 93% literacy rate Low cost of doing business in Fiji Easiest place to do business in the Pacific Service culture of Fiji Pro-business/consumer policies & legislations
8 ICT Policy & Development Liberalisation of the telecommunication industry reduces the high prices for the international prices and leased lines. In particular the high price for international voice & data communications
9 Research on the ICT Sector TARPNZ Report Outcome: Fiji is well-positioned to attract ICT investments from lower end of the value chain and up the value chain 2006/2007 Market Research on Business Process Off-shoring Opportunities in Australia Outcome: one in two Australian Executives would consider Fiji as a possible off-shoring location in future Recommendation: Fiji should continue to emphasise those points that are regarded as positive attributes to attract off-shoring, including: lower labour cost; proximity to Australia and ease for Australasian Executives to travel to Fiji and good language skills and accents
10 Promotion of the ICT industry ICT Investment Missions CeBIT 2008 Participation ICT mission to India
11 ICT Related Work at Kalabo Tax Free Zone (KTFZ) Installation of Fiber Optic Cable. January 2006 conversion of factory building tailor-made to ICT needs 2007 Revised National Budget, KTFZ declared an ICT Economic Development Zone
12 ICT Incentives The ICT concessions declared by the Fiji Government is offered to the following types of businesses: Call Centres Ticketing, ordering and reservation service Database records and list management Data entry and processing Website development and management Software programming and design Tele-medicine Internet service provision. Retail or wholesale of information technology products, sale/care/repair or services of any items are excluded.
13 ICT Incentives 1. Temporary Studio City Zones - USP ICT Park and the ATH Park 10 year tax holiday 2. Income tax exemption available to ICT operators operating: in the declared Kalabo Tax Free Zone from 1 January 2007 to 31 December 2016; or anywhere outside the Kalabo Tax Free Zone who is granted a license between 1 January 2008 and 31 December 2010 for a period of ten years. Any operator may apply and pay a license fee of $1,000 per annum to the Commissioner of Inland Revenue.
14 Incentives/Concessions Accelerated depreciation allowances on buildings 20% Carry forward of losses 6 8 years 5% Import Duty for Computer Hardware Equipment 5% Import Duty on computer disks 40 % Investment Allowance for investment over $50,000 No withholding tax on dividends - the provisions of the income tax (dividend) regulations will apply, that is that dividend will not be taxable if already taxed at corporate level. Repatriation of Profits permitted Also Government has a tax regime for ICT businesses that are being established in the Northern Island (Vanua Levu). This includes: 300% tax deduction on capital investment, 200% tax deduction for first time employees and 100% deduction on export income.
15 DIVERSE & HIGH-SKILLED WORKFORCE Fiji s workforce delivers an ingrained Techno-Hospitality culture Fiji presents an experienced workforce used to working in shifts A high literate & English-speaking (neutral accent) workforce 93% literacy rate A well educated (excellent IT & hospitality exposure in education institutions & industry) workforce
16 A. Labor Supply Count of Graduates IT & Commerce Graduates; ,750 1,700 1,650 1,600 1,550 1,500 1,450 1,729 1,564 1,616 Year 1, B. Labor Rate for IT Graduates Type of work Operations Manager Supervisors Network Administrators Snr Programmes Jnr Programmers Technicians Keyboard operators Lower Scale (FJD) 20,000 15,000 20,000 15,000 8,000 8,000 5,000 Upper Scale (FJD) 40,000 30,000 30,000 30,000 15,000 15,000 10,000
17 Technology Park & the Kalabo ICT Economic Development Zone Both the Technology park & the Kalabo ICT Economic Development Zone are designated tax-free zone USP ICT Park infrastructure & amenities on the site include a fiber optic connection to the FINTEL Fiji hub via USP s hub. The university is currently developing a catering facility on the site to service tenants ATH Technology Park the site is on a 40 acre of land right next door to the FINTEL s Communication Centre with ease access to the SCCN. However its engineering design is still being reviewed by a planning firm from Brisbane Kalabo ICT Economic Zone modular designs provides facility to divide buildings to 5,000 sqft sections. Zone provides optic fibre reticulation in a loop formation connected to the Nasinu TFL exchange.
18 Future Plans for ICT Sector Facilitate and support in the development and growth of the ICT Sector Continue the marketing and promotion of the sector. Development of Tax Free zone in Lautoka City.
19 ICT Park In FIJI 1. USP Statham Park Layout
20 ICT Park In FIJI 2. ATH Technology Park
21 ICT Park In FIJI 3. KALABO ICT ECONOMIC FREE ZONE
22 Thank You Vinaka Vakalevu
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