Business groups call for more gov't incentives to boost productivity

 

The Micro Small and Medium Enterprises (MSME) Alliance and the Jamaica Manufacturers and Exporters Association (JMEA) are calling for the government to provide more incentives to boost productivity as well as reduce operational costs for businesses.

 

MSME Alliance President Donovan Wignal says the government needs to find ways to incentivise the establishment and expansion of businesses such as reducing interest rates.

 

With electricity at 32 cents per kilowatt hour, the increased cost of security guards and growing wages, Mr. Wignal said businesses must also find creative ways to reduce cost. 

 

"For people to survive and those that are already manufacturers in Jamaica, it has to be one of continuing to install solar systems. Most large companies have been doing that and the automation. You have to find ways of keeping your costs down so that you can compete with the import costs of finished goods. You have to be able to compete on the export market," he suggested. 

 

The JMEA has cautioned the Central Bank about increasing interest rates in response to inflation. 

 

"The interest rates now are very high and we see it directly on the construction industry. When people are going to try and find mortgages and have to pay 8 or 9 per cent, very few people can afford houses and in particular the cost of housing has gone up so much. So we have to be very careful about trying to impact inflation and the effect of it by salary increases by increasing interest rates at the same time," JMEA President John Mahfood warned.   

 

Mr. Mahfood and Mr. Wignal were guests Thursday on the Morning Agenda on Power 106FM.