CDA steps up campaign to lure foreign investments

As the CNMI faces an apparent tug of war between whether prioritizing concerns by the federal government or addressing problems faced by the business community amid the recession, the Commonwealth Development Authority has positioned itself to aggressively promoting the islands as an ideal place for foreign investments.

In the last three years, the commerce department disclosed foreign investors pumped only about $3.5 million in fresh capital to the Northern Marianas economy through a variety of new business activities.

Between February 1997 and March 2000, Northern Marianas witnessed the entry of only 10 new foreign companies engaged in real estate, construction, computer consulting, wholesale, retail, furniture production and garment embroidery.

Of all 10 companies, a condominium and apartment complex company invested the largest amount at $2 million, while real estate developer infused $250,000 into the business community.

All the other eight companies pumped $150,000 each, the minimum initial capital required from foreign investors, into the Commonwealth economy.

Development Authority Executive Director Marylou S. Ada said, however, that the challenge remains for the CNMI government and its agencies to spur economic growth while keeping the federal government from taking over local control of minimum wage and immigration.

“Reform legislation to address the economic downturn conflicts with measures instituted to address the concerns of the United States Congress,” Ms. Ada said, referring to the Omnibus Reform Bill which repeals major laws enforced to halt takeover plans.

The Reform Omnibus Bill was primarily introduced to facilitate the growth of the Northern Marianas business community in the midst of a recession by exempting Rota and Tinian from the moratorium on the issuance of garment factory licenses and instituting alternatives in meeting the required $100,000 security deposit on foreign investments.

The proposed legislative measure also re-allocates the quota on the number of nonresident workers for each garment company based on need, provides flexibility on the allowance of replacement of guest workers who have departed the CNMI or have transferred to another employer on island.

While the debate whether which of the two issues should be on top of the CNMI government’s priorities, Ms. Ada said CDA continues to aggressively promote the CNMI as an ideal place to invest.

CDA pays for the Northern Marianas to be featured or advertised in several business and trade magazines throughout Asia and the Pacific like the Pacific Islands Trade and Tourism Directory, and a supplement to the U.S. News and World Reports.

The development authority also entered into a partnership with the University of Hawaii’s Pacific Business Center to provide technical and advisory assistance to private sector clients.

“Assistance is provided in the development of business plans, feasibility studies and loan packages.
The Center also offer training and workshops in various business areas.
Through such offerings, CDA is able to develop technical expertise in business and financial management,” Ms Ada said.

She said the agency also continues to seek ways of leveraging its limited funds to increase opportunities for new and existing businesses to pursue ventures, as well as build positive relations with clients and serve them not only in the initial investment of their business but throughout the term of their loan.