push for

Western Samoa push for investment

WESTERN Samoa last month launched a campaign in Austra lia and Hong Kong for invest ment in its manufacturing industries.

Finance minister Tuilaepa Sailele, peaking to a meeting of Sydney busi nessmen as head of a high-level del gation from the public and private ectors, promised a variety of tax incen ives for investors including income tax holidays” of up to 10 years.

“We believe there is scope for Austra an investment in Western Samoa in the )rm of light manufacturing industries, nd in the development of the tourist

industry,” Sailele said.

The Western Samoa drive follows establishment last year of Yazaki Samoa, a subsidiary of the Japanese firm that also has operations in Australia.

The Apia-based company now em ploys more than 600 Samoans manufac turing automotive electrical components for export to Australia, a figure that could soon increase to 1000.

Chief executive Peter Ray said his company had been impressed by the lack of red-tape in Western Samoa govern ment circles that enabled it to set up its

plant quickly.

Sailele said the investment promotion mission was launched because Western Samoa’s agricultural base had “not performed well” in past years, a situation compounded by recent cyclones.

This had resulted in a fall in pro duction and in foreign exchange earn ings. Agriculture and the public sector also had been unable to absorb annual increases in the country’s labour force.

To help develop export-oriented

manufacturing, import-substitution in

dustries and tourism, the government was offering incentives such as income tax holidays of up to 10 years and the import of raw materials and building materials free of duty or excise tax.

Large manufacturing enterprises

could negotiate additional incentives with the government, the minister added.

Western Samoa also has available an offshore financial centre established un der legislation covering international companies and trusts, offshore banking, trustee companies and insurance. □