Swaratsingh: Government to create enabling environment for business

IT is very rare to have someone speak on the state of Trinidad and Tobago’s economy and the business community as candidly as Minister of Planning, Economic Affairs and Development Kennedy Swaratsingh did at the TT Chamber of Industry and Commerce’s Business Outlook meeting at the Hyatt Regency, Port of Spain on July 16.

The minister with a combination of wit and honesty gave his take on the state of the non-energy sector and its development. He once again opened the door for communication, collaboration and integration between the public and the non-energy private sector.

Coming out of conversations with various chambers, Swaratsingh, who had not been to the country for the last 15 years, noted that there has not been enough growth in TT, given the amount of resources it has available.

He said the government may have to adjust its role in the relationship between itself and the private sector as it has been one of the largest investors in TT businesses.

But most of all, Swaratsingh highlighted the need for government to create an enabling environment for the business sector to engage in its own growth and development.

TT business should be growing faster

Speaking from his experience working with many regional and international finance corporations such as IDB and World Bank, Swaratsingh encouraged the chamber’s members, assuring that despite its challenges, TT is still a competitive force in regional business.

He said what is consistent is that many investors still view TT as a viable place to do business, despite the domestic challenges.

In its country report for June 2024, the International Monetary Fund (IMF) said TT was seeing a gradual and sustained economic recovery for the first time in a decade, mainly owing to a growth in the non-energy manufacturing sector.

The non-energy sector grew by 4.2 per cent in the past three to four years, with the manufacturing sector being the main contributor to non-energy exports.

The IMF said non-energy manufacturing accounted for 95 per cent of TT’s non-energy exports.

But businesses have complained about the ease of doing business for years, despite seeing growth in many non-energy sectors such as manufacturing, tourism, creative industries, financial services and technology.

A lack of robust policy and systematic challenges, such as issues at the ports and forex shortages, have stymied the progress of the business sector.

The energy sector, also, has seen significant contraction. Last year, the IMF said the energy sector contracted by 3.2 per cent.

The energy sector supplies about three-quarters of foreign exchange, and as such, contraction in the sector affected forex supply.

Still, Swaratsingh said the TT government remains the private sector's biggest customer.

"The government has been the largest investor, largest employer and biggest consumer of goods and services," he said. "Given where we are and how many of you know our revenue position, we can no longer continue to do that."

This is where he shared one of his first ideas of the government becoming an enabler of business, rather than a consumer.

"When you think in terms of where our GDP will go or how we will engender growth over the next five years or so, a lot of it is going to be dependent on how we engage with you as a private sector, how we create the environment for you to thrive and what kind of support we give you."

In May, Swaratsingh announced plans to secure up to US$5 billion in funding over the next three to five years during bilateral discussions with World Bank.

At the Economic Outlook forum, Swaratsingh said this was one of the ways that the government would redirect funding to the private sector.

"There are many ways to partner with the private sector. So if we want to get any kind of growth, we can’t use only the sovereign book or sovereign space.

"We have to find new ways of engaging, connecting private sectors locally with the private sector internationally and bringing that kind of investment needed to drive it."

He made similar comments about small and medium enterprises (SMEs) at the Trade and Investment Convention 2025, at the Centre of Excellence, on July 18.

"We need to create better funding for SMEs and better opportunities to market their products.

"This is something that we have spoken about, but I am not sure we have executed well. A lot of these businesses have done well in spite of the environment, not because of the environment. We have to give them the access they need, both to local markets and international markets."

Untapped opportunities

Swaratsingh noted that there are many untapped opportunities in several industries that have been left to grow on their own.

He said those opportunities, with investment and support, could boost TT’s economy.

"I am sure the Minister of Energy will do a fantastic job in the growth of the energy sector and continue to build on what is there, but what we have not been good at is driving growth in the non-energy sector. That is where we are going to have to bring revenue contributions up.

"We have to take deliberate effort to make sure, whether it is through the manufacturing sector or agriculture, to create a focus on making sure we facilitate the kind of investment we want to see."

He pointed out opportunities in several areas such as the coconut industry.

"Just recently we got a letter from someone who wants to invest in the coconut industry here and put $100 million into the industry.

"One of the things our manifesto speaks to as well is the cannabis industry, and there are ways to create that.

"And, well, I shouldn’t be saying this, but a couple of you may need a brownie or two," Swaratsingh quipped.