TTMA Newsletter 2011

Value

JamaicaOpen & ready for growth

Excellence

55thAGM

TTMA members awardedfor excellence

A new national valueproposition

TTMA’s 55thAnnual GeneralMeeting

Recycling

MANUFACTURERTHE

PUBLISHED QUARTERLYBY THE TRINIDAD & TOBAGO MANUFACTURERS’ ASSOCIATION

Jan - Feb 2011

A Year of CollaborationDOMINIC HADEED

TTMA’S NEW PRESIDENT

Volume 32 April 2011

A look at the localrecycling business

100%T&Tried rue

Immediately following his election

as president of the Association, Mr.

Hadeed began to work, delivering

his inaugural address at TTMA's

Business Breakfast Meeting

featuring the Hon. Karl Samuda,

Minister of Industry, Investment

and Commerce, Jamaica.

The Business Breakfast

Meeting which was attended by

2 0 0 p e o p l e c o m p r i s i n g

businesspersons, members of the

diplomatic corps, TTMA members,

stakeholders, specially invited

guests and members of the media,

provided the ideal opportunity for

Mr. Hadeed to set the agenda of the

TTMA for the next year, and

establish its role in the local

business community.

His address which focused on

the concept of dreaming to dare

and not merely daring to dream,

linked the ideals of achievement,

p r o s p e r i t y, s u c c e s s , a n d

productivity to good ideas, and

sealed his intention to break away

from the conventional stalemate

that “supports bureaucracy and

stifles productivity.”

“I am and you are, currently in

the company of people who are

experts at the business of seeking

consistent productivity. And we

must now work towards becoming

Dare to Dream

TTMA’s 55th AnnualGeneral Meeting

better than that, and seek

constant collaboration,” he said

referring to the topic of regional

integration and private sector

partnership.

“We need to overcome the

conventional pattern of self-

interest. We need to focus on

what is good and common among

us. Let us not focus on our

differences. That is my dream and

my challenge as President of the

TTMA. I cannot do it alone. Let

us move forward together.”

To highlight the need for a

stronger collaborative system

among CARICOM states, Mr.

Hadeed referred to an old joke

that left a very poignant message

with him, the story of Caribbean

crabs versus North American

crabs that were both kept in a

barrel. The North American crabs

he relayed, had to be kept covered

as they would unite with the strong

helping the weak so that all

e v e n t u a l l y e s c a p e d . T h e

Caribbean crabs on the other

hand, would intentionally pull back

other crabs that attempted to get

ahead and escape.

“The message that haunts me

is that it is the biggest and best of

the North American crabs escape

first, but it is the biggest and juiciest

of the Caribbean crabs that are

eaten first,” he said

“We are presently living

through some very interesting

times; the world is undergoing

some very rapid changes, which

presents us with a unique

Mr. Dominic Hadeed, president of the TTMA delivers the inaugural address at TTMA's Business Breakfast Meeting

00ISSUE

On Tuesday 29th March, 2011 the

Board of Directors and other members

o f t h e Tr i n i d a d a n d To b a g o

Manufacturers' Association (TTMA)

elected Mr. Dominic Hadeed as the

43rd president of the Association at its

55th Annual General Meeting held at

the Trinidad Hilton and Conference

Center in St. Ann's.

Mr. Hadeed will serve as president of

the Association for the term 2011-2012

after two successive terms under the

leadership of Mr. Greig Laughlin from

2009-2011. The AGM also saw the

election of six members to the Board of

Directors who will spearhead the

works of the TTMA Secretariat for the

upcoming year. The TTMA recognizes

the work and efforts of its outgoing

directors for the term 2010-2011- Mrs.

Gisele Marfleet -Vice President, Mr.

Satnarine Bachew, Mr. Langston Roach

and Mr. Anthony Aboud, and welcomes

the members of the new executive

55thAGMStatement

THE MANUFACTURER PAGE 3

To be the voice forbusiness enterprisearticulating policy,providing qualityservice andcontributing tosustainableeconomic growthand success

Mr. Dominic HadeedDr. Trevor TownsendMr. Richard LewisMr. Charles RossMr. Allan De BoehmlerMr. Amjad AliMr. Paul QuesnelMr. Wayne Yip ChoyMr. Andrew AleongMr. Craig La CroixMr. Nicholas Lok JackMr. Dave RamkisoonMrs. Natasha Mustpha-Scott(Chief Executive Officer)

PresidentDeskof theThe

Vision

of Directors

Statement

Board

Do You Need to Contact us?Trinidad & TobagoManufacturers’ Association2nd Floor, TTMA Building,

#42 Tenth Avenue, Barataria

P.O. Box 971, Port of Spain

Tel: (868) 675.TTMA (8862)

Fax: (868) 675.9000

Email: [email protected]; [email protected]

website: www.ttma.com The Trinidad and Tobago Manufacturers’ Association

Secretariat located in Barataria

I wish to welcome you all to the latest

issue of the “Manufacturer” which

has been redesigned with a more

modern and contemporary look, and

complements the many changes and

revisions that are taking place within

the TTMA Secretariat. In addition to

the six new members of the Board of

Directors, appointed at TTMA's 55th

Annual General Meeting held on the

29th March, 2011, the TTMA is

working to establish a new direction

and vision for the association, and will

communicate these to you in the

months ahead. I thereby encourage

you to give your support and

feedback to the Associat ion

wherever you can, as we begin this

new chapter under my leadership

together.

While 2011's economic forecast

projects a year of recovery, there is

still much work to be done to increase

this country's competitiveness and

restore confidence to the business

community, and this can only be

accompl i shed wi th cons tant

collaboration. The TTMA's mission

for the year ahead will focus on

working together with other

associations, stakeholders and

NGOs, government, and other

business support organizations, both

locally and regionally, to ensure that

we pool our strengths and efforts

together for the greater good of our

national community.

In this regard, the TTMA was

pleased to host the Hon. Karl

Samuda, Minister of Industry,

Investment and Commerce of

Jamaica on March 29th, 2011 at our

AGM Business Breakfast Meeting,

a n d i s c o n f i d e n t t h a t t h e

opportunities for greater regional

integration and collaboration which

were presented at this event will

materialize in the future. The Hon.

Stephen Cadiz, Minister of Trade and

Industry who gave a special address,

also highlighted the government's

commitment to work together for

greater trade and business between

T&T and Jamaica, and the need to

establish greater communications to

facilitate the trade process.

T h e a n n u a l Tr a d e a n d

Investment Convention (TIC) which

takes place from June 15th-18th this

year has partnered with the

Caribbean Investment Forum (CIF)

which runs from June 13th- 14th, to

form the Trinidad and Tobago

Investment week. These two events,

another successful example of a

collaborative effort, will be critical to

s t r e n g t h e n i n g t r a d e a n d

i n v e s t m e n t b e t w e e n t h e

Caribbean and the Americas and

will link over 35 countries to forge

new business opportunities and

increase trade within the region.

Almost immediately following the

Trade and Investment week, there

will be a Trade mission to

Guatemala from June 21st-24th,

and I encourage our members to

capitalize on these opportunities.

The Association is encouraged by

the current strength of its business

partnerships and the possibility of

stronger ones in the future, and

will maximize our efforts to ensure

that our members are prepared

and in the proper business-

oriented framework to take

advantage of new opportunities.

I wish to thank you all for the

honour entrusted in me to serve

you as President, and I have already

begun to convey the message that

the TTMA supports initiatives that

enhance business transactions and

competitiveness, reduces the cost

of doing business, and reduces

bureaucracy and inefficiency. I look

forward to a very dynamic and

invigorated year with your

encouragement and support.

The TTMA's Business Breakfast

Meeting which was held on

Tuesday 29th March, 2011 at the

Hilton Trinidad and Conference

Center, St. Ann's was a resounding

success, as the Association

partnered with the West Indian

Tobacco Company Limited

(WITCO), to host the day's

featured speaker, Jamaica 's


and Commerce the Hon. Karl

Samuda.

Speaking on the topic, “The

state of Intraregional Trade and the

Caribbean Community Single

Market” , Min i s ter Samuda

welcomed Trinidad and Tobago

companies to invest in Jamaica

whenever they desire to do so, and

called for greater cooperation and

coexistence between the two

countries.

Jamaica's Minister of Industry, Investment and Commercesignals trade and investment

Jamaica is open andready for growth

“As we progress, we cannot do it

alone, Jamaica is a full and

c o m m i t t e d m e m b e r o f

CARICOM, we are ready for

growth through trade and

investment...we see Trinidad and

Tobago within the CARICOM

community as a vital partner in

this exciting journey of ours,” he

said.

Echoing the sentiments

shared by Mr. Hadeed in his

inaugural address, Samuda

emphas i zed the need to

collaborate where necessary for

the greater good of all CARICOM

states and assist each other to rise

above the global economic

challenges that we collectively

face.

“It [regional integration] cannot

work in an atmosphere of

distrust; it cannot work in an

atmosphere of unreasonable

competition among our members.

It must not be sibling rivalry; it

must be a family determined to

work together and hold each

other's hand wherever there are

deficiencies, step in and help.

When you help someone who is

not as efficient as you are today to

become efficient, to become

prosperous you become more

prosperous,” he said.

The Hon. Minister's trip to

Trinidad and Tobago at the

invitation of the TTMA, his very

first visit to the country was

embraced by the Hon. Minister

Samuda, who capitalized on the

opportunities available through

the attendance of over 200

businesspersons at the AGM, by

bringing a ten member trade

delegation. The Hon. Minister also

sought to establish a relationship

with his Trinidadian counterpart,

the Hon. Stephen Cadiz, Minister

of Trade and Industry, and various

government agencies such as the

Bureau of Standards, Customs,

Chemistry, and Food and Drugs

Division, to discuss standards and

quality issues and any other factors

impacting on the access of

Jamaican products to the local

market.

“We need to collaborate,

coordinate and communicate, we

constantly need to be in touch

with each other, and that is why I

welcome the relationship that is

now emerging between (Trade

and Industry Minister Stephen)

Cadiz and our ministry so that

together we can establish a level of

communication that would grant

us profit,” he said.

“This is a time that demands a

positive outlook, we need to

encourage the productive sector

to feel that it is good to

manufacture, it is good to make

things, it is not good enough to

simply buy things that are

imported from outside of our

region, we must seek the answer

to be competitive so we can

create the jobs by manufacturing

t h i n g s h e r e t h a t c a n b e

competitive on the world's stage,

that is the challenge that we face,

we can't achieve that if we are

divided, we must be united, we

must be prepared to share

strategies.”

The government of Jamaica

has extended an invitation to

Trinidadian manufacturers to

l e v e r a g e t h e i r e x t e n s i v e

experience and track record by

expanding their operations in

Jamaica, and the TTMA agrees

that opportunities abound to build

even greater investments in a

The Hon. Karl Samuda, Minister of Industry, Investment and Commerce delivers the feature addressat TTMA's Business Breakfast Meeting


TTMA enhances trade and regional cooperationbetween Trinidad and Tobago and JamaicaOn Monday 28th March, 2011, one day before

its AGM and Business Breakfast Meeting

featuring the Hon. Karl Samuda, Minister of

Industry, Investment and Commerce, Jamaica,

the Trinidad and Tobago Manufacturers'

Association (TTMA) met with the Hon.

Minister and his trade delegation to reiterate its

support of Jamaican manufacturers and to

further dialogue on the way forward with trade

between the two islands.

TTMA's meeting with the Jamaican Trade

Mission including Mr. Omar Azan, president of

the Jamaica Manufacturers' Association (JMA),

Mr. Vitus Evans, president of the Jamaica

Exporters' Association (JEA), Mr. Francis

Kennedy, vice president of the Jamaica

Chamber of Commerce (JCC) and other

opportunity. This time around it is

not going to be the small and the

weak that get eaten first by the big

and strong. It will be the big and

juicy that gets eaten by the

collaborative small.”

Mr. Hadeed's message that

“knowledge should be shared”

was also clear as he extended an

offer to the Jamaican contingent to

a s s i s t t h e m w i t h t h e

implementation of the private

sector's version of the Beverage

Container Bill which the TTMA has

been attempting to pass for almost

ten years.

The Beverage Container Bill if

passed, will not only allow for the

successful removal of beverage

containers from the nation's drains

and waterways, but it will also

create opportunities for the

recycling of other materials such as

tires, batteries, and appliances. In

addition to the primary benefits to

the environment, the Beverage

Container Bill will also create new

companies and new products,

sustainable jobs and new tax

revenue from profits earned. The

TTMA continues to wait for the

necessary legislation for the

enactment of the bill and the

expected advantages to the social

and economic landscape.

The Business Breakfast

meeting also provided the ideal

opportunity for Mr. Hadeed to lay

out his expectations for what he

wants to achieve during his term,

with the assistance and guidance

from the newly elected directors,

who will serve of their time and

talents during the next year.

“Each member of this new

board brings a specific, unique and

needed talent to the TTMA, with

the intention of repositioning the

Association, towards what we all

believe, should be a year of

introspection, with a goal of

transforming the TTMA into a

more effective, focused, and

respected organization.”

“This new TTMA board

would like to engage the other

NGO's within Trinidad and Tobago

and the Caribbean, in an effort to

work together within the areas of

common interests and towards

common goals. For it is only by

pooling our strengths and coming

together, can we avoid the

duplication of our efforts, and

ensure that we are all heading in

the same direction at the same

time. It is only by recognizing each

others' strengths and being able to

work together that we can as a

small country, and as a small region

within a large world, Ever hope to

really stand out and be noticed.”

officials in trade, formed a vital component of

the group's visit to Trinidad, as they sought

answers to several lingering problems that

impede regional trade. The Jamaican Mission

expressed their willingness to form closer ties

and have better communication between

government agencies like the Bureau of

Standards of Jamaica, the Bureau of Standards of

Trinidad and Tobago, and eventually the Bureau

of Standards in the rest of region, to ensure that

barriers to trade do not exist.

The TTMA agrees that stronger

communication and ties must be forged among

regional counterparts, and openly discussed

several concerns raised by TTMA members

who met earlier in March to discuss trade issues

with Jamaica in preparation for Minister

Samuda's visit. The TTMA looks forward to

continuing talks with our regional counterparts

which began on:

The creation of equal opportunities,

The removal of barriers to interregional trade

The ability to partner with each other towards

mutually beneficial goals

The opportunity to collaborate with one

another for assistance on individual needs and

issues

The diversification of our respective economies

And the willingness of our Caribbean leaders, to

assist us with these goals by removing

governmental bureaucracy which hampers the

productivity of our Caribbean people.

Meeting of presidents- Mr. Dominic Hadeed, newly elected president of the TTMA greets Mr. Greig Laughlin,Immediate Past President of the Association


The TTMA's Business Breakfast

Meeting which was held on

Tuesday 29th March, 2011 at the

Hilton Trinidad and Conference

Center, St. Ann's was a resounding

success, as the Association

partnered with the West Indian

Tobacco Company Limited

(WITCO), to host the day's

featured speaker, Jamaica 's


and Commerce the Hon. Karl

Samuda.

Speaking on the topic, “The

state of Intraregional Trade and the

Caribbean Community Single

Market” , Min i s ter Samuda

welcomed Trinidad and Tobago

companies to invest in Jamaica

whenever they desire to do so, and

called for greater cooperation and

coexistence between the two

countries.

Jamaica's Minister of Industry, Investment and Commercesignals trade and investment

Jamaica is open andready for growth

“As we progress, we cannot do it

alone, Jamaica is a full and

c o m m i t t e d m e m b e r o f

CARICOM, we are ready for

growth through trade and

investment...we see Trinidad and

Tobago within the CARICOM

community as a vital partner in

this exciting journey of ours,” he

said.

Echoing the sentiments

shared by Mr. Hadeed in his

inaugural address, Samuda

emphas i zed the need to

collaborate where necessary for

the greater good of all CARICOM

states and assist each other to rise

above the global economic

challenges that we collectively

face.

“It [regional integration] cannot

work in an atmosphere of

distrust; it cannot work in an

atmosphere of unreasonable

competition among our members.

It must not be sibling rivalry; it

must be a family determined to

work together and hold each

other's hand wherever there are

deficiencies, step in and help.

When you help someone who is

not as efficient as you are today to

become efficient, to become

prosperous you become more

prosperous,” he said.

The Hon. Minister's trip to

Trinidad and Tobago at the

invitation of the TTMA, his very

first visit to the country was

embraced by the Hon. Minister

Samuda, who capitalized on the

opportunities available through

the attendance of over 200

businesspersons at the AGM, by

bringing a ten member trade

delegation. The Hon. Minister also

sought to establish a relationship

with his Trinidadian counterpart,

the Hon. Stephen Cadiz, Minister

of Trade and Industry, and various

government agencies such as the

Bureau of Standards, Customs,

Chemistry, and Food and Drugs

Division, to discuss standards and

quality issues and any other factors

impacting on the access of

Jamaican products to the local

market.

“We need to collaborate,

coordinate and communicate, we

constantly need to be in touch

with each other, and that is why I

welcome the relationship that is

now emerging between (Trade

and Industry Minister Stephen)

Cadiz and our ministry so that

together we can establish a level of

communication that would grant

us profit,” he said.

“This is a time that demands a

positive outlook, we need to

encourage the productive sector

to feel that it is good to

manufacture, it is good to make

things, it is not good enough to

simply buy things that are

imported from outside of our

region, we must seek the answer

to be competitive so we can

create the jobs by manufacturing

t h i n g s h e r e t h a t c a n b e

competitive on the world's stage,

that is the challenge that we face,

we can't achieve that if we are

divided, we must be united, we

must be prepared to share

strategies.”

The government of Jamaica

has extended an invitation to

Trinidadian manufacturers to

l e v e r a g e t h e i r e x t e n s i v e

experience and track record by

expanding their operations in

Jamaica, and the TTMA agrees

that opportunities abound to build

even greater investments in a

The Hon. Karl Samuda, Minister of Industry, Investment and Commerce delivers the feature addressat TTMA's Business Breakfast Meeting


On March 29th, 2011 following the completion of TTMA's Business Breakfast

Meeting, the TTMA hosted the Hon. Karl Samuda, Minister of Industry, Investment of

Jamaica and members of the Jamaican public and private sectors to a tour of factories

in the East-West corridor of Trinidad.

Representatives of the Jamaica Manufacturers' Association (JMA), the Jamaica

Exporters' Association (JEA), and the Jamaica Chamber of Commerce (JCC), as well

as representatives of the Ministry of Foreign Affairs and Foreign Trade, the Ministry of

Agriculture, and Jamaica Promotions Corporation (JAMPRO), were treated to an

inside look of the technologies that helped set the stage for Trinidad and Tobago's

world-class competitiveness in the Caribbean region.

The tours of Blue Waters Products Limited, Associated Brands Industries Limited,

Trinidad Distillers Limited (Angostura) and TYE Manufacturing Company Limited

were guided by TTMA's Directors who serve on the Executive Board of these

companies and were available to provide in depth answers to the questions posed by

the Jamaican delegation.

Jamaica's Minister of Industry,Investment and Commerceimpressed with T&T'smodernized manufacturing sector

strong Jamaican market andcustomer base of nearly threemillion citizens.

The creation of new jobs inJamaica will help build a prosperouseconomy to the benefit of the entireregion, and investors are welcomedfrom both inside and outside of theregion to invest in the country. TheTTMA believes that we must forge apositive pathway forward and

together build and foster a new eraof trust, friendship and infinitebusiness possibilities.

The TTMA wishes to provide youwith the following list of Jamaica'sgeographical and infrastructuraladvantages:One of the world's best ports withmajor capacity and easy access tothe US marketA major highway network linking allkey economic centres across thecountryA leading call centre destination atthe Montego Bay Free Zone andNaggo Head; of fer severa ladvantagesThe Largest English speakingworkforce-with expanding trainingcapabilitiesLow attrition rate.Competitive wage levels.Cultural affinity with American andEuropean clients.World class telecommunicationsinfrastructure and competitivetelephony rates

100% tax holiday on profits inperpetuity for service companiesthat export 85% or more of theirservicesDuty Free Exemptions on:

Capital GoodsConsumer GoodsRaw material, componentsor articles for use in anapproved activity

A r t i c l e s i m p o r t e d f o r

c o n s t r u c t i o n , a l t e r a t i o n ,reconstruction, extension orrepair of premises in the FreeZone Office equipmentNo restriction on the repatriationof foreign currencyFree Zone companies canoperate foreign currencyaccounts and there is a singleentity free zone status forqualified companies outsideof the zone

The Hon. Stephen Cadiz, Minister of Trade and Industry who also addressed the gathers, shares a word withHer Excellency Sharon Saunder's- High Commissioner for Jamaica to the Republic of Trinidad and Tobago Factory Tour Photos


Recycling benefits both theeconomy and the environment.The process of converting wasteinto valuable raw materials resultsin job creation, competitivemanufacturing industries andgrowth in the local economy.Simultaneously, the environment isprotected; in other words bothprofitability and sustainability goalsare fulfilled. The Trinidad andTobago Manufacturers' Association(TTMA) is pleased that Trinidadand Tobago is on a 'solid' path withregard to the recycling business, asmore companies enter this field.The foreseeable benefits includelow energy costs, the protection ofthe environment, more sociallyresponsible citizens, increased useof green technology and muchmore. This article presents somelocal companies that have gonegreen, and are in the business ofrecycling.

Carib Glassworks Limited (CGL); amember of the Ansa Mc Al Groupof companies has been in therecycling business from since 1948;more specifically, the recycling ofglass. An exemplar in glasspackaging, the company promotesthe importance of overall recyclingand encourages the public torecycle used glass or cullet bydisposing them in recycle bins. Theoutcome according to CaribGlassworks Limited includes a

CaribGlassworksLimited

clean environment, low energycosts, preservation of naturalresources, reduced energyconsumption and reduced waste tolandfills and dumps.

In addition, Carib GlassworksLimited has embarked on publiccampa i gns tha t encouragecommunities, businesses andindividuals to develop recyclingprojects or programmes. Thepurpose of these public campaignsis to indicate the importance ofrecycling, the benefits of the

programme and addressing the

environment 's needs. For

e x a m p l e , i n 2 0 0 9 , C a r i b

Glassworks Limited removed five

thousand, two hundred and sixty

five (5,265) tons of glass from

landfi l ls, drains, coasts and

communities and from this amount;

three thousand nine hundred and

sixty nine (3,969) tons were

averted from reaching landfills and

dumpsites.

The Tr in idad and Tobago

Manufacturers ' Assoc iat ion

( T T M A ) e n c o u r a g e s

manufacturers to see the benefits

of recycling. There is no doubt that

t h e r e c y c l i n g b u s i n e s s i s

performing substantially well with

the added va lue that the

environment is protected. In most

recent times, companies have

demonstrated innovative ways in

the recycling business such as using

waste cooking oil as a type of fuel

The EcoImpactCompany LimitedThe EcoImpact Company Limited

was founded by Troy Hadeed in

December 2009, with the intent to

provide tangible solutions and

expertise in reducing harmful

environmental impacts and

i n c r e a s i n g e n v i r o n m e n t a l

awareness. The target audience

for their services includes

individuals, business entities and

Government organizat ions.

Presently, the company focuses on

open collection, recycling and

processing of waste cooking

(vegetable) oil for use in the

alternative fuel sector along with

other uses. The company has

developed a sufficient system of

collecting waste vegetable oil on a

standardized, contractual basis,

free of charge to the consumer.

THE MANUFACTURER VOLUME 32 APRIL 2011 PG3

A look at the Recycling Business in Trinidad and Tobago

...Outlook for local Manufacturers

BeyondBusinessLimitedFounded in June 2010, Beyond Business

Limited is considered to be a champion in

sustainable business; and the company's

initiatives have demonstrated its willingness

to be a responsible, green business. For

example, Beyond Business Limited carefully

selects suppliers that are committed to

o f f e r i n g p r o d u c t s w h i c h a r e

environmentally sound and socially

oriented for their company. The

sustainability-centred philosophy of the

company is in keeping with an increasing

internat ional trend among global

companies that sustainability issues should

be completely integrated into the strategic

direction and operations of any company.

Another example of Beyond Business

Limited's mission to be environmentally

responsible is the company's usage of office

stationery items such as 100% recycled

paper, 100% recycled fibres, sustainable

wood, recycled newspapers and other

recycled materials.

Another illustration of its

commitment to green sustainable business

is its 'World Aware Programme' that entails

visits to businesses to host sessions on

responsible utilization of office resources.

The programme draws attention to the

impacts of the global issues, problems and

“true costs” related to the acquisition and

utilization of basic office resources which

includes deforestation, felling of trees, loss

of habitat for both plants and animals and

many more harmful impacts. Further, the

programme allows for the development of

a network among organizations as

knowledge, skills, expertise, ideas, talents

and personal experiences are exchanged.

Greening Corner


and re-used office supplies.

H o w e v e r , a n e n a b l i n g

environment is required to ensure

sustainability of businesses. A key

component of the enabling

environment is the legislation

framework for nat ionwide

recycling and energy conservation

which has yet to be enacted.

TTMA hopes that with this article,

there will be more support for

ratification and implementation of

legislation.

REFRENCES / CONTACTS:, Ansal McAl Group of Companies, available at http://www.ansamcal.com/

Contacts: 639-0393; 785-8348; email - [email protected]

email - [email protected]

Ansal McAl Group of Companies, Annual Report 2009Beyond Business Limited: Ms. Hema Singh-Black;EcoImpact Limited: Troy Hadeed;

RESIN CONVERTERS LIMITEDPRIME MINISTER'S AWARD FOR PERSISTENCY

SANTAINERSOVERALL WINNER OF EXPORTER OF THE YEAR

The Honourable Kamla Persad- Bissessar, Prime Minister of the Republic of Trinidad & Tobago (right) presents theaward for Exporter of the Year to Miss Joanne Jackson, Director, Marketing &Administration, Santainers Limited.


On January 18th 2011, the Business Development Company (BDC) and RBTT

Bank Ltd hosted the Prime Minister's Exporter of the Year Awards, which

highlighted the efforts and contribution of the non-energy sector to the

development and diversification of the T&T economy in 2009.

Santainers Limited emerged as the overall winner on the night with the

award for “Exporter of the Year”, a significant accomplishment on its own, but

even more momentous given the fact that this was their first nomination ever for

an Industry Leader Award.

Santainers Limited manufacturers the Sanicup line of insulated containers for

the food and beverage industry and has been investing in new equipment and

upgrading their existing equipment over the past years, a contributing factor to

their achievements in the export market.

The TTMA extends its congratulations to Santainers Limited and all other

winners for a job well done, and sees the Exporter of the Year Award as an

incentive to the local manufacturing setor to remain resilient and innovative.

Christian Quesnel, Managing Director of Resin Converters Limited, was just like

many of the entrepreneurs of his generation-ambitious, committed, and

hardworking, with an ability to spot an opportunity from a mile away. Mr. Quesnel

saw the opportunities that were emerging in the plastics field and resin

manufacturing for use in various industries, and in just under a decade of operation,

Resin Converters Ltd is the recipient of Exporter of the Year: Persistency.

Today Resin Converters is the largest manufacturer of plastics in the

Caribbean, utilizing resin to supply plastics for use in various industries and is the

leading company for bottles for the motor oil business. Resin's products (Pet

Bottles, Plastic Bottles, and Plastic caps) are all made and individually tested under

highly automated, sterile conditions, and have been exported to Jamaica, Barbados,

St. Lucia and Guyana at cost competitive prices.

According to Mr. Quesnel Resin's aim is to generate 35% of its revenue from

the export market, and he sees the Prime Minister's Exporter of the Year Awards as

an important tool to boost regional trade, especially given his desire to bring

different projects to the market.

“We are looking at developing and

working with our clients to bring various

products to the market using our

package as part of their selling effort

whether it be in the form of recycled

material or whether it be in the form of

design.”

“The company has positioned itself;

we're into various technologies that we're advancing. We're attempting to

eliminate any quality problems and we're spending a tonne of money on identifying

problems and correcting them, and trying to offer our customers zero tolerance

with rejects, and I might add it's almost impossible to do but that's our goal,” he

said.

“We are in an expansion and retooling mode. We do not accept failure or

defeat and we have a very good management team who deliver like professionals

and make us stand out from the competition. We are going to innovate and make

investments in a multi-layering system,” he said.

TTMA members recognized for excellence at the

2 900 Prime Minister'sExporter ofthe Year Awards

Mr. Christian Quesnel, Managing Directorof Resin Converters Limited

RESIN CONVERTERS LIMITEDPRIME MINISTER'S AWARD FOR PERSISTENCY

SANTAINERSOVERALL WINNER OF EXPORTER OF THE YEAR

The Honourable Kamla Persad- Bissessar, Prime Minister of the Republic of Trinidad & Tobago (right) presents theaward for Exporter of the Year to Miss Joanne Jackson, Director, Marketing &Administration, Santainers Limited.


On January 18th 2011, the Business Development Company (BDC) and RBTT

Bank Ltd hosted the Prime Minister's Exporter of the Year Awards, which

highlighted the efforts and contribution of the non-energy sector to the

development and diversification of the T&T economy in 2009.

Santainers Limited emerged as the overall winner on the night with the

award for “Exporter of the Year”, a significant accomplishment on its own, but

even more momentous given the fact that this was their first nomination ever for

an Industry Leader Award.

Santainers Limited manufacturers the Sanicup line of insulated containers for

the food and beverage industry and has been investing in new equipment and

upgrading their existing equipment over the past years, a contributing factor to

their achievements in the export market.

The TTMA extends its congratulations to Santainers Limited and all other

winners for a job well done, and sees the Exporter of the Year Award as an

incentive to the local manufacturing setor to remain resilient and innovative.

Christian Quesnel, Managing Director of Resin Converters Limited, was just like

many of the entrepreneurs of his generation-ambitious, committed, and

hardworking, with an ability to spot an opportunity from a mile away. Mr. Quesnel

saw the opportunities that were emerging in the plastics field and resin

manufacturing for use in various industries, and in just under a decade of operation,

Resin Converters Ltd is the recipient of Exporter of the Year: Persistency.

Today Resin Converters is the largest manufacturer of plastics in the

Caribbean, utilizing resin to supply plastics for use in various industries and is the

leading company for bottles for the motor oil business. Resin's products (Pet

Bottles, Plastic Bottles, and Plastic caps) are all made and individually tested under

highly automated, sterile conditions, and have been exported to Jamaica, Barbados,

St. Lucia and Guyana at cost competitive prices.

According to Mr. Quesnel Resin's aim is to generate 35% of its revenue from

the export market, and he sees the Prime Minister's Exporter of the Year Awards as

an important tool to boost regional trade, especially given his desire to bring

different projects to the market.

“We are looking at developing and

working with our clients to bring various

products to the market using our

package as part of their selling effort

whether it be in the form of recycled

material or whether it be in the form of

design.”

“The company has positioned itself;

we're into various technologies that we're advancing. We're attempting to

eliminate any quality problems and we're spending a tonne of money on identifying

problems and correcting them, and trying to offer our customers zero tolerance

with rejects, and I might add it's almost impossible to do but that's our goal,” he

said.

“We are in an expansion and retooling mode. We do not accept failure or

defeat and we have a very good management team who deliver like professionals

and make us stand out from the competition. We are going to innovate and make

investments in a multi-layering system,” he said.

TTMA members recognized for excellence at the

2 900 Prime Minister'sExporter ofthe Year Awards

Mr. Christian Quesnel, Managing Directorof Resin Converters Limited

CAPTAIN'S CHOICEPRIME MINISTER'S AWARD FOR EXPORT AGRICULTURE

SPANCAST CARIBBEAN LIMITEDPRIME MINISTER'S AWARD CHEMICALS AND NON-METALLIC MINERALS AND ENTERPRISE


Spancast Caribbean, winners of the

Chemicals and Non-Metallic Minerals

and Enterprise (New Market)

categories at the Prime Minister's

Exporter of the Year Awards has built a

legacy upon providing precast

architectural and structural products in

a fully computerized batching plant, for

clients throughout the region.

Spancast has invested years of

research and millions of dollars in

creating the world's finest precast,

prestressed plank production systems,

and their in-house Drafting and

Engineering Department offers design /

build resources and expertise to help

construct beautiful buildings on time

and within budget. Spancast also

provides other services such as

Captain's Choice Limited is an example

of the returns that can be gained

through solid investments in one's

business enterprise, despite the

challenges of the economic, social and

even political climates. An investment

of US$2 Million in equipment in the

running of Captain Choice's semi-

automated conveyor system in 2009

has made them one of the most

e f f i c i e n t a n d b e s t e q u i p p e d

organizations in the Caribbean for the

provision of fish fillet and chicken

products for US franchise holders of

KFC, Burger King and Popeye's.

According to Richard Tywang,

Managing Director of Captain's

Choice, investments in the machinery

and equipment has ensured a

mechanized process at the factory with

a complete breading line, and formular

specific production. This has resulted

in complete quality assurance which has

allowed them to surpass the hygienic

and safety standards required by the

franchise holders.

“This is the future of the business,

anybody can go and sell fish or chicken

but to take it a step further now you

narrow the concept and you bring

better food safety handling and

standards to institutions that would use

these products, you will have more

control and you have a responsible

party who will guarantee the safety.”

“Captain Choice's boat was really

for longevity in the industry of seafood,

primarily to make a business continuous

because raw seafood is just a

commodity, but when you transform it

into something, a consumable item

where you give them a finished job that

is tasty, that is healthy, that takes away

all the stress at the end of the day, then

application advice, layout options,

preliminary engineering, budget

pricing, and value engineering.

David J. Williams, Managing

Director of Spancast Caribbean Ltd is

p r o u d o f t h e o r g a n i z a t i o n ' s

achievements and because the

company has been operating in survival

mode since the economic downfall

which occurred in 2008/2009, the

awards have served as a much needed

impetus to face the challenges ahead.

“It gave us a little boost in a period of

really difficult business performance.

We were pleasantly surprised, of

course it goes back to 2009 so we had

to rack our brains as to what did we do

in 2009 and of course it came back to

us, we had a reasonably good job in

Aruba. Other than that we've always

been an exporter and in past years we

did as much as 90% exports. It's nice to

earn foreign currency; it's nice to be

known up the islands,” he said.

And Spancast Caribbean is

certainly known up the islands, in fact

the Spancast “stamp of great quality”

can be found in Trinidad, Tobago,

Barbados, Curacao, Grenada, St. Lucia,

St. Maarten, Antigua, Aruba and the

United States Virgin Islands (USVI).

According to Mr. Williams, some

jobs in other Caribbean countries may

take some time to be completed such

as a St. Lucian project which took a year

to finish and others in St. Kitts and

Grenada, but the organization has

realized that symmetry must be made

between the regional and local markets.

“In the years subsequent to that large

export that we had in 2009 we had to be

very aware that being a total exporter is

not really good for the industry. We have

to balance what we sell locally and what

we export because we see it as two

different markets. We need the local

market of course so that we maintain

our presence, that's very important.”

y o u p r o v i d e a v a l u e a d d e d

product.The focus is on the long term

market- the long term is what we're

after,” he said.

Captain Choice's specialized value

added products for franchise

companies has been exported to other

Caribbean islands under the highest

s t andards , and a l though the

organization's journey in export only

began in 2009 after years of planning

and research and development, they

have achieved notable feats.

“We're persistent in where we

want to go in our markets, we're

persistent in keeping our standards to

where it needs to be, we're persistent

in research and development, and we

do a lot of research and development

with new products.”

“Standard is the most important

thing for us looking at alternative

products, because right now we focus

on the franchise companies and where

they have franchisee operators we

have to meet a certain standard. We

have very good international ratings in

terms of product handling, product

quality and our factory standard. For

the Burger King Corporation we're at

the top level where hygiene and food

safety is concerned,” he said.

Mr David Willams, Managing Director, Spancast Caribbean

Limited, poses with Spancast Staff, with their Prime

Minister’s Exporter of the Year Awards for Chemicals &

Non -metallic Minerals & Enterprise.

Mr. Richard Tywang, Managing Director of Captain’sChoice holds the Prime Minister’s Award for ExportAgriculture

These are interesting times for Trinidad and Tobago. We are one of themost cash-rich economies in the CARICOM, with vast natural resourcesand a very well trained work force. Even though our growth rate, atapproximately 2%, seems limiting, the fundamentals of our economy aresolid. The fiscal and financial policies will most likely deliver some stability,at least in the short term. Despite the economic position, Trinidad &Tobago faces real and significant challenges that must be addressed inorder to enhance the competitiveness of the country for the next decade.

In his presentation at the Distinguished Leadership and InnovationConference, Professor Michael Porter presented a clear, simple andsobering analysis of the Trinidad and Tobago situation and outlined a pathto competitiveness. We share some of his conclusions with respect to thecurrent situation and possible future for this country.

Our position at 2011We have a growth crisis. Most CARICOM countries are expected to growbetween 2% and 2.8%. The prospects of having better growth rates inthe short term are not strong.Lack of diversification and dependence on global commodity markets fornatural resources exposes us to high levels of volatility, and threatens ourability to control our economic future. In other words, our prosperity as acountry is quite unpredictable.Our prosperity has been based in our ability to commercialize our naturalresources and not from increasing our productivity by optimising the valuechain across several clusters.In a small economy and in a small geographic market, a critical growthengine is exports. Our current export composition is too narrow, andoverly concentrated in goods with limited added value.

Re-Thinking

Trinidad and Tobago:Towards a New National Value Propositionby Professor Miguel Carrillo, Ph D. Executive Director and Professor of Strategy, Arthur Lok Jack Graduate School of Business

The mindset of our young professional is mainly focused on becoming an

employee, to have a good job, a nice office, and a secured source of

income.

Professor Porter's conclusions are supported by our analysis of the

findings of the Global Entrepreneurial Monitor study on entrepreneurial

activity in Trinidad & Tobago conducted by the Lok Jack GSB. The five

most significant conclusions are:

We do not have enough entrepreneurial activity. We are in 48th position

out of 59 countries on the indicator of entrepreneurial activity defined as

new firms existing for less than 3.5 years.

Of this reduced entrepreneurial activity, about 2/3 is aimed towards

internal commerce and basic trading of existing products or basic services.

Approximately 87% of the entrepreneurial activity in Trinidad & Tobago

is not innovation driven. In other words, most of our entrepreneurial

activity offers limited and narrow value propositions. Our focus is to offer

products and services that are allegedly better but not different or

original. We are playing the game of “sameness” and disregarding the

game of “uniqueness”.

The above combination has led Trinidad & Tobago to be one of the three

least innovative countries, out of the 59 surveyed in the Global

Entrepreneurship Monitor study in terms of new ventures.

This finding converges with the World Economic Forum Global

Competitiveness Report ( 2009-2010) in which Trinidad & Tobago is

ranked 94th of 139 countries in terms of capacity for innovation.

The international orientation of new ventures launched in Trinidad &

Tobago in the last 3.5 years is very limited. Less than 8% of new firms have

more than 25% of foreign customers.


These are interesting times for Trinidad and Tobago. We are one of themost cash-rich economies in the CARICOM, with vast natural resourcesand a very well trained work force. Even though our growth rate, atapproximately 2%, seems limiting, the fundamentals of our economy aresolid. The fiscal and financial policies will most likely deliver some stability,at least in the short term. Despite the economic position, Trinidad &Tobago faces real and significant challenges that must be addressed inorder to enhance the competitiveness of the country for the next decade.

In his presentation at the Distinguished Leadership and InnovationConference, Professor Michael Porter presented a clear, simple andsobering analysis of the Trinidad and Tobago situation and outlined a pathto competitiveness. We share some of his conclusions with respect to thecurrent situation and possible future for this country.

Our position at 2011We have a growth crisis. Most CARICOM countries are expected to growbetween 2% and 2.8%. The prospects of having better growth rates inthe short term are not strong.Lack of diversification and dependence on global commodity markets fornatural resources exposes us to high levels of volatility, and threatens ourability to control our economic future. In other words, our prosperity as acountry is quite unpredictable.Our prosperity has been based in our ability to commercialize our naturalresources and not from increasing our productivity by optimising the valuechain across several clusters.In a small economy and in a small geographic market, a critical growthengine is exports. Our current export composition is too narrow, andoverly concentrated in goods with limited added value.

Re-Thinking

Trinidad and Tobago:Towards a New National Value Propositionby Professor Miguel Carrillo, Ph D. Executive Director and Professor of Strategy, Arthur Lok Jack Graduate School of Business

The mindset of our young professional is mainly focused on becoming an

employee, to have a good job, a nice office, and a secured source of

income.

Professor Porter's conclusions are supported by our analysis of the

findings of the Global Entrepreneurial Monitor study on entrepreneurial

activity in Trinidad & Tobago conducted by the Lok Jack GSB. The five

most significant conclusions are:

We do not have enough entrepreneurial activity. We are in 48th position

out of 59 countries on the indicator of entrepreneurial activity defined as

new firms existing for less than 3.5 years.

Of this reduced entrepreneurial activity, about 2/3 is aimed towards

internal commerce and basic trading of existing products or basic services.

Approximately 87% of the entrepreneurial activity in Trinidad & Tobago

is not innovation driven. In other words, most of our entrepreneurial

activity offers limited and narrow value propositions. Our focus is to offer

products and services that are allegedly better but not different or

original. We are playing the game of “sameness” and disregarding the

game of “uniqueness”.

The above combination has led Trinidad & Tobago to be one of the three

least innovative countries, out of the 59 surveyed in the Global

Entrepreneurship Monitor study in terms of new ventures.

This finding converges with the World Economic Forum Global

Competitiveness Report ( 2009-2010) in which Trinidad & Tobago is

ranked 94th of 139 countries in terms of capacity for innovation.

The international orientation of new ventures launched in Trinidad &

Tobago in the last 3.5 years is very limited. Less than 8% of new firms have

more than 25% of foreign customers.


A possible future by 2021

President Obama once stated that things are never as bad as they look, or

as good as they look. Our current position is a great opportunity for a new

generation of leaders in the public and private sector. What a great

platform to start! Many things to do, and many challenges ahead.

Businesses, organizations, and nations need strategy. The strategy is

crafted by re-thinking our national value proposition.

The worst error in strategy is to compete with rivals along the same

dimensions. Competing to be the best is really about competing to be

unique. The key challenge for Trinidad & Tobago is to start with a CLEAR

end in mind. Strategy is about three things: focus, choice, and actions.

Without a clear end in mind, we cannot have focus, or actions. Strategy is

about big bets. It is now time to advance the development of a NEW

NATIONAL VALUE PROPOSITION for Trinidad and Tobago. The way

we fill the space in the sentence that follows is critical. We want to be the

capital of……….. of the world. Organic Food? Eco-Tourism? Port

Management? Alternative Music and Rhythms? Apparel and Fashion for

Entertainment? Food and Beverages? Yacht Maintenance?

What would be our BIG BET? A national value proposition defines

answers by exploring these questions:

a) What is the distinctive competitive position we should seek, given

Trinidad & Tobago’s current location, legacy, resources, capabilities,

current and potential strengths?

b) What types of activities and clusters should we develop?

c) What are the roles of neighbors, the region, and the broader

world?

We have to identify how we can leverage our history to propel us to a

different and new future. We need to tell a new story to the world. Hence,

we cannot have a National System of Innovation without a National Value

Proposition. Our National Value Proposition has to be very attractive, not

just to our local market, or to the Caribbean, but to the world. A critical

dimension of this new value proposition is its capacity to create value

abroad.

Our country, and indeed the Caribbean is quite small to be overly

attractive to investors outside the energy sector. FDI will tend to be

limited. We have to combine our capacity to be an outpost of

opportunities, and to spot and create opportunities to do business abroad.

We are a small country. How can we leverage our resources and turn

smallness into greatness? How can we exploit the density and intensity of

our cultural diversity? Shall we become the capital of 'sun and sand tourism

of the Americas', or the capital of 'Manufacturing prototypes of the world'?

In the latter case, the world comes to us to produce small batches of new

products that are aimed at creating new markets, supported by flexible

manufacturing, as is currently happening at the city of Hangzhou in China.

Hangzhou's big bet? To become the exhibition capital of the world,

specialising in three things: a) manufacturing small batches of product

samples, b) organising exhibitions of goods, materials, and products for

many sectors, and c) turning wholesale purchases into a great consumer

experience. Diageo, one of the largest producers of spirits in the world, is

currently outsourcing the creation and development of new alcoholic

beverages to Demerara Distillers in Guyana. A Singaporean firm is building

a US$733 million offshore terminal in the city of Basra in Iraq that will

double exports by early 2012.

What can Trinidad & Tobago entrepreneurs do for and in Haiti? All

these firms have turned a local value proposition into a global one. Very

few local firms are ACTIVELY exploring and seizing opportunities beyond

the Caribbean. These few firms will most likely become the growth and

innovation champions for Trinidad and Tobago, but we need more of them!

In short, Trinidad and Tobago needs to take two fundamental

decisions: What to do and with what intensity. We do not need more plans;

we need a confirmed position on the way forward and an action agenda

that drives change.

In next articles, we will propose new roles for government and

labour, and explore how a national value proposition can be linked to an

innovation system at a supra-national, national, and business level.


In this issue we shift our focus to

the emerging nations of Asia. This

region is expected to provide the

most returns to international fixed

income investors this year. Asia in

particular is led by growth in larger

economies such as China and India,

the region's BRIC members.

However, smaller nations such as

Indonesia, Korea and Taiwan have

also been recording significant

expansion in the coming regions.

Since the financial crisis, Asia has

seen a remarkably strong export-

led recovery. But by 3Q 2010, the

extremely accommodative policy

tightened and exports fell as a

result. Despite the deceleration,

Asia ex-Japan still managed to

outperform all other regions with

2010 projected to grow 9.30%.

2011 growth is expected to slow to

8.40%, consistent with the overall

global growth slowdown. (Figure

1).

Of the Asian nations, China

and India are expected to be the

major powerhouses with growth

projected at 9.60% and 8.40%

respectively. The Association of

Southeast Nations (ASEAN-5)

nations – Indonesia, Malaysia, the

Philippines, Singapore and Thailand

– are expected to grow by 5.50%

Above Par Growth

Risks

High Grade vs. High YieldAsian Credit Outlookth is year. In compar ison,

emerging economies' growth is

forecast at 6.50% over the same

period.

The positive Asian activity

confirms the region's role as the

main driver of global demand.

However, the activity has brought

on severe inflationary pressures

that have been a growing source

of discomfort for consumers,

businesses and policymakers

around the world. With little

spare capacity in the region,

inflation has become an increasing

concern for Asian central banks.

China's January trade data

highlighted a rebound in Asian

activity. Exports rose by 26.9%

while imports were 59.4%

higher, both much stronger than

economists' forecasts. Other

Asian economies have also shown

signs of resurgent strength.

Stronger exports, particularly of

capital goods, are likely to boost

activity, but domestic demand is

expected to be firm, finding

support from public investment.

Healthy exports also underpinned

the stronger-than-expected

reading for Q4 GDP growth in

Taiwan, Singapore and Korea.

Despite inflation concerns, the

region's strong fundamental

outlook is extremely supportive

for the credit market as it provides

a good backdrop for spread

tightening throughout this year.

Returns for EM Asia are expected

to be lower than in 2010, but are

st i l l expected to continue

outperforming US and European

credit. The risk premium applied

to Asian credit (versus similarly

rated US/European paper) is

expected to continue to shrink,

which will be the main driver of

outperformance.

Corporates in the region

have remained conservative, with

investment-grade companies

showing no inc l inat ion to

aggressively add leverage. Within

high yield also, most corporates

ended 2010 on a stronger note

than where they started, as

measured by liquidity, credit

m e t r i c s a n d o p e r a t i n g

performance. These are definite

positives for the region as a whole.

In terms of credit quality, analysts

prefer EM high yield over high

grade bonds since it is the only

category that can offer yield pick-

up. Against a very favorable

fundamental EM backdrop, high-

yield valuation is quite attractive by

historical standards. Asian high-

y i e l d e r s ( s o v e r e i g n s a n d

corporates combined) are

expected to post total returns of

8-9%, with Asian high-yield

corporates projected to return

10-12%.

Of course, sacrificing quality

brings into the forefront the

probability of default. For Asian

high-yield corporate bonds,

defaults are likely to be isolated

making it futile to apply a default

rate forecast.

For high-grade bonds the

forecast is less optimistic as low

yields are likely to temper the

outlook for high-grade and

sovereign total returns. On an

excess-return basis Asian high-

grades could generate 250-300bp.

The forecast for Asian sovereigns

is even less upbeat as a result of

current valuations. Excess returns

for sovereign credit are lower at

175-200bp.

ASIAA Developing Story


In this issue we shift our focus to

the emerging nations of Asia. This

region is expected to provide the

most returns to international fixed

income investors this year. Asia in

particular is led by growth in larger

economies such as China and India,

the region's BRIC members.

However, smaller nations such as

Indonesia, Korea and Taiwan have

also been recording significant

expansion in the coming regions.

Since the financial crisis, Asia has

seen a remarkably strong export-

led recovery. But by 3Q 2010, the

extremely accommodative policy

tightened and exports fell as a

result. Despite the deceleration,

Asia ex-Japan still managed to

outperform all other regions with

2010 projected to grow 9.30%.

2011 growth is expected to slow to

8.40%, consistent with the overall

global growth slowdown. (Figure

1).

Of the Asian nations, China

and India are expected to be the

major powerhouses with growth

projected at 9.60% and 8.40%

respectively. The Association of

Southeast Nations (ASEAN-5)

nations – Indonesia, Malaysia, the

Philippines, Singapore and Thailand

– are expected to grow by 5.50%

Above Par Growth

Risks

High Grade vs. High YieldAsian Credit Outlookth is year. In compar ison,

emerging economies' growth is

forecast at 6.50% over the same

period.

The positive Asian activity

confirms the region's role as the

main driver of global demand.

However, the activity has brought

on severe inflationary pressures

that have been a growing source

of discomfort for consumers,

businesses and policymakers

around the world. With little

spare capacity in the region,

inflation has become an increasing

concern for Asian central banks.

China's January trade data

highlighted a rebound in Asian

activity. Exports rose by 26.9%

while imports were 59.4%

higher, both much stronger than

economists' forecasts. Other

Asian economies have also shown

signs of resurgent strength.

Stronger exports, particularly of

capital goods, are likely to boost

activity, but domestic demand is

expected to be firm, finding

support from public investment.

Healthy exports also underpinned

the stronger-than-expected

reading for Q4 GDP growth in

Taiwan, Singapore and Korea.

Despite inflation concerns, the

region's strong fundamental

outlook is extremely supportive

for the credit market as it provides

a good backdrop for spread

tightening throughout this year.

Returns for EM Asia are expected

to be lower than in 2010, but are

st i l l expected to continue

outperforming US and European

credit. The risk premium applied

to Asian credit (versus similarly

rated US/European paper) is

expected to continue to shrink,

which will be the main driver of

outperformance.

Corporates in the region

have remained conservative, with

investment-grade companies

showing no inc l inat ion to

aggressively add leverage. Within

high yield also, most corporates

ended 2010 on a stronger note

than where they started, as

measured by liquidity, credit

m e t r i c s a n d o p e r a t i n g

performance. These are definite

positives for the region as a whole.

In terms of credit quality, analysts

prefer EM high yield over high

grade bonds since it is the only

category that can offer yield pick-

up. Against a very favorable

fundamental EM backdrop, high-

yield valuation is quite attractive by

historical standards. Asian high-

y i e l d e r s ( s o v e r e i g n s a n d

corporates combined) are

expected to post total returns of

8-9%, with Asian high-yield

corporates projected to return

10-12%.

Of course, sacrificing quality

brings into the forefront the

probability of default. For Asian

high-yield corporate bonds,

defaults are likely to be isolated

making it futile to apply a default

rate forecast.

For high-grade bonds the

forecast is less optimistic as low

yields are likely to temper the

outlook for high-grade and

sovereign total returns. On an

excess-return basis Asian high-

grades could generate 250-300bp.

The forecast for Asian sovereigns

is even less upbeat as a result of

current valuations. Excess returns

for sovereign credit are lower at

175-200bp.

ASIAA Developing Story


From a sector perspective, therecommendation is to shift out ofdefensive sectors and move intocyclical sectors, such as retail andenergy. The retail sector is poisedto benefit from an uptick inconsumer spending while theenergy sector is likely to benefitfrom attractive valuations and ahigher oil price.

Despite an investor's intuitivedesire to seek out investment/high-grade bonds , ana lys ts arerecommending high-yielders in theAsian space as corporates have thepotential for further spreadtightening to the end of the year.We recommend investing in theshort tomedium termof about 5 to7 years to maturity to mitigate anycapital depreciation from interestrates rising. But more importantly,despite improving financial andcredit metrics, proper duediligence is recommended wheninvesting in high-yield bonds. Theadvice of a qualified financialadvisor is recommended before aninvestment decision ismade.

Bourse Securities Limited - 90Independence Square, Port of Spain,Trinidad, - Tel: (868) 623-0415 -

Fax: 624-6953

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According to the recently released

2011 Global Economic Prospects

report from the World Bank, global

GDP (Gross Domestic Product)

growth, which reached 3.9 per

cent last year, will decline slightly to

3.3 per cent in 2011 and 3.6 per

cent in 2012, with developing

The Central Bank of Barbados

stated that the Barbados economy

experienced a 0.4 per cent

decrease for the first nine months

of 2010 while in Jamaica, real GDP

declined by 0.9 per cent in the third

quarter of 2010. Further, the

Eastern Caribbean Currency

Union experienced a decline of 3.2

In 2010, the Central Bank of

Trinidad and Tobago reported that

the Trinidad and Tobago economy

recovered slowly. The Central

Bank estimated GDP at 0.1 per

cent compared to 2009, where it

fell at 3.5%. The slow recovery in

2010 was attributed to the 4.7 per

cent increase in the output of the

energy sector; however the non-

energy sector fell by 1.4 per cent.

Global Economic Review

Economic Performance of the Caricom Countries

Macro-Economic Performance of Trinidad and Tobago

2010-2011economie s ou tper fo rm ing

developed ones. In terms of

deve loped count r i e s , the

economy of the United States

experienced growth in both the

third and fourth quarters of 2010

by 2.6 per cent and 3.2 per cent

respectively. However, the United

Kingdom contracted by 0.5 per

cent in the fourth quarter

following growth in both the

second and third quarters by 1.1

per cent and 0.7 per cent

respectively.

per cent in 2010 after facing a

decrease in economic activity of

7.3 per cent in 2009. This however

was not the case with Guyana

which experienced growth by 2.8

per cent in the first half of 2010.

The Caribbean Centre for Money

and Finance stated in their 2010

annual report that both domestic

and imported food prices exerted

inflationary pressure in the

Caribbean. The document

reports that in the fourth quarter,

the inflation rates increased in

most islands ranging from 1.78 per

cent for Aruba to 13 per cent for

Trinidad and Tobago and Jamaica.

In terms of economic outlook, the

region will face challenges even

though there were improvements

in worker's remittances and

income from the tourism sector in

2010. Other outlook prospects

include weak inflation and widening

of current account deficits.

In addition, the Central Statistical

Office of Trinidad and Tobago

estimated that the average

unemployment rate in 2010 was 7

per cent compared to 2009's

unemployment rate of 5.3 per

cent (refer to table 1).

Other indicators include headline

inflation which rose to 13.4 per

cent by December 2010. This was

the result of high food prices

which increased by 29.5 per cent.

Further, the Central Bank

Economic Bulletin 2011 revealed

that “core inflation increased to

4.7 per cent in the twelve months

to December 2010 from 2.2 per

cent a year earlier.” Further, the

Central Bank, in its aim to fuel

economic growth, reduced the

repo rate from 5 per cent in July

2010 to 3.75 per cent by the end

of December encourag ing

commercial banks to reduce their

average prime lending rate from

9.5 per cent to 8.38 per cent. In

terms of economic outlook, the

Central Bank indicated that the

economy is expected to expand by

two per cent.

Real Sector ActivityReal GDP

Energy

Non-Energy

Headline Inflation (end of period)

2007

3

2

1. Annual percentages changes, unless otherwise stated. 2 On a fiscal year basis (October – September) and includes budget figures for 2010/11. ( In percent of GDP unless otherwise stated.)

3 Represent balances at the end of the fiscal year and excludes OMOs, treasury notes and debt management bills

Source: Central Bank of T&T, Ministry of Finance, CSO, IMF

1

ANNUAL ANNUAL FORECAST20092008 2010 2011

4.81.77.67.6

-3.52.6

-7.21.3

2.4-0.24.2

14.5

0.13.0

-1.913.4

2.33.21.97.0

5.6

1.8

29.2

5.3

-4.9

33.0

4.6

7.5

25.0

7.0

-0.2

36.1

7.5

-5.2

37.7

Unemployment rate

(average)

Central Government

Fiscal Balance

Public Sector debt

Fiscal Operations


Table 1.

Summary of Economic Indicators

According to the recently released

2011 Global Economic Prospects

report from the World Bank, global

GDP (Gross Domestic Product)

growth, which reached 3.9 per

cent last year, will decline slightly to

3.3 per cent in 2011 and 3.6 per

cent in 2012, with developing

The Central Bank of Barbados

stated that the Barbados economy

experienced a 0.4 per cent

decrease for the first nine months

of 2010 while in Jamaica, real GDP

declined by 0.9 per cent in the third

quarter of 2010. Further, the

Eastern Caribbean Currency

Union experienced a decline of 3.2

In 2010, the Central Bank of

Trinidad and Tobago reported that

the Trinidad and Tobago economy

recovered slowly. The Central

Bank estimated GDP at 0.1 per

cent compared to 2009, where it

fell at 3.5%. The slow recovery in

2010 was attributed to the 4.7 per

cent increase in the output of the

energy sector; however the non-

energy sector fell by 1.4 per cent.

Global Economic Review

Economic Performance of the Caricom Countries

Macro-Economic Performance of Trinidad and Tobago

2010-2011economie s ou tper fo rm ing

developed ones. In terms of

deve loped count r i e s , the

economy of the United States

experienced growth in both the

third and fourth quarters of 2010

by 2.6 per cent and 3.2 per cent

respectively. However, the United

Kingdom contracted by 0.5 per

cent in the fourth quarter

following growth in both the

second and third quarters by 1.1

per cent and 0.7 per cent

respectively.

per cent in 2010 after facing a

decrease in economic activity of

7.3 per cent in 2009. This however

was not the case with Guyana

which experienced growth by 2.8

per cent in the first half of 2010.

The Caribbean Centre for Money

and Finance stated in their 2010

annual report that both domestic

and imported food prices exerted

inflationary pressure in the

Caribbean. The document

reports that in the fourth quarter,

the inflation rates increased in

most islands ranging from 1.78 per

cent for Aruba to 13 per cent for

Trinidad and Tobago and Jamaica.

In terms of economic outlook, the

region will face challenges even

though there were improvements

in worker's remittances and

income from the tourism sector in

2010. Other outlook prospects

include weak inflation and widening

of current account deficits.

In addition, the Central Statistical

Office of Trinidad and Tobago

estimated that the average

unemployment rate in 2010 was 7

per cent compared to 2009's

unemployment rate of 5.3 per

cent (refer to table 1).

Other indicators include headline

inflation which rose to 13.4 per

cent by December 2010. This was

the result of high food prices

which increased by 29.5 per cent.

Further, the Central Bank

Economic Bulletin 2011 revealed

that “core inflation increased to

4.7 per cent in the twelve months

to December 2010 from 2.2 per

cent a year earlier.” Further, the

Central Bank, in its aim to fuel

economic growth, reduced the

repo rate from 5 per cent in July

2010 to 3.75 per cent by the end

of December encourag ing

commercial banks to reduce their

average prime lending rate from

9.5 per cent to 8.38 per cent. In

terms of economic outlook, the

Central Bank indicated that the

economy is expected to expand by

two per cent.

Real Sector ActivityReal GDP

Energy

Non-Energy

Headline Inflation (end of period)

2007

3

2

1. Annual percentages changes, unless otherwise stated. 2 On a fiscal year basis (October – September) and includes budget figures for 2010/11. ( In percent of GDP unless otherwise stated.)

3 Represent balances at the end of the fiscal year and excludes OMOs, treasury notes and debt management bills

Source: Central Bank of T&T, Ministry of Finance, CSO, IMF

1

ANNUAL ANNUAL FORECAST20092008 2010 2011

4.81.77.67.6

-3.52.6

-7.21.3

2.4-0.24.2

14.5

0.13.0

-1.913.4

2.33.21.97.0

5.6

1.8

29.2

5.3

-4.9

33.0

4.6

7.5

25.0

7.0

-0.2

36.1

7.5

-5.2

37.7

Unemployment rate

(average)

Central Government

Fiscal Balance

Public Sector debt

Fiscal Operations


Table 1.

Summary of Economic Indicators

Manufacturing Sector of Trinidad and TobagoThe Caribbean Centre for Money

and Finance Annual 2010 Report

indicated that the manufacturing

sector showed growth for the first

time in the second quarter of 2010

as the sector expanded by 281 per

cent. In terms of the sector's

contribution to GDP, it was

estimated at 5.5%. Further, within

the manufacturing sector, the food

and beverage sector has the largest

slice (37%) followed by Chemicals,

Non – metallic Minerals accounting

for 23% and Assembly Type and

Re l a t e d I n d u s t r i e s w h i c h

accounted for 21%.

The Central Bank of Trinidad

and Tobago provided latest

statistics on the Manufacturing

sector's contribution to the labour

f o r c e . E v e n t h o u g h t h e

manufacturing sector contracted

by 0.2 per cent in the second

quarter of 2010, it was less than in

the first quarter of 2010 which was

estimated at -1.8 per cent.

For the period 2006 to June

2010, the Trinidad and Tobago

economy recorded surpluses in

terms of its balance of trade; the

highest was recorded in 2008 with

a total of TT$56,709.7, while the

lowest was recorded in 2009 with a

total of $TT13,772.3. Other trade

statistics indicated that in 2010,

Trinidad and Tobago imported

goods mainly from the Mineral

fuels category as this accounted

for 33 per cent followed by

M a c h i n e r y a n d Tr a n s p o r t

equipment and Manufactured

goods which accounted for 28 per

cent and 19 per cent respectively.

On the domestic exports side,

Trinidad and Tobago exported

mainly mineral fuels (79 per cent)

followed by Chemicals (9.8 per

cent) and Manufactured Goods

(5.2 per cent).

The top five Import markets

in 2009 included United States

accounting for 31.3 per cent,

followed by Colombia, Russian

Federation, Gabon and China

which all accounted for 10.1 per

cent, 8.0 per cent, 7.1 per cent and

5.06 per cent each respectively.

However, the top five export

markets include United States

(62.5 per cent), CARICOM (15.8

per cent) Spain (6.3 per cent),

United Kingdom (4.8 per cent)

and the Rest of the World (1.8 per

cent).

E v e n t h o u g h t h e

Manufacturing Sector showed

slow recovery in 2010, it is

imperative that the

competitiveness of Trinidad and

Tobago's manufacturers remain

buoyant as this will ensure

sustainability of the sector. Some

indicators that ref lect the

competitiveness of a country

include the Global Competiveness

Index and the Index of Economic

F r e e d o m . T h e G l o b a l

Competitiveness index indicated

that Trinidad ranks 84 out of 139

countries with a score of 4.0 for the

period 2010 to 2011 as compared

to the last period 2009-2010, the

country ranked 86 out of the 139

countries with a score of 3.9. This

indicates a slight improvement of

the country's competitiveness

however; there is room for more

d e v l e o p m e n t . T h e Wo r l d

Economic Forum indicated on

their report that Trinidad and

Tobago faces many challenges in

the business environment such as

crime and theft which was rated

the highest (18.3 per cent)

followed by poor work ethic (17.6

per cent) and corruption (11.7 per

cent).

The Index of Economic

Freedom for Trinidad and Tobago is

66.5, positioning the economy as

52nd in the 2011 Index. Its score is

0.8 points higher than the previous

year, reflecting progress in fiscal

freedom, monetary freedom, and

government expenditure. Further,

it was revealed that Trinidad and

Tobago is ranked 11th out of 29

countries in the South and

Caribbean region, and its overall

score is higher than the world and

regional averages. A key index of

the Economic Freedom is the

Business Freedom Index which

addresses the freedom to establish

and conduct business. Trinidad and

Tobago scored 58.4 falling by 0.6

from last year. In general, the

freedom to conduct a business is

restricted by the country's

regulatory environment. The

regulatory system fell short in

transparency and clarity, and the

i r r e g u l a r i t y o f e n f o r c i n g

regulations.

Therefore, official statistics

indicates that the manufacturing

sector progressed in 2010

however the sector faces many

problems that hinders the

development of the sector. In

terms of its economic outlook, the

manufacturing sector is expected

to grow in 2011. This will be driven

by international commodity prices

and a revival of trade with Caricom

States.

Source: Global Competitiveness Report 2010 - 2011


Selected IndicatorsBasic Requirements

Efficiency EnhancersInnovation and Sophistication

GCI 2010-2011

GCI 2009-2010

1st Pillar: Institutions

2nd Pillar: Infrastructure

3rd Pillar: Macro – Economic Environment

4th Pillar: Health and Primary Education

84

86

55

68

45

70

61

77

78

4.0

3.9

4.7

3.9

4.5

4.6

5.8

4.0

3.4

SCORE (1-7)RANK(out of 139)

Table 2.

Global Competitiveness Index for T&T

TTMA Newsletter 2011

Documents

Transcript of TTMA Newsletter 2011