CNMI receiving numerous foreign investment inquiries
Numerous inquiries received by the Department of Commerce from foreign investors are strong indication of the Northern Marianas’ bright potentials to become the hub of Asian investments in the Western Pacific Region.
The Economic Development Division disclosed that its foreign investments office has been receiving a handful of inquiries from off-island businessmen who are interested to put up businesses in the Northern Marianas.
The commerce department receives numerous investment inquiries from businessmen from Japan, Korea, Taiwan and Hong Kong.
However, inquiries from foreign investors are all the CNMI gets right now since most of them never come back after learning of the $100,000 cash security deposit requirement, according to the economic development office.
Commerce officials said this situation is reflected in the very low volume of inquiries that turn to actual business visa application from February 1997 to March 15, 2000.
Northern Marianas issued foreign investment certificates and visas to only 10 new foreign businesses since February 1997. These investments translate to at least $3.5 million in fresh capital to the local economy.
The Commonwealth implemented a new investment law in 1997 which welcomes foreign businessmen with too many restrictions and prohibitive requirements including the security deposit which does nothing but sit idle in the CNMI treasury.
This restrictive requirement, along with issues surrounding the future availability of guest inexpensive workers and unresolved Article 12 issues, have continued to outweigh the Commonwealth’s foreign investment potentials and strengths.
Government studies have noted that because of the availability of local financing for working capital, the low cost of labor and the control over immigration and minimum wage are making the Commonwealth an ideal place to do business.
In order to offshoot the disadvantages brought about by the $100,000 security deposit and to the make the local economic environment on track with the regional setting, the government may seek new sets of perks that would entice businessmen look for fresher investment opportunities.
Dwindling visitor arrivals and the eventual demise of the garment sector in five years is pressing hard the Tenorio Administration to enhance the Commonwealth’s incentives scheme.
The CNMI may have to improve perks granted to investors if it aims to be competitive with the incentives offered by neighboring islands in Micronesia and other countries in the Asia-Pacific Rim.
Experts suggested that the government’s Economic Revitalization Task Force look at realigning existing business incentives or at least give it some flexibility where investors can choose which perks they need.
Concrete efforts now being carried out by the CNMI government include legislation that would scrap the $100,000 security deposit and ease current restrictions on the importation of foreign workers from Asia.
