An investor’s view: The CNMI as an investment venue today!

Since the approval of protectionist measures in recent years–which fueled the fire of instability and uncertainty here–we’ve done one thing for sure: Dug up our graves ready to even partake in our own internment. The following is a potential investor’s assessment of how other investors view these isles as an investment venue. Please read on:

“I made a couple of calls to suitable investors both in Asia and in the U.S. to test the waters. To a man, as soon as he heard the name Saipan, their possible interest turned into total disinterest. As one puts it, he wouldn’t touch Saipan with a 10 foot pole, no matter how enticing the proposition might look. Overall, I think this sentiment holds true for most past and many potential future investors. There are too many other highly promising investments available in other parts of the world where the governmental environment and the record of investor treatment is strikingly different, i.e., Singapore.

Therefore, under the present circumstances, and based on past history, a new investment in the CNMI will be a very long shot for anybody. The government as an investor may be oblivious to that and invest anyway, but legitimate and savvy private investors are likely to steer clear of Saipan for some time. Which leaves the mafia, drug money launderers or other crooks to come for a fast buck, if they can get it. But hopefully those “investors” can be kept away if the islands are ever going to recover respectability and a normal, stable economy.

Therefore, these are my thoughts:

It will take someone who is willing to demonstrate faith in Saipan, who also has the knowledge and wherewithal to build one or more Saipan money-making machines. No doubt, no one would be more convincing for this than one or more Saipanese themselves. Trying to pull in new investors from the outside at this point looks like trying to pull in new suckers who can be fleezed and then kicked in the butt once they’ve unloaded their money. Maybe there’s a sucker born every minute, but in the case of Saipan, they have learned their lessons and rather go elsewhere.

I think it will take someone…to put his head on the line and his fortune at risk to pull this off. With home grown investors willing to stand up and carry the load, the situation immediately can have a totally new, and promising perspective. Then it should be relatively easy getting banks to loan money and outside investors to come along for the ride.

The crux of the matter is to have a boy (and/or gal) from home to demonstrate the confidence, putting everything he/she owns on the line, and take it from there. In my opinion, there could be several routes how this can be accomplished. One would be to interest one or several of the local money men to form that nucleus.

If none of them wants to bite, here is another approach:

Start with a public offering directed particularly to Saipan residents…people who know the place and have faith in Saipan and its future. If 100 or 1000 people…can each put up what is a substantial amount to them, you’ll have more than what’s needed for the down payment, and may not need that much financing, making the deal still easier to swing. It’s precisely this demonstration of local commitment and faith which would make the venture take off and at the same time also serve as a model for others to follow on how to be self-reliant, responsible, in building a better CNMI economy. That’s also the only way to real economic strength and stability, not to mention control of Saipan’s future. Yes, there’s a lot that can be done.”

Would anyone here dare make a bite when the same set of strangling laws equally applies to one and all? It’s fodder for discussion.

Strictly a personal view. John S. DelRosario Jr. is publisher of Saipan Tribune.