During the symposium, Pohnpei presented its proposed amendments to replace the current Foreign Investment Board with an administrator of economic affairs in the near future, as is the case in the three other states, and to reduce the number of days to process a foreign investment permit application from 45 to 15.
Chuuk informed the participants that it is working toward removing the limitation on capital and profits’ repatriation.
Participants agreed to adopt a standardized definition of key concepts such as citizen, non-citizens, foreign investors, marine resources and senior management positions.
They likewise agreed to change the reporting period by foreign investors to the calendar year and to use the same format and template for collecting data on foreign investments.
Finally, the states were encouraged to consider using the current program on mediation in Kosrae as a model to develop their own alternative dispute resolution mechanism, so as to enhance the enforcement of business contracts in the FSM.
Considering the potential impacts of foreign investment on local businesses, the symposium discussed strategies to promote local entrepreneurship in the FSM and the involvement of the private sector in decisions affecting their businesses.
The symposium strongly recommended that national and state governments should support local businesses that produce goods and services supplying local needs and sensitive products.
The private sector, for its part, raised the need for further consultations on the proposed new Value Added Tax system.
The symposium was opened by Kosrae Gov. Robert Weilbacher and was attended by representatives from the national and states governments, the FSM Congress, the Pohnpei and Kosrae legislatures, the presidents and chairmen of the local chambers of commerce, and a consultant from the Pacific Islands Forum Secretariat.
