KOROR (Palau Horizon) — More small businesses will fold up unless the government provides assistance, according to the Palau Chamber of Commerce.
Leilani Reklai, the Chamber secretary, said some small companies had resorted to a reduction in the work hours of their employees to stay in business.
Like most Pacific countries dependent on tourism, Palau’s economy has been affected by the Sept. 11 terrorist attacks on America.
Reklai said the government can help by allowing small businesses to get loans from the National Development Bank.
“We’re lucky the government is not laying off its employees but the Chamber of Commerce would like to give a wake-up call. Unless we act together to find new resources, everyone will be in (a bad) situation,” she said.
But Reklai believes that Palau is more fortunate than other Pacific nations.
“It is not gloomy at all. We still have a lot of money. We still get foreign aid and grants,” she said.
However, she added, the Chamber of Commerce is also looking for other possible funding sources that Palau could tap.
The Chamber at the same time has been working with the administration and lawmaker to encourage foreign investors to bring in fresh capital.
President Tommy Remengesau earlier said that despite the global crisis, Palau’s economy was recovering.
“We have all indications that tourism is on the rebound. We’re doing a lot better,” he said.
But he also said that the government must pass legislation that would provide tax incentives to foreign investors.
