Private sector must drive growth

Arvind Maharaj, founder and CEO of Omcore Technologies, has called for a fundamental shift in Fiji's economic strategy, asserting that the nation cannot depend on increased taxes or borrowing to achieve sustainable growth. Speaking at the Dialogue Fiji Budget Forum as a representative of the private sector, Maharaj emphasized that Fiji's recovery and long-term development must be spearheaded by private enterprise, not solely by government expenditure.

Maharaj pointed to the current economic climate, characterized by lower growth, high debt levels, and a widening deficit, as clear evidence of the government's limited capacity to stimulate the economy through fiscal measures. He stated that the government's primary role should be to foster a stable and predictable environment that incentivizes businesses to invest, hire, and expand their operations.

“

From a private sector perspective, the first positive is that the budget recognises the reality. Fiji cannot tax, borrow or spend its way into sustainable growth. Growth has to come from productivity, investment and private sector activity.

"From a private sector perspective, the first positive is that the budget recognises the reality. Fiji cannot tax, borrow or spend its way into sustainable growth. Growth has to come from productivity, investment and private sector activity," Maharaj said. He also highlighted tax stability as a significant positive, noting that predictability and certainty are paramount for businesses, particularly small and medium-sized enterprises (MSMEs). The decision not to increase corporate tax was deemed important given the existing pressures of higher fuel, freight, electricity, wage, rent, and compliance costs.

While acknowledging positive budget measures like tax stability, reduced employee contributions, and support for skills and finance, Maharaj stressed that their success hinges on businesses having the confidence to act. He argued that many of Fiji's persistent challenges, including slow productivity, limited access to capital, and skills shortages, cannot be resolved by the government alone. Instead, he believes growth will depend on empowering the private sector to take risks and expand operations within a supportive economic framework. Maharaj concluded that the true measure of success will be whether businesses, especially MSMEs, experience tangible improvements in costs, cash flow, and investment conditions in the coming months.

“

For businesses, especially MSMEs, predictability and certainty matter the most. The decision not to increase corporate tax is important at a time when businesses are already facing higher fuel, freight, electricity, and wage, rent, and compliance costs. A further tax increase would have weakened confidence.