Carib Scope

分类： business

  • VIDEO: Shoppers cash in on SVG’s first VAT-free day

    VIDEO: Shoppers cash in on SVG’s first VAT-free day

    On December 19, 2025, St. Vincent and the Grenadines witnessed an unprecedented economic event as thousands of citizens participated in the nation’s inaugural Value-Added Tax (VAT) exemption day. This marked the first suspension of the contentious consumption tax since its implementation eighteen years prior in 2007.

    The nationwide tax holiday triggered widespread commercial activity across retail sectors, with consumers capitalizing on significant savings to acquire both essential goods and discretionary items. Numerous shoppers reported saving hundreds of Eastern Caribbean dollars on single transactions, with many immediately reinvesting their unexpected windfall into additional purchases, effectively stimulating secondary market circulation.

    Despite the generally celebratory atmosphere surrounding the economic stimulus measure, the event drew nuanced responses from participants. While many embraced the financial relief, at least one female consumer expressed reservations, questioning whether the EC$500 she saved justified contending with massive crowds and the associated inconveniences of the shopping frenzy. Her sentiment highlights the complex balance between economic policy benefits and practical consumer experience during specially designated shopping events.

    The government’s temporary tax suspension represents a significant fiscal experiment within the Eastern Caribbean currency union, potentially setting precedents for neighboring nations considering similar consumer-focused economic interventions.

  • Oil wealth not spreading countrywide- Jagdeo, Campbell

    Oil wealth not spreading countrywide- Jagdeo, Campbell

    Six years into its oil production era, Guyana continues to struggle with distributing hydrocarbon revenues across its national territory, according to simultaneous acknowledgments from both government and opposition figures. Vice President Bharrat Jagdeo and A Partnership for National Unity (APNU) parliamentary leader Dr. Terrence Campbell concur that economic benefits remain disproportionately concentrated in Region Four (Demerara-Mahaica), where hospitality and service sectors have experienced explosive growth.

    The administration is implementing a strategic response through tax-free investment zones designed to stimulate non-oil sectors. President Irfaan Ali’s recently unveiled five-year development agenda emphasizes agro-food processing and industrial diversification as pathways to generate high-value employment opportunities. Jagdeo confirmed that while urban centers have witnessed remarkable service sector expansion, rural, riverain, and Amerindian communities have not experienced comparable economic integration.

    A cornerstone of the government’s approach involves substantial fiscal incentives, including zero corporation tax for export-oriented agricultural producers and import substitution enterprises. This policy framework accompanies ambitious development initiatives such as the planned 180,000-acre agro-industrial complex in Berbice, projected to yield billions in export revenues.

    Opposition representatives argue for more equitable resource allocation regardless of political affiliations. APNU parliamentarian Nima Flue-Bess highlighted developmental disparities across Regions Five, Seven, Eight, and Ten, demanding balanced economic advancement nationwide. Dr. Campbell specifically referenced ongoing projects in PPPC-stronghold Region Six, including specialized training institutes and infrastructure developments, while urging immediate attention to agricultural sector modernization.

    The parliamentary leader further cautioned about petroleum market volatility, advocating for prudent fiscal management of oil revenues. He emphasized the necessity of strategic savings and wise investment to ensure long-term economic stability amid fluctuating global energy prices.

  • Warner Bros Discovery rejects Paramount’s hostile takeover bid

    Warner Bros Discovery rejects Paramount’s hostile takeover bid

    Warner Bros Discovery’s board of directors has formally rejected a hostile $108.4 billion acquisition proposal from Paramount Skydance, alleging the bidding studio misrepresented critical financial details to shareholders. In a December 17 communique to investors, the board asserted that Paramount had consistently misled stakeholders by claiming its $30-per-share cash offer was fully guaranteed by the Ellison family, led by Oracle billionaire Larry Ellison.

    The rejection comes amid an intense corporate battle for control of Warner Bros Discovery’s coveted assets, including its prestigious film and television studios, HBO Max streaming platform, and valuable intellectual properties like the Harry Potter franchise. Paramount launched its aggressive bid after Warner Bros had already accepted a competing offer from streaming titan Netflix.

    The board characterized Paramount’s proposal as posing ‘numerous, significant risks’ and declared it ‘inferior’ to Netflix’s binding $27.75-per-share agreement, which features robust debt commitments and requires no equity financing. Unlike Netflix’s solidified arrangement, Paramount’s offer could be terminated or modified arbitrarily prior to finalization, creating substantial uncertainty for shareholders.

    Warner Bros leadership has not yet scheduled a shareholder vote on the Netflix merger but anticipates holding the decision during spring or early summer, according to Chairman Samuel Di Piazza. The Ellison family has reportedly cited their connections to former President Donald Trump as potentially smoothing regulatory approval, though Netflix executives have already initiated discussions with both the U.S. Department of Justice and European Commission regarding their proposed acquisition.

    In a significant concession to address industry concerns, Netflix has assured Warner Bros it will continue theatrical releases for the studio’s films, alleviating fears that the merger would eliminate a major source of cinema content. The company’s co-CEO Ted Sarandos affirmed the board’s position that the Netflix agreement represents the superior path forward for stockholder interests.

  • ‘No one to work’

    ‘No one to work’

    KINGSTON, Jamaica – A seventy-year legacy in Jamaica’s leathercraft industry is concluding not due to market pressures or declining sales, but because of an irreplaceable human capital shortage. People’s Leather Supplies Limited, a cornerstone supplier for artisans, shoemakers, and educational institutions, is shuttering its operations permanently after failing to secure a successor to its longstanding leadership.

    For over half a century, Hope Smith has stewarded the family enterprise established by her father. Her impending retirement at year’s end marks the finale of an era, a decision compelled by the absence of a willing family heir. This succession vacuum was tragically exacerbated by the death of her brother, the intended successor, followed by the retirement of veteran staff members.

    In an exclusive interview, Smith revealed the core dilemma: her children and grandchildren reside overseas with no interest in returning to manage the specialized trade. Recruitment efforts proved equally futile, with Smith citing a generational disconnect in work ethic. ‘These young people come in, and everybody’s on the phone… It’s just a different generation,’ she lamented.

    Despite generating millions in annual revenue and attracting potential buyers, Smith found none prepared to operate the complex business independently. Proposals that required her continued involvement were firmly rejected. ‘After two years without a vacation and now being in my retirement years, I just want to be out,’ she stated.

    The closure strategy prioritizes preserving the company’s esteemed reputation over a risky transition. Smith has chosen to retain the business name and property within the family, nurturing hope for a future revival by subsequent generations. The company’s sole remaining location on Slipe Road will be leased to a hardware retailer, following the earlier shutdown of its downtown Kingston branch during the pandemic.

    The company occupies a unique market niche, providing an extensive range of specialized materials—from leather and insoles to dyes and specialized vinyl for schools—unmatched by competitors. Its clientele includes major local brands like Bridget Sandals.

    The final weeks have been marked by impactful closing sales, with loyal customers stockpiling essentials and purchasing discounted finished goods. From a peak of nine employees, the staff has dwindled to three, with transition assistance provided to the remaining workers.

    Expressing profound gratitude to decades-long patrons, Smith shared her emotional conflict: ‘I know they’re really disappointed but there comes a time when you have to make a decision about what is best for you as an individual.’ She concluded with poignant regret, wishing family circumstances had allowed the legacy to continue.

  • Sagicor Bank reopens in storm-hit Black River

    Sagicor Bank reopens in storm-hit Black River

    Sagicor Bank Jamaica has successfully restored banking services to the isolated community of Black River, St. Elizabeth, following the devastating impact of Hurricane Melissa in late October. The branch, which constitutes the town’s sole financial institution, resumed operations on Friday after sustaining severe structural damage from storm surges that shattered windows and flooded the interior.

    Facing a critical lack of financial access, local residents and businesses had been without essential banking services for nearly two months. Bank CEO Chorvelle Johnson Cunningham emphasized the institution’s commitment to rapid recovery, stating, “Our immediate priority was to reestablish operations in Black River to support our clients and the community’s rebuilding efforts during this challenging period.”

    The bank implemented an innovative temporary banking facility on the original site, which processed approximately 500 transactions during its two-day soft launch beginning December 15. This reopening forms part of Sagicor Group Jamaica’s comprehensive $200-million recovery initiative, with significant allocations addressing broader community needs.

    Christopher Zacca, President and CEO of Sagicor Group Jamaica, highlighted the strategic importance of the banking restoration: “While this branch reopening stimulates economic recovery at the community level, our parallel initiatives focus on reconstructing healthcare facilities, educational infrastructure, and social support systems across western Jamaica.”

    The parent company has designated $100 million specifically for clinic restoration in affected regions, with $40 million already distributed for staff relief programs. Sagicor Bank Jamaica, the nation’s third most profitable commercial bank and part of the Sagicor Financial Company Ltd network, conducted an official reopening ceremony on December 19, 2025, marking a significant milestone in the region’s recovery journey.

  • JPS says it moved to prevent rate hike being six times higher

    JPS says it moved to prevent rate hike being six times higher

    Jamaica’s sole electricity distributor, Jamaica Public Service Company (JPS), finds itself at the center of a brewing storm as it defends a recently approved 7% rate increase amidst public outcry. The Office of Utilities Regulation (OUR) sanctioned the hike, which will impact December bills covering November consumption, but JPS contends this represents a fraction of what could have been implemented without their proposed cost-spreading measures.

    The root cause traces back to Hurricane Melissa’s October 28 landfall, which severely disrupted Jamaica’s energy infrastructure. The tempest damaged supply lines for lower-cost fuels, forcing JPS to temporarily utilize more expensive alternatives while simultaneously reducing renewable energy availability. Compounding the problem, overall electricity sales plummeted by approximately 30% due to widespread power outages, creating a perfect storm of financial pressures.

    JPS explained the economic mechanics in simple terms: “Think of the power plant as a bus rented for $10,000. This fixed cost gets divided among all passengers. With fewer riders after the hurricane, each remaining customer bears a larger portion of the burden.” This analogy illustrates how fixed costs for fuel suppliers and Independent Power Producers (IPPs) must be distributed across diminished consumption, inevitably driving rates upward.

    The company emphasized that fuel and generation charges are strictly regulated to reflect actual costs, with payments flowing directly to suppliers including Petrojam and Excelerate Energy rather than being retained by JPS. Without the approved deferral strategy, customers would have faced an immediate 50% increase rather than the implemented 7% rise, which will see remaining costs distributed over subsequent months.

    Energy Minister Daryl Vaz acknowledged the difficult situation while criticizing JPS’s operational framework. He characterized the current licence agreement as fundamentally flawed, stating it fails to protect consumer interests and leaves regulators with insufficient intervention authority. Minister Vaz insisted that licence reform must become a priority, noting that while the current increase is smaller than July’s 16% hike following Hurricane Beryl, the pattern of storm-related rate spikes demands systemic change.

    JPS revealed it has proposed a fuel rate stabilization mechanism to the OUR that would mitigate such dramatic bill fluctuations, creating more predictable pricing while honoring obligations to suppliers. However, the company notes it cannot implement such measures without formal regulatory approval, despite receiving informal signals of agreement.

  • Finance Minister to public servants – Save some back pay for rainy days

    Finance Minister to public servants – Save some back pay for rainy days

    In a significant development for Trinidad’s public sector, Finance Minister Davendranath Tancoo has issued a compelling appeal to public servants receiving partial back payments, emphasizing the critical importance of financial prudence. The minister’s advisory comes amidst ongoing economic pressures and rising living costs, urging recipients to prioritize saving and long-term financial security over immediate expenditure.

    The backdrop to this financial advisory stems from the recent memorandum of agreement signed between the Public Service Association (PSA) and Chief Personnel Officer Dr. Daryl Dindial on December 2. This landmark agreement secured a ten percent wage increase for public servants, with new salaries scheduled for January implementation and an advance on arrears promised before December 23. Notably, the complete $3.8 billion in back pay will not be distributed in full cash payments immediately, with the initial disbursement capped at approximately $500 million for the PSA’s 80,000 members.

    Financial experts have reinforced the minister’s message with practical guidance. Ian Chinapoo, Group CEO of Guardian Group with three decades of financial expertise, introduced ‘The 4T Framework’ for managing windfall payments. His comprehensive approach emphasizes emotional regulation (Take a breath), financial assessment (Think out loud), strategic debt management (Tactical moves), and future-oriented investing (Target your future). Chinapoo specifically recommends allocating no less than 50% of back pay to secure investments like mutual funds, stocks, and government bonds.

    Adding depth to the financial counsel, Miguel Martinez, President of Guardian Asset Management, warned against the psychological trap of treating lump sums as ‘found money.’ He advocated for a balanced allocation strategy dividing funds between enjoyment, debt reduction, and savings/investments. Martinez particularly emphasized building emergency reserves covering six months of income and pursuing purpose-driven investing through professionally managed funds with strong track records and transparent fee structures.

    Both experts concur that this disbursement presents a unique opportunity for public servants to establish lasting financial stability, transform their economic outlook, and create intergenerational wealth through disciplined financial management and strategic partnership with reputable financial institutions.

  • De toekomst is van ons, Surinamers

    De toekomst is van ons, Surinamers

    Suriname stands on the brink of a transformative economic era as it prepares to join the ranks of oil-producing nations within the coming years. This transition promises substantial foreign investments and sectoral growth extending beyond energy into logistics, infrastructure, maritime services, and financial sectors. However, this development brings to the forefront a critical challenge: ensuring that the wealth generated from Suriname’s natural resources actually benefits its citizens rather than being diverted through international corporate structures.

    At the heart of this challenge lies transfer pricing—the practice of setting prices for transactions between companies within the same multinational corporation. When entities like TotalEnergies conduct internal transactions involving services, equipment rentals, licenses, royalties, and technical expertise across different jurisdictions, the assigned prices determine where profits are recorded and taxes are paid. If these internal prices don’t reflect Suriname’s economic reality, value created locally can easily shift abroad.

    The stakes are considerable. Even during the current preparatory phase, significant tax revenues are potentially being lost. As more international corporations establish operations across energy, logistics, construction, and service sectors, this leakage could accelerate. Suriname maintains a 36% corporate tax rate, among the highest in the region, creating incentives for multinationals to report profits in lower-tax jurisdictions despite conducting economic activities within Suriname’s borders.

    This issue transcends mere taxation—it represents a fundamental question of economic justice. Surinamese citizens have long endured high tax burdens, inflation, and economic uncertainty. Proper transfer pricing regulations would enable the country to secure future revenues without further increasing pressure on households. By establishing clear rules for profit allocation and taxation rights aligned with contemporary global developments, Suriname can claim its fair share of resource wealth.

    Globally, countries have served as profit transit points for corporations like Apple, Shell, and Starbucks, where wealth generated in one jurisdiction is shifted elsewhere through fiscal engineering. Suriname now has the opportunity to learn from these experiences and implement robust transfer pricing policies before production and capital flows become entrenched. Such measures could secure substantial revenues throughout the oil and gas production lifecycle.

    The choices made today regarding fiscal governance will determine whether future income streams benefit Surinamese society or disappear invisibly abroad. The nation’s deep-sea wealth won’t automatically translate into prosperity—it requires deliberate policy design to ensure value remains where it’s created.

  • Wages, prices, corporate pressure and consumer tolerance

    Wages, prices, corporate pressure and consumer tolerance

    The Barbados Chamber of Commerce & Industry (BCCI) has ignited a critical national dialogue regarding the complex interplay between minimum wage increases and business sustainability. This debate emerges against a backdrop of escalating living costs that disproportionately affect low-wage workers while simultaneously threatening the operational viability of enterprises across the island nation.

    At the heart of the discussion lies a fundamental tension: the moral imperative to ensure all working Barbadians earn sufficient income to cover basic necessities versus the economic realities facing businesses, particularly small and medium enterprises that dominate the commercial landscape. With food prices, housing costs, utilities, and transportation expenses steadily climbing, minimum wage earners represent the demographic most vulnerable to economic pressures, often allocating virtually their entire income to essential expenditures.

    BCCI President Paul Inniss recently articulated the chamber’s position during a press conference, acknowledging the necessity of livable wages while warning of the ‘cascading effect’ that mandated wage increases trigger throughout the economy. The chamber’s analysis indicates that when the national minimum wage rises, employees earning above that threshold typically expect corresponding increases, creating widespread upward pressure on labor costs that extends far beyond entry-level positions.

    Christopher Sambrano, Chairman of the BCCI’s Economic Advisory Committee, cautions that continuous wage hikes risk fueling inflationary cycles that could ultimately negate any purchasing power gains workers might otherwise achieve. This perspective highlights the delicate balance policymakers must strike between immediate relief for workers and long-term economic stability.

    The chamber advocates for a more nuanced approach to compensation, proposing incentive-based pay structures tied to productivity metrics and business performance. Such systems would theoretically provide a base wage meeting minimum standards while offering additional earnings potential through performance bonuses. However, this approach presents implementation challenges regarding National Insurance contributions, pension calculations, and the inherent power imbalances that leave low-wage workers vulnerable to exploitation.

    Technology adoption, process optimization, and artificial intelligence implementation represent alternative strategies businesses might employ to offset rising labor costs. Yet critics note that productivity enhancements remain particularly challenging for small businesses and labor-intensive sectors where human effort directly correlates with output.

    The government maintains that minimum wage adjustments constitute an essential component of its broader socioeconomic agenda. While the BCCI leadership expresses understanding of this policy direction, they emphasize that consecutive increases have intensified pressure on business operations, potentially leading to price increases passed to consumers or other cost-saving measures.

    This ongoing discourse ultimately seeks to identify sustainable solutions that acknowledge both the legitimate needs of workers for adequate compensation and the practical constraints facing businesses in a competitive economic environment.

  • Why the Union Power Station is active again

    Why the Union Power Station is active again

    In a strategic move to enhance national energy security, Saint Lucia Electricity Services Limited (LUCELEC) has repurposed the decommissioned Union Power Station into a critical standby facility. This initiative marks a significant step in fortifying the island’s electrical infrastructure against potential disruptions.

    The Union facility, once a cornerstone of northern Saint Lucia’s power supply, was rendered obsolete in 1990 when the centralized Cul De Sac Power Station became the nation’s sole generation source. Alongside its southern counterpart in Vieux Fort, the Union plant was phased out due to operational limitations from aging infrastructure and insufficient capacity.

    Recent reactivation efforts have transformed the site into a reliability asset. Ormond Reece, LUCELEC’s Senior Planning Manager, confirmed the station now serves as emergency capacity to satisfy regulatory mandates requiring uninterrupted service even during major generator failures. “This investment ensures LUCELEC meets its statutory obligation to maintain sufficient, reliable capacity,” Reece stated to St. Lucia Times.

    The standby capacity also supports grid stability during renewable energy integration. Reece emphasized that “it helps reduce the risk of system interruptions and supports a more stable grid as renewable integration continues.”

    This development coincides with broader regional energy modernization. The World Bank recently approved a $131.87 million Caribbean Efficient and Green Energy Buildings Project, encompassing Saint Lucia, Grenada, and Guyana. The initiative targets reduced fossil fuel dependence through retrofitting 500 public buildings with energy-efficient technologies and solar panels, aiming for minimum 20% energy savings.

    However, legislative progress faced setbacks. The Electricity Supply Bill, designed to enable independent renewable power producers, stalled in Parliament after stakeholders requested extended review time for the complex legislation. The proposed framework maintains LUCELEC’s grid control while allowing third-party generation, acknowledging the market’s limited size for competing infrastructure.

    Looking forward, LUCELEC advances its 10MW solar farm on the southeast coast with full construction approval. Bidding for the project opens January 16, 2026, with construction anticipated by Q2 2026. Concurrently, the company will develop an Integrated Resource and Resiliency Plan through a multi-stakeholder process to guide Saint Lucia’s energy transition aligned with National Energy Policy goals.