East Timor: Foreign businessmen fear economic worsening in Timor-Leste

Dili – Foreign businessmen with investments in Timor-Leste today expressed concern that the country’s political situation may again have a negative impact on the national economy this year, saying many companies will not be able to do so.

I lose money in 2018 and if I lose those numbers, if I continue this year, I’m done, “Lusa Clarence Lim, the head of the Kmanek group, said two large supermarkets in the capital.

“So please ask: do something. Help the private sector survive,” he appealed to the country’s political leaders.

Timor-Leste resumed 2019 in twelfths after the delay in approving the State Budget (OGE) that is now with the President of the Republic, which has until January 23 to decide to veto or enact the document.

Despite having an absolute majority government – from last year’s early elections, called after the dissolution of the parliament elected in 2017 – a presidential veto could cause great political and economic instability.

This would aggravate the country’s economic situation, where declining public spending – the country lasted nine months in twelfths – is having a devastating impact on the emerging national private sector.

Clarence Lim admits that the situation has been “very tough”.

“In the first half we had a 17 per cent drop, so in the second half of the year it was even bigger, about 25 per cent,” he said. he.

“This year has already begun with a 35 per cent drop compared to 2017,” said the businessman, who has 30 international workers, 200 East Timorese and buys more than 500 groups of farmers.

Lim calls on politicians to “work to create a more favorable environment for the private sector” and explains that it will be difficult to keep all workers if the situation does not change.

“They need to improve the bureaucracy, from top to bottom and beyond. For investors, entrepreneurs need not continue to face these constant obstacles,” he said.

Tony Jape, head of Timor-Leste’s largest shopping center, Timor Plaza – which employs more than 350 people – agrees, stating that 2018 “was the most difficult year” for the national economy.

“We’ve seen a lot of deals closing down,” he said. “Fortunately, we can keep our tenants here, but we know they are having difficulties themselves.”

Those who deal with the government in particular are in great difficulty and do not receive for seven or eight months. This makes it very difficult for them to be able to pay their rent and their costs, “he said.

Jape says many of the business people he talks to are “having to fire people or use fewer workers and that’s not a good sign”.

“Everybody is cutting employees, I hope that does not last long, we need the OGE to be approved for the economy to move in. There are more companies to close than open,” he said.

“It’s impossible to last another year. No country would accept that,” he said.

Jape appeals to politicians to repeat the model of the past “in which they worked well together,” sitting down to “talk and decide what to do for the future” of Timor-Leste.

“We remain committed, we have long-term plans and we hope that this will be resolved, even in difficult times, we must continue to seek opportunities,” he concluded.