INVESTMENT
Copyright 2006 Mission of Timor- Leste. All Rights Reserved.
General Information
Timor-Leste is faced with huge challenges arising out of its historical process to gain independence and such challenges have not only affected most of the country's infrastructure but, more importantly, they have affected its most valuable assets - its human resources - thereby reducing drastically the technical and professional capability of the Timorese to promote on their own economic activities of a private nature that may generate wealth and job creation.
It behoves the State to establish the necessary policy conditions with a view to improving the country's economic performance by promoting and encouraging external investment, which is vital for the reconstruction of the economic and entrepreneurial sector, and for the reduction of unemployment, deriving the benefits that such investment brings in several areas: technical assistance and vocational training for the national workforce, industrial development and an increase in productivity, rehabilitation of economic infrastructure, and the development of the quality of people's lives in general.
The establishment of a legal framework that attracts and favours external investment in the country is of paramount importance to promote the development of natural and human resources, create jobs, and contribute towards the economic and social development of Timor-Leste.
While the progress made in the last few years has been remarkable, the Government cannot lose sight of the fact that poverty and unemployment are on the rise, since the Timorese population and the labor force are growing 3 and 4 percent a year, respectively. The only way the poverty incidence rate in Timor-Leste can be reduced is with an economic growth of 7 percent a year. To achieve this, the new government is preparing a public investment (capital development) expenditure program to be included in the State Budget for FY 2006/07, totaling over USD 90 million. Knowing the weaknesses of the Timorese private sector, part of those expenses shall be executed by foreign companies, which will nevertheless be invited to employ a considerable percentage of national workers and to subcontract local companies.
Timor-Leste is trying to attract foreign investment in agriculture, fishing, manufacturing, tourism and the petroleum support industry.The country's new government promises to be fair and non-discriminatory and to apply the modern universal guarantees required by investors. Timor- Leste is in the process to install an investor-friendly tax regime while setting up information and support services for potential investors.
For more information, please contact:
Chris Santos
International Business Adviser
to The Prime Minister
