Diversification is the best way to deal with the negatively changing economic fortunes across the Caribbean, says Republic Bank executive director Roopnarine Oumade Singh.
"Diversification is the only way that modern economies can hope to survive. But it is not enough to simply say or admit that. Coupled with the need for increased diversification in the face of prevailing economic trends, there has never been a more pressing need for greater connectivity among our leaders, particularly in the fields of power generation, water, energy and manufacturing," he said.
Singh added: "In January, the United States exported natural gas for the first time, with a shipment of liquefied natural gas dispatched to Europe, resuming oil exports after a 40-year hiatus. On the other side of the world, reports come in that Iran is preparing to ramp up their oil production and exports by an estimated 500,000 barrels per day, following the lifting of sanctions."
He said ripple effects of these events have been noticeable as energy prices remain depressed because supply out strips demand. Singh citied a recent International Monetary Fund Economic Outlook Report which is forecasting that global growth will dip to 3.1 per cent from 3.4 per cent.
Speaking at the Republic Bank-sponsored CEOs Forum hosted by the Caribbean Business Leadership Forum and held Hilton Trinidad and Conference Centre in Port-of-Spain, on Tuesday, Singh urged business leaders to become more circumspect in the way they operate and be more responsive, while staying in touch with the markets and the people they serve.
"Republic Bank stands ready and willing to partner with you. We will continue to leverage the strong market positions we enjoy in T&T, Guyana, Grenada, Barbados, the Cayman Islands, Suriname and Ghana to serve you and open up markets for you. Serving the region for over 178 years, we know full well of the benefits of economic diversification, expanding our operations and further diversifying our economic base from oil and gas and manufacturing, to mineral economies like bauxite and gold, and service economies to include tourism," he said.
"This is not to say that we have turned our backs on the energy sector. In fact, it is the opposite. We have enjoyed a long history of providing financing to the local energy sector."
Singh said one of the bank's greatest hopes, in the context of leadership, is for business executives to place greater emphasis on valuing diversity within their respective organisations.
"With so much on the line there may in fact be no greater time than now to explore innovative ways of doing business. We must each share a vision of a country and a region where opportunities are open to those of us ready to seize them," he said.
"We must share a vision of a dynamic environment where it is the norm and not the exception to think beyond the short term and think about long-term investments in power generation; water, energy and manufacturing that must yield new jobs and new sustainable industries."