Jamaica Being Positioned as a Regional Technology and Innovation Hub

Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, says the Government is positioning Jamaica as a regional hub for technology and innovation as part of the economic growth strategy.

The Minister, in a speech delivered by Permanent Secretary, Sancia Bennett Templer, during the Global Services Association of Jamaica (GSAJ) President’s Breakfast Forum at the Grand-a-View Restaurant and Event Place in Montego Bay on Thursday (November 22), said the Government has been providing incentives to encourage innovation and digital transformation, fostering an environment that is conducive to high-quality research and development in digital technology, including artificial intelligence (AI).

“We have also been engaging in public-private collaborations that intentionally stimulate innovation. This forms part of a broader strategy to further develop and expand high-potential outsourcing sectors, which are critical for the country’s digital transformation and global competitiveness,” he added.

Senator Hill said the Administration is not shying away from AI as an emerging technology, pointing out that a National AI Task Force was established last year to provide an evidence-based foundation for the development of an AI policy framework.

The policy, he noted, is expected to leverage “this emerging technology” to improve productivity, while ensuring safe applications and data security.

“AI is expected to be integrated into sectors, like health, agriculture and education and, of course, Global Digital Services (GDSS), to enhance productivity.

“By actively supporting the development of technology-driven industries, we are enabling the creation of high-paying, knowledge-based jobs by attracting foreign direct investment and retaining local talent. These efforts will also further position Jamaica as a regional hub for innovation, driving economic diversification and resilience,” he said.

Senator Hill said with these strategic initiatives, Jamaica is not just participating in the digital revolution, but “we are leading it” and transforming challenges into opportunities for sustainable development.

Meanwhile, he encouraged businesses involved in the GDSS sector to take advantage of benefits available through the Special Economic Zone (SEZ) regime.

The Government provides incentives to encourage business growth in firms operating in the SEZs, including those involved in outsourcing operations, the Minister said, noting that entities can benefit from a 50 per cent reduction in their corporate income tax rate.

He pointed out that in the domestic economy, companies pay 25 per cent to 33 1/3 per cent corporate income tax, while the SEZ companies pay as low as 12.55 per cent, which can be further reduced to 7.75 per cent with the application of promotional and employee tax credits.