Minster Hylton Welcomes Corporate Governance Code for MSMEs

Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, has lauded the Private Sector Organization of Jamaica (PSOJ) for the development and launch of a Corporate Governance Code, designed specifically to guide micro, small and medium-sized enterprises (MSMEs).

He said the document is particularly appropriate at this time considering the Government’s push to position the MSME sector for sustained growth and global competitiveness.

He was addressing the launching ceremony at the PSOJ’s head office in Kingston on Friday (Feb. 12).

“Corporate governance is not only necessary for encouraging socially responsible behavior among our MSMEs. It is also an essential building block of a stable economy. We see this launch in the wider context of the business reforms we have implemented and the continuing efforts by the Government to provide support to the MSME sector,” Mr Hylton said.

The Corporate Governance Code for MSMEs, which is the first of its kind in Jamaica and the Caribbean region, was developed by the PSOJ Corporate Governance Committee through $1.73 million in financial support from the Development Bank of Jamaica (DBJ).

It has the overall objective of providing appropriate guidelines for MSMEs in the local market consistent with international best practices; enhancing MSME business governance systems; strengthening transparency, accountability and efficiency in the sector; and enhancing investment opportunities.

Minister Hylton expressed confidence that this intervention by the PSOJ will positively impact the contribution of the MSME sector to the country’s Gross Domestic Product (GDP) and to employment.

“With its acceptance and adoption, I am sure this Code will be a major catalyst for the development and deepening of the formalised private sector, while supporting innovation, competitiveness, wealth creation and social stability in our country,” he noted.

He said the Code has the potential to enhance access to credit for MSMEs, accelerate business growth,  build resilience to fraud and theft,  as well as reduce risk of conflict among family members managing a business.

Meanwhile, Chairman of the PSOJ, William Mahfood, said the development of the document is aimed at increasing support to the MSME sector, which he describes  as “the engine of growth that Jamaica needs to fire up” for further improvements in the economy.

He expressed gratitude to the DBJ for its support and added that the Code signifies another step in the evolution of corporate governance standards in Jamaica.

“It’s important to create the ability for small enterprises to be able to bank and get access to credit. The MSME sector has to play a critical role in our economic and social development…however, we cannot encourage MSMEs without providing the needed capacity to grow the business,” Mr. Mahfood said.

The Code received input from the DBJ, the MSME Alliance and the Small Business Association of Jamaica (SBAJ).

Managing Director of the DBJ, Milverton Reynolds, in his remarks at the ceremony, said the launch of the document is another example of the organisation’s partnership with the private sector for the provision of capacity development.

In another three to four weeks, the PSOJ, with coordinating support from the DBJ, will be hosting training sessions for MSMEs to provide overview of what the Code entails and assist them in developing the required procedures.