JNMS eyes rebound in remittances from Cayman

Sunday, February 19, 2012

JN Money Services Limited (JNMS) is cautiously optimistic on remittances to Jamaica from the Cayman Islands.

JNMS is the parent company behind the JN Money Transfer and QuikCash Money Transfer remittance brands in that country.

Leesa Kow, JNMS general manager, notes that while outbound remittances from Cayman have contracted over the global recessionary period, there are signs that some indicators may improve. She noted that while the Cayman economy experienced marginal growth in 2011against the background of a difficult global environment, the Cayman Government anticipates a 2.3 percent GDP recovery this year.

"This confidence could have a positive impact on the job market," Kow surmised.

"And, given the positive global financial indicators, there is also good reason for us to remain optimistic," she added.

The Cayman government's expectation is based on private investment activity over the next three years, particularly in the construction sector. Several projects are to be pursued, which include the development of a medical tourism hospital, infrastructural projects to be undertaken in the tourism sector, the construction of a cruise ship berthing facility and the development of a special economic zone.

"The tourism industry has also experienced some improved activity as airline arrivals have increased," Kow observed.

Both the tourism and construction sectors employ a significant number of migrant labourers and have been deeply impacted by the fallout in the Cayman economy due to global economic challenges over the past four years. This has had a direct impact on the outflow of remittances from the British Overseas Territory.Data fom the Cayman Islands Monetary Authority shows that remittances of approximately US$184.76 million transmitted by foreign workers in 2010 decreased by four to five percent in 2011.

However, Kow noted that while some business owners are not as positive about the country's economic growth this year, they are upbeat about their own growth in 2012. According to a Mood of the Boardroom online survey among business leaders in Cayman, 60 percent of business operators are somewhat or very confident that their operations will grow, she noted.

Kow's optimism is also based on World Bank data, which she said shows that remittances to developing countries are expected to grow at lower, but at more sustainable rates of seven to eight percent through 2011 to 2013, with inflows projected to reach US$375 billion by 2012 and US$404 billion by 2013.

"We are hopeful that the economic situation in Cayman will improve, as we refine our operations to facilitate money transfers globally," Kow said, pointing out that JNMS would implement a suite of initiatives in 2012 to improve its competitiveness in the global market.

She said that JN Money Transfer has already begun to strengthen operations in many major metropolitan cities, guided by the needs of the Jamaican Diaspora population. The company has more than 300 JN Money Transfer branches and agents across the United States of America, Canada, the United Kingdom, the Caribbean and Ghana.