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FSM Government Sponsors Captive Insurance Seminar in Tokyo

Palikir, Pohnpei (FSM Information Services): June 1, 2009 - On Tuesday, May 26, 2009, the FSM Government, in cooperation with the United Nations Industrial Development Organization (UNIDO), Japan External Trade Organization (JETRO), Japan Institute for Pacific Studies (JAIPAS), and the FSM Captive Insurance Council, sponsored a seminar at the United Nations University in Tokyo entitled "Federated States of Micronesia Investment & Captive Opportunity." This was the third seminar for Japanese companies and private investors to learn more about FSM as a site for investment. There were several speakers who gave presentations at the seminar, including opening remarks from President Manny Mori, and an overview of the FSM from Secretary of Resources & Development (R&D), Hon. Peter Christian.

After introductions, Ambassador John Fritz, FSM Ambassador to Japan, gave introductory remarks that included information about the Pohnpei runway expansion and the future ability of FSM to have direct flights between Tokyo and Pohnpei. He also explained the "Rainbownesia Project", which is a campaign to increase support and friendship of Japanese people with Micronesians and grow awareness of the upcoming inaugural flight, which is scheduled for February of 2011. Ambassador Fritz also introduced the FSM Delegation that was in attendance which included President Mori, the First Lady, Emma Mori, Secretary Christian, Secretary Lorin Robert of Foreign Affairs, and Mr. Marion Henry, Assistant Secretary of R&D.

President Mori gave opening remarks to welcome people to the seminar and briefly introduced the business environment of the FSM. His remarks focused on the strengthening of the relationship between the FSM and Japan and how the FSM is preparing to become a strategic hub for Japanese Captive Insurance companies. He mentioned the simple and efficient tax system in the FSM that has favorable tax rates and will be attractive to Japanese companies. This process of Captive Insurance, which is a self-insurance plan where companies insure themselves, is something that is currently done in places like Vermont, a state in the US, and in the city-state of Singapore. Due to recent regulation changes and alignment with Japanese tax rules, the FSM has positioned itself to attract Japanese Captive Insurance businesses to the FSM and, as a result, generate revenue through corporate taxes paid by new Captive Insurance companies that base their offices in the FSM.

Following President Mori, Secretary Christian gave more detailed information about the geography, statistics and history of the FSM. Through a slide presentation, the audience was briefly introduced to different aspects of the FSM with the hope of increasing awareness and comfort levels of businesses thinking of coming to the FSM for investment.

In addition to presentations from the FSM Delegation, there were other presenters including Mr. Masanobu Takayama, a Tax CAP who talked about the tax system of the FSM and gave utilization ideas and Ms. Wakaba Taitano, from USCPA, who talked about the strength and merits of the FSM and on how to establish and FSM corporation.

At lunch, people were encouraged to network with members of the delegation and with each other.

The session went on into the afternoon and other Captive Insurance specialists spoke about world trends and application ideas, and finally, Mr. Steven Baker, CEO of MRA, which is based in Pohnpei, gave closing remarks.