Deputy Prime Minister and Finance Minister Professor Biman Prasad [File Photo]

Government has implemented a series of strategic measures aimed at building local capacity and reducing dependence on foreign labour, says Deputy Prime Minister and Finance Minister Professor Biman Prasad.

He said this in response to queries from FBC News about the outflow of remittances by foreign workers in Fiji to their family members abroad.

Prasad said the outflow of remittances by foreign workers sending money to their families back home was a common and expected global trend.

However, he pointed out that Fiji faced unique challenges due to a substantial imbalance between the money flowing out and what the country received through remittances.

To address this economic challenge, Prof Prasad said that the government has implemented a series of strategic measures aimed at building resilience and reducing dependency on foreign labour.

A cornerstone of this approach, he said was a renewed focus on education, training and workforce development.

One key initiative has been the reform of the Tertiary Education Loans Scheme which resulted in the government writing off $650 million in student debt, relieving 53,000 families of financial stress.

“Other countries, obviously, you know some of them are here to earn money, to send money back to their families and that’s normal, that’s standard. I mean but I think right now for Fiji, the net is huge you know compared to what’s going out, compared to what’s coming in and compared to what’s going out, there’s a huge gap.”

Professor Prasad described the move as essential for addressing Fiji’s skill shortages while creating opportunities for Fijians to contribute more effectively to the economy.

In tandem with debt forgiveness, the government has increased its investment in scholarships, particularly in technical fields with $150 million allocated to this effort.

Scholarship recpients are now required to serve the country after completing their studies, a move designed to ensure that public funds invested in education deliver tangible benefits for Fiji.

Prof Prasad also spoke about the government’s ongoing efforts to align education and training programs with labour market needs.

For instance, students aspiring to enter the medical field are encouraged to pursue studies in medicine while those seeking careers in trades can access scholarships for technical colleges.

This strategy, the Minister states aims to build a skilled workforce capable of addressing critical gaps in sectors vital to Fiji’s growth.

Over the next few years, Prof Prasad said government anticipates that these targeted investments would strengthen Fiji’s capacity in health, technical trades and other priority areas.

Despite these reforms, Prof Prasad acknowledged that systemic changes within universities and higher education institutions were necessary to ensure that graduates possessed the skills required to meet the demands of a dynamic economy.

The government, he said, was committed to supporting these institutions in adapting to current and future needs.

Prof Prasad added that by developing technical education, expanding scholarships and addressing skill shortages, Fiji is positioning itself to reduce reliance on foreign workers and retain more of its financial resources.