INVESTMENT GUIDE

FSM Policy on Foreign Investment

The Federated States of Micronesia welcomes foreign investments, aware that foreign capital, management, and technology are critical to the country’s development. Preference is given to investments that are constructive and healthy.

Within the FSM Planning Framework, the FSM is committed to the acceleration of industrial development. It seeks to encourage capital inflow from abroad, and to ensure that both the foreign and domestic investors and the country profit through the processes of growth and expansion. Investment in the FSM should:

»	earn foreign exchange;
»	create a significant number of jobs;
»	make efficient use of local raw materials;
»	offer prospects for future expansion;
»	stimulate technological development;
»	develop new and modern industries;
»	manage use of natural resources;
»	protect the environment; and
»	offer training to local workers at all levels of the business enterprise.

The planning framework for the FSM places high emphasis on the role of the private sector in the development of the country. This emphasis is reinforced by the objective set forth in the plan for manufacturing and industrial sectors. The plan mandates that the government will work to:

»	create a favorable environment for the operation and growth of existing businesses;
»	encourage and actively promote local and foreign investment in resource-based and appropriate non-resource-based and other manufacturing operations;
»	strengthen private interstate and external trade;
»	facilitate the development of the construction industry through legislation, skills development, and favorable financing.