Home' Trinidad and Tobago Guardian : August 28th 2014 Contents AUGUST 2014 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
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for free. Look at Cuba, their entire system
is based on open source," he said.
King said the problem is there is not much
emphasis in T&T on developing intellectual
"ICT is infrastructure, it is like your tele-
phone PBX, which is infrastructure, it is how
you use it. The intellectual property has rev-
enue-earning capacity. Given the fact that
T&T is developing infrastructure, there is less
emphasis on developing intellectual property
which is knowledge based. If I do not develop
it here, then I cannot sell it because I do not
own it," he said.
King said the main problem in T&T is that
having oil and gas has spoiled the population
and people want things the easy way.
"We have too much money. We do not have
to think. If the Government is using open
software and they want to customise it, it
gives local companies a chance to do this and
build their capacity and meet our needs and
not what other countries and foreign systems
think we need. The Ministry of Transport has
been trying automate driving permits for how
long, yet they have been not made headway
He said T&T s private sector is small and
needs the Government s help.
"The private sector is struggling. The Gov-
ernment has the most resources in this country
and must create opportunities," he said.
King said Teleios is one of the few local
companies that have developed software and
solutions that have been used outside of T&T.
"Teleios is a company that shares an ethos
very close to Ixanos. Teleios built the texting
system that TSTT uses for advertising," he
King said his company has been involved
with the research and development fund of
ExporTT, but this is only the "first step" the
Government is using to fund entrepreneurs
"The systems that need to be developed
need to be a collaborative effort. The collab-
orative effort between Ixanos and TSTT. They
have championed a lot of what we have devel-
oped. Without that collaboration, then we do
not have the sophistication to develop intel-
lectual property. Intellectual property is sup-
posed to represent software that is new and
that we can copyright."
King spoke about projects with T&TEC
where Ixanos developed their own solutions
"We have established there a new project
with T&TEC which is an automated decision
support system using the data from our pre-
vious system, which has been there since 2004.
We are using that to help them plan and fore-
cast into the future with respect to electrical
capacity as well as to help them to decide
which of the many generators should be
brought online at a given grid load. We have
developed a system to automate that system
He said Ixanos has signed agreements with
Cuba s Universidad de las Ciencias Informáticas
(UCI), a university which specialises in ICT,
and T&T can learn from Cuba which has built
its own independent ICT system.
"We also signed agreements with Cuba s
Datys. UCI has done a lot of research and
development in all of the domains in Cuba,
from robotics to health to manufacturing, to
help build their systems. They are outside the
World Trade Organization (WTO) and because
they have traditionally been outside traditional
international structures, it forced them to use
open source platforms."
King spoke about collaboration with ICT
firms from India like Diksha and Palash.
"To survive, we have had to partner to build
more mass. We are talking to Indian firms
about joint partnerships in telecommunications.
At this stage, we are learning from them in
what they have developed. We are marketing,
implementing and customising their systems
in T&T. India has thousands of developers
and is one of the top ICT areas in the world."
He said the Government needs to establish
links among state bodies and other public
institutions and bring in local private sector
ICT companies help develop ICT solutions
"The Government needs to develop a forum
to bring everyone together and bring in local
companies to try to solve problems instead of
foreign solutions," King said.
Ixanos looks to partner with Indian firms
From Page 6
Finally saying what its Canadian peers have been
saying, Scotiabank on Tuesday said that its oper-
ations in the English-speaking Caribbean will be
challenged by the weak recovery of the economies
in the region.
Speaking during an August 26 earnings conference call,
Scotia s head of International Banking Dieter Jentsch said:
"Puerto Rico will continue to be a challenge for us as well as
the English Caribbean."
Earlier in the call, Scotia president and chief executive officer
(CEO) Brian Porter said: "Our business in the Caribbean and
Central American region continues to experience slow growth
due to the challenging economic environment that persists."
Scotia s chief financial officer (CFO) Sean McGuckin followed
by saying: "International banking reported net income up
three per cent year-over-year, with strong contributions from
Latin America and Asia, being offset by weaker results in the
Caribbean and Central America.
"These results reflect strong volume growth year-over-year,
with loans and deposits increasing 11 per cent and 12 per cent,
respectively." This was primarily driven by "double-digit growth
in Latin America" and "good growth in Asia," which has mod-
erated somewhat this quarter, McGuckin said. "Volumes in
the Caribbean and Central America were essentially flat due
to the protracted weak economic environment."
Year-over-year, the net interest margin of Scotia s interna-
tional banking unit by declined nine basis points or two per
cent, primarily as a result of the lowering of interest rates in
some of Scotia s key markets, the CFO said. He said provision
for credit losses increased by 11 basis points or US$50 million
year-over-year, with almost half being due to lower acquisition
benefits. "As well, there are higher retail provisions primarily
in the Caribbean and Central America region, while commercial
provisions were higher due mainly to the unusually low level
last year," McGuckin said.
During his contribution, Scotia s chief risk officer Stephen
Hart added to his statement that "international banking loss
rates were up from the second quarter (Q2) of 2014, reflecting
higher loan losses in retail and commercial in both Latin
America and the Caribbean"
International banking head Jentsch said in response to a
question: "Yeah. What you see in this quarter, our overall
assets, if you take constant currency would be flat quarter-
over-quarter and on a year-over-year basis, you would assume
that being eight per cent year-over-year and the key drivers
on that is Latin America which continues to perform well
with 14 per cent year-over-year and two per cent quarter-
"But we also see a reflection of continuing softness in what
I see (as) the Central America and the Caribbean region---and
that s been down---it was down this quarter and it was down
year-over-year. And I would see the Asia repositioning of our
book as temporary, we see continued good growth in Asia
high single-digit with some temporary repositioning of our
book in Asia"
While responding to a question, Hart said: "On the first
question as with Colombia s purchase price adjustment winding
down, we expect on a go-forward basis that the NIAD per
quarter will be affected by both US$10 million to US$15 million
in 2015 and on. With regard to Central America, while the
volumes are soft, we are not really seeing any increase in loan
losses in Central America and the Caribbean. Actually in some
of the countries it is a mixed bag because there s a lot of
islands; some are doing better than others; some have stabilised
and others continue to show some weakness, especially, prob-
ably, Puerto Rico would be the one island right now, obviously,
that s in the news."
Jentsch reiterated later in the call in answer to another
analyst s quuestion, "What you saw this quarter was, again,
a continuing softness in the English Caribbean. You also saw
some moderation in the Latin American economy. That s been
well-scripted in the media."
He said, "Underlying what we re doing, we re continuing
to realign our distribution network in Mexico, Chile and in
Jentsch said: "We have fundamentally very sound economies,
sound demographics and a good business environment to take
advantage of an uptick. And so we are very confident that we
have our investment thesis correct. The Caribbean continues
to be a challenge. I mean, we had significant paydowns of
some structural loans---our infrastructure loans in Panama
and El Salvador. The normal course of business (is) that they
are all good. But Puerto Rico will continue to be a challenge
for us as well as the English Caribbean. And we re going to
get some lumpiness on some of our asset formations there."
English Caribbean will
continue to be a challenge
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