REMARKS: Welcome Remarks by Forum Chair & Tonga Prime Minister, Hon. Dr. ʻAisake Eke, at Special FEMM

Hon. Crossley Tatui, Minister of Finance for Niue

Hon. Tukaka Ama, Associate Minister for the Ministry of Finance and Economic Management of the Cook Islands

Hon Delvin O’neal Thoma, Deputy Minister for Finance for Nauru

Heads of Delegations,

Secretary General of the Pacific Islands Forum

FEMM Observers,

Excellencies & Senior Officials,

Members of the Diplomatic Corp,

Distinguished participants

Ladies and gentlemen.

Good morning and Malo e lelei to you all.

1.    May I, on behalf of the Government and People of Tonga extend a warm welcome from the Friendly Islands to everyone attending this Special Forum Economic Ministers Meeting (FEMM) here in Nukualofa, Tonga.  I acknowledge the former Minister of Finance for Tonga, Hon Tiofilusi Tiueti for his leadership of the FEMM during the past year. As the Prime Minister and Minister of Finance for Tonga, I am privileged to chair this meeting to deal with three regional initiatives – these include the Pacific Roadmap for Economic Development (PRED), the Climate Finance Access and Mobilisation Strategy (CFAMS), and the Pacific Resilience Facility (PRF). These are issues that have been discussed in the 2024 FEMM, and it is my sincere hope that we will successfully deal with them during our meeting today. I also wish to thank our Secretary General, Mr Baron Waqa and his team from our Secretariat for their dedication and hard work in preparing and organising the meeting, as well as my officials from the Prime Ministers’ Office and the Ministry of Finance for their contribution towards this meeting.  

2.    Honourable Ministers and Senior Officials, we are meeting at a time of unprecedented challenges to the global economy. With the new US Administration, we have a new sheriff in town and his policies has implications for the World and our region.  Already we are witnessing accelerated levels of uncertainty across the world. This, I believe will only intensify in the months and possibility years ahead.

3.    Most of our small economies have been recovering from the impacts of the COVID-19 pandemic in the last three (3) years and this year 2025, we expect most of our countries to return to pre-covid growth levels. According to IMF projections, real GDP growth for Pacific Island economies in 2025 is expected to be 4.0%, slightly higher than the 3.3% forecast for 2024. This will be driven by continued tourism recovery, but with diverging prospects and challenges including limited fiscal space and high risk of debt distress.

4.    The growth prospects, are however, threatened by heightened uncertainty about global trade policies, rising conflicts, frequent and severe climate change–related disasters and fragmented global economic landscape.  These factors present further downside risks that could seriously threaten our economic recovery and sets us further backwards.  

5.    Many of you may still remember the destruction by the Hunga-Tonga-Hunga Ha’apai volcanic eruption in January 2022. Three years on and we here in Tonga, are still recovering from that disaster. Or you may remember the devastating 7.3 magnitude earthquake that hit Vanuatu, last December. The rebuilding process from that disaster will take many years to complete. The ongoing and emerging challenges will not only slow down our recovery efforts but also increase the cost of rebuilding our economies.  These are just two examples of the harsh realities we face in our Blue Pacific Continent and why building transformative resilience is not a choice but a critical necessity.

6.    As I alluded to earlier, our meeting today is dedicated to addressing three key economic priorities in the region: to endorse the revised draft PRED, endorse the draft Treaty establishing the PRF and endorsement of the CFAMS. As I noted earlier, the uncertainty in the global economic outlook has accelerated and our region faces heightened challenges that could destabilise our Blue Pacific Continent.  That is why these three regional initiatives set down for discussion today are so important to building transformative economic resilience in the Pacific.  I also note that the three regional initiatives have been cleared and were supported by the Pacific Economic Sub-Committee (PESC) Senior Finance Officials at the end of February.  

7.    Honourable Ministers, as we consider the revised draft PRED, a policy framework for deeper regional economic cooperation and integration, I am encouraged to note that two of the key pillars of the PRED are on economic and financial integration for resilience, stability, growth and access.  The recommendation before us, Honourable Ministers, Senior Finance and Economic Officials, is to endorse the revised draft PRED. This will enable the Secretariat to implement the Roadmap to strengthen regional economic integration and collaboration, foster deeper ties and promote more vibrant Pacific economies.

8.    On the PRF, we are requested to consider and endorse the draft Establishment Agreement (Treaty) of the Facility, its draft Rules of Procedures, operational policies and transitional arrangements, ahead of its signing and ratification at the 54th Pacific Islands Forum Leaders Meeting in September. The PRF is our Pacific-owned and led mechanism to build community resilience and disaster preparedness against the frequent and severe climate-related disasters that affect our region.

9.    The impacts of climate change and disasters continue to threaten our region and communities, with climate-related disasters more frequent and severe. One single event can easily wipe out decades of development gains in a matter of hours. We need to build and strengthen our communities to be resilient against the impacts of climate change and disasters. To do this we need simplified access to increased levels of both climate and development finance. This is where the CFAMS will play a critical role in mobilising public and private financing opportunities to support climate-resilient development in our region.

10.    Honourable Ministers and Senior Officials, the odds are not in our favour. We have to be bold and innovate to protect our small economies. We need to seize opportunities whenever and wherever they arise. We must diversify our trade relationships, broaden our economic bases, source new investment opportunities and develop new partnerships so that we do not depend on only one or just a few partners. We must embrace technology, including AI, that offers practical solutions for economic diversification, climate adaptation, financial resilience, and sustainable development.

11.    Our vast ocean resources offer significant opportunities for driving economic prosperity. At the same time, we have to be mindful to use our resources sustainably for our own benefit, utilising our ingenuity, wealth of traditional knowledge, and the resilience and determination of our people.

12.    This calls for greater cooperation and working together even more, building on our unity in diversity and shared regional experiences to enhance our economic cooperation and integration. By working together, we will create a stronger, resilient and successful Blue Pacific Continent that will benefit not only our current generation but our future generation as well.

13.    Honourable Ministers, I invite all participants to embrace the collective spirit of working together and sharing of ideas. We are meeting at an opportune time to deliver a new pathway for our Blue Pacific Continent. By engaging in open and frank discussions, and prioritizing sustainable development, I believe, we can achieve our full potential to ensure the prosperity and benefits for our people.

14.    I look forward to your productive participation and active interactions as we tackle the challenges we face in our region, especially the emerging issues spreading across the world. I  extend my sincere wishes to all participants for fruitful deliberations during our meeting to advance the interest and welfare of our Pacific peoples.

Malo ‘Aupito