Oceania Education and Technology Solutions Founder, Group CEO and Managing Director Dr. Hasmukh Lal has welcomed the major progressive decision to revert 60 percent of the one percent training levy to its actual purpose.
He says an irrational legislative amendment made in the 2018-2019 Budget left only 10 percent of the one percent levy for national workforce productivity training, which he believes is one of the possible causes of the current skills crisis.
Another bold decision by the Government, which he has applauded, is the introduction of a 200 percent tax deduction for eligible training and upskilling expenditures by employers.
To incentivise private sector investment in training institutions, a 150 percent investment allowance will also be provided.
Dr. Lal says these measures will assist the private sector in improving the quality and relevance of training and graduates, which has become a perennial problem in the country.
He says these three decisions clearly demonstrate that training and development are strategic priorities for industries in the next financial year.
Dr. Lal thanked the Government for listening to the private sector and aligning its decisions with the National Skills Gap Survey Report, saying this is a sign of a healthy democracy.
Prior to 2010, the Training & Productivity Authority of Fiji (TPAF) managed the training levy funds before its functions were merged with the Fiji National University (FNU).
Dr. Lal says it was an ill-conceived national decision to also merge the collection and distribution of the one percent training levy, along with the regulatory administration of the National Apprenticeship Scheme, under FNU.
He says these functions should have remained independently managed to avoid conflicts of interest, monopolistic practices and ensure fairness for all training providers.
Dr. Lal says merging TPAF's training functions into FNU was appropriate if it was based on rationalising and harmonising courses and costs for a national TVET institution.
He also commended the Government, particularly the Minister for Finance, Commerce & Business Development and his team, for analysing the challenges faced by industry over the past nine years and making a progressive decision to restore greater support for employee skills development.
Dr. Lal has called on the Government to consider an interim arrangement during the 2026-2027 Budget debate, where approval of grant-claimable courses is handled by an independent body comprising the Higher Education Commission of Fiji (HECF), Fiji Commerce & Employers Federation (FCEF) and the Ministry of Civil Service or Public Service Commission.
He says this would ensure fairness and proper oversight of grant-claimable course accreditation for all training providers.
According to Dr. Lal, FNU, as the national training provider, should not approve grant-claimable courses for itself or for other providers.
He says the current arrangement is unfair to other providers and should be replaced with independent oversight.
Dr. Lal is also urging the Government to review and repeal Section 35A of the FNU Act relating to the university's regulatory responsibilities.
He thanked FNU for managing the regulatory function since 2010 but says those powers should never have been assigned to the institution.
Dr. Lal says training levy collections totalled around $30 million in 2024.
Based on the proposed distribution, he estimates $15 million would go to the private sector and other employees, $3 million to the Public Service Commission and $12 million to ACCF, after administration costs.
With the skills shortage continuing, Dr. Lal is calling for the establishment of a National Steering Committee on Skills Development to support private sector companies.
He says the committee should be led by the Minister for Finance, Commerce & Business Development and include relevant ministries, the Fiji Commerce & Employers Federation, Fiji Hotel & Tourism Association, Fiji Human Resources Institute, Higher Education Commission of Fiji, Tertiary Scholarships and Loans Service, Fiji National Provident Fund and training institutions.
Dr. Lal says the committee could review and improve policies and processes that are creating bottlenecks in Fiji's human capital development.
He says research shows investment in training and development can improve organisational productivity and innovation by between 20 and 30 percent, benefiting both Government and the private sector.
Dr. Lal also urged employers to engage only training providers recognised by the Higher Education Commission of Fiji or, in the case of international providers, recognised by their respective national training regulators.
He says this will ensure the credibility of qualifications awarded to employees and support pathways into further education.
As a former Chief Executive Officer of the Tertiary Scholarships and Loans Service (TSLS), Dr. Lal also welcomed the additional $7 million allocated for scholarships and student loan schemes.
Dr. Lal is the Founder and Group CEO of Oceania Education & Technology Solution, which owns the Oceania Institute of Technology (OIT). The institute operates a modern corporate training campus at Challenge Plaza in Namaka and is scheduled to open its Suva campus at Challenge Laqere in July 2026.
OIT is fully recognised and registered with the Higher Education Commission of Fiji.
Dr. Lal was also the founding Chief Executive Officer of Pacific Technical and Further Education (Pacific TAFE).
