Kosrae State Government
Department of Resources and Economic Affairs
18 Reasons to Invest in the FSM
  • Visitor visas are issued upon arrival. Foreign investments and working permits are required before arrival and can be obtained by writing to contacting the FSM Department of Resources and Development.
  • The Federated States of Micronesia has a stable democratic form of government modeled after that of the United States. 
  • Through the Compact of Free Association (Treaty) with the United States, the FSM is guaranteed security protection by the US. 
  • The FSM uses the US dollar as its currency, assuring investors that investment will not be subject to unexpected currency fluctuations to the extent that the US is the market or sources of supply. 
  • Easy access by air and sea to major markets such as the US Pacific Rim, New Zealand, Australia, and Guam. 
  • Modern telecommunications system with current technology such as DSL internet and GSM cell phone networks.
  • Apart from the FSM Development Bank, the Bank of Hawaii, Bank of Guam, and the Bank of the FSM are on hand to provide modern international banking services linking the nation to the rest of the world. 
  • Inexpensive rates for long-term land leases for business sites. 
  • Under treaty arrangement, the FSM has no quota restrictions to US markets for domestic or value-added products. 
  • The FSM also enjoys preferential market access to other Pacific island countries including New Zealand and Australia. Under the South Pacific Regional Trade Economic Cooperation Agreement (SPARTECA), a non-reciprocal trade agreement, Australia and New Zealand offer unrestricted duty-free access to virtually all products originating from developing member countries, provided certain rules of origin are met. Potential for duty-free access to Japan and other Asian markets also exists. 
  • All exports of products as well as re-exports of import products are tax free. 
  • The Exclusive Economic Zone (EEZ) includes some of the richest tuna fishing grounds in the world.
  • Government-subsidized water and electrical services in all four states of the nation. 
  • Young and relatively inexpensive labor force. 
  • Low local taxes. 
  • Along with significant US financial assistance, the US also agreed to extend several programs to the FSM, including the US Trade and Development Program, the Small Business Administration, the Economic Development Administration, the Farmers Home Administration, the Job Training Partnership Act, and the Overseas Private Investment Corporation (OPIC). OPIC is particularly important in that it provides political risk insurance, finance, direct loans, and loan guarantees. 
  • The FSM Government welcomes and supports foreign investment as part of its overall economic development strategy. 
  • A tropical paradise with year-round warm climate in a myriad of islands, the FSM has a clean and unspoiled environment and rich natural beauty.