The proposed legislation to reserve certain businesses for locals is a contentious issues that needs to be approached with care and consideration.
Acting Managing Director for the Small to Medium Enterprise Corporation (SMEC), Steven Maken, made this known in his presentation at the Consultative Implementation & Monitoring Council National Development Forum today.
Maken presented ‘Experiences on implementation of the SME Policy & Master Plan’ which he highlighted legislations considered by the SMEC to be implemented, and the very contentious one of reserved businesses.
“It will not come easy, some people have enjoyed certain things for too long, it will come down with some fight,” said Maken.
He said not all business sectors will be reserved. There will be guidelines on co-ownerships, for example locals will own a 51% share in a business or company partly owned by a foreigner of investor.
Maken also said they will consider the sale of Papua New Guinea products such as shirts, emblems, and laplaps, containing the flag, national colours and emblem, to be reserved for locals.
Early this year Trade, Commerce & Industry Minister, Richard Maru, said a list of businesses that may only be owned by Papua New Guineans was being compiled.
Moves for the creation of the reserve businesses legislation began in 2014.
The legislation hopes to create 500,000 SME’s by 2030 and produce two million jobs in the country.