The strengthening of Micro, Small and Medium Enterprises (MSMEs) is essential for PNG’s economy.
National Planning and Monitoring Minister, Richard Maru, said this is important due to the sheer size of the small business sector and the need to broaden the economic base.
He said this during the opening of the ABAC MSME & Innovation Summit yesterday in Port Moresby.
Minister Maru said MSMEs drive the economy forward and provide food and shelter for millions of people in PNG.
He stated that MSMEs contributed 30 percent of PNG’s GDP providing employment and economy, participation of 80 percent of the population, the largest by any sector.
He said a number of challenges affecting MSME’s include:
- 90 percent of the formal business sector is still owned by foreigners
- 80 percent of people over the age of 18 still do not use a bank account
- The SME sector is only employing 20 percent of the formal labour force.
Minister Maru said the best way to create employment and wealth for the people is empowering MSMEs.
“We are now delivering a comprehensive strategy that will grow small business activities in these sector into the future,” he stated.
“The strengthening of MSMEs is essential for our economy, due to the sheer size of the small business sector and the need to broaden our economic base as our middle class expands.
“Investment is critical but it needs to go beyond the resources sector,” said Maru.
“We cannot continue to ride on the boom and bust commodity price cycle we have experienced over the last 40 years.
“That is why investment in the SMEs, and in growth sectors, are essential for this Government.”
Discussions during the ABAC MSME & Innovation Summit will provide high-level recommendations to APEC Leaders on measures that advance the growth and further participation of MSMEs in regional economies.
It also promotes and demonstrates the role of digitisation and the means by which it contributes to MSME growth and prosperity.