Bakani calls for increased competition in industries

Bank of Papua New Guinea Governor Loi Bakani is calling on the Government to encourage increased competition in strategically important industries.

In his recent Monetary Policy statement, he said industries such as manufacturing of food and refined petroleum products, telecommunications and utilities must be prioritised in order to reduce monopoly type businesses.

He said for the medium to long-term, greater emphasis by the Government on inclusive policies and direct investment to target the non-mineral sectors is critical.

“Reducing the costs of utility services, addressing law and order concerns, improving physical infrastructure, and streamlining government regulations and policies and its delivery mechanisms would assist in developing these sectors.

“Agricultural, fisheries and forestry sector, tourism, manufacturing, and small to medium enterprises (SMEs) demand greater attention as they can broaden the economy, reduce reliance on imported food and create employment opportunities for the majority of the population.”

Bakani says serious investment in these sectors can also reduce the economy’s dependence on the mineral sector, increasing its resilience to adverse shocks, such as falling mineral prices or unexpected adverse weather conditions.

“With an increased focus on SMEs, commercial banks and other non-bank lending institutions should place some emphasis on lending to this sector.

“These will also diversify the country’s exports and expand the Government’s revenue

Author: 
Freddy Mou