Declining economy affecting local manufacturing industry

The downturn in Papua New Guinea’s economy is affecting the local manufacturing industry.

“The reality is that local manufacturers feel the brunt of any downturns in our economy,” Manufacturing Council of PNG chief executive officer Chey Scovell told Loop PNG.

“PNG manufacturers are possibly the most adversely affected in the region and of all our competitors.”

Scovell said manufacturers in the country do not have Government subsidy incentives, and with the high cost of doing business and now the declining economy, this is a huge burden for businesses.

“In other countries, local manufacturers are granted subsidies both direct and indirect.

“For instance, most manufacturers get substantial subsidies on electricity and licensing, but in PNG we pay the most,” Scovell said. 

“There has also been a concerning trend of all government bodies that grant some form of licensing or fee for services significantly increasing their costs. 

“Local manufacturers are expected to reduce costs in downturns, but it’s impossible when they are slugged with all the expenses which must of course be passed on (to consumers).”

Charles Yapumi