Investor Confidence Crucial

Mark Robinson, CEO of BSP Financial Group, emphasizes the critical role of investor confidence in maximizing the economic benefits of this growth.

Both the International Monetary Fund (IMF) and the Department of Treasury project robust growth for PNG in 2024, forecasting rates of 5.0 percent and 5.3 percent respectively.

However, recent events, notably 'Black Wednesday,' have cast shadows over the nation's socio-economic landscape.

Agriculture discussed at Hong Kong conference

While the Sydney conferences focus on minerals and energy resources, the inaugural Hong Kong conference now takes into account forestry, agriculture, tourism and fisheries.

This was evident in today’s session 4 at the Kowloon Shangri-La Hotel, where the regional chief executive officer of Sime Darby Plantation’s Upstream Operation, Malaysia, Nik Mazia Nik Mustapha, said “there is something unique and interesting that PNG has to offer”.

“You are able to garner the confidence of investors coming from all these different industries and sectors,” she said.

Investors invited in Hong Kong conference

Speaking at the opening of the PNG-Asia Investment Conference, he told the over 400 attendees at the Kowloon Shangri-La Hotel that PNG is stepping up to be “investor-friendly”, and is reforming its policies and legislation to encourage an environment that allows for investment.

“Amid – sometimes – the negativity that has been in the public space, it is a success story,” he stated.

Do business properly: Lae mayor

His comment follows public outcry regarding plans to build a service station near the Lae Rugby League Oval, which is generally considered a recreational area. 

Section 68, allotment 20, along Markham Road in Lae is currently a subject of interest.

The area has gone under a lengthy court battle prior to the tenure of Lae MP, John Rosso.

On September 2nd, 2021, the Lae National Court directed the Registrar of Titles to issue a new state lease in the name of Tracy Nen before December 01st, 2021.

Biden will bring US investors

PM Marape said, “I was advised in a meeting I had with his (Biden) Chief Advisor in White House last week Friday. The advice came through that President (Biden) is also bringing a team, a panel of investors also who want to come and take up residence in our country and do business.”

Marape says details of these discussions will become clear as the visit of President Biden and Indian Prime Minister Narendra Modi draws closer.

Boosting investor-confidence

Minister Rosso said, “Because a lot of investors coming into the country, what they are scared of is dealing directly with landowners, we have to give them that confidence, that security, and that’s by acquiring the land.”

Alienated land in the country is approximately 4 percent of the total land banking in Papua New Guinea.

“Some of the land, 50 percent will be acquired to put in areas where like police stations, government centers, which we will outright acquire.

PM meets with natural resource developers

Prime Minister told the investors in Sydney recently.

In his discussions, he advised investors to view their investment in its entirety including diversifying their investment into exploration and tax credit schemes into social license, for the development of law and order infrastructure and services.

They also discussed the issue of incentivizing exploration and optimizing Government take and revenues to invest in downstream processing and value add of the vast non-renewable and renewable resource for export to nearby Asian and global markets.

ABG Invites Investors

Insurance firms in Papua New Guinea have a clause in their policies where it explicitly states that they will not offer insurance coverage for businesses that operate on Bougainville.

This policy was brought about due to the unfavourable business environment created in Bougainville as an aftermath of the ten-year civil war, from 1988 - 1998.

In the last twenty years since the 2001 signing of the Bougainville Peace Agreement, people have worked hard to cultivate a conducive business environment on Bougainville.

Businesses confident in investing in PNG

BSP Group General Manager Corporate Bank, Peter Beswick said ,“Announcements by investors in Papua New Guinea and the South Pacific has demonstrated a strong international investment intentions that will lift economic activities for PNG and the South Pacific in  2022.”

Beswick said, “The mining companies continue to be an attractive investment destination. Growth in mining industry is estimated to be 5.4%, which reflects the expected recommencement of the Porgera and improvements in OK Tedi production and Wafi-Golpu this year, 2022.”

New era for agro industry

The Australia-PNG Business Council Forum, held in Port Moresby last month, revealed the new era for the agro industry in the country.

The Business Council of PNG (BCPNG) tells Loop PNG that in five to 10 years’ time, bolder investments and technology will make agriculture ventures much more high yielding and technology intensive.

BCPNG Executive Director, Douveri Henao, says coupled with strong business models, the potential to grow the industry and involving locals is greater than ever before.