Features

Warnings that proposed changes to Papua New Guinea’s Land Act could harm economy

During May, forums were run in Port Moresby, Lae, Mt Hagen and Kokopo to solicit public responses to the Papua New Guinea government's new land … [read on ...]

Land in Papua New Guinea credit BAI

More choice for Papua New Guinea beer drinkers as Vitis starts brewery

Already a producer of beverages, liquors and coffee, Port Moresby-based Vitis Industries has now launched its own range of beers. Business Advantage … [read on ...]

beer 6 pack combo

‘The new PNG cyberspace’: ecommerce set to take off in Papua New Guinea

With Papua New Guinea’s soon-to-be-completed National Transmission Network likely to bring improved internet speeds and reliability by the end of the … [read on ...]

PNG's growing internet usage. Source: Deloitte Touche Tohmatsu

Papua New Guinea’s Collins Shipping teams up with Chinese explorers to take adventurers 11,000 metres below sea level

The search for new business avenues sees Port Moresby’s Collins Shipping teaming up with Chinese maritime researchers to do a voyage to the bottom of … [read on ...]

Collins Shipping's

Consumer trust the key to boosting mobile banking in the Pacific

The key to boosting the use of mobile phone banking services in the Pacific is ‘trust’ in the system, particularly as mobile phone providers begin … [read on ...]

mobile phones

Latest news

Papua New Guinea’s 2015 agriculture exports less than half 2011 levels

Papua New Guinea’s agriculture export income in 2015 was less than half 2011 levels, according to data from Bank Papua New Guinea’s latest Quarterly Economic Bulletin. Income from palm oil exports was at its lowest level since 2009, coffee sales were less than half the level of four years ago and income from rubber exports almost halved in a year.

Warnings that proposed changes to Papua New Guinea’s Land Act could harm economy

During May, forums were run in Port Moresby, Lae, Mt Hagen and Kokopo to solicit public responses to the Papua New Guinea government’s new land bill. The intent of the new bill is to protect the rights of customary landowners, by extinguishing any State leases, mortgages or sub-leases held by non-citizens. But the consequences for PNG industry and the economy could be dire, some observers are saying.

In brief: Shortage of foreign exchange hindering investment, concerns about Customs procedures and Crowne Plaza on the market

Shortage of foreign exchange hindering investment, concerns about Customs procedures and the Crowne Plaza Port Moresby hotel up for sale. Your weekly digest of the latest business news.

Read more News

Mining & petroleum

Oil Search’s InterOil acquisition to consolidate company as regional player in oil and gas

Oil Search, Papua New Guinea’s biggest company and largest non-government employer, looks set to consolidate its position as a major player in the Asia Pacific oil and gas market with its $US2.2 billion purchase of InterOil. Chief Executive of Oil Search, Peter Botten, says it will allow the company to be ‘hugely influential in the further development of our world class PNG LNG and Papua LNG assets.’

Frieda River ‘one of largest’ undeveloped copper-gold deposits in world, says PanAust

PanAust has released its feasibility study into the Frieda River mine in Sandaun Province, claiming it is ‘one of the largest undeveloped copper-gold deposits in the world’, with an initial 17-year mine life. The company’s intention is to take a staged approach to development.

More on mining and petroleum ...

Opinion and analysis

Opinion: Proposed Papua New Guinea Land Act changes would harm investment, says Barker

The proposed amendments to Papua New Guinea’s Land Act are a cause for concern, argues the Institute of National Affairs’s Paul Barker. He says, if implemented, the legislation would scare off foreign investors at a time when the Government is looking for capital to encourage economic diversification.

Opinion: Seven key challenges facing Papua New Guinea … and how to tackle them (part 2)

In the first article in this two-part series, Jenny Hayward-Jones outlined seven key issues that confront Papua New Guinea’s emerging leaders. In this second part, she identifies the long-term trends that will challenge PNG and four areas of reform that would—if focused on—yield the greatest gains for the country.

Read more opinion/analysis

PNG’s forex crisis

Moody’s bullish on longer term future of Papua New Guinea economy

Moody’s recently downgraded its sovereign rating on Papua New Guinea to B2 from B1. But Christian de Guzman, a Senior Analyst in the Sovereign Risk Group for Moody’s Singapore tells Business Advantage PNG that the agency is ‘quite confident’ about the overall economy’s prospects over the medium-term.

Papua New Guinea’s central bank ‘determined’ to get foreign currency in, says Bakani

The Governor of the Bank of Papua New Guinea, Loi Bakani, told this week’s Australia–Papua New Guinea Business Forum in Cairns that the bank is ‘determined’ to obtain more foreign currency ‘as soon as possible’ to address the backlog in foreign exchange demand. However, he criticised claims that PNG’s foreign exchange problem could be solved by allowing a free float of the kina, reports David James.

Commodity price falls creating currency volatility, says analyst

The kina has fallen in value this year, but Papua New Guinea’s dependence on commodity exports means that it can be expected to fall further, says Rohan Fox, Lecturer and Research Fellow at the University of Papua New Guinea’s Division of Economics. He tells Business Advantage PNG that the country faces a difficult task managing the impact of sharp fluctuations in commodity prices.

Interviews

Running a brewery in Papua New Guinea ‘like farming’, says SP Brewery’s Joyce

Running a manufacturing business in Papua New Guinea is like being a farmer, Managing Director of SP Brewery, Stan Joyce, tells Business Advantage PNG. There are good years and there are difficult years.

K K Kingston sees opportunities in tough times

Economic conditions in Papua New Guinea may be challenging but Michael Kingston, Chief Executive of diversified manufacturer K K Kingston, tells Business Advantage PNG that the company’s diversified operations give it some strategic options. He also says a weaker exchange rate may also open up opportunities.

Infrastructure

Papua New Guinea could attract big cash for infrastructure, says Pascoe

In an environment of plummeting interest rates, long term infrastructure investment is a sound option for both investors and governments. Financial and business commentator Michael Pascoe, speaking in Port Moresby last week, noted that the difficult global financial environment throws up opportunities for countries like Papua New Guinea.

AES preparing for the next economic upturn

The downturn in the Papua New Guinea economy has presented challenges for Avenell Engineering Systems (AES). But Managing Director Dominic Avenell tells Business Advantage PNG that the company has adapted well. AES is, he says, strengthening its capabilities and preparing for the next upturn.

More on infrastructure ...

Company profiles

New Stanley Hotel to be inside ‘own little city’, says General Manager

The new Stanley Hotel in Port Moresby will operate on a scale not seen before in Papua New Guinea, General Manager Geoff Haigh tells Business Advantage PNG. He says once all stages of the project are completed customers will not have to leave.

People moves: New service delivery manager at PNG Air

Glenn Dunstan has joined PNG Air as Manager of Service Delivery. Dunstan has worked with a number of resource sector companies, including ExxonMobil PNG.

Read more profiles ...

Investment/economy

Higher government spending could reduce Papua New Guinea’s debt burden, says economist Satish Chand

Papua New Guinea’s debt levels relative to the size of its economy could actually go down if the government increased spending, according to Satish Chand, Professor of Finance in the School of Business at the University of New South Wales. Mounting an argument that goes against conventional wisdom, he contends that as long as the government investment is well managed and receives a strong return, the long term benefits will outweigh the short term risks.

Papua New Guinea’s 2015 agriculture exports less than half 2011 levels

Papua New Guinea’s agriculture export income in 2015 was less than half 2011 levels, according to data from Bank Papua New Guinea’s latest Quarterly Economic Bulletin. Income from palm oil exports was at its lowest level since 2009, coffee sales were less than half the level of four years ago and income from rubber exports almost halved in a year.

Warnings that proposed changes to Papua New Guinea’s Land Act could harm economy

During May, forums were run in Port Moresby, Lae, Mt Hagen and Kokopo to solicit public responses to the Papua New Guinea government’s new land bill. The intent of the new bill is to protect the rights of customary landowners, by extinguishing any State leases, mortgages or sub-leases held by non-citizens. But the consequences for PNG industry and the economy could be dire, some observers are saying.

More articles on investment ...

Latest News

Papua New Guinea’s 2015 agriculture exports less than half 2011 levels

Papua New Guinea’s agriculture export income in 2015 was less than half 2011 levels, according to data from Bank Papua New Guinea’s latest Quarterly Economic Bulletin. Income from palm oil exports was at its lowest level since 2009, coffee sales were less than half the level of four years ago and income from rubber exports almost halved in a year.

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Features

Warnings that proposed changes to Papua New Guinea’s Land Act could harm economy

During May, forums were run in Port Moresby, Lae, Mt Hagen and Kokopo to solicit public responses to the Papua New Guinea government’s new land bill. The intent of the new bill is to protect the rights of customary landowners, by extinguishing any State leases, mortgages or sub-leases held by non-citizens. But the consequences for PNG industry and the economy could be dire, some observers are saying.

Bank South Pacific's expansion to drive growth in Pacific Island economies

The next phase of Bank South Pacific’s (BSP’s) geographical expansion will create new opportunities for the region’s businesses and consumers alike, according to CEO Robin Fleming. [Read more ...]

Opinion

Opinion: Proposed Papua New Guinea Land Act changes would harm investment, says Barker

The proposed amendments to Papua New Guinea’s Land Act are a cause for concern, argues the Institute of National Affairs’s Paul Barker. He says, if implemented, the legislation would scare off foreign investors at a time when the Government is looking for capital to encourage economic diversification.

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