The Papua New Guinea government is being ‘prudent’ in its approach to the Budget, according to the Asian Development Bank’s PNG Country Director Marcelo Minc and Country Economist Yurendra Basnett. They tell Business Advantage International that investment in non-resource sectors is required for the economy to progress.
Bank South Pacific has adjusted well to the slowing economy, Chief Executive Robin Fleming tells Business Advantage PNG. He says the bank is looking to lend to the growing middle class in Papua New Guinea, especially for housing.
World demand for energy will double by 2050 according to Professor Peter McCabe, Head of the Australian School of Petroleum at the University of Adelaide. But he believes more efficient recovery methods and the increasing role of renewables will keep a lid on prices.
Commodities markets appear to have entered a holding pattern, with stability evident in the oil market and metals. Business Advantage PNG’s monthly overview of Papua New Guinea’s commodity and financial markets.
Superannuation company Nasfund continues to deliver positive returns to its members, Chief Executive Ian Tarutia tells Business Advantage PNG. But weak economic conditions in Papua New Guinea, foreign exchange restrictions and rising unemployment mean the organisation has to be agile.
Large scale gas projects suit multi-operators, says Gerea Aopi, President of the PNG Chamber of Mines and Petroleum. He tells Business Advantage PNG that this allows operators in Papua New Guinea to spread the fixed costs, which is one way that the industry is looking for productivity improvements.
The Papua New Guinea economy is not likely to improve greatly in the first half of the year, says Alan McLay, President of the Lae Chamber of Commerce. But he believes companies in Lae – PNG’s manufacturing and logistics hub – remain hopeful of an upturn and he expects some positive developments with power provision.
As Papua New Guinea business gets back to work, Business Advantage PNG looks at some of the issues coming up in 2017. It looks likely to be a year of preparing for better times.
Conglomerates have become rare in developed economies; the strategy of diversifying across different industry sectors tends to be punished by investors who prefer specialized players. But in Papua New Guinea industry diversification is commonly used as a way to grow.
The Minister for Mining, Byron Chan, says that the amendments to Papua New Guinea’s Mining Act are ‘complete’. But he tells Business Advantage PNG that there are some contentious issues.