Papua New Guinea’s economy is now emerging from a period of hiatus following the completion of its massive liquefied gas project. Andrew Wilkins talks exclusively to some of PNG’s top executives to find out their views on the economy.
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The new CEO of Digicel PNG believes the company will evolve into a provider of content rather than simply a provider of pipes for consumers. Formerly Pacific Regional CEO, Maurice McCarthy told Business Advantage PNG the first priority is to expand access to Digicel’s networks.
Poultry producers in Papua New Guinea have welcomed a ban on raw poultry imports from Australia, saying it will strengthen PNG’s biosecurity regime.
A rising middle-class in Papua New Guinea is seeing the emergence of a wider variety of food and beverage businesses, particularly in Port Moresby. It also reflects, say food specialists, an increasing demand for high quality food products in PNG.
The developing retail environment in Papua New Guinea will soon include expanded duty-free shopping at the refurbished Jacksons International Airport.
The fall in global oil and gas prices will reduce the Papua New Guinea government’s revenue by at least K1.1 billion in 2016. A new Budget strategy is needed, argue economists Stephen Howe and Paul Flanagan, who suggest a solution may lie in the government selling its Oil Search shares.
The next 12 months or so is a time to digest and consolidate, says Peter Langslow, the incoming head of one of Papua New Guinea’s largest and oldest companies, Steamships Trading Company. He told Business Advantage PNG, however, it is also a time to prepare for fresh opportunities.
Liquidity conditions have emerged as a major source of risk for the PNG economy, as the central bank governor reveals he spent US$570.9 million (K1.48 billion) to support the kina last year.
The number of foreign workers coming to Papua New Guinea is growing, with an annual net gain of up to 34,000 since 2007. Carmen Voigt-Graf reports that on recent growth rates, The Philippines will soon overtake Australia as the main source of foreign workers.
The Asian Development Bank’s departing Papua New Guinea economist, Aaron Batten, says agriculture is the big winner with the current downturn in commodity prices, while its Country Director Marcelo Minc flags further bank investment in PNG.