Interview:Ian Ling-Stuckey With the country’s economy following a boom-bust cycle, what policies could be used to hedge against a downturn, especially amid the Covid-19 pandemic? IAN LING-STUCKEY: I would argue that Papua New Guinea is not a boom-bust economy. While our vital resources sector does experience major swings, this segment accounted for less than one-fifth of the economy from…
Interview:Ian Tarutia What is the optimum balance between Papua New Guinea and overseas investments for superannuation funds in 2020-21? IAN TARUTIA: The best strategy for superannuation funds in the short term would be a defensive posture and an inclination towards holding a very liquid portfolio in cash. This will be essential because we will need to pay unemployed members who lost their…
Interview:Loi Bakani How can the banking system minimise vulnerability to shocks related to Covid-19? LOI BAKANI: Macroprudential policy remains the first line of defence for the banking system. There needs to be greater focus on systemic risks and a shift away from traditional, idiosyncratic policies. Countercyclical capital buffers, as well as other cyclical and structural macroprudential…
Interview:Jeremy Norton How has pressure on the global reinsurance price impacted Papua New Guinea’s insurance sector? JEREMY NORTON: Reinsurance costs have increased following adverse climate events, in particular in Caribbean and Pacific countries. Reinsurers have reduced their capacity in higher-risk markets – like PNG – transferring it instead to lower-risk geographies. As such, it…
Interview:John Lewins What changes do you anticipate in regional demand for gold and copper when taking into account industrial activity growth in Asia? JOHN LEWINS: India has traditionally been a major source of demand for gold, especially during wedding season. The growing middle class in India will have a positive impact on gold demand in the commercial sector. This growth in other Asian…
Interview:Keiran Wulff In what ways has the Covid-19 pandemic impacted business operations in Papua New Guinea? KEIRAN WULFF: Like most companies in the oil and gas sector, the pandemic forced us to quickly review all areas of business, particularly our cost base. These included the capital programmes we had planned for 2020, our approach to supporting production operations and our management…
Interview:Rupert Bray How do you manage a global supply chain through a pandemic, and what will be the legacy of the Covid-19 outbreak in supply chain management? RUPERT BRAY: Papua New Guinea’s transport and logistics sector is already characterised by an oversupply of service providers. Some businesses will survive, while others will be forced to close. New partnerships forged between companies…
Interview:Robert Howden How can infrastructure be improved across the country to ensure equal development? ROBERT HOWDEN: Currently there is a lack of dialogue between private enterprise and the government, particularly with regard to the regional chambers of commerce and the manufacturers’ council. Each region is unique, and thus has its own development needs. For example, Lae is the industrial…
Interview:Brian Hull What has been the impact of government policies on the local real estate sector? BRIAN HULL: The first homeowner scheme, which has been handed over to Bank South Pacific, has had a significant effect on the real estate market. Under this scheme, people can apply for a loan of up to PGK400,000 ($118,000) at 4% interest for 40 years, with the borrower putting up 10% equity.…
Interview:Alfred Yau Which regions hold the most growth potential for the retail sector, and what are the main challenges to expansion across the country? ALFRED YAU: Port Moresby, as the capital city, will continue to see a growing retail sector – so long as extractive sectors continue to expand. Outside of Port Moresby, Sepik Provinces have the most growth potential. The region has an abundance…
