In this Global Platform video, Ian Tarutia, CEO of the National Superannuation Fund (nasfund), discusses how super funds are helping the economy recover from the impact of the Covid-19 pandemic, especially as their investment plays an important role in preventing job losses, encouraging sustainable economic development and positioning Papua New Guinea as an attractive investment destination. In the
Small and medium-sized enterprises (SMEs) in Papua New Guinea currently generate 0.8% of exports and account for 6% of GDP. However, policymakers see substantial opportunities in providing these smaller companies with enhanced institutional and financial support. Indeed, the government estimates that SMEs have the potential to generate more than half of formal sector employment and contribute…
Since Prime Minister James Marape took office in May 2019, the government has continued to implement a number of strategies aimed at increasing the accessibility of financial services. The National Financial Inclusion Strategy 2016-20 seeks to promote digital services and more inclusive insurance, while the Financial Sector Development Strategy 2018-30 advocates the use of financial technology…
The Covid-19 pandemic has brought substantial macroeconomic challenges throughout the world, leaving no country unaffected. Although Papua New Guinea has benefitted from its geographical isolation in terms of public health, its economic recovery will be highly dependent on international commodity prices, from where it receives the majority of its foreign currency. Nevertheless, the banking…
Papua New Guinea’s insurance market is closely indexed to the country’s economy, which prior to the Covid-19 outbreak in early 2020 had been projected to grow at an average of 3% per year through to 2022. However, the pandemic effectively shuttered PNG for several months, and reduced global demand for the commodities that drive its export earnings. As a result, multiple agencies now forecast…
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…
The government of Papua New Guinea faces some challenges in 2020, with the electorate calling for improvements to social and economic infrastructure, and greater efforts to combat both real and perceived corruption. Despite these difficulties, PNG’s resource wealth and strategic location between the industrial centres of north-east Asia, the rising economies of the Association of South-east Asia
Papua New Guinea’s insurance market is closely indexed to the country’s economy, which prior to the Covid-19 outbreak in early 2020 had been projected to grow at an average of 3% per year through to 2022. However, the pandemic effectively shuttered PNG for several months, and reduced global demand for the commodities that drive its export earnings. The insurance market therefore faces an uncertain…
