Industry and Manufacturing
From The Report: Papua New Guinea 2012
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Most of PNG’s industrial strength derives from its abundant minerals, hydrocarbons and agricultural products. Export markets are, however, naturally constrained by the country’s remoteness and its weak infrastructure, suggesting that PNG will be importing many of its finished goods for the indefinite future. The most successful industries, like food and beverages, cater to domestic consumption. There is room for expansion in downstream industries; for example, PNG accounts for up to 17% of the world’s tuna fish harvest but only processes 20% of the catchment locally. Investments in processing facilities for agricultural commodities like tuna and timber could bring in export dollars while boosting employment in the formal sector.

This chapter includes interviews with Charles Abel, Minister of Trade, Commerce and Industry; Murray Woo, Chairman, Manufacturers Council of Papua New Guinea; and Michael Kingston, General Manager, K. K. Kingston.

Articles from this Chapter

Overview

Advantages ahead: Strong core segments and burgeoning ones present opportunities
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With a wealth of natural and mineral resources complemented by a rapidly expanding labour force, Papua New Guinea possesses the crucial building blocks required to develop its fledgling industrial base into a strong economic contributor. After years of robust growth, and with substantial new revenues on the horizon, the time to purse the government’s aim to increase the manufacturing sector’s GDP contribution to 30% may be at hand. Much of the country’s industrial activity already focuses…

Interview

OBG talks to Charles Abel, Minister of Trade, Commerce and Industry
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Interview: Charles Abel What are the top priorities as far as domestic economic reform is concerned? CHARLES ABEL: None of us are happy with the progress in terms of translating the wealth of the country into meaningful developments. We are concerned by the growth in income disparity and the rise in the poverty gap. This increasing inequality has fuelled corruption and the continued exploitation of our resources. Therefore, the fundamental question is how to reverse this trend. If we do not address…

Interview

OBG talks to Murray Woo, Chairman, Manufacturers Council of Papua New Guinea
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Interview: Murray Woo How can manufacturing in PNG remain competitive while production costs remain relatively high? MURRAY WOO: There is no doubt that production costs are high due to poor infrastructure, distribution costs, telecommunications, and security and so on. However, some companies have turned to automation and diversification in their business models to remain competitive, and the sector is trying to convince the regulators that we do not want import tariffs to be reduced further.…

Analysis

Angling for a raise: The fishing industry looks set for a hefty catch
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Already a showcase for downstream growth of one of Papua New Guinea’s valuable natural resources, the seafood processing industry is looking to capitalise on its success through the creation of a new Pacific Marine Industrial Zone (PMIZ). Located near the town of Vidar on the north-eastern coast, the project is expected to serve as a catalyst for the burgeoning tuna processing industry, which is already operating not just in PNG’s territorial waters, but also across the entire region. According…

Analysis

Building the brand: Efforts are under way to boost production and local consumption
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As is the case in many mineral-rich countries that are economically dependent on raw material exports, the development of Papua New Guinea’s domestic manufacturing base has lagged behind that of the dominant mineral and petroleum sectors. While there are some notable success stories of local producers, efficient production of high-quality local goods is not yet widespread throughout the industrial sector. ENCOURAGING GROWTH: In an effort to boost manufacturing production, the government…

Interview

OBG talks to Michael Kingston, General Manager, K. K. Kingston
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Interview: Michael Kingston In what ways has the PNG Made campaign affected the local consumer market? MICHAEL KINGSTON: Historically, purchase decisions were made purely on price, but the emergence of a middle class has resulted in more disposable income and spending power. Now the emphasis is more on quality instead of cost. Since local companies are now becoming competitive in terms of quality, we have even begun to notice PNG Made brand loyalty among consumers. The PNG Made campaign has helped…

Analysis

Keeping pace: As income levels increase, the retail sector prepares for growth
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As Papua New Guinea prepares to enter an unprecedented resource boom fuelled by massive resource investments, retailers are optimistic the influx of investment dollars and subsequent revenue streams will translate into a corresponding rise in consumption. Proceeds from the $15.7bn liquefied natural gas (LNG) project are expected to be as high as $150bn over its 30-year lifespan, while roughly one-third of the 15,000 workers recruited for the project are locally based. Signs of conspicuous…