Industry & Retail
From The Report: Papua New Guinea 2017
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Although smaller than its petroleum, mining and agricultural sectors, Papua New Guinea’s industry and manufacturing are major contributors to the nation’s revenue base, and hold significant potential for future investment and development. Manufacturers face several challenges, including high transportation, utilities and security costs, import dependency, currency depreciation, a foreign exchange shortage and land acquisition difficulties. However, the country benefits from a wealth of natural resources that holds considerable potential for value-added processing, most notably in the fisheries and agriculture segment. Long-term industrial development should also support investment in construction materials and petrochemicals, a crucial step in government efforts to reduce imports and build up a robust local production base.

This chapter contains interviews with Paulus Ain, Commissioner and CEO, Independent Consumer and Competition Commission and James Lau, Managing Director, Rimbunan Hijau (PNG) Group.

Articles from this Chapter

Overview

On the line: Fisheries and natural resources at heart of push to boost industry
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Although smaller than its petroleum, mining and agricultural sectors, Papua New Guinea industry and manufacturing are major contributors to the nation’s revenue base, and hold significant potential for future investment and development. Manufacturers face several challenges, including high transportation, utilities and security costs, import dependency, currency depreciation, a foreign exchange shortage and land acquisition difficulties. However, the country benefits from a wealth of natural…

Interview

Healthy competition: Paulus Ain, Commissioner and CEO, Independent Consumer and Competition Commission (ICCC), on promoting a fair market
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Interview: Paulus Ain How do practices in Papua New Guinea stack up against World Trade Organisation (WTO) regulations and guidelines on free trade? PAULUS AIN: Our role at the ICCC is to implement and enforce WTO guidelines on behalf of the PNG government. The framework encompasses everything from eliminating trade distortions between countries, to trimming down tariff and non-tariff barriers, and phasing out subsidies. Since 2010 PNG has improved various business practices and boosted investor…

Interview

Consuming passions: James Lau, Managing Director, Rimbunan Hijau (PNG) Group, on the current challenges in the market
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Interview: James Lau How would you describe the sentiment of the retail sector, given the current economic slump? JAMES LAU: I would characterise the mood as one of cautious optimism. The sector is facing several key challenges, but high-quality operators are continuing to exhibit growth, and the longer-term trends appear positive. The challenges include ongoing foreign exchange shortages, rising wage costs, fluctuating consumer confidence and infrastructure issues. However, Papua New Guinean…

Overview

Room for growth: Retailers look to capitalise on sales potential
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Papua New Guinea’s retail sector remains in its nascent stages, with the majority of the population remaining outside of the formal economy and low rates of urbanisation. The recent construction of the $19bn PNG LNG natural gas project provided significant support for retail expansion, although retailers have since grappled with a host of challenges, including subdued macroeconomic growth, weakening demand, limited foreign exchange supply and security concerns. Despite these challenges,…