Industry & Retail
From The Report: Papua New Guinea 2018
View in Online Reader

Industry has emerged as one of the bright spots in Papua New Guinea’s economy in recent years, providing a buffer against downturns in the commodity cycle. As natural gas prices fell and related businesses struggled, manufacturing held its own. The weak currency and the lack of foreign exchange that accompanied the downturn may have actually helped matters, as trouble sourcing dollars encouraged the consumption of domestic products. Efforts to reduce foreign currency outflows by encouraging self-sufficiency and curbing over-reliance on imports have also supported the sector. With a more relevant and consistently enforced legal framework, which includes the imposition of protective tariffs on products that are produced locally, PNG businesses have a better chance to compete.

This chapter contains interviews with Chey Scovell, CEO, Manufacturers Council of PNG; and Ian Clough, Chairman, Brian Bell Group.

Articles from this Chapter

Overview

Finding opportunity: State-led efforts support local production, as the sector steadily moves forward
OBG
plus

Industry has emerged as one of the bright spots in Papua New Guinea’s economy in recent years, providing a buffer against downturns in the commodity cycle. As natural gas prices fell and related businesses struggled, manufacturing held its own. The weak currency and the lack of foreign exchange that accompanied the downturn may have actually helped matters, as trouble sourcing dollars encouraged the consumption of domestic products. “Locally made goods are now more prevalent,” Phil Franklin,…

Interview

Productive process: Chey Scovell, CEO, Manufacturers Council of Papua New Guinea, on moves to encourage commercial activity
OBG
plus

Interview:Chey Scovell, CEO, Manufacturers Council of Papua New Guinea How would you assess government attempts to provide greater incentives for domestic industry? CHEY SCOVELL: There are two aspects that you need to take into account to answer this question. First, you need look at the strategic plans that are being written. From a private sector perspective, those are very sound and instil great confidence. Second is the scorecard on implementation of said plans. This is a bit of a mixed…

Analysis

Zone coverage: Making moves to bring a series of industrial parks on-line
OBG
plus

The development of special economic zones (SEZs) in Papua New Guinea has been a topic of discussion and debate for quite some time, with critics voicing concerns over the planning and implementation of projects in the pipeline. However, large-scale industrial parks remain a priority for the country as they offer a boost to manufacturing and the economy, while attracting foreign investment through benefits such as access to necessary logistics and resources, tax benefits and a streamlined path through…

Interview

Buying time: Ian Clough, Chairman, Brian Bell Group, on how improving gaps in regulation and logistics could bolster market growth
OBG
plus

Interview: Ian Clough, Chairman, Brian Bell Group How do you view the growth prospects of Papua New Guinea’s retail industry in 2018? IAN CLOUGH: I think the trend of the last few years will remain in the medium term. While there was a lot of optimism for 2018 because of energy and mining projects set for commencement, a number of these have been pushed back; therefore, we expect a limited number of big opportunities. Retail firms are looking for existing projects they can supply to, but economic…

Overview

Cashing in: While some struggle amid downturn, others find opportunity and prepare for future gains
OBG
plus

The retail sector in Papua New Guinea is showing signs of resilience despite challenges in the wider economy. Slow GDP growth, tight household budgets and a lack of foreign currency have created a difficult environment for trade stores, shops, supermarkets and malls: sales at some of the country’s bellwether retailers have fallen as much as 50% from peak levels in 2012. At the same time, government-led efforts to encourage local production and consumption in the form of campaigns and tariffs…