The PNG government’s intention to achieve a K200 billion economy over the next few years is achievable.
Prime Minister James Marape expressed this, encouraging Papua New Guineans to cultivate the land and invest in the agriculture sector.
He says every citizen must work together in the agriculture sector to reach that target.
Papua New Guinea’s economy has reached more than K100 billion over the last three years.
Hence it is the government’s vision to reach another K100 billion over the next few years.
PUMA Energy in Papua New Guinea says it is unable to maintain the supply of fuel products to its customers because of the lack of foreign currency (FX) in the country, says country manager Hulala Tokome.
Tokome told the local newspaper The National that Puma had been working with various stakeholders for months to ensure a sustainable flow of FX currency.
“We are working with the Government and BPNG (Bank of Papua New Guinea) to have this resolved today (yesterday),” Tokome said.
THE DIGICEL brand will remain until Telstra says otherwise, Papua New Guinea National Information and Communications Technology Authority (Nicta) chief executive officer Kila Gulo-Vui says.
“Telstra completed their acquisition of Digicel Pacific in June. The Australian media mogul company successfully took over the Pacific’s leading telecommunications and network service provider with the help of the Australian Government.
“But there is no change to the brand, as yet. It is still Digicel,” he added.
He said that there were more processes that Telstra would have to see through before changing the name of the brand if it wanted to but that they had already fully taken over Digicel Pacific and Digicel PNG.
OUTGOING Bank South Pacific Financial Group Ltd (BSP) chief executive officer Robin Fleming says what the banking sector needs is competition.
“To increase taxes on the banking sector from 30 per cent to 44 per cent does nothing to incentivise anyone else to come into the country and open a new bank,” he said.
“It possibly accelerates the desire of others to continue their exit and will be of no benefit whatsoever to the many Papua New Guineans.
“For K240 million, I am sure that there are other alternatives rather than taxing the banks,” he added.
The Papua New Guinea government cabinet has agreed in principle to set up a commercial bank to be called the National Banking Corporation, says State Enterprises Minister William Duma.
He told Parliament it should be opened late next year.
“(The) Government has made a decision to apply for and establish another commercial bank in the country,” Duma said. “If we take other smaller countries like Fiji, they have more commercial banks operating there. And in a country of more than 10million people, (we) need more banks.”
BANK South Pacific (BSP) Financial Group Ltd recorded a net profit of K671.5 million for the 3rd quarter (Q3) this year, compared to K698.8 million recorded for the corresponding period last year, chief executive officer Robin Fleming says.
Fleming said that this was despite BSP expending an additional K190 million in company taxes due to the introduction of the additional company tax.
He said the BSP’s underlying profit growth reflected the improved economic conditions in the region, resulting in a loan growth of +5.6 per cent and increased transactional activities, which had contributed to non-lending fee income increase of +14.3 per cent, despite BSP continuing to reduce its fees.
“Overall Group expenditure increased by 15.1 per cent in Q3-2022, compared to Q3-2021,” he said.
“This higher level of expenditure was driven by additional roles being created in retail, operations and compliance teams to support customer growth, more effective compliance, higher channel related costs (contributing to the higher channel revenue raised above) and property maintenance costs.
“With the support of its shareholders, BSP is pursuing a judicial review to challenge the constitutional validity of the Act, given its material impact on shareholder returns.
“Nevertheless, the K190 million tax was paid on Sept 30, 2022, into an escrow account held with BPNG (Bank of PNG), pending the outcome of BSP’s legal challenge to the Act.
The full K190 million was taken up in BSP’s first quarter accounts.”
Fleming said BSP’s key performance ratios remained strong, with cost-to-income improving to 37.7 per cent.
He added that BSP’s capital base remained robust, with a total capital adequacy last month of 23.3 per cent, in line with September 2021 levels, well above the minimum BPNG prudential requirement of 12 per cent.
“Group return on equity (ROE) was 27.1 per cent in Q3-22, impacted by the Act.”
Fleming added that irrespective of the K190 million additional company tax, BSP had expanded its branch network, with Eriku branch opening in the first week of November 2022, NCD lending centre in December, Telefomin hybrid sub-branch in the first quarter of 2023, and Dobel branch in Western Highlands in the first half of 2023.
Fleming concluded that BSP remained the largest and most profitable bank in the South Pacific.
“BSP also continues to deliver sustainable growth, as evidenced by its strong year to date profit results.”
AUSTRALIA is investing more than K1 billion in Papua New Guinea's Morobe’s road and port infrastructure development, says Australia’s consul-general Mark Fox.
Fox said with the province’s role in PNG’s economic growth, investment in the sectors was crucial to drive the economy.
During a breakfast meeting with members of Lae’s business community last Friday, he said Australia was committed to delivering quality infrastructure to assist businesses in the province.
Fox said K56 million was given towards the long-term maintenance of the 111km Wau Highway, to reduce travel time and overheads for businesses in the district.
By Samuel Raitano : FM 100
Mt Hagen city in Western Highlands Province now has it's second Bank South Pacific (BSP) Branch at Dobel, which is planned to be opened by July next year.
The ground breaking ceremony was held at Dobel Commercial Development Centre opposite Tininga, witnessed by Governor Wai Rapa, BSP Chairman Sir Kostas Constantinou, and CEO Robert Fleming along with Managing Directors of Steamships and Tininga Limited.
Governor Wai Rapa also assured business houses that security of their assets were important, hence law and order would be his first priority as governor as he works with the PPC.
Papua New Guinea National flag carrier, Air Niugini continues to perform exceptionally well in delivering its schedule in July and August this year, again outperforming many airlines in Australia and the Pacific.
In July Air Niugini operated a total 1, 377 flights with 1, 188 of these serving the airline’s domestic routes.
Papua New Guinea must learn from Malaysia to move the economy forward.
MALAYSIAN investments in PNG is estimated to be K6.3billion, mostly in the wholesale and retail, financial services, forestry, manufacturing and agriculture sectors.
Tourism, Art and Culture Minister Isi Henry Leonard said this last week when welcoming Malaysia’s Minister for Tourism, Creative Industry and Performing Arts and Minister for Youths, Sports and Entrepreneur Development Abdul Karim Rahman Hamzah in Port Moresby.
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