Two thirds of Micro SMEs and SMEs have been closed in the country as a result of the effects of Covid-19 on these businesses. This information was presented to the Consultative Implementation and Monitoring Council (CIMC) at its Commerce and Services Committee meeting in Port Moresby yesterday. Speaking at the meeting BPNG representative Mr Jeffery Yapom said that 2% of MSMEs scaled down and 2/3 of the businesses closed down across the country while others were uncertain to make further investments due to no demand. The Bank of Papua New Guinea (BPNG) presented this information which it collected through a comprehensive survey the “Business Plus Survey” it carried out in the country during the Covid-19 period. According to the survey report almost a quarter of PNG MSMEs were severely affected estimating that number to be in the thousands. The survey also identified that one issue among those contributing to MSMEs closing or scaling down business was due to the long delayed service payments from Government to them. Similarly, the Port Moresby Chamber of Commerce and Industry reported that apart from MSMEs and SMEs bigger business in the country as well as its members were equally affected by the pandemic; however one or two business managed to survive. CEO of the Port Moresby Chamber of Commerce and Trade Mr Rio Fiocco speaking at the meeting pointed out that businesses that are engaged in retail and supermarket and security operations were not severely affected as the tourism, hotel and real estate industries. The Hotel industry and real Estate organisations have been hard hit and continue to lose money as they endure to maintain overheads such as power, water and security with very limited or no income at all he said. A representative of the Department of Commerce and industrial Relations, Ms Mary Kari highlighted that Government understood the effects and had committed to provide K200 million for MSMEs and SME loans. This would be distributed through the Bank of South Pacific (BSP) and the National Development Bank (NDB) to be accessed by MSMEs and SMEs. The Committee expects the two loan facilities in the two banks to be expedited and the funds made available to MSMEs after they signed the MoU with the Government on the 24th of September. The Committee acknowledged that this was important news to the wider business environment, especially MSMEs, considering the impact and the current ongoing struggle they have to mitigate to get back in business. Institute of National Affairs Director, Mr Paul Barker added that many small businesses will all be looking at benefiting from this arrangement during these hard business times. Stakeholders that attended the meeting include the Department of Labour & Industrial Relations, ICCC, Port Moresby Chamber of Commerce, SME Corporation and the National Procurement Commission (NPC) among others. The CIMC Commerce and Services Sectoral Committee facilitates multi sector discussions to assist the businesses sector grow and provide better returns that translate to better livelihoods and development of our country. Next : Apply Online For A BSP Personal Loan Comments are closed.
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