BSP Reports Impressive 17% Surge in Annual Profit for 2024

20/2/2025

The Bank South Pacific Financial Group Limited (BSP) has announced a statutory net profit of K1.038 billion (approximately AU$408 million) for the fiscal year 2024, marking a notable 17% rise compared to the previous financial year.
According to BSP Chairman Robert Bradshaw, the robust growth in FY24 profits was fueled by significant increases in business volumes and revenue across nearly all sectors. Additionally, there was a substantial improvement in provisions for bad and doubtful debts, along with the positive impact of the Additional Company Tax settlement in the first half of 2024.

Rice Imports Drain PNG’s Economy – National Plan to Boost Domestic Supply

19/2/2025

Papua New Guinea is moving to reduce its dependence on imported rice as food security concerns escalate across Southeast Asia, according to an official.

The Government has tasked the recently established National Rice and Grain Board (NRGB) with the goal of achieving self-sufficiency in rice production by the year 2035.

NRGB executive chairman Koren Rokas Maso stated that urgent steps were necessary to safeguard the nation’s food supply, emphasizing that the ongoing rice supply challenges in Southeast Asia served as a critical warning for PNG.

Maso highlighted that the country currently imports more than 400,000 metric tonnes of rice each year from countries such as Vietnam, Thailand, and India, with the annual cost surpassing K1 billion (approximately US$270 million). He described this level of reliance on external suppliers as unsustainable, adding that the NRGB was formed to lead the nation towards rice self-sufficiency by 2035.

World Bank and PNG Join Forces to Tackle Economic, Infrastructure Challenges

9/2/2025

World Bank and PNG Join Forces to Tackle Economic, Infrastructure Challenges

Papua New Guinea’s Prime Minister James Marape met with senior officials from the World Bank on Tuesday to discuss major development initiatives aimed at fostering economic growth, reforming the education sector, and driving social transformation. During the meeting, Marape underscored the government’s commitment to ensuring that investments in critical areas such as education, infrastructure, and economic stability contribute to long-term prosperity for the nation. He emphasized the strong partnership between Papua New Guinea and the World Bank, highlighting their shared dedication to advancing economic progress, education reform, and national development.

Panguna Mine Revival Promises Jobs, Infrastructure, and K120 Billion for Bougainville

4/2/2025

The Panguna mine, under redevelopment, is anticipated to have a productive lifespan exceeding 20 years and is projected to generate approximately K120 billion in revenue, according to Johnny Auna, the newly appointed chief executive officer of the project. Auna shared these insights during the Autonomous Bougainville Government’s (ABG) recent nation-building framework workshop in Buka.

Auna emphasized that the mine would bring significant direct and indirect benefits to the region. “The project will deliver direct benefits to landowners, the ABG, investors, and shareholders, while also supporting new investments in infrastructure, including roads, education, health, and business development,” he stated. He added that the initiative would follow a proven operating model similar to other successful mining projects in Papua New Guinea, ensuring sustainable growth and development.

Businesses in PNG Fear Economic Strain from 2025 Minimum Wage Changes

29/1/2025

Businesses in PNG Fear Economic Strain from 2025 Minimum Wage Changes

Port Moresby, Papua New Guinea – Businesses in Papua New Guinea (PNG) are worried about a possible change to the minimum wage after May 31, 2025. Many private companies fear that higher wages could hurt their operations, especially during tough economic times.

The government is reviewing the minimum wage to ensure workers are paid fairly. However, private sector leaders say they rely on profits to keep their businesses running. Unlike public servants, whose salaries are paid by the government, private companies must manage their own finances carefully.

Labor and Industrial Relations Minister Kessy Sawang is leading the review. She understands the concerns of businesses but also wants to improve wages for workers. “Public servants are different from private sector employees. Many factors affect how we set wages,” Sawang said.

Card Cloning Scourge Threatens PNG’s Banking System, Warns BSP

21/1/2025

The rising prevalence of card cloning in Papua New Guinea has emerged as a significant threat to the banking industry, according to the Bank of South Pacific Financial Group Limited (BSP).

BSP Group’s general manager for retail banking, Ronesh Dayal, stated that their priority is assisting customers impacted by card cloning to ensure they are not financially disadvantaged. “Each case reported is thoroughly investigated to confirm its authenticity before compensating affected customers in line with our policies and regulatory requirements,” he said. Dayal added that the bank is committed to safeguarding customers and reducing the effects of these fraudulent activities.

Card cloning involves criminals duplicating data from a transaction card without physically stealing the card. The stolen data is transferred onto a new or reformatted card, enabling unauthorized access to accounts or fraudulent purchases.

Kina Bank to Decommission Kina Local Cards by End of October

10/10/2024

Papua New Guinea’s Kina Bank has announced that it will be decommissioning its Kina Local Cards by 31 October 2024. Customers are urged to visit any Kina Bank branch or Digital Hub to exchange their Kina Local Cards for a Kina Visa Debit Card at no cost.

The Kina Local Cards, which have a black magnetic strip and no embedded chip, will no longer be accepted. In contrast, the Kina Visa Debit Cards feature embedded chip technology, offering enhanced security for all transactions. This upgrade is part of Kina Bank's efforts to improve customer security.

Yaninen: Rising Inflation Puts Pressure on PNG’s Small Businesses

1/10/2024

Yaninen: Rising Inflation Puts Pressure on PNG’s Small Businesses

Small-to-medium enterprises (SMEs) in Papua New Guinea are grappling with rising inflation, which has led to increased costs of raw materials, utilities, and overall operational expenses, according to Des Yaninen, President of the Micro SME (MSME) Council of Papua New Guinea. Yaninen highlighted that many SMEs are under pressure as employees request pay increases due to the higher cost of living, while businesses struggle to pass these costs onto consumers without risking a drop in demand.

“Some businesses are adapting by optimizing supply chains, renegotiating contracts, or seeking alternative suppliers. However, the pressure on profit margins remains a critical concern,” Yaninen said.

CPL Reports Revenue Decline Following Store Closures and Economic Challenges

19/9/2024

CPL Foundation Chairman Sir Mahesh Patel

The City Pharmacy Limited (CPL) Group has reported a decline in revenue for the first half of 2024 compared to the same period last year, largely due to the closure of four stores following the January 10 civil unrest. CPL's revenue for the first half of the year amounted to K239.5 million, marking a 13 per cent drop from the previous year.

The closure of the four stores in January, coupled with subdued economic activity across many sectors in Papua New Guinea, significantly impacted CPL’s financial performance. The group also recorded a pre-tax loss of about K13.8 million for the first half of 2024, a decrease of K11.6 million compared to the same period last year.

PNG-Made Products Reach World Stage at Australian Trade Exhibition

4/9/2024

Papua New Guinea-based company Lae Biscuit Company Limited is promoting its PNG-made products on the international stage for the first time through an exhibition in Australia. The company is participating in Fine Food Australia, a leading trade event for the food industry that has been running for 40 years. The event features hundreds of food industry professionals from across Australasia and beyond.

John Chow, General Manager of Lae Biscuit Company, expressed gratitude for being part of the event, which began on Friday, thanks to the efforts of Pacific Trade Invest Australia. The company is featured as part of the Pacific Islands stand in Melbourne. "It certainly puts us on the map with other known manufacturers in the Pacific," Chow said. He added that it was encouraging to see different Pacific Islanders recognize their brand and share their excitement and enthusiasm at the exhibition.