Posted By Staff Reporter
Amid assertions from the government about economic stability, a prominent businessman has revealed that Papua New Guinea's economy has been in dire straits since the onset of the COVID-19 pandemic five years ago. Ian Chow, Chairman of Lae Biscuit Company Limited, has voiced concerns about the challenging economic climate, citing significant hurdles faced by local manufacturers. Chow, speaking at the PNG Customs Consultation Forum in Lae, expressed profound dismay over the state of the economy, particularly highlighting the detrimental impact on his company over the past two years. Despite investing K15 million in a new biscuit line, Chow lamented delays caused by foreign exchange shortages, hindering the project's completion until recently. He emphasized the company's readiness to export its products, aiming primarily at markets in Australia, New Zealand, and the Pacific. The lack of substantial government support for local manufacturers drew sharp criticism from Chow, who underscored the disparity between policy rhetoric and tangible assistance. Despite minor duty reductions in the national budget, Chow argued that these measures were insufficient to alleviate the burdens faced by manufacturers like Lae Biscuit. Chow debunked claims of a flourishing manufacturing sector in PNG, asserting that longstanding manufacturers were enduring considerable hardships. He outlined a litany of challenges, ranging from infrastructure deficiencies to bureaucratic hurdles, plaguing the manufacturing industry and impeding its growth prospects. Addressing the pressing need for reliable power supply, Chow disclosed the exorbitant costs incurred due to frequent power surges, exacerbating operational challenges for manufacturers. Expressing frustration over the prevailing conditions, Chow revealed contemplations of outsourcing production to China, driven by the allure of profitability amid fewer operational impediments. Despite the adversities, Chow remained steadfast in his commitment to Papua New Guinea, reaffirming his family's enduring ties to the nation and advocating for sustained government support to foster industrial growth. He called upon policymakers to collaborate with stakeholders, proposing a series of measures aimed at bolstering the manufacturing sector, including tax relief, export incentives, and infrastructure improvements. Ian Chow's candid assessment of Papua New Guinea's economic woes provides a sobering reality check, highlighting the urgency for concerted efforts to revitalize the struggling manufacturing sector. As stakeholders rally for substantive policy interventions, the fate of the nation's economy hangs in the balance, with the imperative of government action to mitigate challenges and unlock the industry's full potential. Also read Comments are closed.
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