Technology killing some firms : Micah

THE introduction of technology has left some businesses struggling.

One good example is the state owned entity, Post PNG Ltd.

State and Public Investments Minister Ben Micah said Post PNG, like many other postal operations around the world, is struggling as the traditional business model is affected by digitalisation and globalisation.

On Monday, the state through the Independent Public Business Corporation (IPBC) rescued Post PNG from its financial woes with an injection of K40 million to bring it back to a profitable operation.

Micah said the use of technology through emails, mobile phone and others have seen a significant decline in its primary business of mails and as such, the financial assistance from the government would help restructure the Post PNG business model in the country.

He said Post PNG will now focus on logistics and freight businesses.

Mr Micah said people can still email and send messages through phones but they cannot send parcels through the internet, hence Post PNG will still maintain that business.

Post PNG Ltd chairman Reuben Aila said the company has suffered a lot financially as a result of digitalisation.

He said the level of mail business has reduced significantly, thus affecting their revenue and business operation.

The chairman said as a result of that, they have taken various cost cutting measures, such as a staff redundancy program, to reduce aging work force.

He said previously they had 14 managers reporting to the chief executive officer but that has now been reduced to just four managers.

Aila said the aim of the company’s board now is to look at exploring possible business opportunities. This is to make sure the postal service is operating on its own legs.