PNG’s International Business Forums Failing to Produce Results

PNG’s International Business Forums Failing to Produce Results

 Papua New Guinea’s international business forums have come under scrutiny, with International Trade and Investment Minister Richard Maru questioning whether repeated overseas engagements are producing the investment and trade outcomes the country needs.

Mr Maru said PNG must reconsider where it directs its business efforts, particularly as China continues to stand as the country’s largest trading partner. His comments come ahead of the inaugural PNG-China Business Forum and Trade Expo, which he hopes will lead to stronger commercial ties and tangible opportunities for PNG.

He questioned the value of the long-running PNG-Australia business forums, saying similar engagements had been held for more than four decades.

“Just for the record, similar events have been held between the PNG and Australia Business Council for 41 years in a row. Every, now (and then) we go to Australia three times for business forums, twice in Brisbane and once in November, early December in Sydney,” said Maru.

Mr Maru said the frequency of those engagements should be examined against PNG’s actual trading relationships.

“And yet, China is our biggest and most important trading partner. Doesn't make sense, does it?” he said.

He said PNG also needed to look beyond geopolitical discussions and focus on countries with which it has strong economic links.

“Recently, we've signed defense partnership agreements between the US, a country who hardly trades with us, and Australia. It is interesting, Australia's biggest trading partner is China, New Zealand's biggest trading partner is China.”

Mr Maru said China’s growing role in PNG’s economy made it necessary for the country to strengthen its engagement with the Chinese market.

“They come to us and talk about geopolitics, but they do business with China. It's high time PNG woke up and saw the reality. Our future as an economy, as a country, is definitely with China.”

He said PNG-China trade was already worth about K17 billion and continued to grow.

“We make no apologies for that. Our current two-way trade between our two countries is K17 billion, and growing. Right now, we have one million young people without jobs, and we are growing our population by 4% per annum,” he added.

The Minister said attracting investment was becoming increasingly important as PNG faced a growing population and a large number of young people seeking employment.

He warned that failure to secure new investment would have consequences not only for the present economy but also for future generations.

Mr Maru said PNG needed to move away from traditional approaches to international business and focus on partnerships capable of delivering investment, employment and long-term economic opportunities.

The upcoming PNG-China Business Forum and Trade Expo is expected to provide an opportunity for the Government and private sector to pursue those objectives while strengthening the country’s commercial relationship with its biggest trading partner.

“Our future as an economy, as a country, is definitely with China,” Mr Maru said.