PM Marape Backs Domestic Investment Reform As PNG Targets K200 Billion Economy

Prime Minister James Marape has described new securities market legislation as a major step towards mobilising domestic investment, strengthening Papua New Guinea’s financial markets and achieving the Government’s target of growing the national economy to K200 billion by 2029-2030.

The legislation, introduced in Parliament by International Trade and Investment Minister Richard Maru, received unanimous support, passing 76 votes to zero. The vote exceeded the 60 votes required for an absolute majority, reflecting support across the political divide for reforms aimed at expanding investment opportunities within PNG.

 PM Marape Backs Domestic Investment Reform As PNG Targets K200 Billion Economy/File Photo

Marape said the country already had substantial financial resources held by superannuation funds, investment companies and other institutional investors, which could be channelled into productive economic activities through an improved regulatory framework.

He pointed to Mineral Resources Development Company (MRDC), whose total assets and business portfolio were approaching K20 billion, as evidence of the investment capacity available within the country.

The Prime Minister also highlighted Nambawan Super and Nasfund, both of which had assets approaching K10 billion, demonstrating the growing financial strength of PNG’s institutional investment sector.

"That's domestic liquidity assets owned by three of the major fund managers," he said.

Marape further noted that the Bank of Papua New Guinea had maintained foreign exchange reserves of about US$4 billion, equivalent to approximately K18.2 billion, in recent years.

He also cited Bank South Pacific’s dividend payments, which had reached about K1 billion, alongside the profitability of other investment funds and financial institutions as evidence of the money circulating within the economy.

"This was an indication of liquidity in the system," he said.

"We wanted to streamline the existing regulatory system."

Marape said the latest reforms built on earlier efforts to regulate securities markets in PNG, including initiatives undertaken in the late 1990s.

He recalled that the national economy was valued at K79 billion in 2019, arguing that the country needed to make better use of its domestic capital rather than relying heavily on overseas investors to finance development.

"While we were looking for investors from outside to come in, domestic investors were also around," he said.

"How to regulate so that the money market domestically was able to allow them to invest, raise capital from within, and not just dependent on foreign investments coming from outside."