The 2017 PNG 100 CEO Sur­vey

This is the sixth year that Busi­ness ad­van­tage png has run the PNG 100 CEO Sur­vey—our ex­clu­sive sur­vey of the ex­ec­u­tives who run PNG’S largest com­pa­nies. Each year, the sur­vey aims to re­veal lev­els of busi­ness con­fi­dence by ask­ing CEOS about their an­ticip

Business Advantage Papua New Guinea - - Contents -


Our an­nual sur­vey of PNG’S ma­jor com­pa­nies records profit, in­vest­ment and re­cruit­ment ex­pec­ta­tions for the year ahead.

Prof­its mixed

Twelve months ago, when we asked the CEOS what their profit ex­pec­ta­tions were for 2016, they were op­ti­mistic. Half thought prof­its would ‘sub­stan­tially’ or ‘some­what’ ex­ceed the lev­els of 2015.

A year on and that op­ti­mism has proved to be over­stated, al­though the pic­ture is nu­anced. Just five per cent of CEOS say prof­its sub­stan­tially ex­ceeded ex­pec­ta­tions, while a quar­ter say they had ex­pe­ri­enced slightly bet­ter prof­its.

Thirty per cent say prof­its were what they ex­pected, while 22.5 per cent say prof­its were slightly be­low ex­pec­ta­tions. About 17.5 per cent say they recorded prof­its sub­stan­tially be­low ex­pec­ta­tions.

What will 2017 bring?

De­spite a sus­tained eco­nomic slow­down busi­ness lead­ers are op­ti­mistic. More than two-thirds (67.5 per cent) be­lieve that prof­its will rise this year, an in­crease in the level of op­ti­mism in the pre­vi­ous year.

Fif­teen per cent of CEOS ex­pect prof­its to be sub­stan­tially up, while no CEO ex­pects prof­its to be sub­stan­tially lower in 2017 than they were in 2016.

In­vest­ment and em­ploy­ment in­ten­tions

Two use­ful in­di­ca­tors of eco­nomic con­fi­dence are how much busi­ness lead­ers in­tend to in­vest and how many new peo­ple they in­tend to em­ploy.

The pat­terns of in­tended in­vest­ment are more bullish than an­tic­i­pated em­ploy­ment lev­els. About 31 per cent of re­spon­dents said they ex­pected to make a ‘sub­stan­tial’ in­crease in in­vest­ment this year. The same level ex­pected to make a slight in­crease in in­vest­ment. Only 14.3 per cent ex­pected to make sub­stan­tially, or

slightly, less in­vest­ment, com­pared with 22.6 per cent in the pre­vi­ous year.

Re­cruit­ment ex­pec­ta­tions are less pos­i­tive. While no CEO ex­pects a sub­stan­tial re­duc­tion in staff num­bers (3.23 per cent ex­pected this in the pre­vi­ous year), the ma­jor­ity, 45.2 per cent, ex­pect staffing to re­main un­changed. More than a quar­ter (28.6 per cent), ex­pect to make slight in­creases in re­cruit­ment, while 9.5 per cent are an­tic­i­pat­ing a sub­stan­tial in­crease—a fig­ure that was down from 19.3 per cent in the pre­vi­ous year.

Is­sues fac­ing PNG busi­ness

Once again, ac­cess to for­eign ex­change is re­garded as the most crit­i­cal is­sue. It was nom­i­nated as the ma­jor ob­sta­cle by 59.5 per cent of CEOS, con­sid­ered more than dou­ble any other chal­lenge.

Other is­sues nom­i­nated as ‘crit­i­cal’ by re­spon­dents were: short­age of ex­per­tise and skills (28.6 per cent of re­spon­dents); un­re­li­able telecom­mu­ni­ca­tions (28.6 per cent); se­cu­rity and law and or­der (24.4 per cent). The 2017 PNG 100 CEO Sur­vey was con­ducted by Busi­ness Ad­van­tage In­ter­na­tional be­tween late Novem­ber 2016 and early Fe­bru­ary 2017. The sur­vey in­cluded se­nior ex­ec­u­tives from a rep­re­sen­ta­tive sam­ple of Pa­pua New Guinea’s largest com­pa­nies, across all sec­tors of the econ­omy.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.