Gathering of PNG’s business elite
Sydney conference showcases PNG as an investment destination
Futurist Mark Pesce has told Papua New Guinea’s business leaders that 21st- century technology – including mobile phones, blockchain technology, drones and robotics – is important for PNG’s long- term economic future.
Speaking at the Business Advantage Papua New Guinea Investment Conference at Sydney’s Shangri-la Hotel, Pesce described how PNG could use these technologies to leapfrog the industrial era and move effectively into the post-industrial world. In particular, he explored a possible convergence between banking and telecommunications, based on the use of mobile phones.
Pesce’s keynote address set the tone for the conference. Not only did he take a long-term view, but he identified clear trends that, if pursued, could benefit PNG in particular.
What is encouraging is that work is already underway in PNG in several of these areas. The central bank is actively looking at blockchain, Oil Search is already using drones to inspect its pipelines, while the near-completion of the National Transmission Network, and a likely new underseas cable connecting PNG to the world wide web are signs of progress in connectivity.
The commentary then moved to the finance sector, with a perspective on the most profitable sectors for investment provided by some of PNG’s most high-profile fund managers and analysts. They included
21st-century technology – including mobile phones, blockchain technology, drones and robotics – is important for PNG’s long-term economic future.
Kennedy Wemin (chief executive officer, Melanesian Trustee Services Limited), David Lennox (resource analyst, Fat Prophets), Dr Stephen Nash (chief investment officer, Nambawan Super) and Eric Kramer, (chief executive officer, PacWealth, investment manager for Nasfund).
Interestingly, both Nash and Kramer expressed an interest in investing in PNG’s new underseas cable.
The governor of the Bank of Papua New Guinea, Loi Bakani, outlined what he saw as the priorities for economic development.
A perspective on the opportunities offered in the financial services sector was provided by Syd Yates, managing director of Kina Securities, who told the story of how the PNG company had grown from a small staff to a fully fledged bank and one of the top three fund managers listed on the Australian Securities Exchange.
The chairman of event partner Air Niugini, Sir Frederick Reiher, detailed the increasing reach of the national carrier and the redevelopment of Jacksons International Airport in Port Moresby so that it can become a regional hub.
The Minister for National Planning and Monitoring, Richard Maru – representing PNG’s prime minister, Peter O’Neill – told the conference that the government is keen to attract investment, especially in the agriculture sector. He reaffirmed its
commitment to reducing the cost of doing business and pointed to continued major investment in infrastructure.
He also said that the government had learned the lesson of the past five years: that the economy was too reliant on the resources sector and needed to develop other sectors, such as agriculture and tourism.
“Over the next five years, our policy priority going forward is economic growth. We have to increase exports, decrease imports and get more value from our resources. This is what we have to do, and do it quite quickly.”
Delivering on three key resources projects – Wafi-Golpu, Frieda River and the second Papua LNG project – will be a high priority in the next five years, he says.
Chairman of the APEC PNG 2018 Coordinating Authority, Sir Charles Lepani, outlined how plans for PNG’s hosting of APEC next year are progressing, with 15,000 delegates expected, while Mahesh Patel, chairman of Kumul Telikom, described the efforts being made to make state-owned telcos more responsive to consumers and to reduce costs.
David Hill, country director of the Asian Development Bank in PNG, gave the bank’s view of PNG’s economy, and outlined its plans
to invest $US2 billion in key infrastructure over the coming decade, including $US1 billion on the Highlands Highway, a vital lifeline for the PNG economy.
This was followed by case studies of successful PNG companies: SP Brewery in manufacturing (with chief executive officer,
Stan Joyce) and Highlands Pacific in mining (with chief executive officer, Craig Lennon). Lennon pointed to the success of the Ramu nickel and cobalt mine as being particularly exciting, given that emergent battery storage technology is heavily reliant on these two export metals.
The Pacific islands were also up for discussion, with some original and rarely heard insights. China expert David Thomas detailed the opportunities that have emerged from China’s expansion, which is leading to a 10 per cent increase in outbound investment.
This was followed by a series of country presentations and a round table on the investment terrain in Fiji, Vanuatu, Timor Leste and the Solomon Islands.
Timor Leste’s appearance was particularly timely, following the resolution of its long- standing border dispute with Australia.