Back to Business Breakfast

The 9th Prime Ministers back to business breakfast was held in Port Moresby today.

“The Back To Business Breakfast with the Prime Minister is an essential event where the public and private, can meet, talk and share what must be done to achieve positive growth.”  Nuni Kulu, President, Business Council of PNG.

Stephen Mead attended the Prime Minister’s breakfast once again this year in a well-attended event, and hear out on the year gone, and what’s in store for the year ahead.

The theme of the discussions centred around:  RESCUE, RECOVER, REBUILD

Kina Bank are the successive major sponsor and Lesieli Taviri (Executive General Manager ? Banking) provided key sponsor’s address and summarised 2020 as impacted by COVID and the response by the PNG Government as well as financial institutions on interest rates and deferred payment schemes.

Kina Bank prides itself on leading initiatives with a number of key initiatives ranging from fixed rate home loans to disruptive technologies in digital banking services.

Lesieli touched on the Westpac acquisition and what they view will be positive for PNG.

She acknowledged the mass misinformation peddled through social media, and dispelled some of these by disclosing the shareholding.

Kina are a publicly listed company on both the ASX and PNG-X stock exchanges. As such governance & compliance must adhere to strict standards. The major shareholders include the triple-A investment grade rated Asian Development Bank and numerous well-known global fund managers across Australia, New Zealand, the USA, UK and Singapore. They completed successful capital raising during 2020.

The founding shareholder, Fu Shan Investments, sold their remaining minority shareholding in Kina in 2018, which then provided opportunities for a number of local PNG investors such as Comrade Trustees and MRDC to invest in Kina and for the Asian Development Bank and other highly regarded local and international organisations to take leading positions.

The newly branded bank will be independent and separate from the existing Kina Bank brand, and it will compete directly and vigorously with BSP, ANZ and Kina Bank in both PNG and Fiji.

The newly branded bank will focus on the MSME and SME and Commercial sectors of both Pacific markets and they will reinvigorate Westpac’s financial inclusion program that has been dormant for a number of years.

The new bank brand will be governed by an independent PNG based Board of Directors, and will provide opportunities for anyone in PNG to invest and participate in the ownership of it through Kina Securities Ltd.

Broad discussion:  RESCUE * RECOVER * REBUILD

Those industries and businesses most affected by the pandemic are finding ways to restore activity in those sectors, notably in tourism/hospitality, resource.  Such businesses have made key contributions to the PNG over the years.  PM spoke of his Government’s plans and initiatives in agriculture, economic roads & infrastructure, discussions on resource sector projects and what they want to achieve within the regulatory regimes in the coming weeks.

Perhaps the elusive glimmer of resource projects forever wading in the horizon, now coming closer to the shores with the PM announcing that discussions for Papua LNG should reach a progressive milestone by the end of Feb 2021 as he assured by saying that the Vice President of Total is en-route to PNG, and they look to make some formal announcements on the planned discussions in the coming weeks.

In a similar vain, discussions on Wafi will reach a progressive milestone with talks due by the end of Feb 2021.

Discussions on Porgera are still afoot with Barrick and other potential partners, as well as with Twinza (Pasca).

With events in PNG’s recent economic history bearing our vulnerability in a resource dependent economy, the public and private sector appreciate that developments in other sectors are critical to long term sustainable economies that can withstand major economic set-backs, and that we must see a diverse participatory regime that sees contributions to the economy across different sectors, where the untapped 80% of the population can contribute.  The Government has been active in progressing agriculture projects in different regions.

As expected the global health pandemic was an overarching element in the discussion as it has shaped the way we live our daily lives and conduct our businesses.

Despite the recent setbacks, PNG remains an attractive investment destination. With a K10.7 billion economic decline in 2020, the collaborative onward march by public and private sectors must continue to promote growth for the near and long term.