CEOs prioritise security

By PETER ESILA
A SURVEY of 100 chief executive officers of companies has revealed that 88 rate security or law and order issues as mission-critical or very important to them.
Westpac senior economist Justin Smirk also said that no doubt, the lack of foreign exchange was the “top impediment”.
He presented to the Port Moresby Chamber of Commerce and Industry business breakfast the 2024 PNG 100 CEO survey conducted by Business Advantage International, which Westpac analysed.
“This year’s survey was conducted from Nov 2023 to Jan 2024, with most CEOs surveyed before the Jan 10 civil unrest in Port Moresby,” he said.
“It is not unreasonable to think firms would be even more concerned if the survey was re-run after January.
“Concerns about inflation lifted to the highest level in the history of the survey, suggesting inflation is a significant issue.
“CEOs’ forex (foreign exchange) concerns lifted to 4.6 per cent, the highest reported level of concern in the history of the survey — 93.9 per cent reported forex was a mission-critical or very important concern.
“Security and law and order, unreliable utilities and the lack of government capacity are all significant hindrances,” Smirk said.
He said security/law and order had been a consistent issue.
“Even before the recent Port Moresby riots, the level of concern lifted to 4.4 per cent on par with the previous high in 2013,” he said.
“Since 2019, the concern about unreliable utilities has been high but relatively stable. However, in 2024, it jumped to the highest level of concern in the history of the survey.
“Likewise, concern about a lack of government capacity jumped to 4.2 per cent also the highest level in the survey’s history.”
He said profits were expected to grow but expectations had moderated.
“While CEOs tell us their profit outlook remains positive, it (profit) has taken a hit from the difficulties experienced in 2023, resulting in a muted outlook for 2024,” he said.