Companies spending, little return

By NATHAN WOTI
ECONOMIC activity is constrained with only a few businesses reporting they have exceeded their budgets, says Papua New Guinea Manufacturers Council (PNGMC) chief executive officer Chey Scovell.
He told The National that the majority of comments received from various chambers of commerce throughout PNG and the Manufactures Council members were that things were difficult.
“Many businesses have tried to be optimistic. They believed that the State would quickly work through issues and negotiations on the major projects and we would have seen a commencement of early works by now – but we haven’t seen anything eventuate as yet.
“This means that there has not been a boost in domestic spending and activity,” Scovell said.
He added that elections generally triggered increases in spending, with eight or so by-elections reported as ready to be conducted, the market anticipated they would be held at the end of 2023 and early this year but they had been delayed.
Scovell said despite money allocated through the Connect PNG programme, there had not been a notable increase in spending.
He said the cost of doing business in PNG had also worsened despite record spending on infrastructure, cost of transport was higher.
“We have to ship goods from Lae to Madang, because the relatively short distance by road is so poor you can’t transport goods that way.
“Sections of the Highlands Highway are in such terrible condition trucks cannot carry full loads which means multiple trips, the fuel shortage is also playing havoc on the transport sector, and power supply has become so bad resulting in businesses spending significant amounts on running and servicing generators,” he said.
According to the Manufacturers Council, a flood of imports into PNG continues to take market share from local manufacturers and businesses.