Country needs regulatory reforms to grow enterprises: Council

JAMES Gore, founder of the PNG Micro, Small and Medium Enterprises (MSME) Council, says there is a dire need for regulatory reforms in the country to grow the MSME sector.
Gore said presently regulations were one-sided and MSMEs had been forced to play by the existing rules which had them at a disadvantage. “Regulatory reform is required to position the MSME sector as the driver of economic growth,” he said.
“That needs to be addressed to tailor business regulations accordingly for mass compliance.”
Gore highlighted the need for MSME tax reforms, both in terms of tax rates as well as compliance.
“Government could also consider concessional tax rates and statutory fees, particularly for MSMEs in the starter phase,” he said.
“Business regulations must not be burdensome.
“We need to see increased local content policy that will create better opportunity for locally-owned MSMEs and the enforcement of rule of law to provide a secure environment for them to operate in.”
Gore referred to the current reserved business activities which he said had not been enforced for years.
He said the council was now working with the Investment Promotion Authority to update this list and enforce it.
Micro, Small to Medium Enterprises Council president Des Yaninen said in the meantime, progress was being made on this front.
“There’s been a number of meetings and engagements between stakeholders and we hope to finalise and get it to Parliament,” he said.