Crisis shuts down two-thirds of MSMEs: Official

AN estimated two-thirds of Papua New Guinean’s micro and small to medium enterprises (MSMEs) have had to close as a result of the impact of the Covid-19 on their businesses, says a bank official.
The information was presented to the Consultative Implementation and Monitoring Council at its commerce and services committee meeting in Port Moresby this week.
Bank of PNG representative Jeffery Yapom said that two per cent of MSMEs scaled down and two thirds of them had closed across the country while others were unlikely to continue operating or make further investments due to a lack of demand.
The information was collected through a comprehensive survey, the Business Plus Survey, BPNG carried out in the country during the Covid-19 period.
According to the survey report, almost a quarter of PNG MSMEs were severely affected – an estimated number to be in the thousands.
The survey also identified that one issue among those contributing to MSMEs closing or scaling down business was due to the delayed service payments from Government to them.
Similarly, the Port Moresby Chamber of Commerce and Industry reported that apart from MSMEs and SMEs, bigger business in the country as well as its members were equally affected by the pandemic.
However, one or two business managed to survive.
Chamber president Rio Fiocco pointed out that businesses that were engaged in retail and supermarket and security operations were not severely affected as the tourism, hotel and real estate industries.