Foreign business okay

 FOREIGN businesses in any country pay better wages, impart knowledge to the personnel and help alleviate unemployment.

Leading economist Dr Paul Holden said this at a breakfast meeting, adding that because of this, Papua New Guinea’s business environment had improved since 2002.

But he stressed that challenges to doing business had remained. 

Describing PNG as the fastest-growing economy in the region, he said the country had experienced complete turnaround in a decade.

He said a competitive and low-cost business environment should be encouraged to attract investors.

Praising the government’s initiatives to undertake reforms, Holden said it had been healthy for PNG’s growing economy.

“Private sector and reform are key to promoting growth as it makes the economy conducive for business expansion.

“Budget discipline has occurred, inflation dropped and fluctuations in exchange rates stopped in the past few years. 

“Recent reforms had lowered the cost of doing business and this would draw more foreign investors to come in,” he said.

Holden stressed that investors entering a country for business opportunities also brought with them knowledge, which was a scarce resource.

“They (foreign investors) bring with them knowledge, which does not exist in poorer countries, and therefore, they should be welcomed.”