Forex issue tops CEOs’ priorities

SOLVING the foreign exchange shortage is the top priority according to the majority of respondents in a chief executives survey by the Oxford Business Group (OBG).
OBG’s Asia regional editor Patrick Cooke told the media in Port Moresby yesterday that this was the conclusion of a survey involving more than 100 CEOs from last October to June in Lae and Port Moresby.
He said 31 per cent of those interviewed identified the issue of currency shortage as the main challenge for Prime Minister James Marape’s administration.
“This shows that the sovereign bond issuance improved performance along with measures by the Central Bank to introduce more liquidity in the foreign exchange (FX) market in paying dividends but is still clearly a challenge for CEOs in the country,” Cooke said.
“I think everybody is hoping that progress continues so that CEOs can focus on bigger issues, strategic planning and long term decisions within the country.”
Cooke said the second most popular issue identified was health and education which was a long term issue.
He said it was refreshing to hear Marape talking about these issue and that it was captured in the Government’s focus to maximise the country’s resources, not just for immediate gain but also for long term benefits.
“Infrastructure development was also an issue that came up,” he said.
“The cost of doing business makes it hard to move produce around the country, to export markets as well.
“It’s a big challenge given the low population density in PNG where financing models can be cost effective.
“So with engagement from development partners like the electrification partnership and the Coral Sea submarine cable, we are hoping that some of these challenges will be addressed in the short and medium term.”
Meanwhile, Cooke said 76 per cent of the executives interviewed expected the long-term economic impact of the Apec Summit last November to be positive, indicating hopes were high among decision makers that the country’s year as chair of the inter-governmental forum would boost both regional trade and inward investment.
Cooke said skills gaps in the local workforce were another area of concern for business leaders surveyed, many of whom felt compelled to invest in hiring foreign personnel to oversee key elements of projects.
He said when asked to identify the skill most in need among the local workforce, 59 per cent selected leadership well ahead of engineering and customer service, which placed second and third respectively.