Importance of sector highlighted

By DALE LUMA
HAVING a vibrant and self-sustaining manufacturing sector is important for PNG, according to the Bank South Pacific (BSP).
Chief executive officer Robin Fleming told The National that manufacturing companies faced having foreign exchange on demand coupled with the current impacts of the Covid-19.
“There are a number of manufacturers that bank with BSP,” he said.
“While foreign exchange has improved somewhat, it’s always an issue for manufacturers in being able to get foreign exchange on demand.
“That continues to be one of the areas of concern for manufacturers.
“But we also expected some of the Covid-19-related restrictions which have put them under pressure.”
Fleming said from a PNG perspective, the importance of having a vibrant self-sustaining manufacturing sector was important, particularly from an import substitution perspective and import replacement.
“The more manufacturing you can do in country, the less reliant you are on importing those products from overseas,” he said.
PNG Manufacturer’s Council chief executive officer Chey Scovell recently told The National that manufacturing might lose its capacity in the country because of the high economic cost structure and the effects of the Covid-19.
Scovell said Port Moresby and Lae would suffer the most with the loss of jobs.
“In some areas, such as dry foods and small goods, we are doing ok,” he said.
“But, overall, we are not succeeding at import substitution or sufficient food security because the cost structure of our economy is way too high.
“That, combined with the effects of the Covid-19, means that there will be a loss of manufacturing capacity.”