Investment getting hurt, says Barker

Business

By GYNNIE KERO
The poor state of basic infrastructure and relatively high cost of doing business in the country restrain investment in many industries, says economist and Institute of National Affairs (INA) executive-director Paul Barker, pictured.
He said this in response to a query by The National on the lack of investments and job creation in the country.
Barker said the lack of foreign exchange had imposed the biggest restraint on business and investment followed by politics and policies in recent times.
“There have been no major new investments to drive economic activity and employment growth,” he said.
Barker agreed that poor investment meant fewer new jobs created.
It was evident when Bank of PNG said last week the level of employment in the formal private sector declined by 2.3 per cent last December.
According to the bank, the level of employment in the non-mineral sector fell by 4.8 per cent last year.
DEmployment declined in the Highlands, Southern, Morobe and Islands regions, while it increased in the Momase and NCD regions.
Information from BPNG showed that last year, the total level of employment declined by 3.9 per cent, compared to a marginal increase of 0.3 per cent in 2016.
Barker said: “Unfortunately, employment is just following the trend set by tight economic conditions, with a squeeze on business turnover and profitability, and downturn in new investment, except in a few activities.”
On Monday, Morobe education chairman Andrew Gena urged policymakers to “wake up” and see the number of graduates walking the streets in search of jobs.