Japanese agency brings in the top guns to find ways to boost capital markets

By CLARISSA MOI
A WORKSHOP hosted by Japan International Cooperation Agency (Jica) in Port Moresby yesterday involved discussions with various stakeholders on developing the capital market.
Chief representative Takashi Toyama said reforms to develop the capital market in the country had to be driven by the State, as the international market did not necessarily build capital for lower-income economic democracies over time.
He said Japan had one of the world’s most-robust capital markets and was a leading contributor to global economic growth.
“Japan has the third largest stock market in the world after the United States and China,” Toyama said.
“The capital market in Japan has continuously evolved since 1960 and progressed on a continuum, from pre-dominant strong state financial institutions to fully-privatised financial companies dominating the market.”
Toyama said the workshop aimed to instigate discussions on the emerging capital markets in PNG, while at the same time acknowledging efforts by the Government to introduce important financial and legal reforms aimed at modernising current trade and depository systems in the country.
Securities Commission (Secom) chairman Christopher Hnanguie said Secom was not a regulator but a facilitator to work with the stakeholders to develop the capital markets.
“That heavy handedness on market participants is not the approach,” he said.
“We want to work with the industry to help you to grown and help us expand the capital markets.”
Hnanguie said everyone involved must look within and be proactive in playing their part in developing the country’s capital markets.
“We appeal to the developing partners and market participants to be proactive, work with us, fulfill your obligations and help us develop and expand the capital market,” he said.
Hnanguie said that this workshop was a platform created by Jica and Secom to conduct quarterly dialogue on the PNG capital markets.
Hnanguie said they hoped that much could be learnt from the first dialogue, including what was in the capital markets, best practices, lessons and experiences of other countries including Japan and other development partners to help in developing the country’s capital markets.
Stakeholders who attended the workshop included representatives from Jica, Bank of PNG, Securities Commission, Treasury Department, Port Moresby Stock Exchange, Bank South Pacific, Nasfund, Asian Development Bank, International Finance Corporation (IFC), and Australian High Commission.