Offshore funds good alternative

Letters, Normal

A READER recently suggested that PNG should have a vibrant financial market.
Not only that, but we must also explore the offshore option which has certain benefits.
We must, however, first assess the market.
The Government must do its own due diligence and not just believe everything told to them by overseas financial institutions and advisers.
There has been a lot of talk in recent years about the benefits of placing funds (whether public, private or individual investors) in offshore funds (companies, trusts and investments).
But let us look at some of the reasons why offshore funds can be an alternative investment choice for PNG.
Firstly, if we structure the offshore company correctly, we can gain substantial tax benefits.
Secondly, we can access investments not available here due to a narrow-base market. 
Thirdly, an offshore bank or company does not face the restrictions we may currently have.
People set up offshore financial companies to manage investment funds for asset protection, privacy and confidentiality.
In general, offshore investing is also a good strategy to diversify our country’s investment range.
It is good investment practice for PNG to invest surplus money in good international funds.
By doing so, we will not be putting all our eggs in one basket. 
Another good move would be to create a futures market base in PNG.
We can also set up our own commodities futures and options exchange as opposed to the present passive local bourse (PomSox).
We can then gradually and systematically build up a diversified range of investment opportunities onshore.
The country is ready for other alternative investment choices for our people.
We can no longer wait and watch others acquire wealth at our expense.

Reginald Renagi
Port Moresby