PNG improves in doing business

The country’s rating in the 2019 Ease of Doing Business (EoDB) report has improved to 108 from 109 last year, according to the 2019 World Bank annual ratings.
Investment Promotion Authority (IPA), in its January Opportunity newsletter, said this was due to reforms in the areas of starting a business, paying taxes, getting credit and getting electricity compared with 190 other countries.
“Starting a business, getting credit, dealing with construction permits, getting electricity, registering property, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation are 11 areas in the life cycle of a business,” it said.
“According to the 2019 World Bank Doing Business Report, the improved scoring are all largely due to reforms undertaken on online business registry and legislative amendments to business regulations, streamlined tax regime, personal property security registry (PPSR) and streamlining energy sector by allowing independent power producers (IPPs) to supply increased electricity coverage to consumers.
“The IPA deployed and launched the online registry system (ORS) in 2013 for online business lodgment and amendments to Companies Act and Business Names Act in 2015.
“There is proof that online lodgment is more convenient and faster to register business in just one day.”
The report also said improvement in getting credit indicator was the result of enactment of the Personal Property Security Act (2011) and launch of the Personal Property Security Registry (PPSR) that hosted the IPA online facility in May 2016.
“This reform has created avenues for small-to-medium enterprises to register their movable properties and encourages the commercial banks to lend in a secured lending environment,” it said.
The report said there was also improved ranking to paying taxes and getting electricity that contributed to the overall improvement for PNG on Ease of Doing Business 2019, given recent taxation reforms and implementation of electrical grid policies respectively.
“However, the areas that need more attention and reform to improve our ranking on global EoDB scale include, resolving insolvency, enforcing contracts amongst others,” it said.
“The illustration indicates that despite making some progress in policy and regulatory space, PNG still remains below the regional average within the East Asia and the Pacific region.
“By regional standard, PNG scored below the regional average with very low recovery rate and takes up to three years or more.
“The cost of administering insolvency is very high.”