SMEs waiting for allocated funds

The National Business

By DALE LUMA
THE K200 million allocated last month by Cabinet to assist small-medium enterprises (SMEs) is yet to be released, an official says.
Micro Small Medium Enterprise (MSME) council president Desmond Yaninen said so far, no funds had been released.
“Prime Minister James Marape will launch the loan scheme. We are waiting patiently with anticipation,” he said.
Yaninen said K100million would go to the Bank South Pacific (BSP), K80 million to the National Development Bank (NDB) and K20 million to the Department of Commerce and Industry.
“The banks have developed concessional loans for MSMEs which will have very low interest rates and long repayment terms,” he said.
“Kina Bank has missed out.
“I understand they are trying to accommodate it.
“Out of the K200 million, half of that has been allocated under the K600 million Covid-19 economic stimulus package which should be released soon.”
It is understood that warrants have been issued by Treasury but the hold-up is with the Finance Department.
Yaninen also said the Investment Promotion Authority was working on the amended reserve listing which would see certain businesses reserved only for locals.
“The MSME Council hopes to review it soon before it is tabled in Parliament next month,” he said.
Prime Minister James Marape said during a recent SME breakfast that foreign investors would pay K20 million into a special Bank of PNG account to operate in the country.
Yaninen said the K20 million minimum could have specific policies drawn up around it and just be used as a guide.
“I believe it is only aimed at preventing simple consulting work from being unnecessarily given to fly in fly out foreign consultants who don’t pay tax in PNG.”
“The new Foreign Investment Review Authority under IPA
will screen them all and approve or decline applications accordingly,” he said.

7 comments

  • Des, I remember your first comment on protecting betel nut sellers. This leads me to wonder who the MSMEs are and how will you know them when you don’t have their names under the association membership. This informal financing does not certify the accounting requirement. That is like saying, “no accountability, let it go and will see what happens.”
    Can you clearly demarcate the role of MSMEs and the SME Corporation who are established by the government process. Have you had any conversation with them.
    For the reserve activities, we all want PNGans to take ownership of the our economy really involve. I have firm believe on taka shops and small businesses, people of this nation has to take responsibility and work hard to prosper. We see trade stores in settlements are run by foreigners, why do PNGans allow them to rent and not run by PNGans? What are the reasons, needs a critical analysis for deduction.
    Global economy is competing for Foreign Investments, if we shut our doors, they will not come and we will lose taxes, like 10 to 20 years back, so calculation of time and sensible decisions are very crucial for growing economy like PNG.

  • Carry out inspections and send these Chinese, Indians, Bangladeshis, Sri Lankans and those others who own trade stores, wholesale retails and kai bars in settlements and other areas to their home countries. I am not sure how much they contribute towards the country’s economy.
    With the Governments financial commitment to help SME and MSMEs, loans can be obtained to run these kind of businesses by PNG locals. We are not lazy, we just lack capital and opportunity to start.

    Thanks.

  • PNGians are not lazy but lack of management skills, even they have little in hand but they can not manage and grow. We have an attitude of buying alot then selling and investing.

  • Out of the K200,000 million approved by the NEC to assist SMEs, the component of K80 million shouldn’t be funded to the National Development Bank Ltd but it would be better the Government funded it to Kina Bank and Westpac Banks to asist SMEs. As NDB is a state owned Bank, the past Governments have heavily funded million of kina every year in every development budgets but there is no show case or data publicize by NDB for growing SME in the country. NDB instead of growing SME in the country, it allegedly created two subsidiary companies know as People Micro Bank Ltd and NDB Investment Ltd. Desmond Yaninen was the CEO of NDB Investment Ltd and literally he has run down the entity by funding “Stret Pasin Stores” around the country which has no success stories. There was rampant allegation of commission fee lending which his lenders were directly asking customers to pay them first before they lend. I was one of their victim. The parent NBD has been funding millions of kina to its subsidiary NDB Investment Ltd in which this so called “Micro Small Medium Enterprise (MSME) council president Desmond Yaninen” was CEO. He literally bankrupted the entity and now he is begging the Government to release more millions. The Government under PMJM should be very careful to deal with Desmond and cohorts in MSME.

  • PNGeans lack not of Knowldge this days but, lack of seed capital given at this priority will boost SME levesl of local business stimulus greatly thus i personaly appreciate this approach by the Steven Marape Government.

    I can’t wait for the release. We all a waiting for this very moment. Thanks though.

  • I have a genuine concept that has took me several years to do research about and have found out strategies that can assist MSME’s to prosper, can someone out here direct me to the right office to verify my concept.

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