Trends in business confidence

State Enterprises Minister William Duma (front left), ExxonMobil PNG chairman and managing director Tera Sandro, Micro, Small to Medium Enterprise Council founder James Gore and Motu-Koita Assembly chairman Dadi Toka Jr with other representatives during the opening of the K250 million Steamships Harbourside South in Port Moresby last Friday, signifying large-scale investment in PNG. – Nationalpics by KENNEDY BANI

DATA collected by the PNG 100 chief executive officer survey since 2012 revealed trends in business confidence among the country’s business leaders.
The survey was conducted by Business Advantage International between November last year and January this year.
Business Advantage International publishing director Andrew Wilkins said when submitting the results during a Port Moresby Chamber of Commerce and Industry business breakfast yesterday that the analysis of the survey data was conducted by Westpac.

**The opening of the new K250 million Steamships Harbourside South in Port Moresby last Friday.**

Profit performance in 2023: the reality
The 2024 survey asked CEOs about profits they made in 2023 compared to their expectations. The responses suggest that 2023 was disappointing for many, with 46 per cent saying that profits had fallen short of expectations. This is almost double the number recorded in last year’s survey, when only 24 per cent said the same thing.
On the positive side, 36 per cent of respondents said profits were higher in 2023 than expected.

From left: Port Moresby Chamber of Commerce and Industry president Rio Fiocco, Ashust PNG partner Richard Flynn and City Pharmacy Limited chief executive officer Navin Raju after the PNG 100 CEO Survey presentation during the Port Moresby Chamber of Commerce and Industry business breakfast yesterday. – Nationalpics by PETER ESILA

Profit expectations for 2024
On what profit the CEOs think 2024 will bring, the majority (55 per cent) expect profits in 2024 to exceed that of 2023. Meanwhile, 31 per cent predicted profits would meet expectations, while 14 per cent thought profits would be lower than in 2023 (about the same as last year).

**Steamships Trading Limited managing director Rupert Bray (left) with Manufacturers Council of PNG chief executive officer Chey Scovell after the 2024 PNG 100 CEO Survey presentation**.

Investment intentions
The survey asked respondents for their capital expenditure plans for 2024. While still positive, the responses were less bullish this year. Overall, about two-thirds of respondents (65 per cent) expect to spend more on capex this year than last, which is slightly lower than the 72 per cent in last year’s survey. Last year, just 10 per cent were expecting to reduce their capex in the year ahead. This year, that figure rose to 17 per cent.
Recruitment intentions
The survey asked respondents to indicate their recruitment intentions for 2024, compared to 2023. The results suggest this is one area where confidence has been maintained. Most (63 per cent) were still planning to boost their headcount this year, a similar result to last year’s survey.

Westpac chief executive officer Brett Hooker (left) with PNG Chamber of Resources and Energy senior vice-president Richard Kassman during the Port Moresby Chamber of Commerce and Industry business breakfast yesterday.

Business impediments
Ehen CEOs were told to rank impediments facing their business, they rated foreign exchange availability as the top impediment – same as last year’s survey.
Notably, telecommunications in PNG have improved since the last survey 12 months ago, falling from second place last year to eighth this year. Some other issues have taken precedence. Chief among them are security/law and order (the number two issue this year), unreliable utilities, lack of government capacity, shortage of expertise/skills, and regulatory uncertainty.