In a move to reform and revitalise Papua New Guinea’s state-owned enterprises (SOEs), Kumul Consolidated Holdings (KCH) and PNGX Group, the operator of the national stock exchange, have signed a Memorandum of Understanding (MOU) to enhance corporate governance and attract new investment into the sector.
The agreement sets out a collaborative framework to align SOE governance with the PNGX Corporate Governance Code. The initiative aims to improve transparency, operational efficiency, and accountability in SOEs—making them more attractive to both domestic and international investors.
KCH, which serves as the trustee shareholder for the country’s SOEs, will work closely with PNGX Group to adapt and promote governance standards tailored to the unique challenges and mandates of public enterprises. The partnership will also focus on raising awareness around PNGX’s listing rules and the obligations of publicly listed companies.
Importantly, the collaboration includes exploring pathways for select SOEs to be listed on PNGX, a move that could unlock new capital sources while broadening the local investment base. This aligns with a long-standing vision of PNGX to bring state-owned assets into the public market—an idea first floated when the exchange was established over two decades ago.
The MOU also supports Prime Minister Hon. James Marape’s commitment, reiterated earlier this year, to reform the country’s SOEs and position them as drivers of economic growth and service delivery.
“Corporate governance is the foundation of public confidence in SOEs. Working with PNGX will help develop governance standards and disclosures that build that confidence,” said Prof. David Kavanamur, Managing Director of KCH.
PNGX Group Chairman David Lawrence noted that the agreement marked a milestone in the evolution of PNG’s capital markets. “Our partnership with KCH reflects a shared vision of building robust, transparent, and inclusive capital markets in Papua New Guinea. This brings us closer to realising PNGX’s founding vision of listing SOEs and expanding investment opportunities for all Papua New Guineans.”
The agreement signifies a forward step in modernising Papua New Guinea’s economic infrastructure ––fostering stronger institutions and opening the door to broader private sector participation.
Main photo caption:
Kumul Consolidated Holdings Managing Director, Prof. David Kavanamur, and PNGX Group Chairman, David Lawrence, acknowledge signing the MOU aimed at improving SOE governance and unlocking new investment potential.
Photo: supplied.
