PNG International Trade and Investment Minister Richard Maru has called for a major reset of Papua New Guinea’s economic strategy, urging investors to look beyond mining and petroleum and invest in sectors that create jobs and long-term economic value.
Speaking at the 41st Australia Papua New Guinea Business Forum & Trade Expo in Brisbane, Mr Maru said Papua New Guinea’s biggest challenge after 50 years of independence was employment creation, with more than one million young people without jobs despite decades of resource development.
“The resource sector is not the answer,” Mr Maru said.
“We have to refocus on the non-resource sector. I’m talking agriculture, forestry, fisheries, manufacturing and tourism. That is the future for Papua New Guinea.”
Mr Maru acknowledged Australia’s role as Papua New Guinea’s largest foreign investor over the past five decades, saying Australian companies had invested more than A$27 billion in the country while creating jobs, revenue and business opportunities.
However, he said Papua New Guinea’s economy remained too small relative to its natural wealth, with GDP standing at about US$32 billion, and warned that the country could no longer continue exporting raw materials while importing basic products such as rice and sugar.
“We are still a major exporter of raw material. That needs to stop,” he said.
“We need downstream processing. We need manufacturing. We need to create jobs.”
Mr Maru pointed to Indonesia’s nickel processing industry as an example Papua New Guinea should follow, saying one industrial zone employed 70,000 people because of investment in low-cost energy and downstream production.
He also outlined a new foreign policy direction centred on “strategic partnerships for security and economic prosperity”, with Australia and the United States remaining key security partners while Papua New Guinea expanded trade ties globally, particularly with China.
Mr Maru revealed Papua New Guinea would sign a Comprehensive Economic Partnership Agreement with China next week, describing Asian markets as critical to Papua New Guinea’s future growth.
He urged Australian businesses to invest in hydropower, tourism, agriculture, manufacturing and processing industries, saying the PNG Government was prepared to offer incentives including long-term tax holidays and joint venture partnerships.
“What is stopping you from investing in rice?” he asked delegates.
“What is stopping you from investing in big hotels?”
Mr Maru also signalled a stronger push for local ownership and participation in major projects.
“Papua New Guineans will no longer be spectators,” he said.
“We want to be partners. We want to be equity partners.”
Main photo: Dev Nadkarni
