The main focus of the BSP Financial Group Limited (BSP) in its endeavors to providing financial and banking services to the people, is to ensure that these services continue to be improved for its customers in Papua New Guinea (PNG) and the pacific nations where BSP operates in. BSP Group Chief Executive Officer (CEO) Mr. Mark Robinson when opening the bank's Annual General Meeting in Port Moresby city this morning. He stated that this is reflected in the improvements made to the banking system with innovative technologies, like the implementation of the new Core Banking System in 2023, improved operational efficiency at its branches which saw the reductions of long queues at the branches, along with improved data on customer needs and expectations. Mr. Robinson said BSP is not only investing in technologies, but also in human resource development to continue to improve on its customer services. “We established the BSP academy in Papua New Guinea, the academy provides structured skills development. Our first cohort graduated from the academy in April with two more cohorts currently progressing through the academy’s seven modules,” said Mr. Robinson. “This investment in our people across the pacific will play a critical role in the delivery of our organization’s strategies.” BSP’s investments in its people, improvements to its services and community initiatives also extends to the pacific nations it operates in said the Group CEO. Meanwhile, Mr. Robinson also mentioned that 2023 was a strong year for BSP having performing exceptionally well in light of challenges as presented in the recent BSP first quarter report this year. In light of this, Mr. Robinson said he understands that there are challenges ahead, inflation being one of the main ones, but looks into the future with optimism especially with the major resource projects coming up and the benefits of the recently re- opened New Porgera Mine. “We're already experiencing the benefits of the Porgera Mine re- opening this year. When it becomes fully operational, it is expected to deliver K1billion, approximately 250 million US dollars in FX annually.” The Group CEO said with this outlook of things to come, BSP customers can expect their bank to continue to provide its services to every part of the country and the region. Mr. Robinson concluded by saying that BSP is all about its customers and will continue to improve on its customer services with more innovative solutions and technologies going forward.

The country could see in the near future another major sugar production apart from Ramu Sugar in Madang province now that a Thailand company was given the go ahead to establish a Special Economic Zone (SEZ) dedicated to sugar in Abau district, Central province. The Minister for International Trade and Investment, Richard Maru made the announcement recently regarding this major undertaking in the agriculture sector. Minister Maru announced that Cocoland Sugar Development Limited in Abau will be developed as a Special Economic Zone after he met with the management team from Yaosoeng Sugar and Cane Consultant Company Limited (a Thai company) and the Member for Abau, Sir Puka Temu. The proposal is for a 40, 000-hectare sugar farm, a processing mill, and a power plant following a very successful trial in Abau on the proposed sugar farmland. The plantation will produce 3 million tons of sugar every year with the target market to be Papua New Guinea (PNG) and other countries, especially Indonesia. The project is also expected to create over 20, 000 jobs for Papua New Guineans. “PNG is still importing sugar from Thailand despite the presence of Ramu Sugar in PNG, so we need another large-scale sugar project which will also be good for price competition,” said Minister Maru. Minister Maru said this project will be developed as an SEZ and has the highest Government priority. “We want to open a Diplomatic Mission in Thailand and having this project here in PNG gives us one reason why we should be in Thailand.” “We want to see more Thai companies coming and investing in PNG because there is a lot we can learn from them, and we can get more investments from Thailand,” said the Minister. “If we cannot get this project across the line then we will not have confidence from Thailand investors to come and invest in PNG, especially in large-scale agriculture projects." He also said that this project is important as it is an anchor investment for PNG because it affirms the Government’s decision to open a Diplomatic Mission in Thailand. Minister Maru further added that he will be visiting Abau to see the project site before taking a Submission to the Cabinet to get their approval. “This is very critical because once we have the approval, we can negotiate and sign a State Agreement between the State and the developer.” He said the developer is keen to develop the large-scale sugar mill which will take over two years to construct with the sugarcane farm to cost USD126.01 million and the sugar mill and the power plant to cost USD295.01 million, a total of USD421.03 million. “The investor is happy to fund the project itself or to partner the Government and other partners and wants to commence construction of the mill and the sugar estate this year.”

The youths of the Kerema district in the Gulf province now have an office to attend to and address their issues following the opening of the Kerema District Youth Development Council (DYDC) along with six (6) Local Youth Councils. The opening, which took place last week Friday 10th May that culminated a weeklong youth mobilization activity, was a milestone achievement for the youths and the district itself. Officiated by the National Youth Development Authority (NYDA) Director General, Mr. Joe Itaki, the event was witnessed by the Vice Minister for Petroleum and Member (MP) for Kerema, Thomas Opa and Kerema District Chief Executive Officer (CEO) Mr. Sarufa Ako. Meanwhile, the youth mobilization activity saw over 70 youths and observers present for the one-week event that was held from 6th-10th of May where youths from the 6 Local Level Governments (LLGs); Central Kerema, East Kerema Rural, Taure-Lakekamu, Kotidanga, Kaintiba and Kerema Urban, gathered for the event. The week-long event was marked by a series of activities, including the opening ceremony, constitution drafting, and elections at both LLG and district levels, culminating in the official launching of the Kerema DYDC. The establishment of the DYDC represents a significant milestone in youth development in the Kerema District, providing a formalized structure for youth engagement and participation in local governance, decision-making processes, and providing a platform for development initiatives at the local level areas. On Friday, these executives were sworn into office by the Senior Provincial Magistrate, Mr. Francis Fingu, who advised the youth leaders to uphold the office they serve for the good of the young people of Kerema. In his closing remarks, the NYDA Director General, Mr. Itaki, emphasized that being a youth leader in the youth council is a volunteer job in their engagements in community service projects and volunteer initiatives that will foster a sense of responsibility and civic engagement among young people. Meanwhile, the newly elected Chairman of the Kerema District Youth Council, Mr. Japhet John, was given the assurance by the Kerema MP and Chairman of the District Development Authority (DDA) Board, Thomas Opa, that he will be given recognition to represent the youths in the Kerema DDA Board. Establishing a youth development council can have a profound impact on a community, providing young people with opportunities for leadership, skills development, and engagement in decision-making processes. Youth Councils serve as catalysts for positive change, empowering young people to become active participants in shaping their communities and driving social progress.

Prime Minister (PM) James Marape this morning opened the Stakeholder Consultation on the National Gold Corporation Bill 2024 (Gold Bill) with one message, and that is for the concerned parties to find what is wrong with proposed bill and to work towards an amicable solution going forward. Today’s Consultation was arranged by the Minister for Mining in collaboration with the prime minister and aims to discuss this controversial bill that is currently before cabinet and on the notice paper to be presented in the May parliament sitting coming up in two weeks’ time. Papua New Guinea Chamber for Resources and Energy (PNG CORE), which is leading the concerned parties list in the mining sector in raising the alarm on the implications of the Gold Bill, stated that the proposed bill will take away certain powers from the Bank of Papua New Guinea and with it, negatively impacting the economy in the long run. However, Marape this morning defended the Gold Bill, stating that it reflects his government’s focus on downstream processing and creating wealth, economic prosperity and employment and should be supported. He said its high time PNG has its own gold refinery where gold ores from the country can be processed and then exported; the bill has no ill intention on the resource sector. “The last 49 years the mining sector helped PNG through, so the bill has no intention to harm the industry,” said Marape. “We want to add value to our resource sector, not just in the gold sector.” Nevertheless, the PM said the Consultation is important as there is a need to find a balanced approach to addressing the concerns and to eventually put the bill through. Marape said he and his government are open to any recommendations on the Gold Bill that would come from the consultations today that would be presented by the working committee. Meanwhile, the Senior Vice President of the PNG CORE, Mr. Richard Kassman made it clear that the PNG CORE is not against the Gold Bill in that it supports a gold refinery for PNG; however, it’s certain provisions in the bill that have raised concerns which must be addressed so that the bill does not pose any harm to the country’s economy. Mr. Kassman then suggested for a six-month extension be given for further consultations to take place as this is a very sensitive matter and just one day of consultations is not enough to fully grasp the gist of the Gold Bill, and to get every concerned party in the mining sector to have their say on this controversial bill.

The National Government continues its assistance to the affected business houses from the Black Wednesday riots and looting in the city of Port Moresby, this time with the release of its third batch of financial assistance. The cheque presentation of the financial assistance was carried out by the Chief Secretary to Government, Mr. Ivan Pomaleu on Monday 06th May, who also expressed regret for the unfortunate incidents that occurred on Wednesday 10th January. He shared his sentiments for those business houses, who were affected during the chaos saying, “The government values the contributions of business houses, that apart from collecting taxes from you, you continue to generate community activities throughout various locations, particularly providing services and employment and therefore, our job as Government, is to provide an operating environment for you to operate safely and securely as service providers." Mr. Pomaleu said when the 10th of January events occurred, there was a commitment by the government to ensure support for the affected business houses to continue to carry their employees through salary payments; to restore and rebuild their businesses, and in turn continue to provide services to the communities. “I reside in a community where most of our shops were affected or destroyed by the January 10th events, and I understand how hard it is to be affected by those losses." “I may have the means to travel comfortably elsewhere to get the services that I need, but the bulk of our people are doing it tough,” he said. Meanwhile, the three business houses who received the third batch of financial assistance included SYZ Investment Ltd with K156, 000.00, Eliseo Limited with K583, 439.40 and Big Rooster (PNG) Limited with K576, 000.00.

The Independent Consumer and Competitions Commission (ICCC) , through its nationwide price surveillance exercise, has reported that a lot of shops the ICCC team had inspected are complying with the current Price Measure in place. This comes as good news especially at a time of a rise in the costs of goods and services due to inflation experienced in the country. The ICCC Commissioner and Chief Executive Officer (CEO), Mr. Paulus Ain stated that most of the listed goods on the ICCC watch list as per schedule 1 of the Price Measure No. 4, which are essential basic goods, remain within the 10 percent range as discovered in a lot of shops. "Most of the shops have either set their prices within the 10 percent allowable margin or sought approval from the ICCC to increase the price of a certain good/item. This was not seen previously in 2022 or 2023 and that is a big difference", Mr. Ain said. "We understand that these businesses need to make profit and we are allowing them to increase their prices within the 10 percent allowable margin, but if they want to increase it to more than 10 percent, they have to seek the ICCC’s approval beforehand." In the last two-weeks, the ICCC officers were able to inspect more than 500 shops in Morobe, West New Britain induding the lower and upper Highlands provinces. "During this operation, we received many positive comments and feedback from all the locals stating that the shelf prices have changed or increased by not beyond the 10 percent mark, and we would like to encourage the retail and wholesale businesses that this is an on-going operation and for them not to overcharge consumers," Mr. Ain reiterated. The ICCC also noted during this price measure exercise that the most common items or goods that have had increased prices during this period was on all rice products and tinned fish whilst the other items/goods prices have been reasonbliy steady. So far, the ICCC has covered West New Britain, Morobe, Eastern Highlands, Chimbu, Western Highlands, Hela, Southern Highlands and Enga provinces including the Southern region. Mr. Ain, who was with the ICCC officers in these provinces was there to conduct more awareness through the local radio stations whilst providing support to the teams. Mr. Ain commended his staff for braving the heat and unfavourable weather conditions in respective geoprahpical location whilst also avoiding briberies from a number of shops. “It is safe to say that all the shops in each respective provinces have been completed successfully and most of the officers are expected to return to Port Morebsy over the weekend,” Mr. Ain said.

Prime Minister (PM) James Marape is expected to present in the upcoming parliament session details of his government’s performance and achievements over the past five years and strategies going forward in achieving his government’s objects. The prime minister recently announced that he will present a comprehensive scorecard detailing his government’s achievements over the past five years. This report, scheduled for presentation to Parliament on May 30th, 2024, will outline the progress made since his term began on May 30th, 2019. Reflecting on his government's term, PM Marape highlighted the initial challenges faced upon taking office. “When I assumed the role of Prime Minister, our nation was grappling with numerous critical issues," he stated. “These included a frail economy overly reliant on extractive industries, poor macroeconomic fundamentals unable to sustain growth, a dysfunctional public service, and misalignment between national, provincial, and district development authorities with respect to the national development plan,” Marape said. Additionally, he said unresolved final political and economic issues in Bougainville, along with widespread lawlessness and corruption, posed significant hurdles for his government. “These were some of the formidable challenges we inherited and have diligently worked to address over the past five years.” On May 30th, Marape will provide a detailed account to Parliament on the government’s actions and strategies over the past five years and discuss future directions for national progress. "The country is greater than any individual like me and every citizen deserves to know the outcomes of our efforts through this scorecard," he concluded.

The President of the Papua New Guinea Chamber of Resources and Energy (PNG CORE), Mr. Anthony Smaré continues to be vocal about the government’s proposed National Gold Corporation Bill 2022 (Gold Bill), stating that it will have extreme negative impacts on the country’s economy should it be passed in parliament. Speaking during the National Gold Corporation Bill Information Session in Port Moresby yesterday at the University of Papua New Guinea (UPNG) New Lecture Theatre, Mr. Smaré warned that the provisions of the Gold Bill, which restrict the independence of the Bank of PNG (BPNG) in issuing national currency, will be catastrophic for the PNG economy, leading to a scenario of uncontrolled inflation and significant deterioration of the PNG Kina. He went to explain that the Morauta government’s reforms in 2000 made BPNG independent from Government and foreign forces in its control of monetary policy and regulation of the banking sector and under the Central Banking Act, the BPNG alone is authorized to issue currency notes and mint coins for PNG and controls the flow of money in the economy and therefore inflation. However, Mr. Smaré said the NGC Bill on the other hand has provisions which effectively remove the Bank of PNG’s independence, because Section 329 and 330 of the NGC Bill says that the National Mint company has the exclusive right to make currency, and Section 331 says that the BPNG cannot use anyone else to make currency on its behalf other than the National Mint company. The Bill now provides directions for the Central Bank not to mint or issue Gold Coins. He explained that the role of the Central Bank in producing and issuing gold coins, (for circulation or non-circulation) will now be replaced or transferred to the privately owned National Mint with no restrictions on currency production (s.332). Section 326 of the NGC Bill directs that a Director-State Equity can serve a notice to the Governor of PNG to arrange for the National Mint company to make and print currency and coin as and when it sees fit. The National Mint company will obviously charge for the currency it produces. “We are extremely concerned by the notion that currency control has been taken away from BPNG, provided to a third party who will make profit from the amount of currency they provide as it opens the possibility of currency production tied to the profit imperatives of the National Mint company rather than the traditional goal of BPNG to control monetary policy to supervise inflation in the economy.” “To put the production of currency in the hands of a privately owned third party who are incentivized to produce as much currency as possible, and not pursuant to the supervision of the BPNG, sets the stage for hyperinflation,” said Mr. Smaré. “In this past year, we have seen how the falling foreign exchange rate and high inflation has impacted the PNG economy, this change will make it much worse.” He said the sovereign role of the Central Bank in all aspects of producing currency must be protected at all cost.

The people of the Gulf have been urged to get into viable business activities in preparation for the eventual commencement of upcoming resource projects in the province, so to tap into the spin off benefits that the projects will offer. Prime Minister (PM), James Marape, who was in the Gulf province recently for the opening of the Kerema District SME and Women’s Micro bank branch, called on the people in the province to prepare to supply goods and services to the forthcoming Papua LNG and the Wildebeest LNG Projects. He stated that the focus should be on local agriculture and fisheries for food supplied, forestry for timber and accommodation to cater for the expected surge in workers and visitors. “Papua LNG will materialise in the next two to three years,” stated PM Marape. He outlined that the construction phases are set to span from 2026 through 2028, expressing eagerness for ExxonMobil to expand exploration at Wildebeest, located just north of Kerema, potentially the largest LNG resource in the nation. Marape also called upon Gulf Governor, Chris Haiveta, Kerema MP Thomas Opa, and Kikori MP Soroi Eoe, to begin provincial developments in anticipation of these transformative projects. “I envisage food from our Gulf being directly supplied to these projects,” he emphasised. He also noted ongoing discussions with Governor Haiveta on developing ports in strategic locations like Kerema, Ihu, Paia, and Kikori to bolster logistics. Marape said his government is making efforts to ensure that proper facilities and infrastructures are in place in anticipation of the resource projects and for the benefit of the people. He stated that recent Cabinet approvals, including a contract over K150 million, has gone in to pave the section from Laloki River to Brown River along the Hiritano Highway, a crucial artery for the region. The next phase of development will extend from Bereina in Central province to Malalaua in Gulf province. “The Hiritano Highway is more than a roadway, it is an economic lifeline linking Central, Gulf, and Morobe to the heart of the country and pivotal LNG projects,” he explained. The PM then reassured the people of Kerema and the broader Gulf community of their integral role in this national development, stating, “You are not forgotten.”

The women folk in Kerema district of the Gulf province who wish to go into small businesses can now have access to financial services required for start- ups or support existing business operations, now that there are new facilities opened to cater for that. Just recently the Kerema district saw the opening of the District SME facility and the Women’s Micro Bank branch in the provincial capital. These new facilities came about from the efforts of the local Member for Kerema, Mr. Thomas Opa, who wanted to improve the lives of women and their households in his district. Prime Minister (PM) James Marape applauded the efforts of Mr. Opa for his dedication to mobilising women within the district into Micro, Small, and Medium Enterprises (MSMEs). "I want to commend MP Opa who is mobilising the women of Kerema into MSMEs," Prime Minister Marape said. "Our people must migrate from subsistence lifestyle to the cash economy, earning money from their land and locations they live in." Highlighting the pivotal role of the Kerema District Development Authority (DDA) and Gulf Provincial Government, the prime minister also emphasised their support for both women and men to venture into MSMEs, thereby contributing to the growth of the local economy. "As I always say, if one million families engage in MSMEs, then our people are empowered," Marape remarked. "If one million families earn K10,000 each year from MSMEs including agriculture, forestry, fisheries, and tourism, that is a K10 billion wealth in the hands of our people." Meanwhile, the prime minister also presented K3 million to start rolling out the program for the women folk in Kerema to starting tapping into.

Fuel consumers will have to dig a little deeper into their pockets this month to pay for fuel. The fuel prices have increased as of today for the month of May after slightly dropping last month by just a few Toea per liter for all three petroleum products right across the country. This month’s fuel price increases will see a slightly bigger increase for petrol compared to the diesel and kerosene. For the city of Port Moresby, the residents will find at the fuel stations that petrol has gone up to K4.84 per liter, diesel increased to K4.45 per liter and kerosene increased to K4.06 per liter. In comparison, the retail fuel price for Port Moresby in April were K4. 66 per liter for petrol, K4. 39 per liter for diesel and K4.05 per liter for kerosene; therefore, that’s an 18 Toea per liter increase for petrol, 6 Toea per liter increase for diesel and 1 Toea per liter increase for kerosene for May. According to the Independent Consumer and Competition Commission (ICCC), the increases are mainly attributed to the average increase in international crude oil and refined product prices in April 2024. The increase in prices was due to crude oil supply disruptions caused by escalating geopolitical tensions in the Middle East. The domestic retail fuel prices for this month are inclusive of the Import Parity Prices (IPPs) or the imported costs for each petroleum products, domestic sea and road freight rates for the first quarter of 2024, the annual wholesale and retail margins for 2024, and the Goods and Services Tax (GST), including the applicable excise duties, among other parameters. Meanwhile, all prices in all other designated centers in the country will change according to their quarterly approved domestic freight rates for the first quarter of 2024, and their respective annual retail margins for this year. For all other centers, the maximum retail prices for each regulated petroleum product will all increase on average consistent with the increases observed for Port Moresby. ICCC Investigation Officers will conduct inspections to all service stations to ensure prices of declared petroleum products comply with the allowable maximum prices.

Despite numerous awareness campaigns carried out on the roles and functions of the Independent Consumer and Competitions Commission (ICCC), there is still confusion about its functions, especially with matters of price control in light of increases in prices of goods and services in the country. It is for this reason that the ICCC Commissioner and Chief Executive Officer (CEO), Mr. Paulus Ain is once again urging the public to understand that the ICCC does not control the prices of all goods and services. “Many people think that ICCC controls prices of all food items and services including shoes, clothes, and others. This kind of perception needs to be corrected,” Mr. Ain said. The ICCC only regulates prices of certain declared goods and services only. He went on to explain that under the ICCC Act 2002, the Commission is basically powerless to control prices of all goods and services, instead under the Act the main function of the ICCC is to promote competition and do price monitoring. “The price control function (of the ICCC) was done away 20 years ago, and ICCC was given the price monitoring powers to monitor shelf prices and check factors affecting price increase.” However, with the current price surveillance exercise the ICCC is conducting, Mr. Ain explained that the ICCC had to sought government intervention to get extra powers to at least control prices of basic food items like rice, flour, and sugar. This enabled the ICCC to monitor shelf prices of the basic items to be set within a 10 percent range and not above that. "In the event where the shop owner wants to increase their prices, they have to seek prior approval from ICCC and only upon assessment of their genuinity then we allow them to increase their prices," Mr. Ain said. This exercise now is to check the current shelf price against the base price from last year to ensure prices are within the 10% range. The basic food items ICCC is monitoring its shelf prices for are rice, tinned fish, tinned meat, and flour, sugar, cooking oil, frozen chicken products, frozen meat products, soap (bar and liquid) and baby formula.