Local businesses in the Micro, Small and Medium Enterprise (MSME) sector will continue to be supported and represented at the government level into to the future, through the MSME Council of Papua New Guinea (PNG). That was the assurance from the Founder of the MSME Council, Mr. James Gore, at a recent Council event held in the city of Port Moresby this month. Mr. Gore said the Council plays an important role as the link between the government and the micro and small businesses in terms of policy and support for the MSME sector. He said prior to the establishment of the Council four years ago in 2019 through a ministerial approval by the then Minister for Trade, Commerce and Industry, the late Wera Mori, the government engagements with the business sector were only focused on big companies or corporations in terms of State and private sector dealings and support. “For the rest of us (MSMEs), we didn't have a say in terms of trying to influence government policies. We didn’t have a seat at the table when the government wants to engage with businesses,” said Mr. Gore. “But now, we have government recognition, we have a seat at the table when it comes to business dealings with government and the government now has time to listen to us. So, in that way we can try to influence, rather than not having a say.” Mr. Gore said the aim of the MSME Council is to advocate creating an enabling environment for the MSME sector, like access to finance for the micro and small business operators to enable them to grow and expand their businesses. A testament to this was the MSME council’s idea put forth to the prime minister for the K200 million annual MSME funding and Credit Guarantee Corporation, which was launched in March 2022. This enabled a lot of micro and small businesses access to finance, helping their growth or start- up. Mr. Gore said their existence is to serve its members in the sector and after four years of operation, the MSME Council looks to the future and will continue to work with the local businesses and the government to create better enabling environment for them to grow in this sector, and with it, grow the economy of PNG as well.

The construction work on a new Level 4 District Hospital for the Yangoru- Sausia District in the East Sepik province is expected to start next year. This was announced just recently by the Member for Yangoru-Saussia and Minister for International Trade and Investment, Richard Maru, following a visit by the Provincial Health Authority (PHA) Chief Executive Officer (CEO), Mr. Matthew Kaluvia and his management team to see the proposed site. The first phase of the construction of the Level 4 District Hospital will commence after designs are completed and tenders are called and awarded by the East Sepik Provincial Health Authority. “The Yangoru-Saussia District Hospital will not only serve our District but travelers along the Sepik Highway and the people of Middle Sepik when the road is connected from Yekimbole to Yenchen in the Sepik River of the Wosera-Gawi District. Our people of Middle Sepik will only be an hour away from Yangoru when the road to connect Yenchen is completed,” said the Member. “Our people look forward to finally having our own District Hospital with facilities like an accident and emergency section, x-ray and scanning facilities, blood bank, minor operating theatre, dental facilities, and a mortuary including over 32 new staff houses.” Maru further stated he is working very closely with the Minister for Health, the National Department of Health (NDOH), and the East Sepik PHA to deliver this important project for a better and improved health services in the district. The Member later thanked CEO Kaluvia and his management team for visiting the proposed location of the hospital in Yangoru and for also attending the District Development Authority (DDA) Board Meeting to update them on the development of the District Hospital.

PNG Power Limited (PPL) has given its assurance to its customers throughout the country that electricity services will not be affected this festive season as people celebrated Christmas and New Year. The Acting Chief Executive Officer of the State-owned power company, Mr. Nehemaiah Naris in a statement said that all their operations teams throughout the country are working this holiday season to ensure that the power supply is maintained and that any unplanned outages that occur will be attended to as quickly and safely as possible and restored within a short turnaround time. “Christmas is a time for all families to spend together at home and reflect on the journey in 2023, and we, the PNG Power team, will ensure that everyone enjoys this period with minimal power interruption,” said the Acting CEO. “If there are any power outages during this time, we will ensure that vital information on these outages will be communicated to all our customers in real-time through our social media platform.” In regard to the outstanding electricity bills owed by the Government, Mr. Naris said PNG Power is working closely with the Treasury and Finance departments to resolve this matter amicably. “There’s positive feedback from these two government agencies, and PPL remains hopeful that our bills will be paid. We also want to thank the Marape Rosso Government for funding major capital projects in 2023, including the recently completed 132kV transmission lines and the Moitaka substation, which enabled electricity to be carried from the new Edevu Hydro into the Port Moresby Grid.” He said this government intervention through Kumul Consolidated Holdings (KCH) has directly improved reliability in the Port Moresby Grid. “We are also further encouraged by the Marape Rosso Government’s funding of K211m in the 2023 supplementary budget, which enabled us to carry out critical maintenance and rehabilitation works on our Port Moresby Grid,” Mr. Naris added. “We want to reiterate again to our customers and people across the country that PNG Power Ltd, as your sole power company, will continue to provide electricity services this festive season.”

The MSME Council of Papua New Guinea (PNG) is looking to roll out its 2024 annual plan, which will include working together with key partners like the Center for Excellence in Financial Inclusion (CEFI) for its Trainer of Trainers program to support its financial literacy programs. The Council’s Executive Director, Ms. Yolanda Bafmatuk said that in the initial discussions they were able to discuss with CEFI and come up with four different trainings, one for each of the four quarters of the year, to cover for the Small and Medium Enterprises (SMEs). “Apart from that we are keen on also reaching out to see these sort of programs running in other centers,” said Ms. Bafmatuk. “It won’t be the same, we have to tailor our programs to suit the different environments that are out there.” She explained that this is a campaign for SMEs to be self-sufficient and to support each other to excel and be successful. Despite the challenges that the SMEs face, she encouraged all the SMEs that the MSME Council will try to do its best to support them in their progress. Meanwhile, the MSME Council Founder, Mr. James Gore said that the existence of the Council is to give the micro, small and medium businesses a voice at the government level, so to bring across concerns and also influence policies for SMEs. “The aim of the MSME Council is to advocate, to create an enabling environment for the SME Sector,” Mr. Gore further stressed. The MSME Council was established in 2019 after a Ministerial Approval and in four years, it has become a critical platform to support the SME sector in the country.

The country will see a slight increase in both loans and grants next year as support coming in from Papua New Guinea’s (PNG) development partners towards funding the 2024 National Budget. The total of grants and loans for 2024 amount to K3, 418.8 million, which comprises of K1, 213.8 million in loans and K2, 205 million in grants. The 2024 grants increase 8% from 2023 total in grants and loans increase 4% from 2023 total in loans. According to the country’s Treasurer, Mr. Ian Ling Stuckey, the total loans and grants account for 32% of the Capital Expenditure Budget of K10.7 billion. “Grants and loans play a significant role in supporting infrastructure developments in the Transport, Health, Education, Law and Justice Sectors, provided technical assistance and capacity building in climate and environmental initiatives and addressing cross cutting issues,” said the Treasurer. “The recently launched MTDP IV requires development partners to align their assistance programs and projects with the 12 SPAs and 71 DIPs outlined in the plan.” The development partners include PNG’s bilateral and multilateral partners, international NGOs, regional Organisations, private sector foundations and climate finances. The MTDP IV presents financing options for development cooperation support over the next four years. “The Marape-Rosso Government is committed to support ongoing policy priorities to achieve national prosperity and promote economic growth.” This assistance from development cooperation, is sought to support the economy, improve economic and social indicators, and invest in strategic areas such as economic development, infrastructure, human capital, governance, service delivery, foreign direct investment, and partnerships. Meanwhile, the Government of Australia, through the Department of Foreign Affairs and Trade (DFAT), is the largest contributor, providing grants totalling K1, 196.2 million. Other Development Partners providing grants in 2024 include the European Union (EU), United Nations System (UNS), Japan International Cooperation Agency (JICA), People's Republic of China (PRC), and New Zealand Aid (NZAID). In terms of loans, the People's Republic of China (PRC) is the largest bilateral loan financier for PNG in 2024, followed by the World Bank (WB), Asian Development Bank (ADB), and Japan. Other financiers include DFAT-Australia, the International Fund for Agricultural Development (IFAD), and the Korean Export-Import Bank (Korean EXIMB). PNG will also be looking to source funding from Asian Infrastructure Investment Bank during 2024.

The Internal Revenue Commission (IRC) of Papua New Guinea (PNG) in its endeavor to enable ease in tax payments and increase tax collection, has put in measures to improve all that and one of such is the Tax Portal (myIRC), which taxpayers and tax agents are encouraged to fully utilize. Ms. Ketty Masu, the Director of Taxpayer Services and Policy Division who spoke at the recent annual Tax Agent Liaison Group Meeting in Port Moresby, said the tax portal is a new way of communication between taxpayers, tax agents and the IRC. “It’s a good channel of communication, with this channel we can have an oversight of what’s coming in, when its coming, because we get a weekly report and if there are things that are outstanding, we follow up on that,” said Ms. Masu. “Benefits for you as tax agents, you make your payment at ease, submit and manage your lodgments online.” The IRC was also credited for the record 2024 National Budget total, mainly due to the improvements made in tax collections from its measures employed, which led to increased tax revenue. As such, the more use of the online tax system, should see this further improved. Ms. Masu further encouraged those tax agents who have not registered yet, to start registering and enjoy the benefits of the online system. Registering for myIRC will enable agents to make instant online payments and interact with IRC services using smart phones, tablets or computers. She added that there are guides on the myIRC webpage with step- by- step instructions and guidelines that can be downloaded to assist those who are registering.

The long awaited restart of operations for the Porgera Mine in the Enga province is set to take place next week with the New Porgera Limited (NPL) announcing that the mine will reopen for business on the 22nd of December. NPL in a statement today stated that all legal and contractual conditions necessary for the reopening of Porgera Mine have now been met and the mine is set to officially restart operations, with the first gold expected to be poured in the first quarter of 2024. As Prime Minister (PM) James Marape noted in a speech today in Sydney at the 17th Papua New Guinea (PNG) Resources & Energy Investment Conference, the long road to Porgera’s reopening has reached the finish line. The result is an unprecedented partnership between PNG and two leading global mining companies, Barrick Gold Corporation (Barrick) and Zijin Mining, which for the first time gives majority ownership in a major resource project to Papua New Guinean shareholders. New Porgera will deliver unprecedented benefits to the people of PNG. Over the 20-year life of mine, PNG shareholders, which comprised of Porgera landowners, the Enga provincial government and the State, will receive 53% of Porgera’s overall economic benefits. The investors will share the remaining 47%. At an assumed gold price of US$1,800 per ounce, PNG shareholders can expect to receive nearly US$7.3 billion (approximately Kina 27.6 billion) over 20 years and US$2.8 billion (Kina 10.6 billion) in the first ten years. New Porgera Limited will be managed by Barrick (Niugini) Limited and employ more than 2, 300 people by June 2024 and over 3, 000 by the end of 2024.

The National Government has reduced the Log Export Tax in the 2024 National Budget to address concerns pertaining to the performance of the country’s forestry sector. According to the Treasurer, Mr. Ian Ling Stuckey, the State lifted the Log Export Tax in the 2023 Budget to a whopping 70% from the previous 50%, saying that the increase was to raise additional revenue to support the establishment of the Biodiversity and Climate Change Fund and to strengthen downstream processing policy of unprocessed logs. However, in the 2024 Budget, the Log Export Tax is expected to be reduced back to 50%. The reason being that the forestry sector has been experiencing low demand in export market for logs during the year, the bad weather affecting production and the current unfavorable taxation regime. “After close consultation with the forestry sector on the impact of the current log export tax, it was agreed to introduce a regime which is lower than the current log export tax regime,” stated the Treasurer. “It was suggested that the current regime provides an unfriendly business environment to support the logging industry to go down the path of downstream processing.” Therefore, implementing the regime will allow the forestry sector to plan and develop capacity for downstream processing in consistent with the government’s objective to ban export of unprocessed logs by 2025; hence, focusing on downstream processing. This new measure will come into effective on the 01st of January 2024.

Families on annual income salaries ranging from K20, 000 and below can expect to be excluded from paying income tax next year after the government moved to make permanent the Income- Free Threshold in the 2024 National Budget. The Treasurer, Ian Ling Stuckey said this should continue to assist low and middle- income families to be able to support themselves in light of the high cost of living currently experienced. “The Marape- Rosso Government will make permanent the increase in the tax- free threshold to K20, 000 at an estimated cost of K280 million,” said the Treasurer in his recent budget speech. “For workers earning K769 per fortnight or more, this will provide a fortnight savings of K63, which can be used to help with household purchase.” In the 2023 Budget, the tax- free threshold was increased from K12, 500 to K20, 000, mainly intended to provide relief to low and middle- income earners during times of inflation, as a temporary measure just for one year and will expire on the 31st of December, 2023. The Treasurer said that in the 2024 Budget, the government is making permanent the tax- free threshold and repealing the dependents rebate through the Income Tax (2024 Budget) (Amendment) Bill, so to maintain the purchasing power of money and reduce compliances cost and simplify administration. “Workers earning up to K20, 000 per annum no longer have to pay tax on their income. This will directly benefit over 37, 000 salary or wage tax payers by increase in their disposal income.” “The new tax – free threshold of K20, 000 removes 22% rate bracket and means that only those with an annual income exceeding K20, 000 will pay 30 toea for each Kina,” explained the Treasurer. This new measure will come into effect as of the 01st January 2024 and onwards.

A local company, Hela Investment Ltd, has partnered with Puma Energy through a Memorandum of Understanding (MOU) that aims to bring participation from Puma Energy to co- invest in sustainable economic projects in the Hela province. This recently signed MOU has forged a new development partnership between the people of Hela province and Puma Energy, opening up opportunities for both parties to invest in. “This MOU sets the pace for participation in socio-economic projects especially within the clean energy space which Hela Investment has engagement within,” said Puma Energy PNG Chairman and Managing Director, Mr. Hulala Tokome. The MOU was agreed between Puma Energy PNG and Hela Investment Ltd back in November, following amicable discussions between Hela Investment and Puma Energy Chief Executive Officer (CEO), Hadi Hallouche, including PNG management in Port Moresby. “Puma Energy’s purpose is to energize communities and we stand committed to delivering this purpose through this partnership, a partnership that aligns with the National Government’s current and future development plans that aims to expand access to sustainable infrastructure and services to the people of PNG.” The CEO of Hela Investment Ltd, Mr. Gedisa Igah during the MOU signing, said; “Hela Investment is excited to partner with a global company such as Puma Energy to explore investing in projects, including within the clean energy space, to bring long term sustainable prosperity, not only to the people of Hela, but PNG as a whole.

The Chief Executive Officer (CEO) of Puma Energy was in country recently for a visit and wants the matters pertaining to the Foreign Exchange (FX) and fuel supply issues to be resolves, so as to restore confidence in the service that the fuel company is providing in the country. The CEO, Mr. Hadi Hallouche said Puma Energy is committed to Papua New Guinea (PNG) and it would great to see the FX issue regarding the purchase fuel, fully resolved going forward. “We are committed to PNG’s future; however, I cannot stress enough the seriousness of the current short-term issues and the problems they can potentially create.” “We will continue to work closely with BPNG (Bank of PNG) to manage the current FX challenges; however, we urge BPNG and BSP to work with us in maintaining our banking relationships. We remain solution focused and committed to addressing any concerns,” added Mr. Hallouche. Following the Government’s Taskforce, Puma Energy believes it has resolved previous issues with BPNG on documentation requirements and now is looking forward to working with the BSP Financial Group Limited to confirm ongoing banking services. Puma Energy has invested over $650 million in its PNG operations since 2014 and currently operates the only storage, logistics and distribution network capable of supplying fuel nationwide. The company currently employs 500 skilled workers, the vast majority of whom, including management, are local. In addition, the company has created an additional 2, 500 indirect jobs in PNG throughout its supply chain. “Puma Energy is fully committed to PNG. We’ve invested in and upgraded our operations, and we’ve grown and trained a highly skilled local workforce. We are proud to contribute to PNG’s economy and success,” said Mr. Hallouche. Meanwhile, the Puma Energy CEO visit to PNG involved dialogues with government and business leaders in both Lae and Port Moresby cities, where they discussed sustainable solutions that will work amicably for all parties in the industry, the business sector and the community at large, in light of the recent fuel issues affecting customers nationwide.

The country will in the coming weeks and months, see the flights of the massive C-17A Globemaster aircrafts over Papua New Guinea (PNG) airspace as part of a big logistical training exercise conducted by the militaries of three countries. Two of these aircrafts were involved in a parachute drop of fifteen Australian Army personnel as part of a demonstration by the Royal Australian Air Force (RAAF) C-17A over Nadzab Tomodachi International Airport just outside Lae, yesterday. The two C-17A aircraft are currently flying in PNG skies as part of Exercise Global Dexterity 23-2, which will involve up to three C-17A aircrafts from the RAAF, United States Air Force (USAF) and the Royal Air Force (RAF). The Australian Defence Force (ADF) appreciates the support of the PNG Government and PNG Defence Force, and wider community to allow the RAAF to test their skills in one of the world’s most complex flying environments. The training achieved in PNG during Exercise Global Dexterity 23-2 ensures Australia and its allies can deliver humanitarian assistance anywhere in the Indo-Pacific. Australian Defence Adviser to PNG, Colonel Travis Gordon, said the exercise will predominantly take place in Australia, but will include two missions to PNG. In addition to the demonstration that occurred yesterday, all three aircraft will conduct low-level flying training in the Central Highlands on 6th December. These aircraft will fly through valleys travelling east from the vicinity of Telefomin towards Mt. Hagen and Chimbu; before turning north towards Madang, and then eventually landing at Momote on Manus Island. The C-17A aircraft will then be loaded with ADF vehicles and equipment used in Exercise Puk- Puk for their return flight to Australia. “During Exercise Puk- Puk, the ADF worked closely with the PNG Defence Force Engineers on partnership and capacity building exercises, including refurbishment of facilities and accommodation, drainage, and road repair on Manus Island,” said Colonel Gordon. The PNG Defence Force personnel will integrate into Exercise Global Dexterity 23-2 by supporting ADF personnel prepare the clearance zone at Nadzab and help load and secure equipment being extracted from Momote. “This cooperation between our forces builds on our longstanding defence partnership and enhances our ability to support the PNG Defence Force on future peacekeeping and humanitarian and disaster response operations,” said Colonel Gordon. Missions during Exercise Global Dexterity 23-2 may be subject to amendment or cancellation at short-notice.