Purchase OBG Publications

After a flurry of activity in 2015, including dual-listing initial public offerings, a key stock returning to the exchange after suspension and the writing of a series of major reforms, Papua New Guinea’s capital markets are rebounding. The benchmark stock index started to climb again in 2016 and continued to do so through early 2017, following years of decline since hitting record highs in 2010. The market remains sound, well managed and well prepared for the economic upturn expected with the next large liquefied natural gas investment. Work continues in the background on improvements and upgrades, while expected reforms, which include changes to legislation, structures and governance, should be in place by the end of 2017. Incremental refinements in the bond market, led by the central bank, are ongoing, as are the bank’s efforts to get the attention of international custodians. This chapter contains an interview with Richard Borysiewicz, General Manager, BSP Capital.

Papua New Guinea’s banking sector is sound, stable and profitable. Despite slow economic growth in the country in recent years, institutions have managed their exposures well and entered the current weak patch in a strong position. They are generating good results and investing in future growth. Regulation is solid and improving, with the central bank updating key laws and bringing the sector closer to international standards in terms of anti-money laundering. Innovation is helping to improve customer experience and geographical coverage, while it also promises to revolutionise the way money moves throughout the country. The establishment of Kina Bank in 2015 did not result in a dramatic change in the competitive landscape, but the dynamics of the sector are evolving, with institutions increasingly responsive on price and offering. At the highest levels work on inclusion continues. This chapter contains interviews with Loi Bakani, Governor, Bank of Papua New Guinea and Mark Baker, Managing Director, ANZ Bank Papua New Guinea.

Despite some weak headline numbers, Papua New Guinea’s economy is set to see a recovery in 2017. Depreciation of the kina and the shortage of US dollars have slowed imports and led to pockets of strength. Robust activity at the small and medium-sized enterprise level and in the informal sector is ongoing, while key statistics, such as the current account, are indicating a return to balance. The recent drought has come to an end, and two major mines are back on-line and ramping up production. Importantly, commodity prices seem to have stabilised globally. The near- to medium-term conditions are right for GDP to edge back up into a more comfortable range. Major gas and mining projects could contribute significantly to growth, while reforms currently being put into place are likely to add to the sustainability of the economy. This chapter contains interviews with Thomas Abe, Managing Director, Kumul Consolidated Holdings; Dairi Vele, Secretary of the Treasury; and Sir Kostas Constantinou, Managing Director, Lamana Development.

The international position of Papua New Guinea has improved in recent years as the country continues to benefit from a number of positive trends. A stabilisation in commodity prices, strong output from the country’s major projects and an end to the El Niño drought have brought major trade indicators back into line. A lack of US dollars and the weak kina have helped as well by boosting exports and lowering imports. PNG’s balance of trade remains at or near a record high, while the current account has been positive for a number of years following a long period in the red. Prospects are good for keeping the totals at the right levels and also seeing possible improvements across the board. This chapter contains interviews with Clarence Hoot, Acting Managing Director, Investment Promotion Authority and Steven Ciobo, Minister for Trade, Tourism and Investment of Australia; and viewpoints from Gerry Brownlee, Minister of Foreign Affairs of New Zealand and Shamshad Akhtar, Executive Secretary, UN Economic and Social Commission for Asia and the Pacific.

This chapter examines Thailand’s tax laws relevant to businesses. It explains key corporate tax rates and regulations, tax holidays and incentives, and other important areas. It also contains a viewpoint from Andrew Jackomos and Paul Ashburn, Co-Managing Partners, BDO.