PM Marape welcomes Teachers Savings and Loans Society as a commercial bank
by PNG Business News - December 30, 2022
Photo: PM Marape
Prime Minister Hon. James Marape has welcomed the decision by Bank of Papua New Guinea (BPNG) to issue a provisional license to the Teacher’s Savings and Loans Society (TISA) to set up a fully-fledged commercial banking operation in PNG.
“We would like a local bank with share offering to ordinary Papua New Guineans, mothers and fathers and to our grassroot population to be set up as soon as possible,” he said.
“We need truly Papua New Guinean banks which are owned by our people and are committed to better serve our people.
“I await with keen eagerness to see the Teachers Savings and Loan Society formally obtaining a full banking license to commence operations subject to it meeting all the prudential requirements of the BPNG.”
PM Marape said the National Development Bank (NDB) Group was also working on a proposal to obtain a commercial banking license from BPNG.
“However, they will have to meet the prudential requirements of BPNG to do so, and that could well mean they must partner a major commercial bank to give confidence to BPNG that they will run independently of Government and any adverse political influence,” he said.
“The success of BSP is a good shining example of the success of public-private partnership in the banking sector and we cannot go wrong if NDB follows the same model.
“I also want to see ordinary Papua New Guineans buy shares in the establishment of such commercial banks.”
PNG Business News - May 18, 2021
BSP Sign MoU for Digital Payment Solution
BSP Financial Group Limited (BSP) and the Department of Finance have signed a Memorandum of Understanding (MoU) to allow the government to raise non-tax revenue through a digital payment solution. This is the first such MoU with any government agency, according to BSP Group CEO Robin Fleming. “These payment gateway modes would appropriately suit different paying sectors of the population of which some are rural-based suited with mobile payment mode and Kiosk which would be made available in all-cash offices and popular and common public access points, while online will suit city residents and overseas paying clients,” Fleming said. This Digital Payment Solution will be used to pay for non-tax costs such as police clearance, warrants, bails, visas and renewals, property leases, resettlement facilities fees and job permits, coal and petroleum discovery licenses, petroleum production and production licenses, among other domestic recurring fees and charges. The Payment Solution, according to BSP General Manager Digital Nuni Kulu, would allow for direct payment tracing, expand the government's payment scope across the world, save time and money while improving consumer engagement and government service delivery. “The Department of Finance’s Website Portal is custom-made to capture a wide range of government services, boosting revenue generation and drive cashless transactions through online payments,” Kulu added. Dr. Ken Ngangan, the Finance Secretary, stated that the payment solution would result in the timely recovery of non-tax revenue and would boost the government's revenue collection activities in order to fulfill the government's budget needs.
Paul Oeka - November 27, 2022
DUMA ANNOUNCES APPROVAL OF NEW COMMERCIAL BANK
The Minister for state enterprises, William duma has announced the approval that there will be a new commercial bank to be established in the country next year, He stated this when responding to the NCD Governor, Powes Parkop regarding banking related issues in the country in parliament recently. Minister Duma stated that the Marape-Rosso Government has decided to apply for and establish another commercial bank in the country; he explained that when taking into consideration and comparison with other countries such as Fiji and that they have more than 8 commercial banks. “In a country of more than 10 million people we need more commercial banks because if you consider current commercial banks like Westpac and ANZ, they have not been quite keen in expanding their presence and services to other parts of the country”, Minister Duma said. “We must be considerate of our people and take into account that we have a lot of people in remote areas and such it is incumbent upon us as leaders to establish another commercial bank”. “Major commercial banks such as BSP have not been able to provide the services that our people need, many of our people are unbanked due to BSP’s conduct in charging and setting a lot of fees”. Minister Duma said. Minister Duma further said that it is the responsibility of the National Government to set another commercial bank in the country. “I can announce that cabinet has already approved in principle for a new commercial bank to be established and be called The National Banking Corporation”, Minister Duma announced. Minister Duma concluded that under the leadership of our Prime Minister all necessary requirements have been completed and we are now 85 per cent through in reaching that goal, and before the end of next year this country should have a fully fledged commercial bank.
PNG Business News - December 05, 2022
Kina Bank Abandons Expansion Plans
Following the government's Budget 2023 proposal to hike corporation tax from 30% to 45%, Kina Bank is abandoning all of its plans to grow by opening additional offices nationally. Greg Pawson, the chief executive of Kina, stated that the bank was against any rise in corporate tax on the banking industry. “To put into perspective, it is an additional tax of K40 million for Kina based on our 2023 forecast. That is a 50 per cent increase and K40 million that we will now be forced to not invest in future growth. The additional tax is a disincentive for us to invest and grow,” he said. “The unintended consequences of such a move will be detrimental to the banking sector in Papua New Guinea (PNG) which is already structurally imbalanced,” Pawson added. Pawson also announced the suspension of its small-to-medium business and home loan concession interest rate programs. “We will be forced to reassess our capital expenditure programmes and likely cut investment,” he said. “Crazy stuff and typical of recent policy developments, it will be the average Papua New Guineans who will be impacted.” The first bank to respond adversely to Treasurer Ian Ling-Budget Stuckey's 2023 is Kina. The tax hike is anticipated to cause commercial banks to boost interest rates and fees, making PNG the second-highest tax system in the world. Ling-Stuckey announced the beginning of this tax during a business budget breakfast in Port Moresby. “This is expected to raise K240 million (for the Government) to fund vital core services. We will consult the banking industry in the first half of next year, and consider if a different type of tax, such as an additional profits tax, may be more appropriate from 2024 onwards, while still raising the required revenues,” he said. According to Ling-Stuckey, taxing banks was a good idea. “Government needs to continue to raise revenue. We might introduce some new taxes to the sector (banking), that might in the best place to afford paying tax,” he said. Reference: Esila, Peter. The National (1 December 2022). “Kina shelves expansion plans”.
Paul Oeka - March 27, 2023
Papua LNG project to Minimise Economic Challenges
Photo: Petroleum Minister Kerenga Kua Petroleum Minister Kerenga Kua has recently stated that the Papua LNG project is critical in addressing some of the economic challenges that are currently faced in the country. He said about K75 billion will be generated over a 15 year period when the project is in progress. He added that the initial stages of the project has commenced with K500 million said to be inputted into PNGs foreign exchange capacity in 2023. During a press conference on Thursday the 9th of March, The Petroleum minister highlighted the progressive stages of the Papua LNG project and emphasized the importance and significance of the benefits that the project will provide. According to studies the project life is expected to operate over a 15 year period that will generate about K75 billion and significantly boost Papua New Guinea's struggling economy. "The K75 billion benefit is inclusive of what comes to the state directly as levies, to Kumul Petroleum, to the landowners as royalties and the provincial governments. All of us put together are going to be collecting and sharing that benefit in the next 15 to 20 years", Kua said. Minister Kua said that studies for the Papua LNG project began in 2004 following the discovery by Interoil, the resource estimate is in the range of 6 trillion cubic feet of gas and 98 to 100 million barrels of condensive oil. The benefit of this project is immense and a positive component is the national content which is expected to positively impact GDP, export earnings, forex, revenue to impacted levels of government, landowner benefits and Job opportunities. Minister Kua said the project developer Total Energies will inject K500 million into the PNG economy in 2023. "The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and will provide a significant impetus for our economy", "The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people, and improved contribution for our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver the project on time and on budget", Minister Kua said. Petroleum Secretary David Manau was also present at the conference, he highlighted that the petroleum department will work closely with impacted provincial governments and landowners as this is important in ensuring that all stakeholder grievances are discussed and addressed. In light of this, a development forum is expected in the third quarter of this year. Meanwhile, Kua also revealed a unique aspect of the upcoming project which will mitigate the project's carbon footprint and is set to make PNG in becoming the first country in the Asia Pacific region and only the second on the world to re-inject carbon dioxide back into the well pad in a LNG project. He said the re-inspection of carbon dioxide into the well pad is a significant step towards reducing the project's carbon footprint and will help mitigate the environmental impact of the project and contribute to Papua New Guinea's efforts to combat climate change. The Papua LNG project is a joint venture between the PNG government, TotalEnergies and Exxon Mobil. It is one of the largest investments in the country's history and is expected to generate significant revenue for PNG's economy. Total Energies holds 40.1 percent interest in Papua LNG, along with its joint venture partners Exxon Mobil (37.1 percent) and Santos(22.8 percent). The Papua New Guinea government may exercise a back-in right of up to 22.5 percent interest at the Final Investment Decision (FDI) planned by end of 2023 to early 2024 and production will be scheduled for four years later.
PNG Business News - March 27, 2023
WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea
Wan PNG is a platform and community dedicated to expanding opportunities for local Papua New Guineans. Its goal is to increase the development and sustainable employment of local PNG talent, so everyone in our great nation can share in newfound resources and growing prosperity. With the goal of empowering individuals and businesses with the skills and people they need to succeed in the 21st century world, the Wan PNG platform spans three core areas for job seekers: Employment opportunities: Gain experience with internships, start earning with entry positions, or upgrade your career with the next big job. Career advice: Advance your career with expert advice and professional resources, and stay up-to-date on the latest news. Education and training: Expand your employment prospects by upgrading your knowledge, skills, and competencies through courses. For employers it provides: Free access to upload jobs and find the best talent. Smart matching between jobs and candidates. Diversity promoting candidate suggestions reaching a wide pool of talent. The platform's primary objective is to promote lifelong learning and employment and simultaneously bridge the skills gap in Papua New Guinea by providing accessible training opportunities to all its citizens. WanPNG believes that by investing in the development of its people, Papua New Guinea can unlock its full potential and become a more prosperous nation. WanPNG is now available for job seekers and employers. Visit the website now at www.wanpng.com to learn more.
PNG Business News - March 27, 2023
St John Ambulance First Aid Training for Workplace
The St John ambulance service responded to over 21,000 emergencies across Papua New Guinea in 2022. In addition to being Papua New Guinea’s main emergency ambulance service, St John is the nation’s leading first aid training provider equipping thousands of workers with essential first aid skills and knowledge. With just one day of training, St John’s expert first aid trainers can equip your workers with the basic skills to handle all kinds of first aid emergencies. Workplace accidents and injuries are a common occurrence and it is essential for employers to have a competent workforce that can respond effectively to emergencies. St John’s workplace first aid courses ensure your workforce is equipped with the first aid training to assist a sick or injured person. It also helps organizations comply with legal requirements, reduce workplace injuries and fatalities and promote a culture of safety and preparedness. The Papua New Guinea St John Ambulance provides training routinely in Port Moresby and Lae, and can facilitate training at any location in PNG, which makes it easy for workers to gain or maintain their first aid qualifications. St John’s first aid trainers come from a variety of backgrounds, enabling them to contribute real-life experiences to the training environment. Each course, based on St John Ambulance Australia’s training resources, goesthrough rigorous appraisal by training and health specialists including St John’s Papua New Guinea’s medical expert advisory panel - made up of some of the industry’s leading physicians and health professionals, who ultimately endorse the clinical training content components of the first aid courses. St John CEO Matt Cannon said, “this rigorous appraisal process gives clients the confidence of St John’s commitment to delivering the highest quality in training content and delivery in Papua New Guinea.” Workplace first aid courses cover a broad range of topics, including basic life support, wound care, bandaging, splinting, CPR and using an AED. Participants learn how to identify and manage different medical emergencies such as heart attacks, strokes, burns, fractures, and poisoning. Each training program is designed to be flexible and can be delivered on-site or at one of our training centres. If you want to ensure that your workplace is prepared to respond to emergencies, contact St John today to learn more about our workplace first aid training.