Australia’s enduring commitment to Papua New Guinea’s economic reform has been reaffirmed by Ewen McDonald, Australian High Commissioner to Papua New Guinea and Special Envoy for the Pacific and Regional Affairs. Speaking at PNG Investment Week on 9 December in Sydney, McDonald highlighted what he described as a relationship “joined at the hip,” emphasising Australia’s deep commitment to PNG’s economic progress, stability and long-term development.
McDonald said it was a great honour to join PNG Investment Week, noting that the event demonstrated PNG’s economic promise and the strength of partnerships that underpin stability and growth throughout the Pacific. He also referenced the significance of the opening of the week, marked by the historic appearance of Anthony Albanese and James Marape.
Reaffirming Australia’s long-standing support, McDonald emphasised: “You can count on Australia’s continued presence in PNG to support improved economic progress, security and regional development. Australia’s efforts create lasting benefits for investors, businesses, and communities for future generations.”
He highlighted Australia’s backing of PNG’s IMF-led economic reform programme, stating: “We have provided more than 3.1 billion in budget support to back in the program that Papua New Guinea has embarked on with the International Monetary Fund. The budget deficit has decreased from just over 8 per cent of GDP in 2020, to 1.1 per cent of GDP in the 2026 budget. And there have been major improvements in relation to foreign exchange related challenges.”
Growing Business Confidence and Investment Flow
McDonald noted Australia’s long history of commercial activity in PNG, including the presence of Australian banks since 1910. Along with other major Australian companies, he said these businesses have invested deeply in PNG’s growth and prosperity. Together, they employ an estimated 55,000 people and contribute to skills development across the country.
Investment is accelerating in multiple sectors, with McDonald stating: “Investment is accelerating in key sectors like energy, mining, agriculture, digital services, tourism, and infrastructure. And our bilateral trading relationship continues to grow.”
PNG exports to Australia grew by 56 per cent in value in the last financial year, and he said Australia is ready to help PNG diversify beyond primary commodities.
McDonald also highlighted labour mobility as a major driver of economic opportunity. In the 12 months to October 2025, PNG’s labour mobility numbers grew by 30 per cent—the fastest of any country. Australia is opening new sectors as well, including a pilot programme to recruit PNG early childhood educators.
“There are no caps or country quotas in the PALM scheme,” he added.
Investments in Education and Human Capital
McDonald outlined Australia’s new support for PNG’s education system, saying: “We announced new investments totaling more than AUD150 million in education spanning early childhood through to tertiary education and technical and vocational education and training.”
He said these investments will lay the foundation for the next generation of Papua New Guinean leaders.
He stressed the importance of education for business growth: “For business leaders, this means a growing pipeline of skilled PNG talent and a stable environment for investment which is proof that when we invest in education, we invest in PNG’s future.”
“A healthy population underpins a productive workforce, reduces the burden of preventable disease, and ensures communities can participate fully in economic life. A strong health systems give businesses confidence, knowing that essential services, emergency response capacity and disease surveillance are in place to protect both workers and supply chains,” he added.
Major Infrastructure Projects to Drive Growth
Australia’s infrastructure programme remains the largest in the region, McDonald said. The AIFFP-funded PNG Ports Infrastructure Investment Program is the largest initiative in the AIFFP portfolio, with more than AUD620 million committed to upgrading ports in Kimbe, Oro Bay, Daru, Kavieng and Lae. The Kimbe Port upgrade alone will create about 300 local construction jobs.
On telecommunications, he highlighted critical upcoming investments, noting that Australia is offering three new undersea international cable connections. These are projected to increase internet coverage in PNG by 16 per cent and could add up to PGK3.4 billion to PNG’s GDP by 2028, supporting the country’s ambition of becoming a 200-billion-kina economy by 2030.
The new Pukpuk Mutual Defence Treaty elevates PNG–Australia cooperation to match the trust and strategic weight of the relationship.
On policing, he said: “Major infrastructure projects are underway to house new recruits,” and upgrades at Bomana “will soon allow training for more than 500 recruits each year.”
The Bomana Regional Centre of Excellence is now a flagship for Pacific policing cooperation, hosting training for 11 Pacific nations.
Reflecting on PNG’s 50th independence anniversary, McDonald said the Australian campaign Yumi Stap Wantaim captures a partnership that began long before independence. He recalled Marape’s description of the two nations being “joined at the hip,” and echoed Albanese’s words: “We are mates, we are equals, we are allies.”
“There is no challenge we cannot face. And no opportunity we cannot seize. Side by side and step by step.”
