Kumul Consolidated Holdings (KCH), the trustee shareholder of the country’s state-owned enterprises (SOE), and PNGX Group Limited (PNGX Group), the holding company of PNGX Markets Limited, operator of Papua New Guinea’s national stock exchange, have signed a memorandum of understanding (MOU) aimed at improving SOE governance and unlocking new investment potential.
The MOU outlines a strategic collaboration between the two institutions to apply the PNGX Corporate Governance Code as a benchmark for SOE governance practices. The objective is to enhance governance, increase transparency, attract private sector investment, and support the long-term sustainability of both Papua New Guinea’s SOEs and its capital markets.
To achieve these goals, PNGX Group and KCH will work together to promote understanding of the PNGX Corporate Governance Code, support the development of a tailored governance code for SOEs, and raise awareness of the PNGX Listing Rules and the responsibilities of listed companies.
The partnership will also explore pathways for listing eligible SOEs on the exchange and seek to expand investment opportunities in SOEs for both domestic and international investors.
The initiative aligns with Prime Minister James Marape’s renewed commitment on 10 February 2025 to reform SOEs to operate more efficiently and contribute to economic growth and improved service delivery.
“Corporate governance is the foundation of public confidence in SOEs. Working with PNGX will help develop governance standards and disclosures that build that confidence,” said Prof. David Kavanamur, managing director of KCH.
For his part, PNGX Group chairman David Lawrence said that the bourse’s strategic partnership with KCH reflects a shared vision of building robust, transparent and inclusive capital markets in Papua New Guinea.
“PNGX Group welcomes the opportunity to work with KCH on this important issue. Twenty-six years ago, PNGX was established with the vision of listing SOEs. This work brings that vision closer to reality and opens up potential new investment opportunities for Papua New Guineans,” Lawrence said.
