The Securities Commission of Papua New Guinea (SCPNG) will embark on major capital market reforms this year in collaboration with the Papua New Guinea National Stock Exchange (PNGX) and other stakeholders.
The announcement was made by the Minister for International Trade and Investment, Richard Maru, during the official launch of the Licensing Module of the Centurion Enterprise System for SCPNG in Port Moresby.
“The launch today marks a significant milestone in the digital transformation of PNG’s capital market regulatory framework. This is a major advancement in SCPNG’s digital transformation agenda, providing an efficient, secure and automated platform for licensing and onboarding of capital market participants,” said Minister Maru.
The Licensing Module is expected to streamline licensing processes, enhance the integrity, security and reliability of regulatory records, improve turnaround times and operational efficiency, strengthen investor confidence and market transparency and align PNG’s capital market regulation with international best practice.
Under the new system, licence applicants will be required to be registered with the Financial Analysis and Supervision Unit (FASU), reinforcing regulatory coordination and establishing direct linkages among peer regulators within PNG’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) framework.
“This system reflects the Government’s commitment to modernising public institutions and creating a regulatory environment that is efficient, investor-friendly and internationally credible. The Licensing Module positions the Securities Commission as a modern, digitally enabled regulator, reinforcing trust, accountability and operational excellence across the capital market. The system will strengthen market entry compliance, including enhanced fit and proper assessments of licence applicants. It also strengthens PNG’s ability to safeguard financial integrity, uphold international standards and protect investors,” said Minister Maru.
“A well-regulated capital market is essential for attracting investment, promoting economic diversification and supporting PNG’s long-term development aspirations under Vision 2050 and the Medium-Term Development Plan IV (2023–2027),” he added.
Beyond the enterprise system rollout, SCPNG, in partnership with PNGX and other stakeholders, will pursue broader reforms, including streamlining regulation, introducing tax incentives for listed companies and investors, enhancing the trading platform, expanding investor education and introducing new financial instruments such as green bonds.
Minister Maru said PNG’s capital market remains a frontier market facing significant structural challenges.
“The PNG capital market, primarily represented by the PNGX, remains a frontier market characterized by high concentration and limited liquidity. The market continues to face the structural challenges like limited market dept and liquidity, outdate tax regime and regulatory hurdles that hinder investments and discourage listings at the exchange. The number of listed entities has remained relatively static over the last few years. As of January 2026, there are only 12 listed companies on the PNGX- 8 Local Domestic Entities and 4 Foreign (Dual-Listed) Entities. The market is heavily "top-heavy," meaning a few massive companies (like Santos and BSP) account for the vast majority of its value. The Total Market Capitalization is approximately K135 billion to K140 billion. The liquidity remains extremely low and in terms of volume, it is common for only 4 to 5 securities to see any trading activity in a given week with a turnover ratio of often less than 1percent of total market cap annually. Most shares are held by large institutional investors Nambawan Super who "buy and hold," leaving very little "free float" for daily trading.”
He said the capital market nevertheless holds significant potential to drive economic growth and development, outlining a suite of reforms aimed at transforming PNGX from a dormant exchange into a catalyst for growth.
Supply-Side Policies (Increasing Listings)
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Partial privatisation of state-owned enterprises through the listing of minority stakes to provide blue-chip domestic investment options.
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Listing incentives, including tax breaks or reduced corporate tax rates, to offset compliance and transparency costs.
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Establishment of an SME or “junior” board with lower entry requirements for growing local businesses.
Demand-Side and Liquidity Policies
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Relaxation of foreign exchange restrictions to encourage foreign investor participation.
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Incentives for retail participation, including micro-investing platforms and mobile applications.
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Development of a secondary market, including a corporate debt and bond market, alongside equities.
Structural and Technical Reforms
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Automated trading and settlement, transitioning to a fully digital, T+2 settlement system.
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Mandatory local listing requirements for major foreign resource projects to ensure national participation in the financial sector.
Additional measures under consideration include taxation reforms or government intervention to reduce or exempt taxes for initial public offerings, private capital raisings and listings, compulsory listing requirements for companies doing business in PNG and enhanced regulatory powers to improve product clarity and oversight.
“By reforming our capital market and tax regime, we can attract investment, boost local businesses and drive PNG’s economic growth. We will establish a robust SCPNG Board to drive these reforms forward. This new Board will focus on policy development of the capital market to enable better transparency, accountability and effectiveness in the overall function of the Securities Commission. This will be a pivotal step towards strengthening our financial sector,” said Minister Maru.
He also announced that the inaugural Capital Market Summit will be held in May, featuring global experts who will share insights on reforming and expanding PNG’s capital market.
“In Fiji, the corporate tax rate for companies listed on the South Pacific Stock Exchange (SPX) is generally lower than the standard corporate rate to encourage public listing and investment. As of the current 2025–2026 fiscal cycle, the rate for listed companies was 15 percent and 25 per cent for the standard companies (unlisted). Beyond the lower income tax rate, companies listed on the SPX enjoy several other tax benefits including Tax-Free Dividends, Capital Gains Exemption, Listing Expense Deductions and Trading Gains. We want to embark on such reform to attract more companies to list on the PNGX,” said Minister Maru.
