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MONEY | BUSINESS | REAL ESTATE | WORK
FUEL PRICES UP
58 Why we’re paying more at the petrol bowser
A ‘NEW’ BANK AT WORK
59 FOR PNG?
Credit Corporation
62 WITH …
Dulux customer
aims for new territory service manager
Gertrude Kautu
A BUZZ
61 IN THE AIR
Big plans for PNG
honey
APRIL/MAY 2022 PNG NOW 57
PNG Moni/News
PNG BUSINESS
AT A GLANCE
BY STAFF WRITERS
Oil price rises hit PNG
The rising price of oil will invasion of Ukraine.
have a significant impact But, he says, there were
on Papua New Guinea already pre-existing upward
this year, according to an pressures on the oil price
industry expert. before the current conflict.
“The movement up in oil Tokome says Puma expects
prices is being felt around the oil price to continue its rise
the world,” observes Hulala this year, driving up the price
Tokome, PNG Country not only of petrol and diesel in
Manager and Director PNG, but also aviation fuel.
at Puma Energy, “Locally, we’ve seen the price
PNG’s largest oil of fuel jump up by nearly 50 toea per
importer and refiner. litre just over the last couple of months,”
There are several reasons behind the he says. ‘It is most likely it will jump up by
price rise, he says. The most obvious is the another 15 to 20 toea per litre,” he predicted in
increased global uncertainty caused by Russia’s early March.
Gas impact EU and the fact that most of its
current gas is pre-sold to Asian
GDP growth
With Russia supplying 38% of the markets, it is unlikely that PNG The World Bank has published
European Union’s gas market, will suddenly find itself shipping The PNG Economic Update:
the invasion of Ukraine may also gas to Europe. However, as David Navigating a Fragile Recovery
have consequences for liquefied Lennox, Resources Analyst with and suggests the PNG gross
natural gas, PNG’s largest Fat Prophets, says, the impact of domestic product (GDP) growth is
commodity export. an extended conflict in estimated at 4% for 2022.
Analysts Wood Ukraine could indirectly The growth is, in part, driven by
Mackenzie are affect PNG’s gas sector. the resources sector, in particular
predicting “the invasion A higher gas price, the much-expected reopening of
… will push the EU to if sustained, would the Porgera mine.
question its dependency inevitably “bring about But whereas GDP growth
on Russian gas. New the faster development looks better than in 2021, the
supply will take time of not-so-commercially- report also says PNG’s economy
to materialise and will viable fields and trains”, medium-term will be “impacted
see higher prices in he says. At the same by higher global uncertainty”.
the medium term. But time, if the EU switches “The biggest challenge for the
LNG players in the US, from Russia to other PNG economy this year will be
Qatar and beyond are starting large gas exporters such navigating a fragile recovery; this
to gear up; as are pipe suppliers as Qatar, “this opens up other is particularly challenging while
from Azerbaijan, the East Med markets (such as PNG) to increase uncertainty remains high,” says
(Mediterranean) and Norway.” capacity”. World Bank Country Economist
Given its distance from the for PNG, Ruslan Piontkovsky.
58 PNG NOW APRIL/MAY 2022
Credit Corp banks on the future
After over 42 years as a finance company in PNG, Now, it has decided to add to the competition in
Credit Corporation (PNG) is planning to apply for the banking sector by joining the fray itself.
a banking licence this year. “What we’ve done well in the past is we’ve
CEO Danny Robinson is focusing on taking Credit banked the unbankable customer who is starting
Corporation into new territory. “Our board have up a business but has been unable to get finance.
signed off on us becoming a licensed bank,” he We’ve been able to support those people with
reveals. equipment finance-type transactions and we’ve
Currently, PNG only has four licensed banks – seen those businesses succeed.”
BSP, Kina Bank, Westpac and ANZ. That number Typically, however, that is when those customers
almost became three last year, when Kina Bank move on to a relationship with a bank.
unsuccessfully tried to acquire Westpac’s Pacific “The natural progression for us is to continue
assets, in a deal ultimately rejected by PNG’s to support start-ups through our typical finance
Independent Consumer and Competition products. But then, when they’re in a position to
Commission (ICCC). borrow larger amounts, or for longer terms, and
Credit Corporation was a bidder for the can provide security, we can offer them a more
Westpac business itself. It was also one of several holistic financial services package that would be
organisations that opposed the buyout in its similar to what the banks are providing.”
submission to the ICCC on the grounds that it Robinson is hoping to have a banking license in
would create a duopoly. place by the end of the year.
APRIL/MAY 2022 PNG NOW 59
PNG Moni/CEO Survey
BUSINESS LEADERS HAVE THEIR
SAY ON THE YEAR AHEAD
Is this year going to be a good year for business in PNG? Are there going to be more jobs on
offer, or less? Justin Smirk, Senior Economist at Westpac, has analysed the results of the PNG 100
CEO Survey, an annual survey that reveals how positive (or negative) PNG’s business leaders are
feeling about the year ahead. He reveals his discoveries to PNG Now.
PNG’s largest companies are more
What is the PNG 100 CEO
Survey?
confident about business in 2022
Every year since 2012, Business than they have been for two years,
Advantage International
(publisher of this magazine) which is encouraging. Just over
has asked the heads of PNG’s
top companies about their half expect to make more profits in
expectations for the year ahead,
and the major challenges they 2022 than last year.
face.
I then analyse the survey’s
results for Westpac.
The results give us an idea of
how confident business leaders What challenges are COVID-19 restrictions, which
are about making profits, business leaders telling us came fifth in this year’s survey.
employing more people and they are facing? Are the top challenges the
investing more money in PNG’s There are some challenges that same every year, or do they
economy. always appear high up in the change?
The results also tell us which survey, such as the law-and-order The top challenges do change
challenges are preventing situation and unreliable utilities and sometimes because
businesses from doing better. (power and water). things are improving in
What do the results of this The top challenges mentioned PNG. For example, unreliable
year’s survey tell us? in this year’s survey were telecommunications were named
They tell us that PNG’s largest ‘regulatory uncertainty’ the top challenge in 2019 but this
companies are more confident (concerns about year were only eighth.
about business in 2022 than they changes to the laws and The shortage of foreign
have been for two years, which is regulations that affect currency (US dollars) was
encouraging. business), law and order, the top issue in 2020,
Just over half expect to make and ‘lack of government but this year was only
more profits in 2022 than they capacity’ (concerns sixth.
did last year. Nearly half are about the government’s On the other hand,
expecting to invest more money ability to perform the regulatory uncertainty
in PNG this year than they did last roles business needs it wasn’t even mentioned
to do). Justin Smirk,
year and employ more people. Senior in the survey four years
Hardly any of them are planning All these challenges ago and now it’s the top
Economist
to cut jobs. were rated as more concern for PNG’s largest
for Westpac.
important right now than businesses.
60 PNG NOW APRIL/MAY 2022
PNG Moni/Agribusiness
A BUZZ IN regions, who can
then derive a
steady income from
He says imported
honey remains a
competitor, but he
THE AIR
BY GABRIELLA MUNOZ
apiculture.
So far, HHHP has
explains that the
ongoing campaign
trained over 3000 bee ‘Support Local SMEs’
Helping Hand Honey and honey farmers in is helping local honey.
Producers (HHHP), Papua New PNG, Inae says. PNG honey has
Guinea’s second-largest honey For its innovative the potential to
producer, has long-term goals business model, earn a presence in
to increase honey production to HHHP has won the international
meet rising local demand and to numerous awards, market, too, but Inae
also export. Kelly Inae with some
including the says the industry
‘liquid gold’ in hand.
The business model of HHHP, 2021 Sustainable requires additional
based in Goroka in the Eastern Development Goals financial and technical
Highlands Province, involves Enterprise Award presented assistance.
empowering rural families to by the Junior Chamber Inae is positive about the future.
produce ‘liquid gold’ for its International in Hong Kong. “Despite the challenges posed
Mountain Honey brand. According to Inae, Papua New by COVID-19, the awards have
According to Managing Director Guineans consume about 200 helped to put our business in the
Kelly Inae, this involves the tonnes of honey per year. “Local spotlight. We’re getting a lot of
company providing quality honey producers can only supply interest from locals who want to
beekeeping training to farmers about 150 tonnes of honey per be a part of our next beekeeping
in the Highlands and Momase year,” he explains. training.”
APRIL/MAY 2022 PNG NOW 61
PNG Moni/CV AT WORK WITH CUSTOMER SERVICE MANAGER GERTRUDE KAUTU BY AMY JONES | PHOTOGRAPH: GODFREEMAN KAPTIGAU Gertrude Kautu, Dulux Group PNG’s Customer Service Manager, has just celebrated her 20-year anniversary with the company. She is responsible for overseeing customer service teams in Port Moresby and Lae. Dulux is PNG’s leading paint manufacturer and supplier. Globally, the Dulux Group has around 4000 employees and is responsible for some of the world’s most recognised brands. Gertrude Kautu on … Daily tasks On a day-to-day who had access to the internet. shocked by the cold weather. basis my work tends to involve We are now able to utilise a Another notable memory managing our customer service range of technological services to that comes to mind is the time teams and directly assisting our better the way that we conduct when I came across a sleeping customers. I help them with their business. This is the biggest partygoer on our office premises inquiries and solve any problems change I have witnessed in my 20 one morning. It was a very that they encounter. Generally, years with Dulux. unexpected way to start the this takes place in Port Moresby, Early-career advice When you workday. There used to be a where I am based. However, I also are starting out in your career, nightclub near our Port Moresby regularly travel to our head office you must be prepared to work office and this man must have in Lae. your way up the ranks. There is climbed our fence after a night Dulux’s Sales and Marketing only so much that you can expect out. Thankfully that nightclub has Manager, Andrew Nyberg, adds: when you are new at a company. closed down now. “Because of her experience, By taking the time to prove Gertrude’s product knowledge yourself, you can become a valued is second to none. We literally member of the team. However, have thousands of products in the this does not happen overnight. system and often rely on her to Memorable experiences During find the right one promptly.” my time at Dulux, I have had Technological advancement the opportunity to travel. I When I first started at the attended a training course that company, communications could ran at our regional head office be pretty unreliable. There were in Melbourne. It was a great only a few select staff members experience, although I was By taking the time to prove yourself, you can become a valued member of the team. However, this does not happen overnight. 62 PNG NOW APRIL/MAY 2022
AIRWAYS
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