DEVELOPMENT PRIORITIES FOR 2017-2022Year 2 Report CardJune 2019

The Voice of the Private Sector to the Government and the People of Papua New Guinea

By 2022, the Business Council of Papua New Guinea intends to have progressively

addressed most of the priorities in the Dashboard for Development, contained in its Development Priorities for 2017-2022 Report

Delivering Against Priorities

2017

2018

2019

2020

2021

2022

Working groups created

Focus on Agriculture, Innovation and Productivity & Employment

Launching of the BCPNG Private Sector Strategy

2017-2022

Focus on Internet Pricing, PEP Participation, SDG

Dashboard, FIRA and Tax Submissions/Budget

1st Year to monitor, evaluate and improve

Papers on various key priorities completed

Measure impact of key priorities and explore areas

for further improvement

2nd Year to monitor, evaluate and improve

Working Groups

Energy Internet AgricultureGovernment & Regulation

Innovation

Sustainable Development Goals

Productivity & Employment

Creative Fiscal

Provision of Infrastructure & Basic Services Broadening the Industry Base

Energy Working Group

BCPNG PROGRESS IN WORKING GROUP

Electrification target of 70% by 2030

Electrification Partnership with Australia, New Zealand, Japan

and the United States Development of gas-fired

power stationsExpanding the role of renewable energy

Provide business views of the PEP

Continue key stakeholder

consultationsFormulate

ToR for circulation

TO DEVELOP STRATEGIES TO IMPROVE AND EXPAND ACCESS TO ENERGY IN PNG

ENERGY INDUSTRY HIGHLIGHTS

STATUS PROGRESS NEXT STEPS

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Donor funded study

on energy priorities

reflected in PEP

IPPs have good ideas for transmission

Independent Power Production

Biomass Power contributing 42MW

Energy Policy and RegulationClarification and clarity needed

Lack of information in relation to Generation Planning

Key Challenges

Transmission/ Grid Reliability

IPPs operating on two major gridsPort Moresby Ramu

IP3 the peak industry group representing the interests of IPPs in PNG

New EntrantsDirioNiuPower

Electrification target of 70% by 2030

Internet Working Group

BCPNG PROGRESS IN WORKING GROUP

Coral Sea Cable System set to be completed by Q4 2019

Kumul Domestic Submarine Cable to improve capacity in 15

coastal provincial capitals

SubCom to lay an undersea internet cable connecting PNG to Australia and Hong Kong

Focus on internet pricing

Prepare reports on

key areas of internet pricing

Business community to support Chair

to ensure affordable price

points

Internet pricing reports

to be tabled for board to

consider

TO DEVELOP STRATEGIES TO IMPROVE AND EXPAND TELECOMMUNICATIONS SYSTEMS AND SERVICES IN PNG

INTERNET INDUSTRY HIGHLIGHTS

Potential to reduce wholesale price by another 50% when the cable network

systems come online

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Agriculture Working Group

BCPNG PROGRESS IN WORKING GROUP

New processing and distribution depot for Highlands farmers to export PNG-grown vegetables

Plans to rejuvenate the coffee industry –partnership between IAI, ExxonMobil,

MRDC and Hela sub-national governments

K600 million allocated for Agriculture in 2019

Ilimo Dairy Farm producing commercial dairy products such

as yogurt and ice cream in 2019

Focus on providing

business and investment priorities

Prioritise recommendations

based on the 2017 Agriculture

Summit

Focus on Agri investment

and business development

Study to facilitate

agriculture investment

and business priorities in

Q4 2019

TO DEVELOP AN AGRICULTURE INVESTMENT FRAMEWORK

AGRICULTURE INDUSTRY HIGHLIGHTS

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Trukai Industries

Agri Summit Platform

STATUS PROGRESS NEXT STEPS

EMPOWERFARMERS to develop their land

Linking local farmers to production lines

FIRST LOCALLY GROWN commercial rice in PNG - HamamasRice

Research and collaboration with the NARI and UOT to grow resilient seeds

INFRASTRUCTUREHighlands Highway maintenance

Landowner LitigationLand registration and titles

Key Challenges

Reliable water and

electricity

Creating income for the community

Not just about RiceStock feeding crops

Providing sponsorship support

Government and Regulation Group

BCPNG PROGRESS IN WORKING GROUP

FIRA Act requires further review

Coordinating collective business

association support

Preliminary discussions

with relevant stakeholders

Ensure B2B engagement is proactive on information exchanges

TO ENSURE THE LEGISLATIVE & REGULATORY ENVIRONMENT IS CONDUCIVE FOR INVESTMENT AND GROWTH

GOVERNMENT AND REGULATION HIGHLIGHTS

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Collective voice in

B2G

FIRA Bill was withdrawn for review and consultation

The Foreign Investment Regulatory Authority Bill

(FIRA Bill) tabled in January 2019

Government published a consultative draft of the Investment Promotion

(Amendment) Bill to be tabled

The Amendment Bill introduces a new Foreign

Investment Register

STATUS PROGRESS NEXT STEPS

Innovation Working Group

BCPNG PROGRESS IN WORKING GROUP

Focus on providing

business and investment priorities

MSMEs to be supportive of

digital transformation – added value

post APEC 2018

Realignment of SME

Policy to a digital focus

Deloitte to promote

Innovation Agenda

TO DEVELOP AN INNOVATION DEVELOPMENT FRAMEWORK

INNOVATION HIGHLIGHTS

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Significant focus on encouraging innovation in the MSME space

through TechLabs and other forums

Improved digital connectivity will provide significant

opportunities for digital-related innovation in PNG

Emphasis on Innovation Expos, incubators and hubs across a

range of industries

Increased opportunities for use of big data and AI for

improved business outcomes

74% use

Facebook<5% useTwitter, YouTube & Instagram

Innovation in a Digital Age

90% of internet usage is via

mobile devices

Coral Sea Cable will deliver

1000 times our current capacity

Low % with access to Bank accounts, electricity and identity docs

Low literacy rates and little digital information in tok pisin or tok ples

PNG has the opportunity to

leapfrog into the digital era

10% of population has access to the internet

The Opportunity

High cost of data and

unreliable connectivity

Where are we now?

Opportunitiesfor Mobile Social, Cloud, eCommerce, Government and capacity development

Innovation in a Digital AgeMobile Social

Need to view initiatives through a ‘mobile first’ lens

Mobile and social must be key elements of any digital strategy

Social technologies can be leveraged for workplace productivity and collaboration

eCommerce

New opportunities for eCommercecapability

Trust in technology will need to increase

Must address logistics and despatch challenges

Develop new capabilities around digital marketing, online branding and search engine optimisation

Digital Capability

Must quickly build digital capability and knowledge to leverage the new era

Shortage of people with digital capacity currently employed in the economy

Leveraging the tech-savvy youth population to support business, government, health and education

GovernmentCloud

Reduced costs compared to licencing and infrastructure solutions

Strategic value in reduced time to market, scalabilityand innovationand agility in service offerings

Levels the playing field, paying only for what and when you need

Online portals and transactions will have a significant impact on cost and productivity

Improved interactions between Government and its citizens

Strong policy underpinning digital will be essential

A Call to Action – Immediate Focus Areas

Maximise the benefits of the digital era by ensuring data prices fall in line with increased capacity and reliability

Embrace the use of digital by Government when interacting with staff and citizens

Leverage digital as part of the education system, in accessing educational materials and resources, and building digital capability in students and teachers

Innovation in a Digital Age

With the digital era dawning in Papua New Guinea, a new world of opportunity awaits and the benefits will accrue to those who take action.

PNG BusinessCoalition4SDGs

BCPNG PROGRESS IN WORKING GROUP

Synergy and PPP of the dashboard to contribute to the PNG

development narrative

All companies encouraged to take up social responsibility

Redesign of current platform

to encourage stronger business

participation

Consultation with SDG

Working Group members on features of Dashboard

TO ENCOURAGE BUSINESSES TO SUPPORT ACHIEVEMENT OF SDGs

PNG BUSINESSCOALITION4SDGs HIGHLIGHTS

Pacifika Women Network (PWN) launched its Strategic Business Plan 2019-2024

with nearly 100 trade stalls planned

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working with GoPNG to link the PNG SDG platform to

MTDP3

The first ever online dashboard showcasing the contribution of

business to the SDGs

STATUS PROGRESS NEXT STEPS

EMPOWERPEOPLE to make better decisions about Their money

Financial Inclusion

Business Devskills tailored for micro (SME) environment

Since 2014 BSP trainers have trained up to

120,953participants

2019 Launch

e-Book on Instagram

Need INFRASTRUCTURE

Need

reliable electricity to utilise technology

to reach the rural and remote communities

120 CERTIFIED TRAINERS throughout all BSP Branches in PNG.

Key Challenges

Facilitated Trainings

are FREE

Productivity & Employment

BCPNG PROGRESS IN WORKING GROUP

Local skill shortages are a barrier to growth according to research in 83

percent of firms

1.6 percent growth in total employment according to BPNG’s employment index

Working Group

identified three core focus areas

Undertake study to

progress each focus area –

Q4 2019

Ensure three focus areas have

appropriate leads

TO IDENTIFY AND IMPLEMENT THE ENABLERS FOR A SKILLED AND PRODUCTIVE WORKFORCE IN PNG

PRODUCTIVITY & EMPLOYMENT HIGHLIGHTS

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Pre-employment, Workplace

Relations and Post-Employment

Preliminary discussions to establish

priorities

Establishment of PNG’s first SME Business Incubation

Training Centre

Retirement age to be set at 60 years old – expected 7000 people

to be affected by March 2019

STATUS PROGRESS NEXT STEPS

Key initiativesTVET, MARITIME CADETS, SECONDARY EDUCATION

Pre-EmploymentSkills Development

Prioritised selection

on communities in project footprint,

District and Gulf Province

Engaging Local Businesses

Building local

business capacities

Physicalinfrastructure and inaccessibility Communications

infrastructure and network

Key Challenges

Employment of

localsa keyrequirement

Focus on training

and recruitment

Key primary services such

as health and education

Creative Working Group

BCPNG PROGRESS IN WORKING GROUP

Proposed new group to advance

MSMEs

MSMEs to support WG –public policy to align with

key issues

Key issues include

intellectual property and value chain

support

Donor funding

support for study on key

issues

KEY HIGHLIGHTS

The Intellectual Property Office of PNG has launched

its website in 2017

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The SME Policy states that SMEs are expected to grow

to 500,000 by 2030

Government recognises that SMEs are ‘the engine’ of

the private sector

Only around 6 percent of (SMEs) active in export

markets

STATUS PROGRESS NEXT STEPS

TO ADVANCE MSMEs IN THE CREATIVE SPACE

Bilum Meri

Women who produce bilums for a living deserve recognitionfor the skills they possess

No consultations andinclusive dialogue

with bilum creators

Threats toauthentic

Advocator on the impact ofFAKE BILUMSon PNG women and PNG’s iconic bilum

Key ChallengesNo clear direction and action taken to address concerns of fake bilum imports

cultural practices

in PNG

Imported bilums are potentially damaging

to local bilum weavers (source of income)

Should be protected

by the National Government

Fibre Artist Florence Jaukae Kamel is a Bilum Creator, International ExhibitingFibre Artist

Developing a platformand providing support to women in EHP (and PNG) to create a market

Fiscal Working Group

BCPNG PROGRESS IN WORKING GROUP

Proposed new group to advance

Quarterly Business Report

Roundtable

Quarterly Business Report Roundtable to

align with fiscal policy issues

and tax

Issues divided into Tax Policy, Administration and Technical

Facilitate meetings and draft outcomes to DoT and roll out

advocacy to relevant platforms

KEY HIGHLIGHTS

Removal of GST zero-rated status for supplies to resource

companies

Tax Administration Act (TAA)gazetted in 2018 remains subject to

the provisions of the existing Tax Acts

An increase in the personal income tax-free threshold

2019 revenue is principally funded from tax revenues

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TO BUILD ON THE QUARTERLY BUSINESS REPORT ROUNDTABLE, ALIGNING WITH FISCAL POLICY ISSUES AND TAX

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