To ensure industrial development accelerates
efficiently, the Papua New Guinea Government
is revising its trade and tariff policies.
Substantial changes in those policies is
alleviating the problems the industry has
experienced, such as the high cost of inputs.
Coupled with the concerted effort being
applied to improving the country's physical
infrastructure, education and vocational
training opportunities and health services,
there are potential investment opportunities
in downstream activities.
These infrastructure improvements and lowering
of input tariffs greatly reduces production
costs. Industry has been urged to adopt
cost-reducing, efficient techniques on the
factory floor and within management, to
prepare itself for foreign competition when
protective tariffs are greatly phased down.
The sector has a close working relationship
with the Government. A strong representative
body exists in the Papua New Guinea Council
of Manufacturers. There is regular consultation
between its members and key senior government
departments and statutory bodies. The Chamber
also deals with private sector organisations
in negotiating better prices for the supply
of goods and services.
A manufacturing database is being developed
for both the Government and manufacturers
to facilitate collection, collation and
cross-referencing of essential statistical
data on manufacturing in Papua New Guinea.
It will be used to highlight to the Government
and industry, any systems defects, deficiencies,
anomalies or requirements which are in need
of attention. Overall, it will help to improve
industry through the provision of improved
and timely information.
The database is also expected to boost
domestic and export marketing and facilitate
identification of alternative sources of
The level of skills in the manufacturing
sector is also being given special attention.
Organisation and planning for a major, long-term
vocational training programme is near completion.
It is intended, initially to concentrate
on the manufacturing and processing industries,
but provisions will be made to extend its
usefulness to other sectors.
It is vital to the sector to improve the
quality of its products, increase its export
opportunities and improve the nation's standard
of living through employment opportunities,
product quality and pricing.
In co-operation with the domestic manufacturing
sector, the Government of Papua New Guinea
has put into place strong policies which
will lead to the development of a strong
domestic production base to replace reliance
on the non-renewable resources industries
such as mining and petroleum. The Government
seeks to generate greater domestic production
of most basic consumer and industry needs.
As such incentives and concessions are granted
to businesses with a policy of import substitution.
At present, Papua New Guinea imports almost
all processed food, clothing and footwear.
Most inputs to industry and commerce are
also imported, so there are many opportunities.