Figures presented by the Investment Promotion Authority at the 2015 PNG Advantage Investment Summit show a ten-fold increase in the number of foreign companies registering in Papua New Guinea over the past decade.

The IPA’s Alex Tongayu

As one of the fastest growing economies in the Asia-Pacific region over the last decade, Papua New Guinea has become a business outpost for an abundance of new foreign companies, according to Investment Promotion Authority (IPA) figures.

The number of foreign companies investing in PNG has this year grown to 3,794, a massive increase from the 303 firms that had a presence in the country in 2004.

Australia, China and Malaysia continue to produce the most companies investing in PNG after also leading the way in 2004, the  IPA’s Registrar of Companies, Alex Tongayu, told the Summit.

‘The appetite for new investors in PNG has been on the increase in the last 10 years.’

In total, companies from those three countries make up more than 68 per cent of the foreign entitles currently investing in PNG, a rise from 63 per cent in 2004. Just over one-third, or 1121 companies, are from Australia.

Asia, however, is the leading region from which the companies originate, making up almost 55 per cent. Australia/New Zealand, with 31.5%, was the second leading region.

Leading industry

Construction is the top sector for foreign investment in PNG, with more than K6.4 billion proposed for the industry in 2013, the presentation outlined.

The financial (K5.17 billion), manufacturing (K4.73 billion) and mining (K2.83 billion) sectors were other sectors earmarked to receive substantial investment from foreign entities in 2013.

‘The appetite for new investors in PNG has been on the increase in the last 10 years,’ Tongayu explained.

His presentation reported that there were 337 new investors approved in various industries in 2014, while existing investors made 190 variations to expand their businesses into new areas.

 Foreign investment in 2013: K26.125 billion

Leading sectors

Construction                         K6.42 billion

Financial                               K5.18 billion

Manufacturing                      K4.73 billion

Mining                                    K2.83 billion

Transportation                     K1.55 billion

 

Top investment in PNG by region

Region                                   Companies

Asia                                      2084    54.9%

Australia/NZ                       1197    31.5%

Europe                                   214      5.6%

Pacific                                    134      3.5%

North America                      79        2.1%

 

Largest investors by country

Year               2004    2015

Australia       109      1121

China              43        913

Malaysia       39        584