Business outlook remains challenging

The findings of the H1 2016 PwC PNG Business Barometer Survey show that 79% of the respondents are not optimistic that they can improve their business results. They said that the outlook over the next six months will remain challenging.

Many respondents also said that they are now implementing a number of initiatives to improve business performance or at least stem losses. While reducing headcount is among these, business leaders are also exploring other initiatives. 

The lack of foreign currency was also identified as the single biggest impediment to business growth. A majority of the respondents said that this issue had adversely impacted their business and impeded growth. 

When asked what changes they want to see to create an environment conducive to investment and growth, the respondents said the following:

• Address fiscal challenges and communicate the strategy for doing this
• Tackle foreign currency availability issues 
• Create a more investor-friendly framework against which proposed policy changes should be evaluated 
• Engage early with business on proposed policy and legislative changes to minimise shocks to business and the economy
• Address corruption, improve governance and enforce value for money procurement
• Reduce cost of the public sector, improve service delivery of State-owned enterprises or co-opt the private sector 
• Address infrastructure needs based on a clear prioritised plan
• Get serious about law and order