A prominent businessman has raised alarms over the state of Papua New Guinea's economy, indicating it is on life-support as at least two major manufacturing companies have reduced their workforce and cut back on working hours. Ian Chow, Managing Director of Lae Biscuit Company Limited, confirmed that his company has reduced working hours, instructing employees to work only four days a week instead of the usual five. Similarly, Paradise Foods Limited is reportedly operating only one production line and has laid off workers. "Expiring stocks from all manufacturers across the country show that the economy is on life-support now," Chow stated, emphasizing that the current economic situation is unprecedented in its severity. He added, "On the other hand, you have cheap dumped imports coming into our country, replacing our local competitions, killing us all."
In a related commentary, Paul Barker, Executive Director of the Institute of National Affairs, noted that many people are experiencing significant hardship. Barker criticized some of the Government's policies and programs, suggesting that they have exacerbated issues or failed to address the challenges faced by ordinary citizens. "Business and investment generate jobs and revenue, and they largely seek stability to plan and forecast returns, minimizing risks on major investments," Barker said. "Uncertainty drives up risk, discourages investment, and causes businesses to hunker down or even withdraw if they're not gaining a return." He further highlighted the burden of inflation on urban residents with fixed or low incomes, stressing that many are already struggling. "Some can pass on increased costs in increased prices of products they sell, but most cannot," Barker noted. He pointed out that while the population is steadily growing, the economy and opportunities have long been relatively sluggish, providing little economic fallback for households. The statements from Chow and Barker paint a grim picture of Papua New Guinea's current economic landscape, underscoring the urgent need for effective measures to stabilize and revitalize the economy. Also read Comments are closed.
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