BCPNG Market Conditions Survey (Q4, 2020)

May 14, 2021

Introduction

The information presented in this report is based on data gathered from an online survey conducted by the Business Council
of PNG, with assistance from PwC, from 20 January to 19 February 2021.

Therefore, the findings are only reflective of the experiences of the respondents and may not mirror the experiences of other
industry players that were not able to participate in the survey.

Where possible, the data gathered from this survey was compared to the findings of the first and second market conditions
survey that the BCPNG conducted in May and August 2020, respectively.

The questions were both open ended, which required a free text response, as well as multiple choice questions. The survey
questionnaire was sent to respondents using an online survey tool, and the data gathered was analysed and organised by
responses into themes. The responses were gathered on a confidential basis and the responses have not been audited or
validated.

Key Findings

A majority of businesses continued to experience financial decline through to the end of 2020. At least 60% did not meet
their projected results for Q4 2020. 69% of respondents have reported a decline in their 2020 annual revenue compared
to the previous year.
Despite the continued trend of financial decline, business leaders in PNG are showing a hint of optimism when it comes
to their short-term business prospects. 44% are expecting revenue growth in the next six months while 25% are
expecting revenue decline. This is a significant improvement from the previous quarter when only 9% anticipated
revenue growth in the next six months and 74% anticipated revenue decrease.
Survey findings also show that there are less businesses th犀利士
at reduced their headcount in Q4 2020 compared to Q2.
Furthermore, 82% of respondents do not intend to reduce their employee headcount in the next three to six months.
Reduced consumption and market demand remains to be the top challenge that businesses face. Aside from financial
and productivity challenges, respondents also say that the lack of foreign currency and the inability to get the right skills
in-country at the right time remain a business impediment.
70% of the respondents are now able to operate in the current environment for more than 12 months. This is a continuous improvement from Q2 and Q1 when only 51% and 35%, respectively, of the business leaders surveyed were able to operate in the current environment for more than 12 months.
Close to a year after the announcement of the Government’s stimulus package, it is still yet to create a positive impact on the respondents’ businesses, with 59% rating the stimulus package as ‘not effective at all’.
To boost business recovery and to create an environment that will foster growth and investment, respondents believe that the Government should focus on accelerating resource projects, restoring investor confidence and resolving foreign investment issues, as well as settling debts to the private sector.

BCPNG Market Conditions Survey Q4 2020

Survey of PNG market conditions during the fourth quarter of 2020.

PDFOpen

The Business Council of Papua New Guinea (BCPNG), in partnership with the United Nations Development Programme (UNDP) through the European Union-funded Preventing and Countering Corruption in Papua New Guinea Project, brought together leaders from the judiciary, private sector, government, civil society and development partners for a series of engagements focused on strengthening trust, institutional integrity and confidence in Papua New Guinea’s business environment.

The engagements began on 18 August 2026 at the Hilton Hotel in Port Moresby with the Chief Justice’s Business Breakfast, followed by Private Gavamani Konekt 3 (PGK3). The programme continued on 20 August with a workshop focused on practical tools for strengthening business integrity in the private sector.

Together, the events created a platform for discussing how justice, governance, integrity and innovation intersect with business confidence, investment and sustainable economic development in Papua New Guinea.

Chief Justice’s Business Breakfast: Strengthening Confidence Through Justice and Integrity

Held under the theme “Justice, Integrity and Innovation: Strengthening Markets and Governance in PNG,” the Chief Justice’s Business Breakfast placed the role of strong and trusted institutions at the centre of the discussion.

Chief Justice Sir Gibuna Gibbs Salika highlighted the importance of the rule of law, judicial integrity and institutional confidence in supporting economic activity and national development.

His remarks reinforced the importance of businesses and investors being able to operate in an environment where laws are predictable, contracts can be enforced and disputes can be resolved fairly and efficiently.

The Chief Justice also reflected on continuing reforms within the justice sector, including improved case management, judicial education and the growing use of technology.

Emerging issues such as artificial intelligence, digital evidence, privacy and cybersecurity were highlighted as areas requiring careful consideration as PNG’s justice system and wider economy continue to evolve.

A key message from the breakfast was that innovation must strengthen access to justice, transparency and efficiency while preserving fairness, accountability, judicial independence and sound human judgement.

The discussion also reinforced the connection between strong institutions and the confidence required for investment, commercial activity and long-term economic growth.

PGK3: Connecting Justice, Governance and the Business Environment

Following the breakfast, PGK3 expanded the dialogue through five focused sessions examining issues increasingly important to both government and the private sector.

The forum covered financial crime, anti-money laundering and economic integrity; artificial intelligence, digital evidence and the future of justice; land, the green economy and environmental justice; judicial reform, security and investor confidence; and arbitration, mediation and alternative dispute resolution.

Participants explored how stronger information-sharing, transparency and institutional coordination can contribute to more trusted and resilient markets.

The discussions on financial and economic integrity highlighted the importance of reliable systems, corporate transparency and collaboration between regulators, government agencies and businesses.

Technology also featured prominently throughout PGK3. As more government, financial and commercial systems become digital, the forum recognised the growing importance of cybersecurity, data integrity and responsible approaches to emerging technologies such as artificial intelligence.

The land and environmental justice session considered the need to balance economic development with customary land interests, environmental stewardship and the long-term sustainability of PNG’s natural resources.

Investor confidence and commercial justice were also central themes. Participants considered how efficient judicial processes, predictable regulation and stronger dispute-resolution mechanisms can reduce uncertainty and support a more competitive business environment.

The forum also highlighted the role of mediation and arbitration as practical mechanisms for resolving commercial disputes, potentially reducing delays, transaction costs and pressure on the courts.

Across the discussions, a consistent message emerged: improving PNG’s business environment is not simply about introducing new policies or institutions, but ensuring that existing laws, systems and institutions work effectively and consistently.

Business Integrity Workshop: Moving from Dialogue to Practical Action

The week’s engagements continued on 20 August with the Workshop on Practical Tools for Strengthening Business Integrity in the Private Sector.

The workshop, delivered through the EU-funded PNG Anti-Corruption Project in partnership with UNDP and BCPNG, focused on practical approaches businesses can use to strengthen ethical conduct, compliance and organisational integrity.

Participants examined PNG’s existing anti-corruption framework and considered how private sector organisations can strengthen internal governance and reduce corruption risks.

The workshop also explored a proposed model approach to business integrity, including principles around transparency, accountability, ethical conduct, fair competition, information integrity and responsible engagement with communities.

Whistleblower protection was another important area of discussion, alongside the importance of clear reporting processes, confidentiality and organisational systems that encourage concerns to be raised safely and appropriately.

A strong emphasis was placed on prevention—through education, awareness, clear procedures, ethical leadership and stronger internal systems—rather than relying solely on investigations after misconduct has occurred.

The workshop also provided an opportunity for businesses and stakeholders to contribute practical feedback on how integrity tools could be applied within Papua New Guinea’s private sector.

Building Stronger Institutions Through Collaboration

Taken together, the Chief Justice’s Business Breakfast, PGK3 and the business integrity workshop demonstrated the value of sustained dialogue between the institutions and organisations that influence Papua New Guinea’s economic environment.

For BCPNG, these engagements are an important part of connecting the experiences of businesses with the institutions responsible for justice, regulation, governance and national development.

By bringing the judiciary, private sector, government, civil society and development partners into the same conversation, BCPNG continues to provide a platform for constructive engagement on issues that directly influence business confidence and investment.

The week’s discussions reinforced a clear principle: stronger markets depend on trusted institutions, effective systems and a shared commitment to integrity.

BCPNG will continue to support Government-to-Business dialogue and practical collaboration that contributes to stronger governance, responsible business practices and sustainable economic growth in Papua New Guinea.