SECURITY and law and order issues topped the list of major concerns for businesses in Papua New Guinea, according to results of a survey out by Business Advantage PNG.
This supports what the Port Moresby Chamber of Commerce and Industry has been continuously saying.
The top 10 critical issues affecting businesses surveyed were security-law and order (4.37%); unreliable utilities (4.11%); shortage of expertise/skills (4.09%); logistics (3.89%); high employment costs (3.86%); lack of government capacity (3.83%)’ high real estate rental costs (3.83%); inflation (3.49%); competition (3.34%) and government red tape (3.29%).
“Top of the list were security and law and order concerns, with every company we surveyed ranking them as either ‘very important’ or ‘mission critical’ to their business,” Business Advantage PNG said yesterday, when announcing results of its PNG 100 CEO Survey 2013.
“This is a similar result to last year’s survey, suggesting the situation is not improving.
“PNG’s widespread skills shortage may be getting slightly less chronic, however, as last year’s top issue was rated slightly lower by companies in this year’s survey.
“It is now in third place behind the unreliability of PNG’s state-owned utilities, which received a similar rating from CEOs as it did last year.
“Corruption received a marginally lower rating this year for its impact on business, as did access to overseas markets, government red tape, high real estate rental costs, lack of available office and warehouse space, and lack of market research-intelligence.
“Meanwhile, competition, access to capital, lack of available land, lack of government capacity and high employment costs received a slightly higher rating in this year’s survey.
“Another issue canvassed by some respondents, particularly those involved in manufacturing, was the impact of lowering tariffs.
“Finally, last year we asked CEOs about their concerns surrounding PNG’s 2012 national elections.
“Most weren’t that worried about the possible disruption to their businesses, despite some sensationalist headlines in the media.