To combat the economic impact of the coronavirus pandemic, Treasurer Ian Ling-Stuckey is exploring additional funding for small and medium businesses.
“This latest and very severe wave of COVID-19 is having very serious impacts across all of Papua New Guinean society,” he said. “We are not only fighting it to save precious lives, but we are also trying to save businesses, jobs and the domestic economy.
“The Marape Government is taking a balanced, whole-of-society approach to protecting the nation, and values suggestions from business and commerce.”
During a recent meeting with members of Micro and Small to Medium-sized Enterprises, Ling-Stuckey said his team obtained advice on a variety of support programs, adding that MSMEs should be included in the discussion as soon as possible to ensure the government has reliable details while planning a second economic stimulus package.
In April of last year, Ling-Stuckey unveiled a K5.6 billion economic stimulus package in response to the country's first coronavirus outbreak. Follow-up steps and extensions to current assistance are now being considered.
Des Yaninen, the president of the MSME Council, provided Treasury with a 15-point list of recommendations. These are some of them:
- A recommendation that banks impose a moratorium on SME loan repayments;
- More clarity from the NDB and the BSP on MSME funding;
- Penalties for late filing of annual reports to the IRC and IPA will be waived.
- Recognize the importance of keeping companies running at their best;
- Domestic tourism interventions;
- Commodity boards to provide extension assistance for agricultural MSMEs;
- Waiving provincial and municipal licensing fees;
- Providing benefits to landlords to enable them to extend a grace period to MSMEs who are behind on their office rent; and
- Ensuring transparency and consistency in MPs' use of coronavirus funds in 2020.
The MSME Council expressed gratitude to Minister Ling-Stuckey for listening to input and expressed interest in assisting the Marape Government in developing a fair package for MSMEs.
“Treasury will now consult with other stakeholders before finalising a second economic stimulus package to respond to the second COVID-19 wave,” Ling-Stuckey said.
