Photo credit: International Trade and Investment Ministry of Papua New Guinea Facebook Page
The Minister for International Trade and Investment, Hon. Richard Maru who is the Minister responsible for the capital market of Papua New Guinea along with its regulator the Securities Commission of Papua New Guinea (SCPNG) said the capital markert will see major reforms over the next few months to modernize the capital market and improve governance in the industry. Minister Maru said that these reforms are critical as the Marape-Rosso government sets out to grow the capital market in Papua New Guinea as a key vehicle to mobilize domestic capital for critical investments in helping the government grow the economy of the country.
“While our government is going all out to attract direct foreign investors, we must develop our domestic capital market to be a major source of capital raising in the domestic market. The government needs to attract more PNG institutional investors in many of our large investments in our proposed Special Economic Zones in the country,” said Minister Maru.
Work has already started with the assistance of the Australian Government who have engaged ADB at the cost of K1.3 million to assist the SCPNG by way of technical assistance. The reforms will be broad and will cover the following areas including SME capital raising platforms, equity crowd funding, debt securities issuance, and reforms in many schemes.
The Securities Commissions Act is being reviewed with major changes to include the complete separation of the Board and Management of the Commission where no longer will we have an Executive Chairman. The Board and Management functions and powers will be defined clearly by the amended legislation in 2023.
“Due to the public confusion of the name of the Securities Commission over security companies, even the name of the regulatory body, the Securities Commission will be reviewed,” said Minister Maru.
Minister Maru has also written to the Acting Chairman of the SCPNG, Mr. James Joshua and asked him to remove all stock brokers or market intermediaries to have any shareholding in the Port Moresby Stock Exchange. Their shares should be sold to Papua New Guinea shareholders who have no conflicts as market intermediaries in the capital market in Papua New Guinea. They have three months to share sell their shares as part of the Marape-Rosso government’s clean-up of the capital market under the reforms of the capital market our government is instituting.
“We are keen to develop a world class capital market in Papua New Guinea. We have advertised globally for Directors who will be on the Board of the Securities Commission and for the appointment of a very qualified and experienced CEO for the Securities Commission,” said Minister Maru.
The new Board and CEO will be appointed early in the New Year, 2023 to fill these critical positions.
“These reforms are aimed at making sure the PNG capital market is robust, agile and risk free and we are able to secure and maintain investor confidence for capital formation,” said Minister Maru.
