Photo: Reg Monagi
According to Reg Monagi, chairman of Nambawan Super Ltd (NSL), global inflation is increasing swiftly and rising living expenses.
It was one of the difficulties experienced this year, according to Monagi, who spoke at the NSL employers' conference in Port Moresby.
“The global market has been volatile as (it) reacts to the Ukraine-Russia conflict, resulting in (shortages of) fuel and now food,” he said.
“Global inflation is rising quickly, meaning (that) the cost of living is increasing as you may all be aware.
“Not long ago, you go to the shop to spend K300 to buy goods for one week.
“Now you have to spend something like K1,000.
“So I am sure you can feel that.”
The government-imposed market concentration charge on the BSP Financial Group, according to Monagi, was one of the biggest problems the NSL had to deal with. “After considering BSP’s price-to-earnings ratio, the result value erosion from the levy, it is estimated at in 2022 alone, the members crediting rate may be reduced,” he said.
“The NSL will continue to work with BSP and other stakeholders and industry players to see what the outcome can be.”
Some of the present issues, according to Paul Sayer, chief executive officer of NSL, revolve around the "current economic climate."
“What you are seeing is not only in PNG but around the world is high inflation,” he said.
Sayer gave as an example the cost of a can of Coke.
“It used to be K2. (It’s now) K2.50 – if you get it at a retail shop,” he said.
“I hate to think what they are charging on the streets.
“But that is almost 25 per cent inflation.”
Reference: The National (27 June 2022). “Inflation surging: Official”.
