Photo: State Enterprises Minister William Duma
State Enterprises Minister William Duma has acknowledged that the state of the economy is a result of global events beyond the government's control. In his words, "We have just come out of a global pandemic, an ongoing war in Europe between Ukraine and Russia, and an increase in the price of oil and gas globally. All these are contributing factors to the situation our country is facing... The government is doing all it can to navigate the country through this challenging time, but it can only do so little. It needs the support from all citizens, stakeholders, and business houses to drive the country forward."
Duma has pointed out that other countries are facing similar or tougher circumstances than PNG. He also noted that PNG has yet to resort to printing more money, which has kept inflation in check. According to him, "We are still way above the inflation line, and that should be a good motivation for people to be optimistic about the future instead of panicking."
In response to the temporary closure of operations by Lae Biscuit Company, Duma expressed sympathy for the company and assured that the government would provide a response. He recognised the company's significance as one of the largest employers in the country. Duma maintained that the rising prices of goods and services are part of the measures taken to stabilise the economy, and expressed confidence that the closure of Lae Biscuit Company is temporary and that it would resume production. He said, "I believe the closure is temporary, and Lae Biscuit Company will come back to production. But this and many other issues happening across the country are all noted while we (Government) work on the best possible ways to ensure our economy is operational and that the Government can still deliver to the people."
However, recent reports indicate that the company's chairman, Ian Chow, has warned that the company might consider moving offshore if the government does not intervene. Duma assured that Prime Minister James Marape was aware of the situation and would address it. He said, "The government will give its response to this situation this week... The Prime Minister is aware of the closure, and we will address the issue."
