Photo: Minister for International Trade and Investment, Hon. Richard Maru
The Marape-Rosso Government has directed the Securities Commission of Papua New Guinea (SCPNG) to work with all key stakeholders like Asian Development Bank (ADB), Bank of Papua New Guinea (BPNG), Port Moresby Stock Exchange, and all capital market players to immediately formulate a new 10-year Development Plan for the Capital Market of Papua New Guinea (PNG). The aim of this plan is to ensure that PNG has a world class capital market that is internationally respected and recognized by having a market structure, and regulatory and governance structure that meets the highest world standards.
“This is essential to attract investors to bring more capital into the market and allow us to provide more products and services using the capital market in Papua New Guinea,” said the Minister for International Trade and Investment, Hon. Richard Maru when issuing the directives today.
Minister Maru said the initial consultation will take place on Monday, May 22, 2023, in a one-day PNG Capital Market Summit.
“The aim of the Summit is to bring together experts from around the world including our development partners, ADB, and International Finance Corporation (IFC), and the Financial Market Authority of New Zealand,” said Minister Maru.
“We want the capital market to grow exponentially to the point where all foreign listed companies who buy into or operate and profit from PNG to have secondary listing in the PNG National Stock Exchange. This includes companies like Telstra from Australia who recently bought Digicel. Our Government is now looking at a law or policy where all such investors cannot buy or operate in Papua New Guinea without first listing in our local Stock Exchange,” said Minister Maru.
Minister Maru also added that to attract such listing, PNG must also get its act together and develop a world-class capital market and Stock Exchange.
“The new proposed capital market Development Plan will be formulated with the input of industry and international experts. I would like the plan to be finalized and be ready in the third quarter of this year for presentation to the NEC and to Parliament. We cannot as a country sit back and allow other people only to benefit from our resources and business opportunities. By listing in our Stock Exchange our people can trade in the market and become owners of these businesses that operate and profit from our resources and from our country,” said Minister Maru.
Minister Maru said the Government, in the June session of parliament, will introduce critical amendments to the Securities Commission Act of 2015 and the Capital Market Act of 2015 to begin its reform process.
“We will also be announcing the new Board and Management to the Securities Commission of Papua New Guinea after the amendments of the two respective legislations to improve the governance structure of the Securities Commission,” said Minister Maru.
