Are these Investments really helping the bulk of Papua New Guinea let alone the Melanesian people ? How much tangible rural development can be seen ? Is the infrastructure really reaching our rural population, roads, bridges, schools, health centres? People struggle to bring their coffee beans, their kaukau bags and their vegetables to sell in towns and yet our MSG members argue for better connectivity with a MSG Travel Card. Who is this investment for ? Which Economy is growing?

Source: PNG Loop

Despite a low volume trading of goods among the Melanesian Spearhead Group countries, they have seen some significant increase in foreign direct investments among themselves and the potential is there for future growth.

Deputy Prime Minister Leo Dion, when officially opening the Trade Ministers meeting today, told them that PNG offers much new and exciting foreign direct investment opportunities especially in the services, tourism, manufacturing and fisheries sector like the proposed Pacific Marine Zone for the MSG private sector or state investment opportunities.

“We in PNG are committed to greater MSG integration and even more MSG trade and investment. However, we fully recognise and respect that this is a sensitive issue and we sincerely recognise the serious economic challenges each of our members face and your state of readiness to even consider serious integration as a common sub regional trading block,” Dion told the ministers.

He said after 21 years of trading under the MSG Trade Agreement, PNG still had not achieved key outcomes like;

-          Agreeing on a fixed deadline to have an MSG Free Trade Area (FTA);

-          Double tax incentives (only Fiji and PNG have a double tax treaty); and

-          No Investment Promotion and Protection agreement.

“We have failed to make even travel for our businessmen and women easier in terms of connectivity because we still do not have a MSG TravelCard 21 year similar to the APEC Card.”

These are some of the issues that will be raised and discussed among the ministers in their meeting.