MITI and superfunds to enter into a strategic partnership

Minister for International Trade and Investment Richard Maru (Third left) with representatives of various superannuation funds (Image: Supplied)

The Ministry of International Trade and Investment [MITI] will be entering into a strategic partnership with the superannuation funds to raise capital to invest in Special Economic Zones and national transformational projects like the planned acquisition of shares in the Ramu Agri Industries.

This was discussed in a meeting this morning between the Minister for International Trade and Investment, Richard Maru, and the CEO of Nasfund & Chairman of Pacific Island Investment Forum (PIIF), Rajeev Sharma, on the margins of the PNG Investment Week in Sydney.

“My Ministry will partner the superannuation industry of PNG and the Pacific by entering into a Memorandum of Understanding [MoU] with the PIIF.

"The Marape-Rosso Government do not want only the foreign companies to benefit from tax incentives but also want Papua New Guinean companies to invest and when our superfunds invest, they are investing on behalf of thousands of our citizens, so it is very important that we sign this MoU in January,” said Minister Maru.

Sharma said the MoU will be drafted and will be ready for signing in January next year for investment drive.

Plans to reform the Capital Market of PNG was also discussed in the meeting.

“We want to look at how we can provide tax incentives for companies right across the world to list on our stock market so more financial products will be offered on the market for our domestic investors.

"Our citizens are currently spectators in their own country and are only getting 1.5 percent interest by investing in the commercial banks when they could be earning 10 to 15 percent in return of investment from investing in a stock market," Maru confirmed.

"We also want to rebrand, rename and list the Pacific Balanced Fund to reflect PNG ownership for massive funding drive in the new year.

"We will host a Capital Market Summit in PNG next year where we will discuss this and also learn from other countries like India where everybody is involved buying and selling on the stock market,” he added.