Minister for International Trade and Investment, Hon. Richard Maru will arrive in the country tomorrow morning after what he described as a very successful and satisfying trip. Minister Maru and his small delegation started the travels by joining Prime Minister James Marape and the East Sepik Governor Allan Bird to attend the funeral of the Former Prime Minister of Japan, Late Shinzo Abe and together they also met the current Prime Minister of Japan, Mr. Fumio Kishida.
While in Japan, Minister Maru took the time to meet with the CEO and Chairman of Japan Development Institute (JDI), Dr. Shoichi Kobayashi who expressed JDI’s keen interest to come to PNG and help develop a new Special Economic Zone Master Plan for the country. A team from the JDI is expected to arrive in PNG at the end of this month (October) for a ten-day trip around the country to begin work on the proposed Master Plan of the Papua New Guinea Special Economic Zones.
“All over the world SEZ developments have either failed or have been very successful, so getting the expertise and experience of JDI at the infant stages of our SEZ developments is very critical to ensure we develop our planned SEZs very successfully based on world best practice and experience. A Master Plan formulated with guidance and experience from very highly respected global experts like JDI who have assisted many countries like China, the Philippines, Laos, Bangladesh, Tanzania and Indonesia will also win the support of financiers like the World Bank, Asian Development Bank (ADB) and JICA,” said Minister Maru.
“My Ministry stands ready to lean on the expertise of JDI to help us chart a Master Plan and implement SEZ development right across PNG, starting with the PMIZ in Madang,” he said.
The Tokyo trip was followed by a trip to Singapore where Minister Maru met with the Trade and Industry Minister of Singapore, Mr. Kim Yong Gan where they discussed and agreed that the two countries need to have a stronger relationship. The two countries do not have a Trade Agreement so this will be high on their agenda. Minister Maru also notified Mr. Gan during the meeting about the establishment of PNG Trade Mission in Singapore early next year.
“We want the ASEAN member states to be the heart and soul of our future in terms of trade and investment because Asia is where the growth and the future is and we need to be located right in the heart of Asia, which is Singapore,” said Minister Maru.
“We are looking at hosting a big Trade Fair in Singapore next year once our Trade Mission is established,” he said.
Singapore has also agreed to support PNG in its effort in setting up its first casino in the country and to also support PNG’s Securities Commission and Capital Market through its aid program. Minister Gan also said that Singapore buys its chicken from Brazil and other supplies from all over all the world. Now it wants to buy more from PNG
In the trip to the Philippines, Minister Maru met with the Secretary for the Department of Trade and Industry of the Philippines, Mr. Alfredo Pascual. It was agreed that the two countries have a long relationship, yet they had not formalized the relationship with Trade Agreement or an Economic Partnership Agreement. This will be high on the agenda of the two countries. It is also a concern that the Philippines Government provides on-arrival visa for Papua New Guineans travelling into Philippines whilst PNG does not provide the same.
“The PNG Government needs to look into also providing on-arrival visa for the Filipinos travelling to PNG so we can have more people to people contact between the two countries,” said Minister Maru.
The two countries also agreed to have their first Trade Meeting to discuss the signing of the long outstanding Double Tax Treaty, Free Trade Agreement and technical assistance from the Philippines to PNG for SEZ development and downstream processing support especially in commercial rice farming. The first Trade Meeting is planned to be held on the first week of November after confirmation from the Philippines Government.
“At this stage we are envisioning Trade Meetings to be hosted between our two countries every 6 months until more progress is made on our trade and investment relationship. The meetings will be held in PNG and the Philippines alternatively,” said Minister Maru.
While in the Philippines, Minister Maru also met three potential large-scale commercial rice farming companies who would like to establish large-scale rice farms in PNG. Minister Maru invited them to visit PNG and look at going into commercial rice farming. The first company will be sending a delegation in November this year to evaluate the country’s potential for large-scale rice farming in Central Province.
“PNG needs to identify up to 90, 000 hectares of land to grow rice in order to produce the rice initially to feed our own population and to export the surplus back to the Philippines. We will be working very closely with the Central Governor and the leaders from the Central Province to assist us in identifying land in Central Province to grow rice on a large-scale. It would also be a great opportunity for the landowners when we are talking about a K800 million per year rice import replacement opportunity,” he said.
Meanwhile, the private sector in the Philippines also indicated their interest in buying LNG from PNG. Minister Maru also conveyed to the Philippines Government that PNG now wants to process all coconut products into final products instead of exporting crude coconut oil from the country’s two mills in Rabaul and Madang, and PNG needs investors in that space who have the processing technology and established international markets and global brands.
“All in all, Japan, Singapore and the Philippines are ready to step up in their relationships with us in terms of trade and investment. Our plans to establish Trade Missions in these countries will go a long way in enhancing this relationship,” said Minister Maru.
“I am very happy with the outcomes of my visits to these three countries. A lot of work needs to be done but this trip has really set us off on a good foundation,” he said.
