PAPUA New Guinea has an opportunity to harness its growing pool of investment capital to support economic development, but greater certainty, stronger financial systems and investment in infrastructure will be critical to unlocking this potential.
This was a key message from Nambawan Super Limited (NSL) Chief Executive Officer Lachlan Baird during a panel discussion at the Business Advantage PNG Investment Conference.
Mr. Baird joined senior business and financial sector leaders to discuss PNG’s economic outlook, investment environment and opportunities for future growth.
As PNG’s largest superannuation fund, NSL manages long-term capital on behalf of its Members, with an investment objective of delivering a return of CPI +2% over the medium to long-term. The Fund has achieved this objective over the past 20 years.
NSL delivered a 12% crediting rate to Members in 2025, following 10.5% in 2024. While these are strong results, maintaining sustainable long-term returns in an increasingly complex investment environment remains a key focus for NSL.
The Fund has recently appointed a new Chief Investment Officer and undertaken an in-depth review of its investment strategy to ensure it remains responsive to changing conditions in PNG and global markets.
Mr. Baird highlighted persistent inflation, high asset prices and elevated valuations in major global markets as key risk considerations for investors.
Describing the current environment as one of “irrational exuberance”, he noted that US and Australian listed markets are reaching all-time highs, while asset prices remain high and risk may be mispriced.
“PNG presents its own investment challenges. While the domestic market is relatively small, the pool of investment capital is large and growing, with many domestic investments concentrated in relatively illiquid assets such as shares and property.”
“The potential increase in economic activity and capital inflows associated with major resource projects also presents opportunities, alongside the risk of increased inflationary pressure.”
“For NSL, the focus is on identifying investments that can deliver appropriate long-term returns for our Members while also providing meaningful economic benefits to the country.”
“The things we are keen to invest in are opportunities that can deliver the return we expect over the term of the investment, and also provide an economic benefit to the country,” Mr. Baird said.
“PNG’s superannuation sector now holds around K24 billion in funds and is growing at around 9% per annum. This represents a significant pool of domestic capital, which creates a conducive environment for further investment growth in the shared interests of both the NSL Members and the national economy.”
“A stronger financial system will therefore be important to attracting additional domestic and foreign investment. Creating an environment where investors can invest with confidence, earn an appropriate return and have security over their investments will be critical to PNG’s next phase of economic development.”
Mr. Baird also shared how the government is a key stakeholder that plays an important role by effectively regulating and creating greater certainty for businesses and investors. This includes ensuring businesses can operate profitably and generate returns, while economic activity translates into employment, clear tax and royalty revenues, and investment in national infrastructure.
NSL also urged the government to support its Members especially with resolving outstanding financial obligations, such as the unpaid rental income owed to the Fund and unfunded contributions affecting Members who have already retired.
“These funds belong to people that have spent their working life in roles that support the country, such as teachers and police, who have now retired but have not received their superannuation, and those same funds will be injected back into the economy creating more opportunities,” Mr. Baird said.
For NSL, responsible, long-term investment is not only about delivering sustainable returns for Members. It is also about identifying opportunities that can contribute to employment, infrastructure and broader economic growth.