FOREX PROBLEMS, A NIGHTMARE FOR SMEs!

By Teine Korokoi

Dear PM, Hon. James Marape

I know you have highly paid, competent and qualified economic advisors who can lecture you on Foreign Exchange and the economics of it but I would like to point out some practical aspects of it that your theoretical experts might have overlooked.

Per my calculated guess, we have well over 500 000 thousand foreigners living in Papua New Guinea. 4/5 of them are Asians (Chinese, Koreans, Indians, Bangladeshis, Pakistanis and majority Filipinos).

I understand that your banking is done by your support staff and or family that you don't get to see the queue at Western Union section of our commercial banks. That very section is flooded by people from these countries sending money out of the country everyday.

Yes, there are limitations to the amount of money one can transact. But the fact is, there are hundreds of thousands of them transacting right across the country. In a week, if 250 000 send K1500 each, that is equal to K375 000 000 (K375 million). Your Government only needs half of that to pay public servants every fortnight.

With our current economic situation, the central bank and commercial banks don't have enough foreign exchange to support SMEs import raw materials or machinery to sustain their operations.

Majority of the SMEs in the country are owned by Papua New Guineans. These are your people and your people are the ones who are going to drive your vision to #TakeBackPNG and making it the rich black Christian nation, NOT the Asians working jobs that have been reserved for your people by the constitution which you have sworn oath to uphold and protect.

SMEs are the hardest hit and they are really struggling. Large companies have excellent contacts with our financial institutions and their orders are given priority. Whatever threshold is left should rightfully be allocated to SMEs, but instead, the banks accommodate transactions by these Asians as their money comes in 'dribs n drabs' and just within the limits.

However, the biggest oversight is that these financial institutions are not aware that these 'dribs n drabs' add up to a staggering amount pushing the SME's transactions to queue up for weeks and months.

I know you have your people at heart and always doing and wanting the best for them. Could you therefore, implement a control mechanism to regulate the monies sent out by these unwanted people? I hereby suggest three options that you can implement to at least keep some money within your country that can stabilise the forex and improve the economy.

1). The constitution stipulates that reserved businesses are for Papua New Guineans. Can you put together a task force team to rid these foreigners and give opportunity to your own kind so the Kina stays where its supposed to be?

2). Our labour laws prohibits foreigners from working jobs that Papua New Guineans are capable (technically competent and qualified). Yet, we have store managers, nurses, waiters and front desk staff at hotels, ICT technicians, electricians, plumbers etc, etc occupying these jobs that PNG has so many of its workforce roaming the streets in towns and cities and others doping and drinking away in the villages.

3). Pass a law that will allow Any and All foreigners to remit a certain amount back to their country in a month.

The way it is being played out, big businesses are given priority pushing SMEs below the limit. The little allowable margin is taken up by the foreign workers.

Sir, you have a duty to your people as the Head of the country. You have bigger decisions to make but neglecting your very own people to prosper by overlooking little things has huge impact on the success of the country and that is a cardinal sin and an insult to your position.

I pray and hope that something is done to address this issue. 

Kind regards

Kombulno Kip | Nondugl | Jiwaka Province