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BCPNG Market Conditions Survey (Q4, 2020)

May 14, 2021

The information presented in this report is based on data gathered from an online survey conducted by the Business Council
of PNG, with assistance from PwC, from 20 January to 19 February 2021.

Therefore, the findings are only reflective of the experiences of the respondents and may not mirror the experiences of other
industry players that were not able to participate in the survey.

Where possible, the data gathered from this survey was compared to the findings of the first and second market conditions
survey that the BCPNG conducted in May and August 2020, respectively.

The questions were both open ended, which required a free text response, as well as multiple choice questions. The survey
questionnaire was sent to respondents using an online survey tool, and the data gathered was analysed and organised by
responses into themes. The responses were gathered on a confidential basis and the responses have not been audited or

  • A majority of businesses continued to experience financial decline through to the end of 2020. At least 60% did not meet
    their projected results for Q4 2020. 69% of respondents have reported a decline in their 2020 annual revenue compared
    to the previous year.
  • Despite the continued trend of financial decline, business leaders in PNG are showing a hint of optimism when it comes
    to their short-term business prospects. 44% are expecting revenue growth in the next six months while 25% are
    expecting revenue decline. This is a significant improvement from the previous quarter when only 9% anticipated
    revenue growth in the next six months and 74% anticipated revenue decrease.
  • Survey findings also show that there are less businesses that reduced their headcount in Q4 2020 compared to Q2.
    Furthermore, 82% of respondents do not intend to reduce their employee headcount in the next three to six months.
  • Reduced consumption and market demand remains to be the top challenge that businesses face. Aside from financial
    and productivity challenges, respondents also say that the lack of foreign currency and the inability to get the right skills
    in-country at the right time remain a business impediment.
  • 70% of the respondents are now able to operate in the current environment for more than 12 months. This is a continuous improvement from Q2 and Q1 when only 51% and 35%, respectively, of the business leaders surveyed were able to operate in the current environment for more than 12 months.
  • Close to a year after the announcement of the Government’s stimulus package, it is still yet to create a positive impact on the respondents’ businesses, with 59% rating the stimulus package as ‘not effective at all’.
  • To boost business recovery and to create an environment that will foster growth and investment, respondents believe that the Government should focus on accelerating resource projects, restoring investor confidence and resolving foreign investment issues, as well as settling debts to the private sector.

Download the full BCPNG Market Conditions Survey for Quarter 4, 2020.