(Last updated: 3 Dec 2012)
Doing business
Business culture
Business tips
Always have plenty of business cards, and treat other peoples’ cards with respect when they are handed to you.
Reference will often be made to ‘wantoks’ or the ‘wantok system’. ‘Wantok’ literally means ‘one talk’ or the ‘same language’. However, it also has the wider meaning of the ‘same family’, the ‘same clan’. It is like the Australian term of ‘mate’ but has a much deeper meaning. For example, a ‘wantok’ has an obligatory responsibility to assist another ‘wantok’, even to his own detriment or loss. This obligation can have detrimental effects when it is incorporated into a capitalistic or ‘Western’ way of life, or method of doing business.
Continuity of contact is important when doing business in PNG. Business people like to see the same face representing a company on successive visits. The guarantee of after sales service or maintenance is also considered important, and should be an integral part of your strategy.
Business laws are based on English legal principles, but their application is less rigorous than in Australia. Progress all your business undertakings with the utmost business prudence. Providing credit, supplying product or undertaking work, without arranging appropriate insurance for non-payment of contract, is a risky strategy.
General business practices in some sectors (such as wholesale trading, used clothing, cottage industries, small shops) may reflect more Asian values (such as cash transactions, personal relationships, longer negotiations, formal recognition of business arrangement). Transactions involving large companies tend to exhibit more Western business values.
Gifts are not common in general business dealings.
Forms of address in business circles are the same as in Australia.
Men’s business wear comprises long, lightweight trousers and open necked shirt. This is known as ‘tropical informal’. ‘Tropical formal’ for men consists of long sleeved shirt and tie with trousers. State affairs or more formal occasions may warrant a jacket.
Women’s business wear is conservative but lightweight, just like any other warm-climate city. In accordance with local custom, dress for women is more conservative than in Australia.
Setting up in Papua New Guinea
Finding the right partner
The right partner is a crucial element of success in any market and PNG is no exception. Whether it is an agent, distributor, wholesaler or retailer exporters should do their own due diligence on potential options including a visit to market to further qualify potential partners.
PNG’s Chambers of Commerce are also valuable sources of local business information.
A range of Australian lawyers and accountants operate in country and Austrade can assist with contacts.
In market representation
Should exporters decide to establish an in-market presence in PNG, it is recommended they engage a professional service provider.
Austrade can provide a list of Australian lawyers and accountants.
For business and investment regulations contact PNG’s Investment Promotion Authority.
Banking and finance
A wide range of banking and finance facilities are available in PNG.
The banking sector is serviced by three major banks, Westpac, ANZ and Bank of South Pacific offering personal and commercial banking facilities.
EFTPOS and ATM services are in common use in major regional centres.
The finance sector is serviced by a number of providers offering general finance services and include, Kina Securities, Credit Corporation and Finance Corporation Limited.
The Bank of PNG is PNG’s central bank and regulator. Further information on monetary policy and on financial sector supervision and payments system can be found at www.bankpng.gov.pg.
Links and resources
Government, business and trade
Australia Papua New Guinea Business Council - www.apngbc.org.au
Investment Promotion Authority - www.ipa.gov.pg
Lae Chamber of Commerce - www.lcci.org.pg
Papua New Guinea Internal Revenue Commission - www.irc.gov.pg
PNG Chamber of Commerce and Industry - www.pngcci.org.pg
Port Moresby Chamber of Commerce and Industry - www.pomcci.org.pg
News and media
Post-Courier Online - www.postcourier.com.pg
The National Online - www.thenational.com.pg
Business Advantage International has a free weekly news feed on PNG which you can subscribe to - www.businessadvantagepng.com
Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.