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’. It also has the wider meaning of the ‘same family’ or the ‘same clan’ e.g. 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 Papua New Guinea (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 caution. Providing credit, supplying products or undertaking work without arranging appropriate insurance for non-payment of the contract is a risky strategy.
General business practices in some sectors, such as wholesale trading, used clothing, cottage industries and small shops may more closely reflect Asian values e.g. cash transactions, personal relationships, longer negotiations and formal recognition of business arrangements. When dealing with larger companies, western business values tend to be the norm.
Gift giving is 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 an open neck shirt, 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. In accordance with local custom, dress for women tends to be more conservative than in Australia.
Setting up in Papua New Guinea
Finding the right partner
Relationships are crucial in Papua New Guinea. Finding and working closely with the right partner is the key to achieving success in the market. Whether dealing with an agent, distributor, wholesaler, retailer or end user, exporters should do their own due diligence on potential options. This should include visits to the market to qualify potential partners and develop relationships. The Chambers of Commerce in PNG are also valuable sources of local business information.
A range of Australian lawyers and accountants operate in-country and Austrade can assist in providing contact details.
Should exporters decide to establish an in-market presence in Papua New Guinea, it is recommended they engage a professional service provider.
Austrade can provide a list of 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 throughout Papua New Guinea.
The banking sector is serviced by three major banks, ANZ, Westpac, and Bank of South Pacific. All offer personal and commercial banking facilities.
EFTPOS and ATM services are common in Port Moresby and other major regional centres.
The finance sector is serviced by a number of providers offering general finance services:
- Kina Securities
- Credit Corporation PNG
- Finance Corporation Limited (Fincorp).
For further information on monetary policy, financial sector supervision and the payments system, the Bank of PNG is the central bank and financial regulator.
Personal Property Security Register
If your business with Papua New Guinea involves the supply of movable property or fixtures (usually equipment or goods on lease, deferred payment or other credit terms), you need to be aware of the Personal Property Security Register that began operating in PNG in May, 2016. The following information should help you to protect your interests (or priority) against other creditors.
- To protect yourself, you need to register your interests online. This will secure the obligation to you ahead of any others. It can also protect you from having your equipment or goods offered as collateral to other creditors.
- While a 180 day transition period applies, this is only relevant when registering interests that are already held. New business transactions and interests need to be registered before (or as close as possible to) the physical ownership transaction.
- Exporters who anticipate the need to register a security interest are required to establish a client account with the register. Establishment of the client account and registration of a security interest can both be completed online.
- The register is hosted by the PNG Investment Promotion Authority, which is also a good source of information on doing business in Papua New Guinea.
- If you don’t register your interests, you may have little protection and could lose priority over other creditors.
- Legal or financial companies with experience in PNG are the best source of advice on the register and how it might impact on your business in this market.
- Austrade can provide referrals to suitable companies.
Links and resources
Government, business and trade
ANZ Business Guides
Australia Papua New Guinea Business Council
Business Council of Papua New Guinea
Investment Promotion Authority
Lae Chamber of Commerce
Papua New Guinea Internal Revenue Commission
PNG Chamber of Commerce and Industry
Port Moresby Chamber of Commerce and Industry
News and media
The National Online
Business Advantage International has a free weekly subscription news feed on PNG
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. The content is for information and carries no warranty; as such, the addressee must exercise their own discretion in its use. Australia’s anti-bribery laws apply overseas and Austrade will not provide business related services to any party who breaches the law and will report credible evidence of any breach. For further information, please see foreign bribery information and awareness pack.