Scovell: Manufacturers Struggling

The Manufacturers Council of PNG is calling on consumers to support locally-produced goods, although some may be more expensive than imported goods.

Council CEO, Chey Scovell made the call today, saying that local manufacturers are faced with huge challenges, such as the high cost of doing business and the competition with imported goods.


Despite these challenges, Scovell says some small consumer choices can determine how goods benefit the country’s economy.


When asked whether local manufacturers in the country were struggling, Mr. Scovell said the manufacturers are quite clearly struggling. The CEO of the Manufacturers Council of PNG was not at all hesitant in stating the facts.


It is not that hard to understand the logic, that when a consumer opts for a locally made product, the consumer is actually supporting local industries, which in turn plays a small part in the country’s economy.


And what the people really want is indeed the ultimate question. A question that is usually about price and affordability, of how cheap and how expensive, but not necessarily whether, or not the product was manufactured within Papua New Guinea.


And price is what it all comes down to. A selling point where most imported products have the advantage of over PNG made goods.


According to a survey conducted by the council, renting a factory space in the country would cost around K600-K700 per square metre, whereas in Malaysia, renting the same area of factory space would cost less than K3. 


Electricity usage on the other hand costs 40 to 50 cents per kilo watt, whereas in Malaysia, a kilo watt costs 40 to 50 cents.


Furthermore, the council has also called on consumers to be responsible in the way they shop; encouraging shoppers to choose what could eventually help the economy as a whole.


But for now, the dilemma shall remain. Unless the cost of doing business in the country is brought down, expect to pay a few kina, or more on PNG made goods.

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