By: Cedric Patjole – 26 May 2017
Bank South Pacific will be creating history when it enters the Asian market following the announcement of its new new branch in Cambodia.
This was revealed today during the announcing of the final dividend to shareholders for 2016 today.
The decision to enter Cambodia was settled on May 2nd this year.
BSP owns 50 per cent of an asset finance company called RMA Finance, which is now in the process of being rebranded to BSP Finance Cambodia Proprietary Limited.
“It’s already operating. We now own 50 per cent and the formal rebranding, hopefully by the end of July we’ll have the BSP colours proudly in Cambodia,” said BSP CEO Robin Fleming.
The new branch in Cambodia is part of BSP strategy to enter the Asian market following its successful penetration in the Pacific which it has successfully covered following its acquisition of Westpac’s assets in the region.
BSP Board Chairman Sir Kostas said other countries in BSP’s sights include Lao’s, Myanmar, and Vietnam which they hope to enter between 18 months to two years.
“We’re starting to do feasibility on these Laos, Myanmar, I mean these things don’t happen overnight. There’s a timeframe, we make sure we have all the ticks in the boxes first. Make sure all the regulatory requirements are satisfied and we proceed.
But there is opportunity in these countries. That’s the main thing,” said Sir Kostas.
BSP is the largest business in PNG outside of companies in the resources sector.
The banking chain has seen remarkable growth, particularly over the last three years despite a tough economic environment.
The growth and performance is attributed to the management team and staff of the company.
Australia-PNG Business Council
16th May 2017
PRIME MINISTER Peter O’Neill during his address at opening of the Australian-PNG Business Council in Port Moresby said it was important PNG and Australia continued its long-standing relationship, especially the bilateral trade relations between them.
He said in the past few years both countries faced challenging times whilst working to manage the impacts of the current downturn in the global economy described his government in making tough decisions to address the issue.
“We identified ways and deferred non-priority items. We also reformed many practises, both in government and SOE to manage our economy during the course of the global economic downturn,” He said.
Despite the current economic situation faced by Papua New Guinea, the national government continued its commitment through the delivery of essential government services and also the completion of vital national projects nationwide.
“The theme of this forum ‘navigating the cycle and creating opportunities in challenging times’ is relevant for both countries. But in Papua New Guinea, the lessons of the recent drop in commodity price should deliver some tough lessons for us to learn from.”
Mr O’Neill compared PNG’s economy to many parts in Australia that have always been held at ransom by the ‘boom and bust cycle’ in the resource sector.
Despite the unfriendly economic climate, the national government was on task in helping to reshape the economy whilst broadening its economic base.
He said we needed to manage our economy and move away from the ‘boom and bust cycle’ since we could not afford to rely on the resource sector forever.
“At the height of the boom energy prices, our government received revenue over K2 billion per annum. However at the bust in energy prices our revenue declined to a mere K200 million per annum,” Mr O’Neill said.