Experiences On The Implementation Of The Sme Policy And Master Plan. Managing Director Small and Medium Enterprises Corporation

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1 SHOWCASING ACHIEVEMENTS: GOVERNMENT FULFILLING DEVELOPMENT ASPIRATIONS & IMPROVING SERVICE DELIVERY THROUGH STRATEGIC PARTNERSHIPS Title: Experiences On The Implementation Of The Sme Policy And Master Plan Presentation by : STEVEN MAKEN Managing Director Small and Medium Enterprises Corporation

2 1. Background 2. SME Vision 3. SME Development in PNG by Legislative Reforms/Framework 5. Policy Implementation Strategy & Approach 6. Current Initiatives - Progress 7. Way forward 8. Concluding Statement 10/25/2016 2

3 1. Regulatory Reforms SBDC Act 1990 repealed and new SMEC Act 2014 enacted and effective of 10 th February, Institutional Reforms SMEC established Inaugural Board Appointment and Inaugurated in May SMEC Development Council, PM Chairman of SME Development Council New SMEC Logo/Rebranding (Pending) Corporate Plan and new Organizational Structure in progress 3. Policy Reforms SME Policy 1998 replaced by new SME Policy 2016 and Master Plan /25/2016 3

4 Vision: The SME Sector to be a major contributor towards PNG becoming a middle income country by 2030 and a high income country by It is aligned to Pillar N0.2 Wealth Creation under PNG Vision Under MTDP2 Goal states: To increase the participation of citizens in business activities. 10/25/2016 4

5 The key deliverable targets. Current 2030 Target No. of SMEs 49, ,000 Employment Creation 291,346 2,000,000 Ownership of Formal Economy 10% 70% GDP Contribution 6.0% 50% SME Contrbtn. to GDP (K mn) 3,262 50,674 GDP/Capita (Kina) 2,000 9,600 Unemployment 84.1% 49% Below Poverty Line 40% 30% Unbanked 85.6% 40% 10/25/2016 5

6 2030 Provincial SME Targets Province Population % of Pop Current SME % of SME SME Target Western Province 180, % 11,515 Gulf 121, % 7,730 Central 237, % 15,125 NCD 318, , % 20,301 Milne Bay 269, % 17,227 Northern 176, % 11,244 Southern Highlands 515, , % 32,897 Hela 352, % 22,507 Enga 452, , % 28,882 Western Highlands 543, , % 34,709 Jiwaka 150, % 9,632 Chimbu 403, % 25,766 Eastern Highlands 582, % 37,150 Morobe 646, , % 41,279 Madang 487, , % 31,106 East Sepik 433, , % 27,661 West Sepik 227, % 14,528 Manus 50, , % 3,211 New Ireland 161, , % 10,284 East New Britain 271, , % 17,310 West New Britain 242, % 15,486 AR of Bougainville 234, % 14,950 TOTAL 7,059, , % 450,500

7 The enable and/or support the Policy certain enabling legislations are required; SME Act Foreign Investment Review Board Legislation National Franchise Legislation Reserved Business Legislation Anti- Dumping Legislation National Content Definition and Legislation Enabling Legal and Regulatory Framework provides the fundamentals for all private sector development and favourable conditions to form the foundation for SME growth, survival and competitiveness. 10/25/2016 7

8 SME Corporation will only play a facilitative and coordinating role. It was never intended to be the sole player. It will work through many actors/players within Government/Public, Private, Development Partners and CBOs. The approach will involve Whole of Government and PPP, working Horizontally and vertically. 10/25/2016 8

9 Roles And Responsibility Of All Other Stakeholders In The Implementation Of The National SME Policy 2016 And The SME Master Plan The Economic Sectors: The economic sector implementing agencies of the government are an important stakeholder in the development of the SME sector in Papua New Guinea. All plans and policies of economic sector agencies in relation to SME development shall be aligned to the SME Policy 2016 and SME Master Plan Social Sectors Agencies: Plans and policies of the social sector agencies in relation to SME development should be aligned to the SME Policy 2016 and SME Master Plan Law and Justice Sector: The Law and Justice Sector shall work together with the ministry and SMEs to review and address and strengthen law and order. Provincial Governments: In order to achieve 500,000 SMEs and over two (2) million jobs by 2030, the respective provinces need play their part. This calls for the respective provinces to be an active partner in the development of the SME sector. From provincial right down to the LLG level

10 CONT... Roles And Responsibility Of All Other Stakeholders In The Implementation Of The National SME Policy 2016 And The SME Master Plan SMEs: SMEs shall comply and work together with all Ministries and Agencies including the private sector, Non-Governmental Organization and International Development Partners to enhance their development. Non State Actors: The government shall work in partnership with Non State Actors to deliver some of the SME support services and programs. International Development Partners: SME related support programs from donor agencies should be coordinated and implemented according to priority programs as identified in the SME Master Plan. The Government shall encourage development partners to initiate discussions with public and private stakeholders on lessons learned in SME support including opportunities for up-scaling and for pursuing good practices in support service delivery. Industry Peak Bodies and : such as IBC/POMCCI etc.. will be the recognized voice of SMEs in PNG.

11 Current Partnerships and collaborations; Established working relationship with Esa Ala District, Usino Bundi and Angalimp South-Waghi on a range of Business Development Activities. MOA being finalized with Dept. of Education for the institutionalization of Know About Business (KAB) Program as a formal Curriculum with the High, Secondary and National High School. Adaption work undertaken with NFA, DOE and SMEC on KAB Fisheries module. MOU on learning and best practices with SME corp. Malaysia to be executed. Dialoging and deliberations undertaken with World Bank, IFC, DFAT (Aus),Newcrest on private sector development. 10/25/

12 Some work has commenced or is under consideration to enable SME access to credit; 1. National SME Bank 2. SME Credit Guarantee Corporation Tuesday, 25 October 2016

13 Policy Implementation Marketing and Awareness Plan/Strategy 1. National Workshop 2. Provincial/Regional Workshops 3. District/LLG/Ward Workshops 10/25/

14 Our country requires significant economic reforms and strategies to transform the economy to empower our people, reduce poverty, fairly distribute the wealth of this nation, which will in turn achieve the desired goals of Vision SMEs must assume a greater role in the economy. SMEs must not only act as an enabler but also a key driver of broad based and inclusive economic growth program in order to achieve national prosperity as a high income country by /25/