Investment Promotions (Amendment) Act 2022

By Andrew Kidu and Tara Vele

In the first sitting of Parliament for the 2023 calendar year, the Marape-Russo Government unanimously passed the Investment Promotions (Amendment) Bill 2022. Prime Minister James Marape welcomed the passage of the Bill, saying “this bill is a first step towards clearly segregating and ring-fencing businesses that PNG Citizens can participate [in].” He went on to say, “we made a commitment to empower our people to be engaged in businesses, a key focus which differentiates our government from past governments.”

The key changes introduced by the amended Act are:

• changing the foreign certification system to process applications quicker (automatically rejecting applications for ‘Reserved Activities’)

• reviewing the ‘Reserved Activities List’ at least every three (3) years

• the introduction of more reporting obligations on foreign investors, and the provision of powers to cancel certification where key business laws are breached

• improving IPA’s enforcement and compliances functions, and making better allowances for cross-agency enforcement

• the creation of a dedicated Registrar of Foreign Investment, that will oversee the system and possess the power to speed up wanted incoming investment, automatically deny unwanted investment, and enforce compliance.