2 minute read
The 2023 PNG 100 CEO Survey
Since 2012, the data collected by the PNG 100 CEO Survey has revealed trends in business confidence in Papua New Guinea. Analysis of the survey data by Westpac has led to the creation of PNG’s first Business Confidence Index, which is now tracked annually against other key metrics on PNG’s economy. So, what are businesses saying as we enter 2023?
Profit performance in 2022: the reality
The 2023 survey asked CEOs how profits had performed in 2022 against their expectations. Overall, 49 per cent of respondents said profits were higher than expected. While strong, this was down 10 per cent on the 2022 survey. Meanwhile, 24 per cent said profits were lower than expected, a seven per cent drop on last year.
Profit expectations
What profits do our CEOs think 2023 will bring? Overall, an impressive 75 per cent of respondents expect higher profits this year, compared with 56 per cent last year. Meanwhile, 11 per cent predict profits will just meet expectations, demonstrably lower than the 36.11 per cent recorded the year prior. Remarkably, no respondents expect profits to be substantially less in 2023.
Investment intentions
The survey asked respondents for their capital expenditure intentions for 2023. Overall, almost three-quarters of respondents (72 per cent) expect to spend more on capex this year, compared to only half of respondents in last year’s survey. Meanwhile, just 10 per cent were expecting to reduce their spending this year.
Recruitment intentions
The survey asked respondents to indicate their recruitment intentions for 2023, compared to the previous year. The numbers point to robust hiring intentions. Overall, respondents expecting to recruit more staff is up from 46 per cent in 2022 to 64 per cent this year. Meanwhile, no companies are expecting to substantially trim their payroll this year.
Business impediments
Each year, we ask CEOs to rank the key impediments facing their business. As the table below indicates, respondents rate foreign exchange availability as the top impediment. Not far behind are some perennial issues, which are hard to separate: security/law and order, unreliable telecommunications, unreliable utilities, shortage of expertise skills, lack of government capacity, and regulatory uncertainty.
Meanwhile, supply chain constraints entered the list this year while, remarkably, COVID-19 has fallen off the radar.
The 2023 PNG 100 CEO Survey was conducted by Business Advantage PNG between November 2022 and January 2023. The survey included senior executives from a representative sample of PNG’s largest companies, across all sectors of the economy. For the full survey report, visit www. businessadvantagepng.com.
Looking back on your business’s performance in 2022, did your profits…
Substantially fall short of expectations?
Fall slightly short of expectations?
Greatly exceed expectations?
In 2023, do you anticipate your profits will…
Be substantially less than 2022?
Be slightly less than 2022?
Substantially exceed 2022?
Be about the same as 2022?
Meet expectations?
Slightly exceed expectations?
How much investment (e.g. in plant, equipment, land or other assets) are you planning in 2023?
Substantially less than 2022
Slightly less than 2022
A substantial increase on 2022
What level of recruitment are you planning in 2023, compared to 2022?
Somewhat exceed 2022?
About the same as 2022
A slight increase on 2022