Support economic stability
The purpose of superannuation funds is to encourage Members to save now so they can enjoy a dignified and comfortable retirement in the future. Every year, Nambawan Super injects a large sum of money into the PNG economy through benefit payments to Members when they retire which helps sustain and stimulate economic growth. Just last year, Nambawan Super paid over K700 million in benefits to over 12,000 Members.
Investments for Economy
Super funds invest in a range of assets, including Government stocks and bonds, properties and local businesses. Investments into Government stocks and bonds help the State fund its development projects; properties improve the productivity of businesses; and businesses create jobs, and provide goods and services that are important for a growing population.
Creating Job opportunities
Through their investments, super funds provide capital to businesses, which in turn helps them to expand and create new job opportunities in the process. When a business expands it generally requires more skilled workers and so then often invests in the upskilling of more Papua New Guineans, which is a win-win for everyone.
Bring FX Flow into the country
PNG super funds also play a crucial role in generating FX income for the Country through their international investments and investments in local businesses that export goods and services. These investments create income which is paid in Foreign Currency that gets brought back into the Country and is then used by other businesses and investors to continue trading with international partners.
Super funds and the economy
The relationship between super funds and the economy can be compared to a boat and the ocean. The ocean can be calm or stormy, just like the economy can experience periods of stability or volatility. A boat is a vessel that carries many people and goods across the ocean, and super funds are financial vessels that collect small amounts from many people and bring together as a large amount that allows super funds to invest into larger investments that could not be achieved by smaller investors.